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Petrobras saw third-straight year of losses in 2016

Source: Xinhua   2017-03-22 13:41:43

RIO DE JANEIRO, March 21 (Xinhua) -- Brazil's national oil company, Petrobras, registered a loss of 14.824 billion reais (4.94 billion U.S. dollars) in 2016, its third straight year of negative growth, the company announced Tuesday.

The result is less severe than the 34.846 billion reais the company recorded in 2015.

Despite the negative result, Petrobras closed the fourth quarter with a net profit of 2.51 billion reais, which was far from enough to stem the flow of losses accumulated over the whole year.

Petrobras closed 2016 with revenue of 282.589 billion reais, 12 percent lower than that of 2015.

In an accompanying statement, Petrobras attributed the losses to the ongoing revaluation of the company and a number of investments.

On the positive front, Petrobras reduced its liquid debt from 100.4 billion to 96.4 billion U.S. dollars, in some part thanks to the appreciation of the real against the dollar and the early repayment of certain loans.

At a press conference on Tuesday, Petrobras president Pedro Parente highlighted the debt reduction and the "positive operational result" to encourage credit ratings agencies to revise for the company's position, as it has lost its investment grade.

With large-scale austerity, Petrobras' investments fell by 27 percent in 2016 compared with 2015, while its total staff was reduced by 12 percent to stand at 66,829 employees.

However, it did not stem the flow of oil as Petrobras saw record high production of 2,144,256 barrels, 0.75 percent up compared with 2015.

Petrobras is suffering from the consequences of the fall of international oil prices as well as a vast corruption scheme within its ranks, with dozens of officials and executives arrested for embezzling billions of U.S. dollars between 2004 and 2014.

Editor: xuxin
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Xinhuanet

Petrobras saw third-straight year of losses in 2016

Source: Xinhua 2017-03-22 13:41:43
[Editor: huaxia]

RIO DE JANEIRO, March 21 (Xinhua) -- Brazil's national oil company, Petrobras, registered a loss of 14.824 billion reais (4.94 billion U.S. dollars) in 2016, its third straight year of negative growth, the company announced Tuesday.

The result is less severe than the 34.846 billion reais the company recorded in 2015.

Despite the negative result, Petrobras closed the fourth quarter with a net profit of 2.51 billion reais, which was far from enough to stem the flow of losses accumulated over the whole year.

Petrobras closed 2016 with revenue of 282.589 billion reais, 12 percent lower than that of 2015.

In an accompanying statement, Petrobras attributed the losses to the ongoing revaluation of the company and a number of investments.

On the positive front, Petrobras reduced its liquid debt from 100.4 billion to 96.4 billion U.S. dollars, in some part thanks to the appreciation of the real against the dollar and the early repayment of certain loans.

At a press conference on Tuesday, Petrobras president Pedro Parente highlighted the debt reduction and the "positive operational result" to encourage credit ratings agencies to revise for the company's position, as it has lost its investment grade.

With large-scale austerity, Petrobras' investments fell by 27 percent in 2016 compared with 2015, while its total staff was reduced by 12 percent to stand at 66,829 employees.

However, it did not stem the flow of oil as Petrobras saw record high production of 2,144,256 barrels, 0.75 percent up compared with 2015.

Petrobras is suffering from the consequences of the fall of international oil prices as well as a vast corruption scheme within its ranks, with dozens of officials and executives arrested for embezzling billions of U.S. dollars between 2004 and 2014.

[Editor: huaxia]
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