Pemex Expected to Pay Q1 Debts Without Mexico’s Help: Sources

Pemex is expected to pay its debts due in 1Q 2023 without government help as per sources. They noted that the Mexican Finance Ministry wants Pemex to be able to meet its dues by itself unless it does not have sufficient cash. Mexico is known to have been providing financial support to the state-owned Pemex in recent years. Pemex is under financial stress as the Mexican government wants it to stop oil exports and invest in loss-making refineries amid its long-term production declines. Pemex had reported a net loss of MXN 52bn ($2.7bn) in Q3 last year. In its annual financing plan, Pemex said that it had MXN 188bn ($9.7bn) in amortizations due in 2023 and that it must maintain zero net debt in real terms.

Pemex’s dollar bonds were trading ~0.5 points higher with its 2024s at over 98 cents on the dollar.

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