With this result, the Mexican state-owned company recorded its second-largest loss for a third quarter in history.
During the third quarter of 2024, Petróleos Mexicanos (Pemex) doubled its financial loss compared to the same period in 2023 to 161.455 billion pesos (8.193 billion dollars), the largest decrease for the same period since 2015 (-167.634 billion pesos), the company reported on Tuesday morning.
Adding this data to the results originally reported for the first two quarters of the year, the state oil company's loss as of September 30 already amounts to 412.71 billion pesos (about 21 billion dollars), making it the second largest for a similar period, only behind 2020 (-605.176 billion pesos).
As in the previous quarter, the result for the July-September period reflects a strong impact of the depreciation of the peso on the increase in the company's financial expenses, but also the increase in the deterioration of the company's fixed assets and the rise in administrative and distribution expenses.
According to data from Banxico, between the third quarter of 2023 and the third quarter of 2024, the peso-dollar exchange rate grew by 11.1%, going from an average parity of 17.1 to 19 pesos. Coincidentally, Pemex recorded foreign exchange losses of 130.111 billion pesos.
On the other hand, Pemex's total loss would have been greater if it were not for the fact that, for the first time in the quarter, the company did not pay taxes to the government, but instead received tax credits.
“During 3Q24, a total tax and duty credit of MXN 6.0 billion was recorded, compared to a tax charge of MXN 24.7 billion in 3Q23, mainly due to the application of the fiscal stimulus in the decree dated August 23, 2024 and the decrease in the Shared Utility Right (DUC) rate. In this sense, DUC payments decreased by 98.4% compared to 3Q23,” the oil company reported in its report.
It should be remembered that on August 24, the Ministry of Finance and Public Credit (SHCP) published in the DOF a fiscal stimulus decree, consisting of 100% of the amount of the DUC - the main tax paid by Pemex - corresponding to the months of May, June and July 2024.
As well as a stimulus consisting of a tax credit equivalent to 100% of the amount of the hydrocarbon extraction right corresponding to the months of June and July of 2024.
This, amid Pemex's difficulties in meeting its short-term liabilities, both debt maturities and payments to suppliers.
Lower sales
During the third quarter of the year, Pemex's sales also fell by 7.7% to 426.122 billion pesos, due to a 17.8% decrease in crude oil export sales that was not enough to offset the 0.5% increase in domestic sales.
This is while the company is in the process of shifting its business toward domestic crude processing and the internal sale of petroleum products rather than crude exports, following the mandate of former President Andrés Manuel López Obrador to seek self-sufficiency in the consumption of gasoline, diesel and jet fuel.
Debt is falling… slowly
Meanwhile, the state-owned company's financial debt decreased by 6.4% compared to the end of 2023 to 97.309 billion dollars "mainly due to the objective of maintaining a net debt close to zero," the company said.
However, the debt balance at the end of the third quarter of 2024 is just 8% lower than at the end of 2018, equivalent to 105.792 billion dollars, at the beginning of the six-year term of former President López Obrador, who as president promoted direct and indirect support for Pemex close to two billion pesos, according to calculations by the organization México Evalúa.
