CEO Bendine’s plan, words fuel hopes for Petrobras
Jun 30 2015, 12:29 ET | About: Petrobras - Petroleo Brasil... (PBR) | By: Carl Surran, SA News Editor Contact this editor with comments or a news tip
New Petrobras (PBR +0.2%) CEO Aldemir Bendine is winning rave reviews for yesterday's presentation of the company's new investment plan, which included a 37% reduction in its five-year capital spending budget, an expanded asset sale program and a pledge not to issue new shares through 2019.Analysts say the decision to stay away from equity offerings brings some relief to shareholders, and may show PBR’s financing needs are not as big as investors feared."We are no longer in a market in which we can just keep on expanding and leveraging up the company," Bendine said, unusual language from a company otten criticized as being more concerned with implementing government policy than creating shareholder value.With oil prices hovering at little more than half their year-ago levels, PBR could have trouble raising as much cash as it hopes, but Bendine said recent bond sales and loan agreements - some with Chinese state banks - show that the company still has the ability to raise financing.
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