Scandal-Ridden Petrobras Booked USD 10.2 Billion Loss In Q4 2015, To Cut 12K Jobs

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Suffering from huge impairments in its production and exploration, hit by the glut in the crude oil market, Petrobras [BVMF: PETR4], Brazil’s oil giant recorded the largest loss in its history.

According to the company’s Q4 2015 report, the company reported last Friday that it made a total loss of R$ (Brazilian Real) 36.9 billion equivalent of USD 10.2 billion. Petrobras has come under scrutiny after the company’s officials were fingered in the corruption scandal rocking Brazil and its political class.

The company produced a total of 2,777 Mbbl/d, earnings before Interest, tax, depreciation and amortization, EBITDA was R$ 17 billion. The company did a whooping R$ 49.7 billion write downs from impairments in its exploration and production unit.

In a summary provided by Petrobras:

• Positive free cash flow of R$ 15,626 million in 2015, compared to negative free cash flow of R$ 19,554 million in 2014.
• Net debt was US$ 100,379 million as of December 31, 2015, a 5% decrease when compared to December 31, 2014.
• The average maturity of outstanding debt increased from 6.10 years as of December 31, 2014 to 7.14 years as of December 31, 2015.
• Capital expenditures and investments of R$ 76,315 million, 12% lower compared to 2014 (R$ 10,825 million).

Petrobras is Brazil’s largest company, its image is mired in the biggest corruption scandal to hit Brazil. As the global oil rout continues, the company is expected to book more loss. It is already planning to cut 12,000 jobs across the group through voluntary redundancy.