Mexico plans to reduce financial support for Pemex to 70% in 2027
In Mexico, the government plans to reduce financial support for the state-owned energy company Pemex to 70% in the 2027 budget. The decision is based on expectations that rising oil and gas prices will allow the company to generate a cash surplus.
Betting on a surplus
As OilPrice reports, citing Bloomberg, Mexican authorities expect Pemex to generate a cash surplus of 95 billion pesos, or about $5.63 billion. The budget for next year provides 81 billion pesos in financial assistance for the company, or approximately $4.8 billion.
Mexican President Claudia Sheinbaum told reporters that support for Pemex in 2027 would be very limited and that the company’s further development should be ensured by its own finances.
Debt and production problems
According to the publication, Pemex had about $105 billion in debt as of mid-2025, including approximately $20 billion in unpaid bills to suppliers. At the end of the first quarter of 2026, its debt fell to around $79 billion. The company said at the time that this was the lowest level of its debt since 2014.
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At the same time, Pemex is facing difficulties in increasing oil refining volumes. The publication also notes problems with feedstock quality, including high water content, which has deterred key buyers in recent years.
Pemex financial results
In the first quarter of 2026, Pemex recorded a net loss of 45.99 billion pesos, or about $2.6 billion, despite continued state support and rising oil prices in March. According to Mexican media reports, this was the company’s worst first quarter since 2020. The loss was 6.2% smaller than in the first quarter of 2025.
In the second quarter, Pemex made a profit, but it was 69.7% lower than the company’s net financial result in the second quarter of 2025. In May, rating agency Moody’s kept Pemex’s rating unchanged, citing expectations of further significant and timely support from the Mexican government.
