Mexico's Pemex posts Q2 net profits of $1.03 billion

According to a filing at the Mexican stock exchange, Mexican state energy firm?Pemex posted a net profit of $1.03 billion in its second quarter.

The earnings before interest taxes, depreciation, and amortization (EBITDA), for one of the largest companies in the country, during the period April to June, totaled 144.23 billion pesos.

Pemex and its partners produced 1,66 million barrels per day (bpd), or crude oil and condensate, during the third quarter. This was short of the government's target of 1.8 millions bpd, despite efforts to increase output from mature fields and bring in new projects.

Although President Claudia Sheinbaum’s administration has adopted mixed-development contracts as part of its strategy to increase production, the progress has been slower than expected and there is still uncertainty over how quickly new project volumes can be meaningful.

Pemex is still struggling to not only reverse years of falling output, but also reduce its financial obligations towards bondholders and?banks as well as suppliers, contractors, and contractors.

The Olmeca refinery in Dos Bocas was one of the refineries that processed 1 million barrels per day (bpd) during the quarter. Mexico continued to refine crude domestically rather than export it.

As part of the government's drive for energy independence, the company has shifted production towards domestic refineries. This is despite higher oil prices that could make exports more profitable.

At the end of June, financial debt was $77.5 billion.

(source: Reuters)