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Petrobras (PBR -7.9%) shares slide after reporting a sharp drop in earnings and a management...

Petrobras (PBR -7.9%) shares slide after reporting a sharp drop in earnings and a management shakeup. Q4 net profit fell to 5.05B Brazilian reais ($2.93B) from 10.6B reais a year ago due to supply chain problems which led to a production decline. Also, several high-level executives were replaced following the appointment of a new chief executive.
Comments (3)
  • Dr. V
    , contributor
    Comments (1179) | Send Message
     
    Wow.

     

    Here are my comments from Jan 31:

     

    PETROBRAS rocked by corruption scandals for 20 years +, no secret.

     

    It's endemic in Brazil, part of their everyday business culture.

     

    Unfortunately, that's the same mentality of the Brazilian Govt.

     

    They see SDRL, and THEY want a piece of THEM.

     

    Hence the difficulty in doing ANY kind of business with Brazil, from Real Estate to Oil & Gas. Actually, you can say ALL BRIC COUNTRIES for that matter.

     

    They (BRIC) countries always want an envelope in the hand before they will do business, don't be shocked, everyone in business is aware of this, they just don't talk about it.

     

    LESSON: DO NOT DO BUSINESS WITH BRIC. DUE TO POLITICAL INSTABILITY AND CORRUPTION, YOUR INVESTMENT CAN BECOME THEIR INVESTMENT WITHIN MINUTES.

     

    Well known and documented examples exist to support this argument.

     

    You're welcome.
    11 Feb 2012, 04:17 AM Reply Like
  • nilesh_dharamshi
    , contributor
    Comments (2) | Send Message
     
    I agree with Dr. V...on India. With cost of living skyrocketing, so is the envelope size.
    11 Feb 2012, 12:44 PM Reply Like
  • stocknerd
    , contributor
    Comments (1188) | Send Message
     
    Corruption always fails in the end because it gets greedy. Why some cultures consider stealing to be OK is why they are NOT first world countries.
    15 Feb 2012, 06:17 PM Reply Like
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