Skip to main content

Why are there Chances Of Brazil's State-Owned Oil Giant Petrobras Going Bankrupt?


But why has Petrobras — whose CEO Maria das Graças Silva Foster is one ofFORBES’ Most Powerful Women — gone from heaven to hell at the very moment when it is announcing some of its biggest oil discoveries, including those in its Libra field, whose estimates for production were recently updated to as much as 12 billion barrels, twice previous estimates?
Simply put, for Petrobras — as for any other oil company out there in the world, and Brazil’s own bankrupt OGX is an example of that — more oil means more investments and debt. Considering that Petrobras also has the world’s largest corporate spending program, valued at $237 billion, it also means more trouble.
Moody’s specifically cited “the growing government intervention in Petrobras” as one of the reasons for the agency to reassess its ratings. An example of that are the extra refineries added to Petrobras’ investment plan by request of the then President Lula da Silva. In a triumphant interview to newspaper Valor Economico published in 2009, the politician — who’s Dilma Rousseff’s, the current President of Brazil, mentor — said bluntly that Petrobras did not want to build refineries and also had a plan for meager investments in 2008. “Then I called the company’s Board,” said Lula. Outcome of his call: not one but four refineries were added to its investment plan, and oil production forecasts were revised up for fantastic numbers.



http://www.forbes.com/sites/andersonantunes/2013/12/10/what-are-the-chances-of-brazils-state-owned-oil-giant-petrobras-to-go-bankrupt-32-to-be-precise/

Comments

Post a Comment

Popular posts from this blog

Best IELTS and English language training institutions in Hyderabad

IELTS stands for International English Language Testing System. As the name implies it is basically an English test for testing the proficiency of the language in an individual.  Training for IELTS can be taken to pass the IELTS exam or to develop good english language skills. I am giving the training institute addresses for Hyderabad. The test system is jointly managed by the British Council,IDP education ltd and University of Cambridge ESOL Examinations and more than 1 million candidates are taking the exam all over the world. The test has two versions : 1. Academic 2. General training Academic  version is for people who plan to continue their higher education by enrolling in universities in countries like US,UK,Australia,Canada,New Zealand etc.The academic institutions in these countries consider the IELTS score as a criteria for the admission process. General training is mostly for immigration purposes in countries like Australia,New Zealand,Canada etc. It may ...
9 comments
Read more

How to use home loans most effectively for tax benefits

1) Deduction on interest: If you are paying EMIs for a home loan you took to buy a house, the interest component in the EMI can be claimed as deduction. You must be both an owner and a co-borrower (in the loan) to claim tax benefits. This deduction can be claimed starting the year in which the construction of the house is completed. Suppose the construction of your house was completed on August 30, 2014, you can claim deduction for interest for the entire 12 months in financial year 2014-15. So every year a maximum of Rs. 2 lakh can be claimed for a house that you use for your own residence. If your house is rented, the entire interest for the year can be claimed as deduction. The interest payments for the year shall result in a loss under the head 'income from house property'. This loss can be adjusted against in the same year against other heads of income in your income tax return including salary. Therefore, it reduces your total taxable income and the tax you pay thereon. A...
2 comments
Read more

Intellectual battle against ISIS as important as Military: Sheikh Makhtoum of Dubai

The global financial crisis taught the world how profoundly interdependent our economies have become. In today's crisis of extremism, we must recognize that we are just as interdependent for our security, as is clear in the current struggle to defeat ISIS. Mohammed bin Rashid Al Maktoum, VP and prime minister of the UAE, ruler of Dubai If we are to prevent ISIS from teaching us this lesson the hard way, we must acknowledge that we cannot extinguish the fires of fanaticism by force alone. The world must unite behind a holistic drive to discredit the ideology that gives extremists their power, and to restore hope and dignity to those whom they would recruit. ISIS certainly can – and will – be defeated militarily by the international coalition that is now assembling and which the UAE is actively supporting. But military containment is only a partial solution. Lasting peace requires three other ingredients: winning the battle of ideas; upgrading weak governance; and ...
Post a Comment
Read more