Financial Analysis - Pemex

3D VISUALIZATION CENTER,VILLAHERMOSA, TAB.2 6F I N A N C I A LA N A LY S I SKU-S PLATFORM, CAMPECHE SOUNDAKAL-B PLATFORM, CAMPECHE SOUND

FinancialAnalysisDuring 2007, total sales, including revenues from services,increased by 3% with respect to the previous year, totaling1,136 billion pesos. Domestic sales were 592.0 billionpesos, 4% more than those recorded in 2006, while exportsales totaled 542.9 billion pesos, a 2% increase comparedto the previous year. The aforementioned was primarilydue to an increase in the weighted average export priceof the Mexican crude oil basket.During 2007, cost of sales increased by 10% as comparedto 2006, totaling 460.7 billion pesos. The variation wasprimarily the result of an increase in product purchasesand an increase in depreciation and amortization due togreater investments.N O M B R E I N F O R M ED O S P I S O S ‘ 0727Gross profit totaled 675.4 billion pesos, a 1% decreasecompared to the figure recorded in 2006.

water injection plant,Poza Rica, VeR.2 8F I N A N C I A LA N A LY S I SPAPÁN WELL , VERACRUZ BASINDuring 2007, general expenses totaled 84.9 billion pesos,primarily due to a 7% or 4.1 billion pesos increase inadministrative expenses, with respect to the previousyear. This increase was primarily due to higher cost ofthe reserve for retirement payments.Operating income totaled 590.4 billion pesos, 2% lowerthan 2006. The decrease was primarily due to an increasein the cost of sales of 42.4 billion pesos.The comprehensive financing result decreased by 16%or 3.8 billion pesos, as compared to 2006, totaling 20.0billion pesos. Other net revenues (expenses) increased,from 61.2 billion to 83.0 billion pesos, primarily, as a resultof greater IEPS credit.Income before taxes and duties was 658.9 billion pesos,1% higher than the 651.7 billion pesos recorded in 2006.The variation is caused by the combined effect of a 21.8billion pesos increase in other net revenues (expenses)and a 13.8 billion pesos decrease in operating income.During 2007, the amount of taxes and duties increased by12%, with respect to the previous year, from 604.8 billionto 677.3 billion pesos, due to higher prices of crude oiland gas and the fact that the costs of Pemex - Explorationand Production surpassed the cost-cap of the OrdinaryHydrocarbons Duty.In 2007, PEMEX reported a net loss of 18.3 billion pesos,compared to a net income of 47.0 billion pesos recorded

LPG transport systemBurgos –Monterrey‘ 0 7 A N N U A LR E P O R T2 9in 2006. The decrease is explained by an increase in taxesand duties of 72.5 billion pesos and higher cost of productpurchases.As of December 31, 2007, total assets increased by 6%,as compared to the previous year, totaling 1,330 billionpesos. Current assets increased by 7%, reflecting greaterlevels of cash, cash equivalents and inventories. Fixedassets increased 56.7 billion pesos or 8%.Total liabilities increased by 6%, to 1,280 billion pesos.Short-term liabilities increased by 64% to 289.5 billionpesos, primarily as a result of an increase in taxes payable.Long-term liabilities decreased 41.3 billion pesos or 4%,to 990.9 billion pesos.As of December 31, 2007, total consolidated debt,including accrued interest, totaled 500.9 billion pesos(46.1 billion dollars), a reduction of 89.8 billion pesos or15%, as compared to 2006.Equity increased 8.5 billion pesos. The increase is primarilyexplained by an 11.2 billion pesos contribution from theFund for the Stabilization of Investment and Infrastructureand the Fund of Excess.During 2007, the main financing operations of PEMEXtotaled 3.5 billion dollars, as follows: 1.0 billion dollarsfrom export credit agencies (ECA’s), and 2.5 billion dollarsfrom a syndicated revolving credit facility entered into inSeptember 2007.