Rio de Janeiro – Petrobras’ board of directors has said this Wednesday (22nd) that the state-run oil company took a R$ 6.2 billion hit (US$ 2 billion) from graft-related losses being probed under the Brazilian Federal Police’s Operação Lava Jato (Operation Car Wash). Net income for 2014 was negative at R$ -21.6 billion (US$ 7.1 billion).
On presenting the audited financial statements for last year, which have been submitted to the Securities Commission (CVM, in the portuguesee acronym), Petrobras’ executive manager for Corporate Performance, Mario Jorge da Silva, said asset write-downs were as high as R$ 50.8 billion (US$ 16.7 billion), including the R$ 6.2 billion in graft losses and R$ 44.6 billion (US$ 14.7 billion) in asset depreciation, aka asset impairment.
Based on the contents of the Federal Public Prosecutor’s Office, Lava Jato-related numbers concern 3% of the value of contracts with 27 corporations involved in the scheme between 2004 and 2012. Breaking down losses by department, R$ 3.4 billion (US$ 1.1 billion) were embezzled through the company’s Supply arm, R$ 2 billion (US$ 660 million) through Exploration & Production, and R$ 700 million (US$ 231 million) via Petrobras’ Gas & Energy Department.
*Translated by Gabriel Pomerancblum
