To What Extent Is Pemex Weighing on Mexico’s Finances?
Energy attorney Claudio Rodríguez Galán was interviewed by Energy Advisor about Mexican state oil company Pemex's growing financial debt and its impact on the country's economy. Last month, the firm posted a second-quarter net profit of $721 million, with crude production up 3.8 percent as compared to the same period a year ago. However, the firm’s financial debt surpassed $115 billion at the end of the quarter, raising concerns among investors over the sustainability of its debt burden. Mr. Galán explains that while Pemex still saw a revenue and production increase, that trend is unlikely to continue given a number of regulatory hurdles and administrative changes by the Mexican Ministry of Energy.
"Pemex’s financial debt will be a burden not only for the sustainability of future exploration projects, but for the firm itself," said Mr. Galán. "There are signs that the new minister of finance wants to take a different approach that will protect taxpayers’ resources and increase opportunities for collaboration with the private sector."