Petrobras’ Financial Director Says Company Is Burning About $1 Billion Per Month with Current Oil Price

Andrea Marques de Almeida, Financial Director of Petrobras Says Oil Prices Significantly Affect the Company’s Revenue

According to Petrobras’ financial director Andrea Marques de Almeida, the company is burning about US$ 1 billion every month due to the current low oil price scenario. “Lower prices and lower demand significantly affect our revenue. We have to align our costs with revenues. To give you an idea, Petrobras today, looking ahead at what we see in our scenario, we are burning, consuming US$ 1 billion in cash per month.”

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According to the director, the situation requires measures to preserve cash, reduce costs, and provide liquidity to the company so that it can withstand the year 2020. “Our costs, many of which are fixed, and our revenue is variable. We need to align costs to our revenue,” she commented.

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According to the exploration and production director of Petrobras, Carlos Alberto Pereira de Oliveira, there is no indication that the company will hibernate more platforms. In early April, there was a production halt of 62 out of 82 production units in shallow waters.

According to him, “We need to preserve cash and the action [hibernation of shallow water platforms] was aimed at stopping this hemorrhage. We have nothing that indicates, at this moment, that we will hibernate more platforms.”

Refineries

For the refining and natural gas director of Petrobras, Anelise Lara, the economic crisis only reinforces the need to sell half of the refining park.

Other issues raised by the director include the biofuels industry, which pressures the company for an increase in taxation on fossil fuels, as well as the company’s monopolistic position in refining, which makes it very exposed. According to her, there is a lack of partners to advocate for the sector’s interests.

“This position is very bad because it greatly hinders our relationship and participation in the market as a whole. When talking today about any measure to benefit refining, it is thought to be benefiting a single company. This is very bad for our longevity and sustainability… We cannot be alone in such a relevant segment like refining. We need partners in the fight for demands that this segment will need to face in the coming years,” she said.