Pemex Faces $9 Billion Loss Amid Declining Output and Rising Debt
Mexican state oil company Pemex posted a 190.5 billion-peso ($9.1 billion) fourth-quarter net loss, citing higher sales costs, lower fixed asset values, and currency exchange losses. The ailing giant's production continued to decline during the three-month period, and financial debt remained close to the $100 billion level it has hovered at for years. In a rare admission, a senior company executive acknowledged major problems with the company's operations, working capital, and falling output.
- The decline of Pemex is not only a reflection of Mexico's struggling energy sector but also a warning sign for other countries that rely heavily on state-owned oil companies.
- How will the Mexican government's plan to provide more funding to Pemex to pay down debt impact the company's long-term viability and the broader energy landscape in Mexico?