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Problems caused by fuel subsidies, project delays and soaring costs at Petrobras (PBR -2%) are...

Problems caused by fuel subsidies, project delays and soaring costs at Petrobras (PBR -2%) are spreading to the wider Brazilian economy, undermining PBR's suppliers and raising credit risks. To fight cost overruns, limit rising debt and make up for $8B-plus in refining losses, PBR reportedly is squeezing suppliers and investors by making them wait longer to receive payment.
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Comments (2)
  • petroglyph
    , contributor
    Comments (36) | Send Message
     
    This just keeps spreading. The government has taken a huge amount of capital out of shareholders' hides by this unsustainable practice of subsidizing Brazilian drivers.

     

    They have forced local content rules that work against shareholder interests, and now they are spreading the pain by paying bills late. Socialism works great till you run out of other peoples money. And Brazil is having to search harder and harder for other people money lately.
    31 Jan 2013, 03:15 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Its a government run oil company...when I ws down there 10 years ago...it was a mess then....think a Socialist run oil company...add in a bunch of corruption ...and then a little nepotism...and you get this company
    31 Jan 2013, 03:34 PM Reply Like
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