Petrobras class action law suit, tax refinancing weighs on earnings

Brazil’s Petroleo Brasileiro SA (PETR4.SA) posted a significant net loss in the fourth quarter of last year, as a major class action settlement with U.S. shareholders weighed on results.

Petrobras, as the company is known, posted a net loss of 5.477 billion reais ($1.68 billion), versus a 2.51 billion real profit during the same period last year.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) hit 12.986 billion reais.

Overall in 2017, Petrobras posted a loss of 446 million reais, which it said was affected by an 11.198 billion real class action settlement and a federal tax refinancing program, totaling 10.433 billion reais.