Petrobras posted losses of US$ 4.8 billion during 2016

Monday, March 27th 2017 - 11:07 UTC

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Petrobras has been at the center of a corruption scandal that has ensnared powerful lawmakers and business executives.

Brazil's state-run oil company says it posted a US$4.8 billion loss in 2016 mainly because of a reduction in the value of assets it needs to sell to lower a debt estimated at more than US$100 billion.

Petrobras says in a statement filed last week with the country's Securities Exchange Commission that the year-end result is also due to the US$6.8 billion it invested in affiliated companies.

In 2015, the company posted a loss of US$9.6 billion, also due to a reduction in the value of some of its assets amid lower oil prices.

Petrobras has been at the center of a corruption scandal that has ensnared powerful lawmakers and business executives. Once the crown jewel of Brazil's government, Petrobras' image quickly lost its luster amid mismanagement and corruption.

In related news a Brazilian tax court ruled that Petrobras did not break the law by deducting expenses related to the development of oil and gas field from its 2009 income taxes. According to a Friday securities filing, the Finance Ministry could still appeal against the ruling by the tax auditing court, known as CARF.

The Finance Ministry is seeking 5.1 billion reais (US$1.6 billion) from Petrobras in compensation for the deduction, newspaper Valor Econômico reported.