Petrobras Denies Shelving Debt Sales in Scandal Wake

Posted by Greg Trauthwein
Monday, April 07, 2014

Petroleo Brasileiro SA on Monday denied that it had shelved plans to sell debt in local and international markets later this year after a series of scandals involving the Brazilian state-controlled oil producer.

A source with direct knowledge of the plans told Reuters on Monday that the company was worried that investor perception about the extent of the scandals could hamper demand for its debt or raise borrowing costs. The source requested anonymity because of the sensitivity of the issue involving Petrobras, as the company is commonly known.

A spokeswoman, who could not be named because of company policy, denied the Reuters' report, without confirming whether the company mulled any potential deal. While Petrobras could change its mind and resume the plans at some point, the fact that the Rio de Janeiro-based company has already raised the $25 billion it needed to finance part of its operations this year helped in the decision, the source added.

Petrobras was considering the sale of as much as 3 billion reais ($1.35 billion) of so-called infrastructure notes this quarter, as well as offering euro- and British pound-denominated global bonds before year-end, a source said earlier this year.

The company has come under fire in Congress and in the media over concerns it might have overpaid for an oil refinery in Texas. In addition, a government agency is investigating allegations that company officials took bribes in exchange for steering contracts to SBM Offshore NV, a Dutch oil-production ship leasing company.

A former official has also been arrested in an alleged money-laundering case. Opposition lawmakers want to investigate the company because of its relationship with the government of President Dilma Rousseff, who might run for re-election in October.

Concerns about political meddling, mounting indebtedness and failed efforts to boost output have weighed on confidence about Petrobras, which for years was considered one of the world's most solid oil industry stories. Last month, the company raised $8.5 billion from a bond offering in six different portions, although it paid considerably more to tap investors.

In January, Petrobras sold the equivalent of about $5 billion in euro- and British pound-denominated bonds, in an effort to diversify its fundraising sources.

The cost of insuring Petrobras' 10-year dollar debt from default through credit default swaps, rose by about 2 basis points on Monday to 311.08 points. The yield on the bond due in Dec. 2016 slipped 2 basis points to 6.31 percent on Monday, near the highest level in at least two years.

Preferred shares, the company's most-traded class of stock, rose 6.6 percent to 16.46 reais in Sao Paulo trading Monday afternoon. That is the highest level for the stock since December.

($1 =2.22 Brazilian reais)

(By Guillermo Parra-Bernal; Reporting by Guillermo Parra Bernal; Additional reporting by Jeb Blount; Editing by Leslie Adler, Lisa Shumaker and Eric Walsh)

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

QinetiQ Signs Contract with ASV

QinetiQ, as part of a new Marine Surface Target Service, has signed a contract with Autonomous Surface Vehicles (ASV) for the supply and operational support of autonomous surface target vessels.

GTT Wins DSME Order for 9 More Icebreaking LNGCs

Gaztransport & Technigaz (GTT), a designer of membrane containment systems for the maritime transportation and storage of Liquefied Natural Gas (LNG), announced

Bollinger to Build 6 More FRCs for the USCG

Bollinger Shipyards, Inc., Lockport, Louisiana, announced the award of six additional USCG Sentinel Class Fast Response Cutters (FRCs). The U. S. Coast Guard

Offshore

New Crewboat Design for Offshore O&G Market

Upgraded crewboat design employs carbon-reinforced composite materials and is lighter, faster and more fuel-efficient than alternatives. Marine Oil Transportation

2,545 Candidates Vie for 11 Positions at Maersk Drilling

Maersk Drilling reported 2,545 applicants for the 11 MITAS engineer positions available within the company in 2014. The Maersk International Technology and Science Program,

GDI Awards N-KOM US$110-M Contracts

Gulf Drilling International (GDI) Limited, a subsidiary of Gulf International Services (GIS), the largest oilfield service company in Qatar, has awarded two contracts

Finance

House Subcommittee Hearing Highlights “Dismal State” of U.S. Icebreaking Capability

At the July 23, 2014, hearing of the House Subcommittee on Coast Guard and Maritime Transportation on “Implementing U.S. Policy in the Arctic” the committee chairman, Rep.

Thome Is the First to Sign up to IMPA Act

Leading integrated ship management service provider Thome Ship Management has become the first ship management company to join IMPA ACT, the responsible supply chain management initiative,

Legislation Grants Funding for EU's EMSA

EU Council Adopts Regulation on EMSA Funding The European Union Council adopted a regulation yesterday to finance the actions of the European Maritime Safety

Energy

Nation’s Vessel Operators Join EPA as SmartWay Affiliate

The American Waterways Operators, a 350-member trade association representing the U.S. tugboat, towboat and barge industry, announced today that it joined the SmartWay Transport Partnership,

Iraqi Kurdish Oil Nears US Port Despite Concern in Washington

A tanker carrying crude oil from Iraqi Kurdistan is just two days away from arriving at a U.S. port, according to ship tracking satellites, despite Washington's

New Crewboat Design for Offshore O&G Market

Upgraded crewboat design employs carbon-reinforced composite materials and is lighter, faster and more fuel-efficient than alternatives. Marine Oil Transportation

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Simulators
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1408 sec (7 req/sec)