Commodities February 27, 2026

Pemex posts Q4 net loss as production lags behind government target

State oil company records 155.23 million peso loss, sizeable debt and continued reliance on government support

By Avery Klein
Pemex posts Q4 net loss as production lags behind government target

Mexico's state energy firm recorded a net loss of 155.23 million pesos in the fourth quarter and reported fourth-quarter revenues of 362.45 billion pesos. Production and refining volumes fell short of government targets, while the company carried $85.2 billion in financial debt at quarter-end and received 395.3 billion pesos in government support during the year.

Key Points

  • Pemex recorded a fourth-quarter net loss of 155.23 million pesos and reported revenues of 362.45 billion pesos; these figures affect market assessment of the company's near-term financial performance - sectors impacted include energy and sovereign fiscal markets.
  • Operational output averaged 1.65 million bpd for crude and condensates and 1.14 million bpd of refining in Oct-Dec, short of the government's 1.8 million bpd production target - this influences upstream oil and refining sector dynamics.
  • The company reported $85.2 billion in financial debt at quarter-end and disclosed 395.3 billion pesos in government support for the year - implications for government budgeting and credit considerations are relevant to bond and fiscal markets.

Mexican state-run oil company Pemex reported a fourth-quarter net loss of 155.23 million pesos and fourth-quarter revenues of 362.45 billion pesos, according to its filing with the Mexican stock exchange.

Production and refining volumes for the October-to-December period were included in the filing: Pemex and its partners pumped an average of 1.65 million barrels per day (bpd) of crude oil and condensates during those months, and the company refined an average of 1.14 million bpd.

The filing highlighted persistent challenges in output. Many fields - notably those in the Gulf of Mexico - are described as depleted, and recent discoveries have not met expectations. Those conditions have constrained Pemex's ability to reach the government's stated production objective of 1.8 million bpd.

On the balance sheet, Pemex reported a financial debt position of $85.2 billion at the end of the quarter. The company also disclosed that it received 395.3 billion pesos in government support during the year, a figure noted in the same filing. The exchange rate reported for end-December was $1 = 18.0080 Mexican pesos.


Operational figures and financial snapshot

  • Net loss for the quarter: 155.23 million pesos (reported as $8.62 million using the end-December exchange rate).
  • Quarterly revenues: 362.45 billion pesos.
  • Average crude and condensate production (Oct-Dec): 1.65 million bpd.
  • Average refining throughput (Oct-Dec): 1.14 million bpd.
  • Financial debt at quarter-end: $85.2 billion.
  • Government support received during the year: 395.3 billion pesos.

The filing frames a company contending with naturally declining fields and a shortfall in output from new finds, factors cited as impeding progress toward the government's production target. The disclosures also underscore Pemex's sizeable indebtedness and continued fiscal support from the state.


Note: The figures above are taken from Pemex's quarter-end filing and include the reported end-December exchange rate of $1 = 18.0080 Mexican pesos.

Risks

  • Declining production from many fields, particularly in the Gulf of Mexico, poses a risk to Pemex's ability to increase output - this affects the upstream oil sector and oil services providers.
  • New discoveries have not met expectations, adding uncertainty to future production trajectories and investment planning - this impacts exploration and capital allocation decisions in the energy sector.
  • High financial indebtedness and significant reliance on government support expose Pemex and public finances to fiscal strain and market sensitivity - this presents risks for sovereign credit and capital markets.

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