Pemex posts strong Q4 as debt falls and refining output surges

Petróleos Mexicanos (Pemex), a state-owned oil firm in Mexico, revealed strong financial results for the fourth quarter of 2025, demonstrating the effectiveness of its integrated approach to debt management, liquidity, and operational efficiency.

Pemex credited its success to a mix of steady hydrocarbon output, higher fuel production and sales, and operational cost savings.

Sales of the company's primary fuels increased by 7% in the fourth quarter as compared to the same time in 2024.

Due to more effective resource utilization, operational costs were also lowered by 17%, resulting in operating earnings of 20 billion pesos and negligible net losses.

According to the company's report, "these results underscore Pemex's ability to generate value from its core operations."

Credit improvements and debt management

In collaboration with the Ministry of Energy and the Ministry of Finance and Public Credit, Pemex successfully implemented its Comprehensive Capitalization and Financing Strategy in 2025.

Planned refinance and bond repurchase operations were among the key measures, which eased debt amortization between 2026 and 2028, decreased refinancing risk, and brought the total amount of debt denominated in US dollars down to its lowest level in 11 years by 13% compared to 2024 and 19% since 2018.

Due to these financial gains, Pemex's credit rating was increased by two notches to B1 by Moody's and three notches to BB+ by Fitch Ratings, all of which have stable outlooks.

For the first time in six years, Pemex was able to reenter the domestic market in February 2026 by offering 31.5 billion pesos in local bonds due to the increased financial confidence.

The offering saw a 2.5-fold oversubscription and a 32 basis point price cut. The money raised will be used to pay down debt that matures in 2026.

Payment of commercial debt and assistance to suppliers

Through a combination of well-managed internal cash flows and the Investment Financing Program, which was carried out through the National Bank of Public Works and Services (Banobras), Pemex set aside 582 billion pesos to pay suppliers and contractors in order to manage commercial obligations.

191 billion pesos were distributed in the second half of 2025, giving suppliers more assurance and guaranteeing business continuity while fortifying the company's value chain.

Hydrocarbon operational stability

In terms of operations, Pemex continued to produce liquid hydrocarbons steadily in 2025, averaging 1.635 million barrels per day during the year and 1.648 million in the fourth quarter.

Growth in non-associated gas output helped to boost natural gas production, which reached 3,677 million cubic feet per day for the year and 3,879 in the fourth quarter.

Industrial performance and refining

The industrial and refining segment also showed notable improvements.

In comparison to the same period in 2024, the National Refining System processed 1,136 thousand barrels per day (kbd) of crude oil and produced 1,177 kbd of petroleum products during the fourth quarter, representing increases of 44.4 and 41.5 percent.

The improvements include increased capacity utilization efficiency, fewer unscheduled shutdowns, and improved operational reliability.

Prospects for 2026

The 2025 outcomes show a corporation with strong operational and financial foundations, controlled debt management, increased liquidity, and industrial efficiency.

Pemex has built a strong foundation for stability, competitiveness, and sustainable growth in the future.

It is moving forward with a well-defined plan to keep providing value to stakeholders and assisting Mexico in achieving its energy goals.