Pemex and CFE’s business plans

The Mexican state-owned productive companies, Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE) have released their business plans for the 2023-2027 period.

On the one hand, in March 2023, the Business Plan of Petróleos Mexicanos and its Subsidiary Productive Companies 2023-2027 was released.

The objective of this plan is:

• Consolidate Pemex’s path towards sustainable performance.
• Achieve reserve incorporation rates in line with the production platform.
• Optimize Pemex’s portfolio of exploration and production projects.
• Strengthen downstream infrastructure.
• Support operations by ensuring the efficiency of services, treatment, transportation, storage facilities and metering systems.
• Increase the reliability and operational efficiency of Pemex’s facilities.
• Improve Pemex’s competitive position and domestic market share.
• Align corporate and administrative services to respond promptly to the needs of the value chain.

Business plans

On January 31, 2023, Pemex issued US$2 billion of its 10,000% notes due 2033.

The proceeds will be used to refinance Pemex’s liabilities, without increasing debt balances.

On the other hand, in January 2023, the CFE published the CFE’s 2023-2027 Business Plan.

The objectives are:

• Increase CFE’s productivity and generate economic value for the State prioritizing the security of electricity supply.
• Maintain the company’s majority position in the generation of electricity nationwide.
• Contribute to sustainable development and reduce greenhouse gas emissions.
• Increase and diversify CFE’s income through the development of new businesses.
• Mitigate financial, commercial and operational damages related to regulatory asymmetries.
• Strengthen internal control processes.
• Improve user satisfaction and strengthen the company’s reputation.

Improve CFE’s financial profitability and cash flow, which will translate into greater operating and investment resources.

On January 11, 2023, CFE renewed a US$1.5 billion syndicated revolving credit facility, representing a 22.2% increase over its previous 2018 revolving credit facility of US$1.26 billion.

During the first half of 2023, this operation is expected to transition to a «sustainability-linked» financing scheme, whereby, if CFE satisfies certain environmental and social performance indicators, it will be able to reduce the financial cost of its credit line.