MEXICO CITY (Reuters) - Mexico’s state-owned oil company Pemex [PEMX.UL] said on Wednesday that it expects a capital infusion for investment of at least $1.25 billion from the government by year-end, according to a company presentation seen by Reuters.
The ailing oil giant, which has seen crude output drop for over a decade as its major fields age and it has struggled to replenish reserves, also faces the possibility of a credit ratings downgrade due to costly proposals by the new government led by leftist President Andres Manuel Lopez Obrador.
A company presentation to investors in New York on Wednesday sought to re-emphasize the government’s backing of the firm.
“By the end of 2019, we will have at least one capitalization of $1.25 billion, with resources from the federal government,” Pemex said in its presentation.
Reporting by Ana Isabel Martinez; editing by David Alire Garcia and G Crosse