New Mexico — Mexican state oil company Pemex reported a narrower loss of 52.7 billion pesos ($2.7 billion) in the second quarter on Friday, as the heavily indebted firm faces the prospect of a fresh downgrade from credit rating agencies critical of its direction.
The loss was nearly 70% lower than what the company, formally known as Petroleos Mexicanos, reported in the second quarter last year, when it lost 163.2 billion pesos.
During the April to June period, the company’s crude production dipped from the same quarter last year, and ratings agency Fitch downgraded Pemex debt to speculative, or so-called junk status.
Under President Andres Manuel Lopez Obrador, the fully state-owned company is making significant investments in its troubled refining business as well as taking a pass on new partnerships with foreign and private oil firms to boost output.
Pemex reported second-quarter sales of 376.6 billion pesos, down by about 14% from last year.