Pemex net profit plunges 70% in Q2 despite debt reduction

Pemex, the Mexican state oil company, reported a staggering 69.7% annual decline in net profit for the second quarter of 2026, reaching 18.02 billion pesos (US $1.04 billion), as stated in a filing with the Mexican Stock Exchange. Despite the substantial drop in profits, Pemex claimed to have recorded "favorable results" in key operational and financial indicators.

The primary factors contributing to the reduced profit included a 177% surge in financial costs, increased tax obligations, and an unfavorable exchange rate, as the peso strengthened by approximately 2.5% against the US dollar during the quarter.

While Pemex's production of hydrocarbons grew by 4.6% year-over-year, averaging 2.477 million barrels of crude oil equivalent per day, it fell short of the government's target of 1.8 million barrels per day. The company's processing of crude at refineries increased by 2.9% annually, reaching 1.008 million barrels per day. Moreover, national sales of oil and oil products rose by 9.8%, reaching 1.471 million barrels per day.

Pemex's income from sales and services saw a significant 30.3% annual increase to 510.4 billion pesos (US $29.45 billion), and its operating profit improved to 85.5 billion pesos (US $4.93 billion) from an 11 billion-peso loss in the same period last year.

In an attempt to mitigate financial obligations, Pemex reported a 9.1% reduction in total debt, bringing it down to US $77.5 billion by June 30, 2026, compared to the end of 2025. Short-term debt accounted for a smaller share of the company's total debt, easing immediate financial pressures and strengthening its financial flexibility.

This progress is in line with Pemex's commitment to maintaining zero net debt. The federal government aims to boost oil production through partnerships with private companies and has emphasized its commitment to achieving energy self-sufficiency, even as stronger oil prices may make exports more lucrative.