Mexican state oil company Pemex posted a 190.5 billion-peso ($9.1 billion) fourth-quarter net loss on Thursday, following a year-ago profit, citing higher sales costs, lower fixed asset values and currency exchange losses.
The ailing giant's production continued to decline during the three-month period, and financial debt remained close to the $100 billion level it has hovered at for years, amounting to more red ink than nearly any other oil company.
In a rare admission, a senior company executive acknowledged major problems.
"Pemex is going through a challenging situation, and one that's different from past circumstances," said corporate planning chief Jorge Alberto Aguilar in a call with analysts to discuss the results.
Aguilar cited problems with the company's operations, working capital and its falling output, as well as "serious" budget restrictions that require a recovery strategy.
One of Mexico's largest companies, Pemex's crude output has fallen to historic lows in recent years as it has shunned equity tie-ups with others, and its older offshore fields, particularly in the southern Gulf of Mexico, have neared the end of their productive life.
Company executives pointed to declining output from offshore fields Maloob and Zaap, as well as onshore field Quesqui.
During the fourth quarter, crude and condensate production reached 1.65 million barrels per day, down nearly 10 per cent from a year ago, according to a filing with the country's main stock exchange.
The company's working capital at the end of 2024 was negative 750.6 billion pesos, the filing showed.
Revenue for the period rose to 436.6 billion pesos, up three per cent from the year-ago quarter.
In another bright spot, the company's tax bill edged down to 45.7 billion pesos in the quarter, compared to 53.9 billion pesos a year earlier.
Earnings before interest, taxes, depreciation and amortization, an operating performance measure, totaled 14.6 billion pesos in the quarter.
Pemex ended last year with $97.6 billion in financial debt even as the governments of President Claudia Sheinbaum and her like-minded predecessor have provided unwavering support.
The company said the federal government provided it with 156.5 billion pesos in 2024, with 96 per cent used to pay down debt.
Debt owed to service providers as of last December totaled 506.2 billion pesos, or about $24.2 billion.
Pemex's refineries processed 786,000 bpd of crude in the fourth quarter, a major priority of the government, which is seeking to lessen dependence on fuel imports.
(Reporting by Noe Torres, Ana Isabel Martinez, Adriana Barrera and Stefanie Eschenbacher; Editing by David Alire Garcia, Richard Chang and Bill Berkrot)