Brazilian oil giant Petrobras (PBR) has been the ugly duckling of big oil companies. It’s high time it cleans up its act.
It’s time for this company to kick off the dust. Petrobras’ oil production fell 4.5 percent in November compared to the same period last year. Production in November was 1.98 million barrels daily. Nationwide, oil and gas production fell 2.63 percent in Brazil in November, the company reported on Wednesday.
Last month, Moody’s cut its credit outlook for the company, citing rising debt levels and growing uncertainty over how quickly they can start commercializing these oil finds. Moody’s changed the outlook for Petrobras to “negative” from “stable” and also questioned whether Petrobras could boost cash flow given the company’s massive $237 billion investment plan, rising labor costs and losses in its refining operations. Investors hope the bad news is behind Petrobras.