Brazil’s Petrobras Warns Economy has Changed Forever. Books $11.2B Impairment

Brazil’s Petrobras took a 65.3 billion real ($11.2 billion) impairment on its exploration and production assets on Thursday, warning investors that changes in consumer behavior resulting from the coronavirus pandemic would likely be permanent.

The impairment led Petroleo Brasileiro SA, as the firm is formally known, to book a first-quarter net loss of 48.5 billion reais. The company wrote off the entire value of its shallow-water assets, and said it did not expect to resume production at six high-cost production assets currently for sale.

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