UPDATE 1-Petrobras reinventing itself after oil price drop -CFO

martes 22 de marzo de 2016 15:28 GYT
 

(Adds executives' comments, background on results)

By Jeb Blount

March 22 (Reuters) - Brazil's state-controlled oil company Petrobras is being forced to turn itself into a smaller operation as crude prices have fallen more than expected, making it impossible to finance its once-ambitious plans, the company's chief financial officer said on Tuesday.

CFO Ivan Monteiro made the comment on a conference call with investors a day after Petroleo Brasileiro SA, as the company is formally known, announced a 36.9 billion real ($10.2 billion) fourth-quarter loss, its biggest ever.

The loss was driven by a 46 percent decline in the price of Brent crude oil in the fourth quarter compared with a year earlier, the company said.

A big recovery is unlikely anytime soon, Monteiro said.

"We do believe that the future price of Brent is now at a different level, a lower level in the long run, and this certainly had a significant impact," he said. "And to that end, the company will have to reinvent itself. It will have to adapt its costs to the new reality."

The once-booming oil producer with the world's largest corporate spending plan is slashing capital investments as $12 billion of debt comes due this year. Petrobras has also been tarnished by a sweeping Brazilian corruption scandal that has implicated several senior executives.

Petrobras said on Monday it expected Brent crude to average about $45 a barrel in 2016, down from about $60 late last year.   Continuación...