Herculean task

22 March 2016 By Martin Langfield

Brazil’s state oil company posted a record $10 bln quarterly loss as falling oil prices sparked a wave of asset writedowns. It is at least a better reason for red ink than the corruption scandal that marred 2014 results. But management has more mucking out to do yet.

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Brazil’s state-controlled oil company Petroleo Brasileiro, known as Petrobras, posted its biggest-ever quarterly loss on March 21 after booking a large writedown for oil fields and other assets as oil prices slumped and refinery projects faltered.

Petrobras reported a consolidated net loss of 36.9 billion reais ($10.2 billion) in the fourth quarter, according to a securities filing. The bigger-than-expected shortfall was 48 percent worse than the 26.6 billion real loss a year earlier, the previous record.

Petrobras common shares fell 5.8 percent in after-hours electronic trading in New York after the results were released.

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