Published On: February 28th, 2024Categories: Trade Ideas
In this Flash report, following some clients’ requests, we take a closer look at Petroleos Mexicanos (Pemex). The company’s standalone credit metrics are awful. Pemex is in financial distress. As of 3Q23, Pemex had almost $105bn of debt, $70bn in property, plant & equipment (PPE) and negative equity book of $90bn. Pemex clearly depends on the support of the Mexican government to stay afloat. But this is also its Achilles’ heel, considering how much the government takes in taxes (DUC profit sharing) from the company and the problems in terms of governance.
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