Mensajepor ian » Vie Feb 13, 2015 2:35 pm
Brazilian state-run company Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has indicated in a securities filing that it expects to release audited third-quarter results for its fiscal year 2014 (3QFY14) in March, while it plans to release fourth-quarter unaudited results by May.
The newly appointed CEO of the company, Aldemir Bendine, has indicated that he will work to restore credibility and transparency that has diminished amid the corruption scandal. The stock has lost more than 80% of its value in four years.
Petrobras has indicated in the filing that the company will need some time in order to calculate the losses that have arisen from the corruption scandal. The company is currently the most indebted energy company in the world and due to the corruption scandal is unable to raise additional funds from international markets.
Amid the scenario, crude oil prices have fallen more than 50%, hitting profit margins. Petrobras will be forced to reduce its investments and will have to look at alternative sources of funding in order to raise more cash. It is also planning undertake divestments to improve its cash flow.
Petrobras has also indicated that it is working to develop a new methodology that would help determine the loss that the company had incurred. Mr. Bendine however has assured investors that the value of the write downs would not be as high as $30.9 billion as indicated by the earlier CEO, Maria das Gracas Silva Foster and her management team.
Bendine also indicated that the write downs can be expected in the fourth-quarter results. Failure to reveal the exact value of the write downs could mean that the company could be declared to be in default and be forced to pay an early repayment of $50 billion in bonds.
The appointment of Mr.Bendine came as disappointment as the investors wanted someone from the private sector to be appointed as the CEO of the company. Three of the independent board members also voted against the appointment of Mr.Bendine.
Other investors are raising the question whether Mr.Bendine would be able to operate with autonomy without government intervention. Mr. Bendine thus would have a huge task in hand in order to determine the exact value of losses and incorporating them in fourth-quarter results. He will have to work hard in order to rejuvenate investor and shareholder confidence.