MEXICO CITY, February 28 — Mexico’s state-owned energy giant reported a sharply reduced Pemex net loss of 155.23 million pesos ($8.62 million) in the fourth quarter of 2025, marking a significant improvement from the massive losses recorded a year earlier, according to official filings.
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The latest Pemex net loss reflects a dramatic turnaround compared with the fourth quarter of 2024, when the company posted a net loss of 350.46 billion pesos, underscoring the volatility in the financial performance of Petróleos Mexicanos.
Pemex Net Loss Narrows in Q4 2025
The quarterly filing showed that the Pemex net loss narrowed substantially due to improved refining activity and operational adjustments.
Total revenue for the quarter reached 362.45 billion pesos, while government financial support during 2025 totaled 395.3 billion pesos, providing critical assistance to the heavily indebted state oil producer.
Despite the improved quarter, the Pemex net loss highlights ongoing financial strain within the company’s structure, particularly given its large debt obligations.
Debt Levels Continue to Pressure Financial Stability
Pemex remains one of the most indebted oil companies in the world.
At the end of 2025:
- Financial debt stood at $85.2 billion
- Outstanding payments to suppliers totaled $24.18 billion
- Scheduled debt repayments for 2026 amount to $13.4 billion
These figures underscore the scale of obligations facing the company, even as the quarterly Pemex net loss shows notable improvement compared with prior periods.
Debt servicing remains one of the most significant constraints on cash flow.
Production Remains Below Government Target
During the fourth quarter, Pemex and its partners produced an average of 1.65 million barrels per day (bpd) of crude oil and condensates.
While this level was roughly steady year-over-year, it remains below the Mexican government’s target of 1.8 million bpd, highlighting structural challenges in upstream operations.
Declining output from mature fields in the Gulf of Mexico has continued to weigh on overall production capacity.
Even though the Pemex net loss narrowed, production stagnation limits potential revenue expansion.
Refining Output Shows Improvement
One area of progress was refining activity.
Pemex processed 1.14 million bpd of crude oil in the fourth quarter, compared with 786,000 bpd a year earlier.
This increase aligns with Mexico’s strategic objective of strengthening domestic refining capacity and reducing reliance on imported fuels.
Projects such as the Dos Bocas refinery and modernization of existing facilities form part of this broader national policy.
However, refining improvements alone were not sufficient to offset broader financial pressures, as evidenced by the reported Pemex net loss.
Government Financial Support Plays Critical Role
Throughout 2025, the Mexican government provided 395.3 billion pesos in support to Pemex.
This backing has helped stabilize operations and reduce the magnitude of losses.
Government assistance has become a key component in sustaining the company’s financial framework, especially given the persistent debt burden and production shortfalls.
The narrowing Pemex net loss cannot be viewed independently from this fiscal support.
Comparison with Prior Year Performance
The scale of improvement becomes clearer when compared to the previous year.
In the fourth quarter of 2024, Pemex recorded a loss of 350.46 billion pesos, reflecting severe operational and financial pressures at that time.
The latest quarterly Pemex net loss of 155.23 million pesos represents a dramatic reduction in red ink.
While not yet returning to sustained profitability, the difference illustrates how operational and financial adjustments have altered quarterly outcomes.
Broader Energy Market Context
Global crude markets in 2025 experienced price fluctuations driven by geopolitical tensions and supply adjustments among major producers.
Mexico’s oil production levels and Pemex’s refining performance remain significant to Latin American energy flows and U.S. fuel trade.
Despite improved quarterly figures, the Pemex net loss indicates that structural reforms and debt management remain central to the company’s financial trajectory.
Financial Outlook Remains Constrained by Debt
The company’s $85.2 billion debt load continues to shape its financial flexibility.
Debt repayments of $13.4 billion in 2026 will require careful liquidity management, especially in a volatile oil price environment.
Supplier liabilities totaling $24.18 billion further add to financial pressures.
Although the quarterly Pemex net loss narrowed sharply, debt reduction remains a long-term challenge.
Closing Summary
Mexico’s state oil company reported a reduced Pemex net loss of 155.23 million pesos ($8.62 million) for the fourth quarter of 2025.
The improvement reflects stronger refining activity and substantial government support. However, crude production remains below target levels and the company continues to carry significant debt obligations.
While the quarterly figures show progress, the financial structure of Pemex remains shaped by heavy liabilities and operational constraints.