Tuesday, April 6, 2021

Road To Mexico -- Pemex' Debt -- Update -- April 6, 2021

Pemex: is this one of those stories that we'll come back to in six months?

  • telegraphing a "restructuring"?
  • the state-owned vertically integrated oil company is apparently "woke"
    • "it is clear that high indebtedness represents a structural problem, attention to which should not be delayed ... we do not rule out restructuring...."
  • having said that, Pemex expects to maintain financial debt of $105 billion through 2025
    • pays lip service to paying down debt (won't happen)
  • will raise crude refining capacity from 1.1 million bpd (2021) to 1.6 million bpd by 2025;
    • says it won't incur more debt by adding more obligations
  • we'll see
  • last year lost its "coveted" investment grade rating due to high debt and other concerns

Pemex debt is actually worse than being stated above. See this link.  


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