Pemex Reports $2.6 Billion Annual Loss Amid Persistent Oil Output Decline

Pemex recorded a $2.6 billion net loss in 2025, marking the second consecutive year of significant financial deterioration. This follows a 7.3% year-over-year decline in crude oil output, with average daily production falling to 1.84 million barrels, the lowest level since 2014. The decline is attributed to aging infrastructure, underinvestment in exploration, and delays in new project launches across key basins like the Campeche Sound and the Chicontepec field. The company’s operating expenses rose by 12% in 2025, reaching $58.4 billion, as maintenance costs and energy input prices climbed. Despite efforts to streamline operations, Pemex’s debt burden increased to $112 billion, with interest payments consuming nearly 40% of its annual cash flow. These financial pressures have limited capital allocation for new drilling and seismic surveys, further constraining output recovery. The crisis has intensified in coastal regions such as Ciudad del Carmen, Campeche, where Pemex’s offshore platforms are concentrated. Local economic activity has weakened, with construction and service contracts reduced by over 30% since 2023. The federal government faces mounting pressure to reform Pemex’s governance and consider partial privatization to restore fiscal stability and attract foreign investment. Market analysts note that Pemex’s weakened financial position may affect Mexico’s broader economic outlook, including foreign exchange reserves and public debt levels. The company’s inability to meet production targets threatens national energy security and could influence future energy policy decisions ahead of the 2026 general election.