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UPDATE 2-Brazil's Petrobras says will publish audited results by late May
February 12, 2015 / 10:58 PM / 3 years ago

UPDATE 2-Brazil's Petrobras says will publish audited results by late May

(Adds quote from filing)

BRASILIA, Feb 12 (Reuters) - Brazilian state-run oil producer Petroleo Brasileiro SA plans to publish audited results for 2014 by the end of May as it recalculates losses stemming from a corruption scandal, the company said on Thursday in a securities filing.

Petrobras said the drop in oil prices and its heavy debt load will force it to reduce investment and look at other financing alternatives and ways to raise its cash flow.

The company said it has no plans to sell new stock.

“Petrobras is reviewing its financial planning and understands that it will be necessary to reduce investments, increase divestment and study other possibilities for financing and increasing its cash flow,” the filing said.

Petrobras said it was developing a new methodology to calculate the writedown of assets due to an extensive price-fixing, bribery and political kickback scandal engulfing the Rio de Janeiro-based company.

Newly named Chief Executive Officer Aldemir Bendine has said that potential writedowns caused by the graft scandal would be “much lower” than estimates of 88.6 billion reais ($30.9 billion) made in notes that accompanied the company’s unaudited third-quarter results released in January.

Petrobras has to publish realistic estimates of the losses as it strives to restore market credibility and avoid default on its massive debt, the largest of any oil company in the world.

Bendine told TV Globo on Tuesday that a writedown should be expected in fourth-quarter audited results, which Petrobras must provide the market by the end of June or face a possible default declaration on more than $50 billion of bonds.

In an interview in Valor Economico newspaper published on Thursday, Bendine ruled out raising capital by selling Petrobras shares in the market, but said some units could go public.

Preferred shares of the company climbed 5.2 percent on Thursday to close at 9.50 reais. (Reporting by Anthony Boadle; Editing by Chris Reese, Lisa Shumaker and Leslie Adler)

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