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Montevideo, December 3rd 2016 - 15:33 UTC

Petrobras losses in 4Q climb to US$ 10bn; more staff cuts expected

Tuesday, March 22nd 2016 - 06:25 UTC
Full article 8 comments
Once the crown jewel of Brazil's government, Petrobras' image quickly lost its luster amid mismanagement and corruption. Once the crown jewel of Brazil's government, Petrobras' image quickly lost its luster amid mismanagement and corruption.
Petrobras is also reportedly planning to cut another 15% of its staff, just two months after slashing its management headcount by 30%. Petrobras is also reportedly planning to cut another 15% of its staff, just two months after slashing its management headcount by 30%.
Happier days when oil helped finance extravagant programs, fantasy dreams and widespread corruption Happier days when oil helped finance extravagant programs, fantasy dreams and widespread corruption

Brazil's state-run oil company, Petrobras, reported a record quarterly loss of $10.2 billion on Monday due to a large reduction in the value of some assets amid lower oil prices. Petrobras has been at the center of a sprawling corruption scandal that has ensnared some of Brazil's most powerful lawmakers and business executives.

 
The embattled company said it lost 36.9 billion reais, or $10.2 billion, in the fourth quarter. That brought its full-year 2015 result to a $9.6 billion loss. Net sales, or total sales minus sales taxes, was $23.5 billion for the quarter. Adjusted earnings before interest, taxes, depreciation and amortization totaled $4.7 billion.

Once the crown jewel of Brazil's government, Petrobras' image quickly lost its luster amid mismanagement and corruption.

The discovery of huge offshore oil reserves in 2007 had been supposed to vault Brazil into the top tier of oil and gas producing nations. Then President Lula da Silva hailed the discoveries as an economic salvation for Brazil's millions of poor.

But the investigation into widespread bribery at Brazil's biggest company has eroded Brazilians' trust in the political and business elite.

Police questioned Silva earlier this month as part of the investigation. The once highly popular former president has said he committed no wrongdoing and suggests the probes are part of a political smear campaign.

Petrobras is also reportedly planning to cut another 15% of its staff, just two months after slashing its management headcount by 30%. The cut would be through a voluntary lay off program that will be announced sometime in the middle of 2016. The program is expected to result in up to 12,000 job cuts.

Last January Petrobras announced a plan to slash its management headcount in non-operational areas by 30%, a move the company hopes will save it about $442 million per year. That same month, Petrobras adjusted its 2015 to 2019 spending plan down to $98.4 billion, a $32 billion reduction from its previous $130.3 billion budget.

Top Comments

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  • L0B0MAU

    REF: “Petrobras' image lost its luster amid Mismanagement AND Corruption”: Which State-Owned Company is NOT infested with these two and Many Other Problems?

    Mar 22nd, 2016 - 09:08 am 0
  • Brasileiro

    http://www.bloomberg.com/news/articles/2016-03-21/brazil-real-declines-as-reverse-swaps-offset-impeachment-hopes

    The West is every day more bankrupt! The crisis in Brazil and yet their currency (euro / dollar) continues to depreciate.

    Brazil is forced to drive real of our economy to sell to speculators in exchange for dollars that fill our market. With the inauguration in May/2016 of the BRICS Bank this will not happen anymore.

    It will be the end of the dollar as convertible currency!

    Mar 22nd, 2016 - 10:57 am 0
  • Skip

    Huh?

    Why will this change anything for Brazil?

    It is Russian, Chinese and Brazilian government debt that is climbing. Government debt in the west has mostly stabilised and even started dropping.

    No one is forcing Brazil to do anything. You are too busy stealing from each other for us to care about your economy.

    Mar 22nd, 2016 - 11:29 am 0
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