PEMEX to Start Paying Supplier Debts by December, Early 2025

President Claudia Sheinbaum announced that PEMEX will begin settling its debt with suppliers between December 2024 and early 2025, addressing concerns from the business community, particularly SMEs, struggling to meet year-end obligations.

During her morning press conference. She emphasized that PEMEX is committed to paying all its suppliers in the coming months, with payments scheduled for December 2024, January, and February 2025.

President Sheinbaum confirmed that a portion of the outstanding debts would be paid by the end of December, with additional payments planned for January and February. However, she did not specify the respective amounts. She explained that the delays were partly due to a comprehensive review of PEMEX, initiated with the change in administration, which involved reassessing the company's debts and operational efficiency.

She also highlighted the importance of constitutional changes made earlier, which have redefined PEMEX's status from a "productive state enterprise" to a "public enterprise," allowing for a restructuring of its subsidiaries. These changes, Sheinbaum said, aim to enhance PEMEX's efficiency and integrate many of PEMEX's subsidiaries vertically, thereby reducing operational costs, President Sheinbaum noted.

President Sheinbaum assured that PEMEX would fulfill its obligations to suppliers, including SMEs, some of which had been on the brink of bankruptcy due to the delayed payments. She also noted that the Ministry of Finance (SHCP), had already provided a first tranche of US$2 billion on Dec. 11, 2024, to support the payment process.

On Dec. 3, 2024, MBN reported that the Ciudad del Carmen business community urged PEMEX to pay its debts as many companies have been struggling with paying year-end obligations like employee bonuses and payments to the Mexican Social Security Institute (IMSS), the Tax Administration Service (SAT), and INFONAVIT, with some of them facing threats of seizure due to unpaid loans. Addressing these concerns, Sheinbaum reiterated that PEMEX would settle all debts. She said the government is working on a financial scheme, coordinated by SHCP, to ensure that no supplier will be left without payment.

PEMEX's Total Debt Overview

PEMEX owes over MX$140 billion (US$6.09 billion) to its suppliers, according to data from 2023 to 2024, reports MBN. However, according to Carlos Adrián García, Director General, Energy Agency of the State of Campeche (AEEC), that amount includes only invoiced payments. If uninvoiced ones are included, the total debt could rise up to MX$400 billion. 

In its latest update on PEMEX’s rating, Fitch Ratings highlighted the company's financial vulnerability, reporting a debt of US$97 billion as of September 2024, with interest expenses exceeding half of its EBITDA. Additionally, PEMEX faces a US$75 billion cash shortfall and US$20 billion in debt maturities between 2025 and 2027.