Arab Today, arab today brazils petrobras slashes multiyear investment plan
Last Updated : GMT 05:13:31
Arab Today, arab today
Arab Today, arab today

Tries to recover from a massive corruption scandal

Brazil's Petrobras slashes multi-year investment plan

Arab Today, arab today

Arab Today, arab today Brazil's Petrobras slashes multi-year investment plan

Petrobras is under suspicion over corruption scandal that cost oil giant more than $2bn
Rio de Janeiro - Arab Today

Brazil's state oil giant Petrobras on Monday slashed its five-year investment plan by a whopping 77 billion dollars -- 37 percent -- as it tries to recover from a massive corruption scandal.

A new, leaner business plan presented by the company was also seen as reflecting today's lower crude oil prices and other factors that are bad news for Petrobras.

The cuts to the 2015-2019 plan will reduce Petrobras's investment spending over the period to $130.3 billion dollars, the company said.

Petrobras has been reeling from a kickback and political payoffs scandal that cost the company more than $2 billion in 2014.

Prosecutors say Petrobras executives colluded with construction companies to massively overbill the oil giant. The extra money went to company executives, politicians and political parties that include the ruling Workers' Party.

Most investment -- 86 percent -- through 2019 will go toward exploration and production of oil.

The company, mired in debt, plans business restructuring and assets sales to the tune of 42.6 billion dollars in 2017-18. This year and next, it foresees divestment of 15.1 billion dollars.

Although the investment cut and overall business plan was seen as reflecting the impact of the corruption scandal, analyst Luiz Pereira of consulting firm Guide Investments saw something else fueling the changes: today's reality of sharply lower oil prices and a Brazilian currency that has plummeted against the dollar.

Much of the company's debt is denominated in now-expensive dollars. But its revenue comes in largely Brazilian reals, from production for domestic consumption.

"It is a plan that is more aware of the premises of the current market, such as crude prices and exchange rates," Pereira said.

The corruption scandal has already seen eight former company executives jailed. A former treasurer of the ruling Workers' Party is also in prison. Several dozen lawmakers are under investigation.

The scandal has also pushed the company's share price down and forced a complete change in senior management.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today brazils petrobras slashes multiyear investment plan Arab Today, arab today brazils petrobras slashes multiyear investment plan

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally

GMT 08:45 2017 Thursday ,16 February

Hanjin saga reveals S.Korea corporate governance flaws

GMT 09:40 2017 Wednesday ,15 February

Heineken profits drained in 2016 by currency turmoil

GMT 09:10 2017 Tuesday ,14 February

Sharjah Chamber Eyes Strong Economic Ties with Belgium

GMT 08:23 2017 Tuesday ,14 February

Toshiba dives on shock loss-reporting delay

GMT 08:18 2017 Tuesday ,14 February

Banker-financier Mnuchin sworn in as US Treasury chief
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday