Moreover, Petrobras has significantly lowered its investment target for 2015 till 2019 by 37% to US$ 130.3 billion compared to investment target set for 2014 till 2018 business and management plan of US$ 206.8 billion.
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Petróleo Brasileiro S.A. Petrobras operates as an integrated energy company in Brazil and internationally. E&P includes exploration, development and production of crude oil, natural gas liquid and natural gas in Brazil. The stock traded as low as $3.33 and last traded at $3.42, with a volume of 33,775,657 shares traded. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. Since then, Petrobras has been under debt with a liability of $104 billion.
Such risks, including falling oil prices and a giant corruption scandal, led to Petrobras’ loss of its coveted investment-grade rating a year ago.
However, the company is not entirely going down.
The company’s 5.75 percent bond due in January 2020 fell 86 basis points to 78 percent of face value to yield 12.6 percent.
It’s been absolute chaos in the oil market today, as the price per barrel dipped to almost $30.
Some analysts expect it to drop toward US$20 in coming months, slashing potential returns on Petrobras’ technically complicated and remote offshore oilfields.
The Ibovespa fell0. 9 percent to 39,589.44 at 1:53 p.m.in Sao Paulo as half of its 61 stocks declined.
The latest price plunge, ahead of what will be a gloomy set of full-year oil company results, puts the industry’s biggest players under intense pressure to take further action to shore up revenues and protect dividend payouts.
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Under the revised plan, about US$80 billion, or 81 per cent of the planned capital spending for 2015 through 2019, is budgeted for exploration and production. Approximately eleven percent, or US$10.9 billion will used for supply and refining, while six percent, or US$5.4 billion will be used in the gas and energy area.
