Petrobras: Q3/2014 Results Only in 2015, Bans Contractors

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – Brazil’s oil giant, Petrobras, announced this week that it will be releasing the company’s financial results for the third quarter of 2014 in January of 2015 and that it was temporarily banning companies accused of corruption in the Operação Lava Jato (Operation Car Wash) from participating in bids for future contracts with the state-owned giant.

According to a release sent out Tuesday night, December 30th, Petrobras states that to meet the requirements of its financial contracts the company would be releasing the financial results of the third quarter without the approval of its external auditor, PricewaterhouseCoopers (PwC).

The results were originally scheduled to be released in November, but due to the Lava Jato scandal the company has stated that it is still revising its numbers. Petrobras also revealed it is revising its plans for next year.

“The company reaffirms that it is revising its planning for the year of 2015, implementing a series of actions directed towards the preservation of cash flow, so as to make viable its investments without the need for new issuances,” said the release.

On Monday night, December 29th, Petrobras announced it had temporarily banned firms involved in the Lava Jato scheme from signing new contracts with the oil company. Among those companies on a list released by Brazil’s Federal Police as paying bribes to Petrobras executives for contracts are Camargo Correa, Odebrecht, Mendes Junior and Andrade Gutierrez, some of Brazil’s largest construction companies.

In all twenty-three companies have been banned from signing contracts with Petrobras. The companies were named by former Petrobras director, Paulo Roberto Costa and black market money dealer, Alberto Youssef, as participating in the bribing scheme to obtain contract advantages with the oil company.

“With the adoption of preventive, precautionary measures Petrobras aims to protect the company and its partners of damages which will be difficult to repair financially as well as damage to its image,” explained the state-owned company.