Petrobras Corruption outrage causing problems for its European allies
How the Petrobras corruption scandal adds to the vows of its European partners.
The consequences of the corruption scandal at Petroleo Brasileiro Petrobras have started to increase as international companies endure to whine over late payments. According to Bloomberg, an Italy based natural oil & gas company, Saipem SpA is having issues in Brazil. The company reported delivery as well as payment delays.
Bloomberg anonymous sources informed that firms and Petrobras partners such as Galp Energia, Repsol SA and BG group are finding it challenging to make some significant choices related to future of the companies.
At the moment, the scenario is much depressing for the Brazilian oil giant company. The market capitalization of Petroleo Brasileiro Petrobras SA has dropped dramatically to $39 from $150 billion in the year 2013, while share price of the company has dropped by more than 805 in the past 1 year.
Additionally, the Brazilian oil major is not able to access global debt markets. Since June 2013, the crude oil prices has gone down by over 50% due to which Petrobras is finding itself in a difficult position to sustain its liquidity position. Therefore, in an attempt to meet its requirement of cash, the company is taking steps to reduce its capital expenses, one of which is the planning to sell its $13.7 billion worth of assets.
As mentioned by Bloomberg, on 16th February earnings call, Saipem specified that Petrobras were late in making some payments. Some of the other companies also indicated the same problem of delay in deliveries of equipment and complex working environment of the company.
Two of the world's largest oil providers companies, Haliburton and Schlumberger Limited have also stated their worries regarding falling activity in the country. Paul Kibsgaard, the Chief Executive Officer of Schlumberger said the reduction in spending declared by Petrobras will generate more challenges in 2015.
The Brazilian states run Oil Company is still evaluating its loss because of the corruption outrage. Company failed to include the accurate value of the asset write downs in its 3rd quarter unaudited results. The act sparked a lot of criticism from the shareholders of the company. Though, on Tuesday, Brazilian president, Dilma Rouseff ensures that the company will report its audited financial results by the end of this month.
On Thursday, Petrobras stock closed at $6.46 after 6.46% increase, which is the highest close since 23rd December. The increase was because of Dilma Rousseff's statement regarding audited financial results of third quarter and also due to a deal with Development Bank in China , who agreed to lend Petrobras an amount of $3.5 billion.
The consequences of the corruption scandal at Petroleo Brasileiro Petrobras have started to increase as international companies endure to whine over late payments. According to Bloomberg, an Italy based natural oil & gas company, Saipem SpA is having issues in Brazil. The company reported delivery as well as payment delays.
Bloomberg anonymous sources informed that firms and Petrobras partners such as Galp Energia, Repsol SA and BG group are finding it challenging to make some significant choices related to future of the companies.
At the moment, the scenario is much depressing for the Brazilian oil giant company. The market capitalization of Petroleo Brasileiro Petrobras SA has dropped dramatically to $39 from $150 billion in the year 2013, while share price of the company has dropped by more than 805 in the past 1 year.
Additionally, the Brazilian oil major is not able to access global debt markets. Since June 2013, the crude oil prices has gone down by over 50% due to which Petrobras is finding itself in a difficult position to sustain its liquidity position. Therefore, in an attempt to meet its requirement of cash, the company is taking steps to reduce its capital expenses, one of which is the planning to sell its $13.7 billion worth of assets.
As mentioned by Bloomberg, on 16th February earnings call, Saipem specified that Petrobras were late in making some payments. Some of the other companies also indicated the same problem of delay in deliveries of equipment and complex working environment of the company.
Two of the world's largest oil providers companies, Haliburton and Schlumberger Limited have also stated their worries regarding falling activity in the country. Paul Kibsgaard, the Chief Executive Officer of Schlumberger said the reduction in spending declared by Petrobras will generate more challenges in 2015.
The Brazilian states run Oil Company is still evaluating its loss because of the corruption outrage. Company failed to include the accurate value of the asset write downs in its 3rd quarter unaudited results. The act sparked a lot of criticism from the shareholders of the company. Though, on Tuesday, Brazilian president, Dilma Rouseff ensures that the company will report its audited financial results by the end of this month.
On Thursday, Petrobras stock closed at $6.46 after 6.46% increase, which is the highest close since 23rd December. The increase was because of Dilma Rousseff's statement regarding audited financial results of third quarter and also due to a deal with Development Bank in China , who agreed to lend Petrobras an amount of $3.5 billion.
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