Petrobras reduced by 25% its investments until 2019
Oil investments between 2017 and 2021 amount to $ 74,100 million, of which 82% will be devoted to the exploration and extraction of crude The Brazilian oil company Petrobras announced Tuesday a 25% reduction in investments until 2019, in relation to its latest forecasts, according to the state company said in a statement to the market.
Investments in the oil between 2017 and 2021 amount to 74,100 million dollars and that amount, 82% will be dedicated to the area of exploration and extraction of crude oil, 17% to refining and 1% to other operations as a statement to the Sao Paulo stock exchange. The oil is experiencing a serious financial crisis by the sharp fall in oil prices and the huge corruption scandal uncovered in her womb, factors that have raised their indebtedness.
In addition to reducing investment, Petrobras announced that it will increase its asset sale plan , which in the next two years aims to get rid of business areas totaling 19,500 million dollars.Between the current and last year, the goal was to sell oil assets totaling 15.100 billion .
Within this plan asset sales, Petrobras intends divest itself of its bio fuels production , distribution of liquefied petroleum gas (LPG), fertilizer production and its interests in petrochemicals, but intends to keep its “technological competence in areas with development potential “. In parallel , Petrobras intends to “restructure” its area of thermoelectric power and alter the “positioning” of its lubricants business to concentrate on the production of hydrocarbons.
Petrobras said that the reduction in investments will not “big impact” on its operational goals , since the vast majority of the funds will go to oil production. The company also set a goal to reduce by 18% its operating expenses until 2021, reaching 126,000 million dollars over the next five years. The sum of these initiatives will enable the Brazilian company to make their investments , “no need” to seek additional funding until 2021, the statement said .
The goal is to halve the debt ratio , which last year was 5.3 times the value of its gross operating profit (EBITDA), which would be passed to 2.5 times in 2018. The business plan envisages that the total hydrocarbon production of the company will increase from 2.62 million barrels a day to 3.41 million barrels in 2021. The company has seen the price of Brent crude, the European benchmark and using as a reference, will be $ 48 in 2017, will rise to $ 56 a year later, to $ 68 in 2019 and stabilize at $ 71 in the biennium following.