Countering the balance, PSDB advocates opening up the pre-salt reserves.
Senator Aécio Neves, president of the PSDB, issued a statement this Wednesday (22) regarding Petrobras' balance sheet. "The data released today by Petrobras shows yet another chapter in a film of mismanagement and corruption, involving the Brazilian state-owned company that a few years ago was the largest company in Latin America and one of the most efficient companies in the world in its sector. In just over a decade, the PT government managed to tarnish years of Petrobras' efficiency," he stated; the PSDB member says that the way to recover Petrobras' investment capacity is to eliminate the obligation for Petrobras to be the sole operator of the pre-salt, return to using the concession regime of Law 9.478/1997 and professionalize management.
247 - Senator Aécio Neves, president of the PSDB, issued a statement on Wednesday night (22) regarding Petrobras' balance sheet. "The data released today by Petrobras shows yet another chapter in a film of mismanagement and corruption, involving the Brazilian state-owned company that a few years ago was the largest company in Latin America and one of the most efficient companies in the world in its sector. In just over a decade, the PT government managed to tarnish years of Petrobras' efficiency," he stated.
According to him, "there is nothing to celebrate regarding the data published today." "In 2010, the PT government altered the regulatory framework of the Brazilian oil sector, instituting the profit-sharing regime and creating Pré-Sal Petróleo SA. Instead of strengthening Petrobras, the result was greater government intervention in the sector, in the company's administration, in the control of fuel prices, and the onerous requirement for Petrobras to be the sole operator of the Pré-Salt with a minimum 30% stake in pre-salt exploration and production," he criticizes.
In this sense, Aécio Neves says that the way to recover Petrobras' investment capacity is to eliminate the requirement for Petrobras to be the sole operator of the pre-salt fields, return to using the concession regime of Law 9.478/1997 (Petroleum Law), professionalize Petrobras' management and the company's Board of Directors with respected professionals of impeccable reputation.
Below is the note:
The data released today by Petrobras reveals yet another chapter in a saga of mismanagement and corruption involving the Brazilian state-owned company, which just a few years ago was the largest company in Latin America and one of the most efficient in the world in its sector. In just over a decade, the PT government managed to tarnish years of Petrobras' efficiency.
There is nothing to celebrate regarding the data published today. The company recorded a loss of R$ 21,58 billion in 2014, compared to a profit of R$ 23,4 billion in 2013, and its debt grew by more than 30%, ending 2014 with a total debt of R$ 351 billion. This high debt is incompatible with the company's investment plan, meaning that to fulfill part of its investment plan, the company will have to sell assets.
The 2014 balance sheet showed losses of R$ 6,194 billion related to corruption and another R$ 44,345 billion related to the revaluation of assets. The losses related to corruption may be even greater, as the investigation into the corruption scandals involving Petrobras and its suppliers is still ongoing by the Federal Police, the Public Prosecutor's Office, and the Federal Court.
In the case of asset revaluation, a loss of R$ 44 billion is a high amount and indisputable evidence of the lack of planning resulting from mismanagement and political use of Petrobras by the PT government.
In 2010, the PT government altered the regulatory framework of the Brazilian oil sector, instituting the production-sharing regime and creating Pré-Sal Petróleo SA. Instead of strengthening Petrobras, the result was greater government intervention in the sector, in the company's administration, in the control of fuel prices, and the onerous requirement that Petrobras be the sole operator of the Pré-Sal fields with a minimum 30% stake in pre-salt exploration and production.
The fact is that, even after Petrobras' capitalization in 2010 of R$ 120 billion, the largest capitalization ever carried out in the world, the company today has excessive debt, problems generating cash to finance its investment plan and pay its debt, and had to recognize in its 2014 balance sheet released this Wednesday, April 22, 2015, a loss of more than R$ 50 billion resulting from corruption scandals and asset revaluation.
The way to recover Petrobras' investment capacity and that of its supplier network in Brazil is already known. The government must, among other actions, eliminate the requirement for Petrobras to be the sole operator of the pre-salt fields, return to using the concession regime of Law 9.478/1997 (Petroleum Law), and professionalize Petrobras' management and the company's Board of Directors with respected professionals of impeccable reputation.
In short, we need to save Petrobras from the political manipulation it suffered during more than a decade of PT (Workers' Party) government. Petrobras is an excellent company with competent employees. If the government lets the company work, it will once again become one of the largest companies in the world and the largest in Latin America, for the benefit of all Brazilians.