By Paul Kiernan
RIO DE JANEIRO--Brazilian state-run oil giant Petróleo
Brasileiro SA doesn't foresee a need to issue new shares after
slashing its investment plans and placing tens of billions of
dollars of assets on the block, Chief Executive Aldemir Bendine
said Monday.
Petrobras announced Monday a 37% reduction in its five-year
capital spending budget, to $130.3 billion in 2015-19 from $206.8
billion planned for 2014-18. The company also said it plans to sell
$15.1 billion in assets this year and next, plus another $42.6
billion in 2017-18 via "restructuring of businesses, demobilizing
of assets and additional divestments."
Analysts were quick to point out that, with oil prices hovering
at little more than half their year-ago levels, Petrobras could
have trouble raising as much cash as it hopes. With a debt load
that already dwarfs that of other major oil companies, Petrobras'
shares have been weighed down by concerns that the company may have
to dilute minority shareholders by selling new shares or seeking a
cash infusion from the Brazilian government.
But Mr. Bendine said that recent bond sales and loan
agreements--some with Chinese state banks--show that the company
still has the ability to raise financing.
"With respect to a possible share sale, yes, it is totally
discarded for the near horizon of the company, given the reality
that we have today and the way we elaborated the new business
plan," Mr. Bendine said in a news conference.
Write to Paul Kiernan at paul.kiernan@wsj.com
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