Petrobras to 'remain strained' despite cuts
The credit profile of Brazil's beleaguered state-run oil firm Petrobras will remain strained despite a 30% reduction in capital spending next year, Moody's Investors Service said on Thursday.
Battered by a lingering corruption scandal and Brazil's widening economic crisis, Petrobras this week slashed US$8bn from its 2015-16 budget.
The announcement came less than a month after the company was downgraded to junk status by credit ratings agency Standard and Poor's.
"While the spending cut protects Petrobras' cash at a time when operating profits have weakened from the real's devaluation [sic], the company's credit profile will remain challenged by difficult economic, operating and financial conditions," Moody's senior credit officer Nymia Almeida said.
Capital spending cuts and fuel price increases would slightly temper higher outflows from the foreign exchange depreciation, Moody's said.
"As 2016 approaches, Petrobras will have to maintain its strong liquidity position in the face of a weak Brazilian economy, low oil prices and unfavorable prospects for asset sales," Almeida added.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Oil & Gas (Brazil)
Is the Brazilian pre-salt a closed chapter?
The number of new wells in the once prolific pre-salt layer fell by around 60% in the last three years.
Brazil's PPSA prospecting refining consultancy services
Plus, General Motors is set to invest in electric vehicles in the country, Thymos Energia eyeing electric power M&As, and more.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Oil & Gas (Brazil)
Get critical information about thousands of Oil & Gas projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Alto Alegre
- Current stage:
- Updated:
3 years ago
- Project: Barra Bonita
- Current stage:
- Updated:
3 years ago
- Project: Pajeú 5
- Current stage:
- Updated:
1 year ago
- Project: Pajeú 1 Photovoltaic Plant (Bahía, 27,136 MW)
- Current stage:
- Updated:
4 years ago
- Project: Juruá Thermoelectric Plant - CGA (Amazonas, 3,168 MW)
- Current stage:
- Updated:
4 years ago
- Project: Serra do Mel III (Old Serra do Mel IX)
- Current stage:
- Updated:
1 year ago
- Project: FAZENDA ALTO DAS PEDRAS
- Current stage:
- Updated:
1 week ago
- Project: Pama-m-265_r11
- Current stage:
- Updated:
3 years ago
- Project: S-M-1711_OP3
- Current stage:
- Updated:
1 year ago
- Project: ALS032 AREA
- Current stage:
- Updated:
5 months ago
Other companies in: Oil & Gas (Brazil)
Get critical information about thousands of Oil & Gas companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: PetroRecôncavo S.A.  (PetroRecôncavo)
-
PetroRecôncavo S.A. is a Brazilian independent operator of onshore oil and gas exploration and production fields in the Brazilian State of Bahia, which was established in 1999 i...
- Company: Construções e Comércio Camargo Corrêa S.A.  (CCCC)
-
Construções e Comércio Camargo Corrêa (CCCC), a subsidiary of the Camargo Corrêa group, provides a variety of services, such as construction, ground works, engineering works; hy...
- Company: Refinaria de Paulínia  (Replan)
-
Refinería de Paulínia (Replan) is Brazil's national oil company Petrobras largest refining facility, with a 66,000m3/d installed capacity, equivalent to 415,000b, and 9,1km2. Re...
- Company: Shell Brasil Petroleo Ltda.  (Shell Brasil)
-
Shell Brasil Petróleo Ltda. (Shell Brasil), a Brazilian subsidiary of Royal Dutch Shell plc headquartered in Rio de Janeiro, engages in the exploration and production of oil and...