Brazil’s state-led oil company Petrobras said on Thursday its pension fund has 22.6 billion reais ($6.8 billion) in unfunded liabilities, a new financial burden for what is already one of world’s most indebted firms.
The shortfall at the country’s second-largest pension fund is the latest setback to Petrobras’ efforts to preserve cash needed to pay nearly $130 billion in debt. It also comes at a time when Petrobras revenue has plunged due to falling oil prices and investor confidence has been shattered by a massive corruption scandal.
The company, formally known as Petroleo Brasileiro SA , said that under Brazilian law the amount it and the fund’s beneficiaries must immediately plan to cover is 16.1 billion reais ($4.8 billion).
The law makes Petrobras responsible for half of the adjusted shortfall and beneficiaries must cover the rest through higher retirement contributions, it said.
The fund, Petros, has more than 75,000 beneficiaries.