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Pemex cuts losses to $14.3 bn in 2016

Mexico's state-run energy giant Pemex, which has not posted a profit since 2012, reports losses of $14.3 billion for 2016

Pemex, which has not posted a profit since 2012, has struggled through a period of low oil prices and sweeping energy reforms launched by President Enrique Pena Nieto.

The annual loss was relatively good news compared to 2015, when the company lost some $32 billion.

Pemex said it had slashed operation costs by 26 percent last year, and maintained production levels at 2.15 million barrels a day.

It also got a boost from recovering oil prices and a cash injection of $4.2 billion from the government in April to help the struggling firm.

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"All of this is the product of implementing austerity policies to achieve greater efficiency and discipline," said chief financial officer Juan Pablo Newman.

Seeking to stave off a financial catastrophe, Pemex shelved $3.6 billion in investments early last year and implemented $5.5 billion in budget cuts.

The company has cut its work force by 11,000 jobs.

Pemex has struggled to stem a decade-long slide in production, which peaked at 3.4 million barrels per day in 2004.

In 2014, Pena Nieto enacted a landmark energy reform bill that reopened the country's oil and gas sector to foreign investors in a bid to kickstart production and boost the economy.

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Pemex generates about 20 percent of the Mexican state's revenue.

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