MercoPress, en Español

Montevideo, September 28th 2022 - 06:50 UTC

 

 

Petrobras CEO says he has 'full autonomy' in fuel-price policy and cash flow

Thursday, February 12th 2015 - 05:55 UTC
Full article 14 comments
Bendine said no decision had been taken on whether Petrobras will book 88.6 billion Reais (31 billion) of potential asset write-downs in its unaudited 3Q Bendine said no decision had been taken on whether Petrobras will book 88.6 billion Reais (31 billion) of potential asset write-downs in its unaudited 3Q
The 88.6 billion Real number was released by former CEO Maria das Graças Foster in her notes to the third-quarter result The 88.6 billion Real number was released by former CEO Maria das Graças Foster in her notes to the third-quarter result

The new chief executive officer of Brazil's Petrobras said that he has full autonomy to dictate its own fuel-pricing policy and protect cash, even as he questioned the size of losses stemming from a giant corruption scandal.

 In his first public statements since he was named CEO on Friday, Aldemir Bendine said no decision had been taken on whether Petrobras will book 88.6 billion Reais (31 billion) of potential asset write-downs outlined in notes to its unaudited third-quarter results in January.

By saying that “this does not reflect the reality of the company,” he suggested the assessment was too high, a comment unlikely to calm investors concerned that the government appointed him to limit the political fallout from a write-down rather than clean out dead-wood in the company's accounts.

“What we are discussing now is the methodology, the way to calculate this,” Bendine said on Globo Television network's nightly news program.

“The results will reflect the actual situation in 2014, which could be affected by corruption, but also other variables such as prices,” he said.

Bendine said a write-down is to be expected in fourth-quarter audited results which Petrobras must provide the market by the end of June or face default on more than 50 billion of bonds.

The 88.6 billion Real number was released by former CEO Maria das Graças Foster in her notes to the third-quarter result. She said that an internal review of assets related to evidence in a price-fixing, bribery and political kick-back probe found 88.6 billion Reais of over-valued assets and 27.2 billion Reais of undervalued assets.

If confirmed by auditors, that would lead to a 61.4 billion real write-down, an amount equal to more than half the company's current 120-billion-Real (43.3 billion) market value.

President Dilma Rousseff picked Bendine, a 35-year veteran of state-controlled Banco do Brasil SA, to revive Brazil's largest company from the fallout of a graft scheme involving former executives, top construction and engineering firms and political parties, including Rousseff's Workers' Party.

Investors hoped for a more independent manager with fewer ties to the Rousseff administration.

Bendine said independent auditors PricewaterhouseCoopers were accompanying Petrobras “day by day” in the task of preparing the release of its results.

Bendine said the company's priority was sound management of its cash flow and indebtedness. Petrobras is the world's most indebted oil company. Bendine said the debt was not as high as it looks, given the oil company's ability to generate revenue.

Categories: Energy & Oil, Politics, Brazil.

Top Comments

Disclaimer & comment rules
  • Brasileiro

    The government has to take the actions are very low and buy them back. The government owns 68% of shares of Petrobras. With 30 billion the government would be full owner of the company. That would be the best way.
    Brazil has 380 billion dollars still in the United States. We have to take advantage of the high dollar now and make good use of that money, including investing heavily in yuan.

    https://www.youtube.com/watch?v=DJvuf4G7B0o&list=FLmXPTu1f8AdGlizWNiASx2A&index=1

    Feb 12th, 2015 - 10:29 am 0
  • ChrisR

    @ 1 Brasso

    Oh, you would love Petrobras to be government owned wouldn't you? Is that because they could hide the graft easier (you think?) or it keeps foreign investors away from Brazil?

    I have news for you sunshine, the way this is playing out NOBODY will be investing in the place when they KNOW from the world press that half their money is going into FatAss Dilma's pockets and that of the PT.

    As for having total control he is deluding himself. FatAssDilma can't leave anything alone, she always has to interfere and you can see the results right now.

    Why didn't she jump on the grafters when she was chairman? Oh, yes, it was Lula that did it so that's alright then.

    Feb 12th, 2015 - 10:51 am 0
  • Tik Tok

    Perhaps you should read this Brasshole
    http://blogs.ft.com/beyond-brics/2015/02/11/original-sin-stalks-vulnerable-ems-as-us-dollar-surges/
    Petrobras need billions in investment to develop their oil reserves you twit, what investor is going to trust a 100% Government owned and PT inspired Petrobras.
    When God gave out brains you forgot to get in the line didn't you. Socialist twat.

    Feb 12th, 2015 - 02:36 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!