Petroleo Brasileiro SA reported a massive loss after writing down the value of assets because of the collapse in oil prices.
The 46.4 billion reais ($12.8 billion) of writedowns in the value of its assets and investments, mainly from its exploration and production division, are worth more than a third of the company’s market value. They led the producer to post a fourth-quarter net loss of 36.9 billion reais, compared with an average profit forecast of 3.48 billion reais from six analysts in a Bloomberg survey.
The collapse of crude prices hit Petrobras just as it sought to recover from an expanding pay-to-play scandal that saw some of its former executives go to jail and suppliers go bankrupt. The battered company has repeatedly slashed investment plans and is seeking to sell assets to stay afloat, while a recession in Brazil damps demand for its fuel.
Brazil Energy Insight 
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