Petrobras new business plan to include debt reduction
Petrobras is putting off its low-profit projects in a bid to prioritize investments in the exploration of low-risk assets and new pre-salt possibilities, in order to cut down costs in less profitable assets in the areas of exploration and production, both in the country and abroad.
The new business plan of the Brazilian state-controlled oil giant Petrobras for the next five years, to be released in 30 days, is expected to focus on debt reduction and lower credit. “The goal is the company's deleveraging coupled with investments in more profitable projects,” Petrobras Director for Exploration and Production Solange Guedes told investors on Thursday (Apr 23), during the online presentation of the year's figures. Ivan Monteiro, director for relations with investors, says the plan will be based on “competitive market prices.”
Solange Guedes announced that Petrobras is putting off its low-profit projects in a bid to prioritize investments in the exploration of low-risk assets and new pre-salt possibilities, in order to cut down costs in less profitable assets in the areas of exploration and production, both in the country and abroad.
Petrobras Director for Exploration and Production Solaage Guedes,
Guedes declared that investments in pre-salt production will be maintained. “We're taking a careful look at assets for which Petrobras may share risks of any sort. The idea is to prioritize those areas where scaling and standardization may apply. The oil company has started negotiating with other firms in the sector to lower capital expenditure, and is by no means closed to projects that may bring about high yield in the short tun, he noted.
The divestment forecast for 2015 is $3 billion, with a total cash flow estimated at $20 million by the year's end. Petrobras believes the need to bring in $13 billion in 2015 is completely covered, and that the company is currently working with the next year in view.
For this year's scenario, the price of Brent oil is expected to average $60 per barrel, with the US currency at R$3.10 and the total output, both in Brazil and overseas, at 2.796 million of barrels equivalent per day (boepd).
The estimate, Solange added, is that the production of oil and natural gas grows up to 4.5% this year, reaching 2.886 million boepd in 2016, up 2%, a surge driven by the use of new production units.
For next year, predictions include investments adding up to $25 billion, 82% of which in exploration and output. Divestment totals $10 billion. Targets are calculated assuming Brent oil to average $70 per barrel and the average exchange rate for the dollar at R$3.30.
Director for Relations with Investors Ivan Monteiro confirmed the decision made by Petrobras CEO Aldemir Bendine, announced on Wednesday (22), of not paying dividends with a view to preserving Petrobras's coffers. However, as a response to a question posed by a foreign investor, Monteiro explained that if the company manages to make profit in 2015, it “will pay interest on its own capital and on dividends, as it normally does.” On the other hand, he denied the existence of any capitalization plan for either bonds issued or debt conversion.
Petrobras Executive Manager for Business Performance Mario Jorge da Silva stated that, in spite of losses amounting to $7.17 billion in 2014, the company posted a $112.12 billion revenue in sales and registered a 5% growth rate in oil and natural gas output, which reached 2.669 million boepd last year.
Translated by Fabrício Ferreira
Fonte: Petrobras new business plan to include debt reduction
