Pemex posted a 9x growth in net income from MXN 131bn ($6.5bn) in Q2 2022 from MXN 14.4bn ($0.7bn) one year prior, on strong revenues of MXN 655bn ($32.3bn), up 88.6% YoY. Domestic and export revenues both improved significantly by 89.2% and 88.5% respectively from increased hydrocarbon prices and sales volumes. Hydrocarbon production, crude oil processing and petroleum products production all jumped by 1.1% (20Mbd), 19.6% (796Mbd) and 22.6% (805Mbd) YoY respectively. An impairment reversal of MXN 47bn ($2.3bn) compared to an impairment of MXN 14bn ($0.7bn) one year ago further contributed to the increase in net income. On the balance sheet front, total debt decreased 4% YoY to $2.16tn ($108bn) with cash and cash equivalents at MXN 64bn ($3.16bn), 15.1% down YoY. In terms of liquidity management, the Mexican oil major holds syndicated revolving credit facilities of $7.6bn and MXN 37bn ($1.8bn). CEO Octavio Romero Oropeza said “Today, the face of Pemex is very different…[Pemex] will keep making its own debt payments as it no longer needs the government to do so for the rest of the year.” These comments are made in view of liquidity issues that have historically plagued the most indebted oil company in the world, compelling the Mexican government to step in and support them in recent years.
Pemex’s 5.95% 2031s are currently trading higher at 76.6, up by 2.64 points to yield 10.1%.