News / Brazil

Brazil's graft-hit Petrobras reports $7.2bn loss in 2014

Thursday, 23 April 2015 5:06 AM [ Last Update: Thursday, 23 April 2015 7:02 AM ]

The Brazilian national flag flutters at the front of the headquarters of the Brazilian state oil giant Petrobras, in Rio de Janeiro, Brazil, on March 13, 2015. (©AFP)

Brazil’s scandal-hit oil giant Petrobras has reported an annual loss of $7.2 billion for 2014, including $2.1 billion in losses due to a bribery scandal.

Petrobras executives allegedly colluded with construction companies to massively inflate contracts and bribe politicians.

Thirteen senators, 22 congressmen, two governors and several former cabinet officials are named in the scandal.

The treasurer of President Dilma Rousseff’s Workers’ Party (PT), Joao Vaccari, was arrested last week in relation to the graft case.

Petrobras also posted an asset devaluation of $14.8 billion, largely because of the slide in international oil prices and postponed refinery projects.

The company’s newly-appointed chief executive said releasing the figure was a fundamental step toward regaining the company’s credibility.

Aldemir Bendine told journalists at Petrobras headquarters in Rio de Janeiro that the company’s “second challenge” was to draft a new business plan for the next five years.

He said the new plan would be released in less than a month.

Business analysts say the company’s effort to clean up its act should help it avoid a partial default on its huge debt of nearly $140 billion.

The state-owned company is the largest company in Brazil.

XLS/HJL/HMV

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk