Petrobras continues to post major losses amidst a drop in oil production, weaker domestic fuel sales and the worst recession in decades.
To compensate for what is now the biggest debt load in the oil industry and after three quarters of straight losses, the company is advancing asset sales.
“Petrobras is a company with very high cholesterol levels, which is leverage”, CFO Ivan Monteiro said at a press conference in Rio.
Three Quarters Of Straight Losses For Petrobras
“We are looking to cut cholesterol so that the company has a healthier life”, he added.
The company posted a first-quarter loss of £235.9 million compared to a net profit of £1.06 billion in the first quarter of 2015. Its revenue declined by 5.4% compared to Q1-2015 and operating results also fell.
Additionally, fuel imports have decreased by 17% compared to the same period over the previous year, standing at 287,000 barrels per day, while domestic oil and natural gas production fell by 7% to 2.44 million barrels per day.
Meanwhile, it is working towards selling off various assets. Earlier this month, Petrobras sold part of its assets in Chile and Argentina. On Thursday, it said it entered exclusive talks with Canada’s Brookfield Asset Management to sell its gas pipeline unit Nova Transportadora do Sudeste (NTS).
Deepest Recession In A Century
Amidst its deepest recession in a century, which is cutting fuel imports and decreasing profits, Petrobras has also found itself at the centre of a bribery scandal, which has already seen some of its executives sent to prison.
The situation has given rise to widespread discontent with Brazil’s president Dilma Rousseff. In fact, the upper house of the Parliament voted 55-22 on Thursday to start impeachment proceedings against her.
Nevertheless, the company is maintaining future projects and still expects to drill 65 new wells this year, with an average output during the year of 2.145 million barrels per day.Last updated on 04:02PM - 16/05/16