Petroleo Brasileiro SA lost as much as 29 billion reais ($7.6 billion) from a cartel of suppliers who bribed officials at the state-controlled producer to win contracts at inflated prices, Brazil’s audit court, known as TCU, said in a document Wednesday. The audit court’s figure surpasses Petrobras’s internal estimate of 6.2 billion reais. The audit... Continue Reading →
Petrobras – Clarification of News Item: Escrow Accounts
12/01/2015 Rio de Janeiro, December 1, 2015 – Petróleo Brasileiro S.A. – Petrobras hereby responds to CVM Official Letter 500/2015/CVM/SEP/GEA-1 requesting clarifications, as transcribed below: CVM Official Letter 508/2015/CVM/SEP/GEA-1 “We refer to the news item published on November 29, 2015 in the Poder (Power) section of the newspaper Folha de São Paulo, entitled Petrobras deu... Continue Reading →
Brazil Real Posts World’s Biggest Drop on Political Crisis
Brazil’s real dropped the most among major currencies as allegations that Grupo BTG Pactual SA bribed a prominent lawmaker added to political tension and threatened to sidetrack President Dilma Rousseff’s economic agenda. The real declined 0.5 percent to 3.8664 per dollar at 9:55 a.m. in Sao Paulo, the worst performer among 16 major currencies... Continue Reading →
Petrobras rules out raising fresh capital for now -source
Indebted state-run oil company Petroleo Brasileiro SA has ruled out bolstering its capital in the short term, a source with direct knowledge of the company's decision said on Monday. In a statement released later on Monday, Petrobras, as the company is known, denied media reports of talks for the Treasury to transfer hybrid securities to... Continue Reading →
GMO Says Petrobras Century Bonds Best Bet on Brazilian Producer
Grantham Mayo Van Otterloo & Co. says Petroleo Brasileiro SA is too strategic for the state to let it default and the earlier selloff in the Brazilian oil producer’s longest-dated bonds made them attractive. Petrobras has been battered by plunging crude prices, a corruption scandal enveloping its executives, a strike that curbed production and disappointing... Continue Reading →
Brazil’s Levy sees no immediate need for Petrobras capital injection
There is no immediate need for a capital injection at Brazilian state-run oil firm Petrobras, Finance Minister Joaquim Levy said on Friday, downplaying media reports about a possible government plan to bolster the capital of the heavily indebted company. "They have enough cash to run," Levy told reporters on the sidelines of an infrastructure conference... Continue Reading →
LATAM WRAP-Petrobras extends rally on capital plan
Petrobras was leading LatAm credit markets higher on Friday following news that the Brazilian government was considering a plan to inject fresh capital into the beleaguered oil company. The issuer's 2024s were extending Thursday's late-day rally to trade at 83.50-84.00 on Friday, marking a five-point leap for the week. The company's Century bond was up... Continue Reading →
Brazil Said to Study Hybrid Securities for Petrobras
Brazil is studying the possibility of using hybrid securities to boost capital at struggling state-controlled oil producer Petroleo Brasileiro SA, Agencia Estado reported, citing government officials it didn’t name. The operation is being discussed between Brazil’s treasury and Petrobras’s management, and no amount has been defined yet, Estado said. The government and Rio de Janeiro-based... Continue Reading →
Petrobras’s Dangerous Debt Math: $24 Billion Owed in 24 Months
The debt clock is ticking down at Brazil’s troubled oil giant, Petrobras. Next up: $24 billion of repayments over 24 months. That’s a towering hurdle for a company that hasn’t generated free cash flow for eight years and whose borrowing rates are soaring. Annual debt servicing costs have doubled to 20.3 billion reais ($5.4 billion)... Continue Reading →
Petrobras – Export Credit Agencies Funding
11/16/2015 Rio de Janeiro, November 16th, 2015 – Petróleo Brasileiro S.A. – Petrobras informs that in line with its strategy of diversifying funding sources, is concluding negotiations the Export Credit Agency (ECA) from Italy – SACE, from the United Kingdom - UK Export Finance (UKEF), from Japan - Nippon Export and Investment Insurance (NEXI) and... Continue Reading →
