Petrobras Board to Review Delayed Financial Results April 22

Petrobras Board to Review Delayed Financial Results April 22

10:01 PM BRT
April 13, 2015

Petroleo Brasileiro SA plans to release long-delayed audited financial results after an April 22 board meeting, a move that would avert a potential acceleration of debt payments and reopen access to bond markets.

The Rio de Janeiro-based oil producer, at the center of Brazil’s largest corruption scandal, said Monday it will present the board third-quarter and full-year 2014 results and release them after approval.

The company has postponed the release of third-quarter results since November amid a lack of consensus over the size of graft-related writedowns, shutting Petrobras out of international bond markets at a time of slumping oil prices and threatening the company’s spending plans. If approved, the oil producer will meet an end-May deadline that could potentially trigger an acceleration of payments on some debt.

Petrobras didn’t mention if a meeting previously set for April 17 will proceed. The company will report adjustments of as much as 28 billion reais ($9 billion), including as much as 8 billion reais in graft-related writedowns, Valor Economico reported Tuesday, without saying where it got the information.

Stock Rally

Petrobras shares have surged 16 percent in the past three days on speculation it would release the financial results and begin selling assets to ease cash constraints.

Petrobras’s troubles swelled last November after external auditor PricewaterhouseCoopers refused to sign off on financial results amid a fast-moving corruption and kickback probe, and requested an independent internal investigation. Moody’s Investors Service cited the delays when it downgraded Petrobras’s credit rating to junk in February.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: