v3.25.2
Financial Instruments
 3 Months Ended
Mar. 31, 2025
Disclosure of detailed information about financial instruments [abstract]  
Financial Instruments FINANCIAL INSTRUMENTS
A.    Accounting classifications and fair values of financial instruments-
The following tables present information about PEMEX’s carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, as of March 31, 2025 and December 31, 2024. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Additionally, as of March 31, 2025, and December 31, 2024, the disclosure of the fair value for the lease obligations is not required.
Carrying amount Fair value hierarchy
As of March 31, 2025FVTPL FVOCI –
debt
instruments		FVOCI –
equity
instruments		Financial
assets at
amortized
cost		Other financial
liabilities 		Total carrying
amount 		Level 1Level 2 Level 3Total
Financial assets measured at fair value
Derivative financial instruments12,953,988 — — — — 12,953,988 — 12,953,988 — 12,953,988 
Equity instruments (1)
— — 962,783 — — 962,783 — 962,783 — 962,783 
Total12,953,988 — 962,783 — — 13,916,771    
Financial assets not measured at fair value
Cash and cash equivalents— — — 156,489,300 — 156,489,300 — — — — 
Customers— — — 132,855,625 — 132,855,625 — — — — 
Officials and employees— — — 6,306,334 — 6,306,334 — — — — 
Sundry debtors— — — 33,212,297 — 33,212,297 — — — — 
Investments in associates— — — 2,663,602 — 2,663,602 — — — — 
Notes receivable— — — 1,059,789 — 1,059,789 — — — — 
Mexican Government Bonds— — — 32,278,935 — 32,278,935 31,759,990 — — 31,759,990 
Other assets— — — 9,280,168 — 9,280,168 — — — — 
Total— — — 374,146,050 — 374,146,050     
Financial liabilities measured at fair value
Derivative financial instruments(111,575,663)— — — — (111,575,663)— (111,575,663)— (111,575,663)
Total(111,575,663)— — — — (111,575,663)   
Financial liabilities not measured at fair value
Suppliers— — — — (404,407,261)(404,407,261)— — — — 
Accounts and accrued expenses payable— — — — (80,752,543)(80,752,543)— — — — 
Leases— — — — (46,470,590)(46,470,590)— — — — 
Debt— — — — (2,053,452,343)(2,053,452,343)— (1,860,622,572)— (1,860,622,572)
Total— — — — (2,585,082,737)(2,585,082,737)   
(1)Refers to the participation in TAG Pipelines Sur, S. de R.L. de C.V.
Carrying amount Fair value hierarchy
As of December 31, 2024FVTPL FVOCI –
debt
instruments		FVOCI –
equity
instruments		Financial
assets at
amortized
 cost		Other financial
liabilities 		Total carrying
 amount 		Level 1Level 2 Level 3Total
Financial assets measured at fair value
Derivative financial instruments9,203,958 — — — — 9,203,958 — 9,203,958 — 9,203,958 
Equity instruments (1)
— — 962,783 — — 962,783 — 962,783 — 962,783 
Total9,203,958 — 962,783 — — 10,166,741    
Financial assets not measured at fair value
Cash and cash equivalents— — — 88,841,826 — 88,841,826 — — — — 
Customers— — — 126,733,175 — 126,733,175 — — — — 
Officials and employees— — — 5,541,324 — 5,541,324 — — — — 
Sundry debtors— — — 26,789,620 — 26,789,620 — — — — 
Investments in associates— — — 2,692,938 — 2,692,938 — — — — 
Notes receivable— — — 1,021,778 — 1,021,778 — — — — 
Mexican Government Bonds— — — 35,875,353 — 35,875,353 35,279,002 — — 35,279,002 
Other assets— — — 7,927,877 — 7,927,877 — — — — 
Total— — — 295,423,891 — 295,423,891     
Financial liabilities measured at fair value
Derivative financial instruments(108,972,467)— — — — (108,972,467)— (108,972,467)— (108,972,467)
Total(108,972,467)— — — — (108,972,467)   
Financial liabilities not measured at fair value
Suppliers— — — — (505,989,382)(505,989,382)— — — — 
Accounts and accrued expenses payable— — — — (72,773,222)(72,773,222)— — — — 
Leases— — — — (46,825,266)(46,825,266)— — — — 
Debt— — — — (1,978,772,255)(1,978,772,255)— (1,745,481,072)— (1,745,481,072)
Total— — — — (2,604,360,125)(2,604,360,125)   
(1)Refers to the participation in TAG Pipelines Sur, S. de R.L. de C.V.
Debt is valued and registered at amortized cost and the fair value of debt is estimated using quotes from major market sources which are then adjusted internally using standard market pricing models. As a result of relevant assumptions, the estimated fair value does not necessarily represent the actual terms at which existing transactions could be liquidated or unwound.
B.    Fair value hierarchy
PEMEX values the fair value of its financial instruments under standard methodologies commonly applied in the financial markets. PEMEX’s related assumptions and inputs therefore fall under the three Levels of the fair value hierarchy for market participant assumptions, as described below.
The fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observed for assets or liabilities. Level 3 inputs are unobservable inputs for the assets or liabilities, and include situations where there is little, if any, market activity for the assets or liabilities.
Management uses appropriate valuation techniques based on the available inputs to measure the fair values of PEMEX’s applicable financial assets and liabilities.
When available, PEMEX measures fair value using Level 1 inputs, because they generally provide the most reliable evidence of fair value.
C.    Fair value of DFIs
PEMEX periodically evaluates its exposure to international hydrocarbon prices, interest rates and foreign currencies and uses derivative instruments (DFIs) as a mitigation mechanism when potential sources of market risk are identified.
PEMEX monitors the fair value of its DFI portfolio on a periodic basis. The fair value, or Mark-to-Market (MtM), represents the price at which one party would assume the rights and obligations of the other and is calculated for DFIs through models commonly used in the international financial markets, based on inputs obtained from major market information systems and price providers. Therefore, PEMEX does not have an independent third party to value its DFIs.
PEMEX calculates the fair value of its DFIs through the tools developed by its market information providers, and through valuation models implemented in software packages used to integrate all of PEMEX’s business areas and accounting, such as SAP (System Applications Products).
PEMEX’s DFI portfolio is composed primarily of swaps, for which fair value is estimated by projecting future cash flows and discounting them with the corresponding market discount factor; for the projection of variable flows, the prices of future contracts of each of the references corresponding to these trades are used.
For currency and interest rate options this is done through the Black and Scholes model, which uses as inputs the prices of the underlying futures, the reference prices agreed in the contracted instruments, the market risk-free rates and the implied volatilities of the instruments traded in the markets. In the case of crude oil options, the Levy Model for Asian options is used, which is based on the Black and Scholes Model, with the difference that this model weighs the prices of the futures involved during the hedging period and contemplates a volatility adjustment, based on the terms of the corresponding futures.
According to IFRS 13 “Fair Value Measurement”, the MtM value of DFIs must reflect the creditworthiness of the parties. Consequently, the fair value of a DFI takes into account the risk that either party may default on its obligation, considering the counterparties’ probability of default. Due to the above, PEMEX applies the credit value adjustment (“CVA”) method to calculate the fair value of its DFIs.
For each DFI, the CVA is calculated by determining the difference between the MtM and the estimated MtM adjusted for credit risk. In determining the credit risk, the CVA method takes into account the current market perception about the credit risk of both counterparties, using the following inputs: a) the MtM projection for each payment date based on forward yield curves; b) the implied default probability obtained from both, PEMEX and the counterparty’s credit default swaps, at each payment date; and c) the default recovery rates of each counterparty.
Given that PEMEX’s hedges are cash flow hedges, their effectiveness is preserved regardless of variations in the underlying assets or reference variables since, over time, asset flows are offset by liabilities flows. Therefore, and in addition to the fact that these hedges are established for accounting purposes as trading instruments, it is not considered necessary to measure the hedge’s effectiveness or to monitor them.
PEMEX’s DFIs’ fair-value assumptions and inputs fall under Level 2 of the fair value hierarchy for market participant assumptions.
D.    Accounting treatment applied and impact in the financial statements
PEMEX enters into derivatives transactions with the sole purpose of hedging financial risks related to its operations, firm commitments, planned transactions and assets and liabilities recorded on its statement of financial position. Nonetheless, some of these transactions do not qualify for hedge accounting treatment because they do not meet the requirements of the accounting standards for designation as hedges. They are therefore recorded in the condensed consolidated interim financial statements as instruments entered into for trading purposes, despite the fact that their cash flows are offset by the cash flows of the positions (assets or liabilities) to which they relate. As a result, the changes in their fair value are
recognized in the “Derivative financial instruments (cost) income, net” line item in the condensed consolidated interim statement of comprehensive income.
As of March 31, 2025, and December 31, 2024, the net fair value of PEMEX’s DFIs, including both DFIs that have not reached maturity and those that have reached maturity but have not been settled, recognized in the condensed consolidated interim statement of financial position, was Ps. (98,621,674) and Ps. (99,768,509), respectively. As of March 31, 2025, and December 31, 2024, PEMEX did not have any DFIs designated as hedges for accounting purposes.
All of PEMEX’s DFIs are treated, for accounting purposes, as instruments entered into for trading purposes, therefore any change in their fair value, caused by any act or event, impacts directly in the “Derivative financial instruments (cost) income, net” line item in the condensed consolidated interim statement of comprehensive income.
In accordance with established accounting policies, PEMEX has analyzed the different contracts (financial and non-financial contracts) that PEMEX has entered into and has determined that according to the terms thereof none of these agreements meet the criteria to be classified as embedded derivatives. Accordingly, as of March 31, 2025, and December 31, 2024, PEMEX did not recognize any embedded derivatives (foreign currency or index) in the financial and non-financial contracts.
For the three-month periods ended March 31, 2025, and 2024, PEMEX recognized a net gain (loss) of Ps. 1,847,560 and Ps. (5,718,861), respectively, in the “Derivative financial instruments (cost) income, net” line item with respect to DFIs treated as instruments entered into for trading purposes.

E.    IBOR reference rates transition
As a result of the decision made by the Financial Stability Board (FSB), the Interbank Offered Rates (IBORs), such as the LIBOR in dollars (over-night “O/N”, one week “1W”, two months “2M” three months “3M”, six months “6M” and twelve months “12M”) or the EURIBOR in Euros, ceased being published and were replaced by alternative reference rates, based on risk-free rates obtained from market operations.
In the event that Interbank Interest rate (TIIE) ceases to be published, the financial instruments portfolio referenced to these floating rates is composed of debt instruments and DFIs as shown below:


Reference Rate*Notional Amount
As of March 31,
2025
(Mexican pesos)
DebtTIIE 28D MXN143,049,682 
TIIE 91D MXN998,122 
DFITIIE 28D MXN31,733,673 

*Note: Notional amounts with maturity after March 31, 2025.

In this regard, Banco de México (the Mexican Central Bank) announced that the 28-day TIIE will cease to be a reference for new contracts starting from January 1, 2025. However, it stated that it will continue to publish it as a reference for all instruments contracted prior to this date. Likewise, the 91-day and 182-day TIIE ceased to be references for new contracts starting from January 1, 2024. For the above, Petróleos Mexicanos will carry out the actions it deems pertinent and necessary to modify contracts referenced to TIIE rates in accordance with the modifications announced by Banco de México.
PEMEX’s portfolio also consists of additional debt instruments and DFIs referenced at fixed rates, which are not listed in the table above since PEMEX’s fixed rate portfolio will not be impacted by the IBOR transition.
According to the general market practice, PMI Trading credit agreements include the new language to use the Secured Overnight Funding Rate (SOFR) as the benchmark rate.