Petrobras Posts R$21.6 Bln Loss In 2014, Takes Hefty Charge

(RTTNews) - Brazil's state-run oil company Petróleo Brasileiro S.A. (PZE), commonly known as Petrobras, Thursday said it reported a loss of R$21.6 billion in 2014, mainly due to an asset impairment charge of R$44.6 billion and a R$6.2 billion write-down arising from improper payments.

The results were also impacted by a provision for losses from power sector receivables of R$4.5 billion, write-downs related to the construction of the Premium I and II refineries of R$2.8 billion and a provision for the Program to Encourage Voluntary Severance of R$2.4 billion.

The company's oil and natural gas production rose 5 percent in relation to 2013, reaching an average of 2.699 million barrels of oil equivalent per day in 2014.

Petrobras is a publicly traded corporation, the majority stockholder of which is the Federal Government (represented by the National Treasury). A corruption scandal, reportedly one of the biggest corruption in the history of Brazil, shook the company recently, and earlier in the year, Petrobras announced the departure of its CEO Maria das Graças Foster and five Executive Directors related to this issue.