I am glad to be able to tell you that we are running the ship safely through uncharted waters. We are very proud of our team whose talent and professional dedication allowed us to overcome, so far, the enormous challenges faced by our company.
The outbreak of a major global health crisis caused a deep and synchronized global recession that hit severely the global oil and gas industry.
Prices of Brent oil of US$ 65 per barrel in February collapsed to US$ 19 in April 2020 due to a global demand contraction of 25%, threatening to generate a sudden stop of cashflow. A liquidity shock has an effect similar to a heart stroke, as it has the potential to stop the continuity of companies’ operations. Amidst deep uncertainty, the prospect for continuous cash burn was very real.
Read Complete report here: PBR 2Q20 Financial Performance