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Pemex, Mexico’s national oil company, slashed its 2016 net loss by nearly 60 per cent to 296bn ($14.3bn) pesos from 713bn pesos in 2015 amid cost-cutting, and Juan Pablo Newman, finance director, told a conference call “finances are stable, but can certainly be improved”.

In the fourth quarter, Pemex trimmed its net loss by 91 per cent to 32.2bn pesos from 360bn. It was its 17th straight loss, but as a sign of the improving trend, Mr Newman noted that with 2016 average production of 2.154m barrels per day, crude output beat the company’s target.

He said efforts to reduce costs and improve efficiency would “continue to bear fruit” and highlighted key associations, asset sales plus the sale this month of the biggest-ever emerging market eurobond as signs that Pemex is on the right track.

However, in 2016, a 65 per cent increase in foreign exchange losses underscored the uncertainty facing Mexico’s economy with Donald Trump’s pledges to rewrite the North American Free Trade Agreement, which has hammered the peso currency.

Copyright The Financial Times Limited 2017. All rights reserved.

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