Mexico’s Pemex Posts First Quarterly Profit in Over Year Amid $12 Billion Debt Support

Mexico’s state oil company, Pemex, reported its first quarterly profit in over a year, posting a net income of around $3.2–$3.5 billion for the second quarter of 2025, largely boosted by a stronger Mexican peso, operational efficiencies, and cost reductions. Despite ongoing declines in crude production and persistent high debt—nearly $100 billion—the company saw improved EBITDA and maintained payments to suppliers, reflecting increased fiscal discipline. The Mexican government supported Pemex with a $12 billion debt offering using pre-capitalized notes, a structure designed to strengthen Pemex’s balance sheet while avoiding direct government guarantees. These financial maneuvers are part of broader efforts by the new administration to stabilize Pemex, improve liquidity, and reduce reliance on fuel imports, with the Olmeca refinery playing a key role. While the profit provides temporary relief, the company still faces significant challenges from declining revenues, lower oil prices, and long-term structural issues. Ratings agencies noted the transaction as credit positive, but Pemex’s financial outlook remains precarious.