Petrobras Asks Banks for $8 Billion Disbursement to Enhance Liquidity

Due to the Coronavirus Pandemic, Petrobras Requested $8 Billion from Banks. The State-Owned Company Reported That It Is Evaluating Other Measures to Strengthen Its Cash Flow

Amid the coronavirus pandemic, Petrobras reported that it has asked banks for the disbursement of $8 billion (more than 40 billion reais). The amount is part of its committed credit lines, a type of pre-approved credit that the oil company already had with banking institutions. Despite the Crisis, Petrobras Receives Proposals for the Charter of FPSO Mero 3.

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The disbursement is part of a strategy to increase the company’s liquidity during this crisis, due to the pandemic of the new coronavirus (Covid-19) and the shock in oil prices.

In a statement released today (20), Petrobras reported that it is evaluating other measures to strengthen its cash flow, including additional cost reductions and optimization of its working capital.

“Petrobras reaffirms its strategy supported by five pillars: maximizing return on capital, reducing cost of capital, relentless pursuit of low costs, meritocracy, and respect for people, the environment, and safety. The current crisis reinforces the importance of these pillars, which must continue to be pursued with even more focus,” the statement says.

Refineries

In another statement, Petrobras reported that it postponed the receipt of binding offers from companies interested in purchasing refineries of the state-owned company, due to the pandemic of the new coronavirus. The processes involve eight refineries, including Abreu e Lima (Rnest) in Pernambuco; and Alberto Pasqualini (Refap) in Rio Grande do Sul.

Other units involved in this postponement of receiving binding offers are Landulpho Alves (RLAM) in Bahia; Presidente Getúlio Vargas (Repar) and Shale Industrialization Unit (Six) in Paraná; Gabriel Passos Refinery (Regap) in Minas Gerais; Isaac Sabbá Refinery (Reman) in Amazonas; and Northeast Lubricants and Oil Derivatives (Lubnor) in Ceará.

In a statement released today, Petrobras informed that it “reinforces its commitment to the project of selling refining assets and their respective logistical assets, as stipulated in its Strategic Plan 2020-2024.”