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Petrobras reports huge 3Q losses: sharp devaluation of the currency blamed

Friday, November 13th 2015 - 09:10 UTC
Full article 9 comments
Petrobras posted losses of 3.76 billion Reais (1bn dollars) in the quarter, compared with a loss of 5.3 billion Reais a year earlier. Petrobras posted losses of 3.76 billion Reais (1bn dollars) in the quarter, compared with a loss of 5.3 billion Reais a year earlier.
Corruption has cost Petrobras more than US$ 2 billion and shaken Brazil's political establishment to the core. Corruption has cost Petrobras more than US$ 2 billion and shaken Brazil's political establishment to the core.

Brazil's scandal-plagued state oil giant Petrobras on Thursday announced third-quarter losses of about US$ 1 billion, mainly due to the sharp devaluation of the Brazilian currency.Petrobras, mired in a hugely damaging scandal involving bribes and high-level political payoffs, posted losses of 3.76 billion Reais in the quarter, compared with a loss of 5.3 billion Reais a year earlier.

Net sales, or total sales minus sales taxes, fell 6.9% to 82.2 billion Reais compared with 88.4 billion a year earlier. Operational results, however, improved strongly. Earnings before interest, taxes, depreciation and amortization, a key measure of cash generation known as EBITDA, rose 82% to 15.5 billion Reais from 8.49 billion Reais.

The huge corruption case has cost Petrobras more than US$ 2 billion and shaken Brazil's political establishment to the core. The third-quarter loss was much steeper than analysts expected, underlining the grave uncertainty surrounding Petrobras.

Police have revealed that Brazil's major construction companies formed a cartel to split up Petrobras contracts - overcharging it by one to three per cent - in exchange for bribes paid to executives at the company, politicians and political parties.

Brazil, the world's seventh-largest economy, is struggling with an economic recession, high inflation and rising unemployment.

Meanwhile Petrobras oil workers announced they will continue their 12-day strike, with their union saying the company's contract offer falls short of their minimum demands. The FUP, Brazil's largest oil workers union federation, said in a statement on Thursday they were seeking a meeting with the company's chief executive officer to discuss their demands.

Categories: Economy, Energy & Oil, Brazil.

Top Comments

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  • Brasileiro

    The MercoPress forgot to report that the net income of Petrobras in the first nine months of the year was R$ 2.1 billion.

    What makes the company one of the most profitable in the world right now.

    http://www.brasil247.com/pt/247/economia/204977/Petrobras-teve-lucro-de-R$-21-bi-e-preju%C3%ADzo-de-R$-37-bi.htm

    Nov 13th, 2015 - 09:52 am 0
  • ChrisR

    @ 1 Brasso The Idiot

    Really?

    I make it a LOSS of 1.66 Reals YTD (and I am accepting your figure as true).

    So your comment, as usual, is bollocks.

    Nov 13th, 2015 - 11:01 am 0
  • Brasileiro

    That I know the third quarter is included in the first nine months of the year. So Petrobras in the nine months of the year had a R$ 2.1 billion profit already included the loss of 3Q.

    Do you want me to draw, or do you could understand?

    Nov 13th, 2015 - 11:35 am 0
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