This is what the specialists say – El Financiero

Victor Rodriguez Padilla, a physicist with a master’s degree in energy engineering and a doctorate in energy economics, will be the next general director of Mexican Petroleum Pemex, according to Claudia Sheinbaum Pardo, the president-elect.

He is a current graduate professor at the Faculty of Engineering at UNAM. He stated he plans to form a “nationalist team” and aims to “stabilize the financial situation” of the company.

“It is a company that is often criticized in the media, yet it is an enterprise that has contributed significantly to Mexico. We are increasing fuel production,” he remarked.

He mentioned that the instruction from the president-elect is to maintain production at 1.8 million barrels per day, make a “major effort in new sources of energy,” and maintain debt payments as already practiced.

Rodriguez Padilla pointed out that Pemex was compelled to incur debt due to suffocating tax regimes. This increase in debt, which reached 130 billion dollars, has been reduced to 94 billion dollars, he noted. “That money could have been utilized for other purposes, but we acted responsibly,” he added.

Calls for a Change of Course

With the recent appointment of Victor Rodriguez Padilla as the new general director of Petróleos Mexicanos (Pemex), the state-owned company now has the chance to change its trajectory and tackle the significant challenges ahead, experts suggest following Monday’s announcement.

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Rosanety Barrios, an international speaker on energy and Founding Advisor of the Voz Experta group, emphasized Rodriguez Padilla’s technical experience as a positive attribute for Pemex.

“I believe he has a much more technical profile compared to any other we’ve seen before. He is an energy professional,” Barrios stated. The expert emphasized that the success of the new director will heavily depend on the team he assembles, given the scale of the challenges facing the company.

Among the challenges identified by Barrios are five crucial points: sustaining crude oil production, tackling rising operating costs, implementing transition measures towards clean energy, meeting payments to suppliers, and restructuring Pemex’s debt.

Addressing these challenges will require not only a technical approach but also a strategic vision and robust political backing.

Significant Efforts Needed

On the other hand, Oscar Ocampo, an analyst at the Mexican Institute for Competitiveness (IMCO), highlighted that the current circumstances at Pemex demand considerable effort under Rodriguez Padilla’s leadership.

“From both a financial and operational standpoint, the next CEO will face critical challenges. Substantial coordination and political support from the government will be key to turning the company around,” stated Ocampo.

The analyst added that despite Rodríguez Padilla’s technical expertise, a change in direction will be necessary for Pemex’s management.

“Ultimately, a change in direction will be essential because the current trajectory of Pemex is evidently unsustainable in terms of public finances, the company’s viability, and from an operational perspective,” he concluded.

Tonatiuh Martínez, a graduate professor at the UNAM School of Economics, indicated that the new Pemex director will bring an academic and critical perspective, which is vital for understanding and addressing the company’s structural challenges.

“Víctor Rodríguez is a full-time academic at UNAM. He has dedicated a significant part of his life to analyzing energy policies in our country,” he explained.

Martínez believes that the appointment of Rodríguez Padilla is a wise choice, as it will facilitate the continuation of the trend initiated by the current government, centered on the modernization and strengthening of Pemex.

“It is a fortunate appointment; an outsider is coming in to sustain the trend this government has initiated, which will enhance the strengthening and modernization of a company that is a source of pride for all Mexicans,” he added.

International Recognition

Rodolfo Rueda, a fellow for North America at the World Energy Council, underscored the significance of this appointment not only for Pemex but for the entire Mexican energy sector on its journey toward greater sustainability.

“The energy transition is a complex process necessitating the involvement of all stakeholders within the energy sector. The World Energy Council is dedicated to supporting and collaborating with Pemex and the Government of Mexico on their path toward enhanced sustainability and energy transition,” he emphasized.

Following the announcement, Pemex debt bonds exhibited a slight advance; the 2050 bond closed at 75.526 dollars per share, just 0.019 dollars above the previous day; the 2033 bond experienced a 0.079 dollar decline, closing at 103.362 dollars.

With information from Diana Benitez.

Victor Rodriguez Padilla: The Next General Director of Pemex

Victor Rodriguez Padilla, a distinguished physicist with a master’s in energy engineering and a doctorate in energy economics, has been appointed as the next general director of Petróleos Mexicanos (Pemex). His appointment comes at a pivotal time as the company seeks to navigate its numerous operational and financial challenges under the guidance of the president-elect Claudia Sheinbaum Pardo.

Background and Vision for Pemex

Padilla, who is currently a graduate professor at the Faculty of Engineering at UNAM, is determined to transform Pemex into a financially stable and technically proficient entity. He has emphasized the importance of forming a “nationalist team” that will focus on stabilizing the financial situation of the company. “It is a company that is vilified in the media, but it is an enterprise which has given a lot to Mexico. We are increasing fuel production,” he stated.

According to Padilla, the new administration’s primary directive is to maintain production at a stable 1.8 million barrels per day while embarking on a significant push towards new sources of energy. Additionally, he is committed to ensuring that Pemex meets its debt obligations, which have been a cause of much financial distress for the company in recent years.

Debt Management and Financial Strategy

In his initial statements, Rodriguez Padilla addressed the critical issue of Pemex’s rising debt, which reached a staggering 130 billion dollars due to “suffocating tax regimes.” He noted that, through responsible management, this debt has since been reduced to 94 billion dollars. “That money could have been used for other things, but we were responsible,” he concluded, highlighting the crippling effect of financial mismanagement on the company’s operations.

Industry Experts Weigh In on Rodriguez Padilla’s Appointment

Potential for Change

The recent appointment of Victor Rodriguez Padilla has drawn significant attention and sparked hopes for a transformative era at Pemex. Many experts believe his technical background positions him uniquely to tackle Pemex’s pressing challenges. Rosanety Barrios, an international energy speaker and founding advisor of Voz Experta, noted, “I think it’s a much more technical profile than any other we’ve seen before. He is an energy professional.” Barrios emphasized that the success of the new director will depend largely on the team he assembles, especially considering the formidable challenges ahead.

Key Challenges Facing Pemex

• Sustaining crude oil production
• Reducing rising operating costs
• Implementing measures towards clean energy transition
• Meeting payment obligations to suppliers
• Restructuring the substantial Pemex debt

Calls for a Strategic Shift

Oscar Ocampo, an analyst at the Mexican Institute for Competitiveness (IMCO), emphasized that Rodriguez Padilla will need to lead with a robust financial and operational strategy: “The current situation at Pemex requires a great effort under his direction. A lot of coordination and political support from the government will be required to turn the company around.” Ocampo cautioned that even with Rodriguez Padilla’s technical acumen, substantial changes in Pemex’s management approach may be necessary.

The Role of Academia in Pemex’s Future

Tonatiuh Martínez, a graduate professor at the UNAM School of Economics, pointed out that Rodriguez Padilla’s academic background will be crucial in addressing Pemex’s structural problems. “Víctor Rodríguez is a full-time academic at UNAM. He has dedicated his life to analyzing energy policy in our country,” Martínez stated. He considers this appointment a strategic move that allows the continuity of the trend initiated by the current government, which focuses on modernizing and strengthening Pemex.

International Perspectives on Pemex’s Leadership Change

Internationally, the appointment of Padilla has also drawn attention. Rodolfo Rueda, a fellow for North America at the World Energy Council, remarked on the importance of this designation not only for Pemex but for the entire Mexican energy sector. He stated, “The energy transition is a complex process that requires the participation of all stakeholders in the energy sector.” Rueda affirmed the World Energy Council’s commitment to collaborate with Pemex and the Government of Mexico as they work towards greater sustainability.

Market Reactions to New Leadership

Following Rodriguez Padilla’s appointment, there was a slight positive movement in Pemex’s debt bonds, indicating investor optimism. For instance, the 2050 bond registered a closing price of $75.526 per share, while the 2033 bond experienced a minor drop to $103.362. This response from the market suggests a cautious yet hopeful outlook regarding the company’s future under new leadership.

Benefits and Practical Tips for Pemex’s New Direction

The upcoming challenges and initiatives outlined by Rodriguez Padilla present opportunities for transformative changes at Pemex. Here are some practical tips that may assist in navigating this transition:

• Team Building: Form a diverse team with varying expertise to tackle the multifaceted challenges of the energy sector.
• Debt Restructuring: Work closely with financial advisors to develop a comprehensive plan for restructured debt management.
• Emission Reductions: Prioritize projects aimed at lowering emissions and transitioning to renewable energy sources.
• Stakeholder Engagement: Foster strong relationships with both government and private sectors to ensure support for new policies and initiatives.
• Transparency: Maintain open communication with the public and stakeholders about company objectives and progress to build trust.

Case Studies in Other Regions

Similar transitions in state-owned energy companies worldwide highlight the potential benefits of a focused leadership approach. For example, Norway’s Equinor (formerly Statoil) successfully navigated a shift towards renewable energy through strategic investments and clear communication with stakeholders. Their experience serves as a guiding example for Pemex as they look towards a sustainable future.

With information sourced from Diana Benitez