July 31 (Reuters) – Mexican state energy company Pemex reported on Friday that its second-quarter net profit fell 69.7% year-on-year to 18.02 billion pesos ($1.03 billion), according to a filing with the Mexican stock exchange, as it struggled to boost oil production.
Revenue during the April-to-June period totaled 510.44 billion pesos, while earnings before interest, taxes, depreciation and amortization were 144.23 billion pesos.
Pemex, with partners, produced 1.66 million barrels per day of crude oil and condensate during the quarter, short of the government’s goal of 1.8 million bpd despite efforts to boost output from mature fields and bring new projects online.
While the Sheinbaum administration has embraced mixed-development contracts as part of a strategy to increase production, progress has been slower than hoped and uncertainty remains over how quickly new projects can contribute meaningful volumes.
DEBT BURDEN
Pemex is struggling to reverse years of declining output while it tries to reduce its financial obligations to bondholders, banks, suppliers and contractors.
As of June 30, the company had restructured 255.39 billion pesos of supplier debt incurred in 2025 under an eight-year payment scheme, according to the filing.
The company’s debt load has limited its financial flexibility, hampering investments needed to stem production declines while contributing to payment delays to suppliers and contractors.
The company said during a press conference that it expects $4.7 billion in debt maturities in 2027.
Pemex’s financial debt was $77.5 billion at the end of June, down 9.1% from the end of 2025.
Pemex processed 1 million bpd of crude at its domestic refineries during the quarter, including the Olmeca refinery at Dos Bocas.
The company has increasingly directed production to domestic refineries as part of the government’s push for energy self-sufficiency, even as stronger oil prices could make exports more lucrative.
($1 = 17.4986 Mexican pesos at end-June)
Brazil Energy Insight 
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