The Country Caller takes a look at how Petrobras did well to achieve its objectives
Apparently, the new CEO of Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) is doing a fine job up till now at the state-run company. Petrobras was up 3.76% at $9.94 during trading on Tuesday as of 3:48 PM EDT. The company that saw its value decline mostly in the past two years would take a sigh of relief, as the new CEO aims to tackle the cost and debt problems simultaneously.
In the most recent efforts to cut costs, the Rio de Janeiro based company has finally succeeded in showing the exit door to some 11,704 employees. According to Bloomberg, these employees had decided to sign the voluntary layoff program on August 31.
Petrobras seems quite on track of its objective of cutting employees. The Brazilian state-run company had initially devised a plan of making 12000 workers redundant by the end of 2020, but with 11,704 workers already agreeing to a voluntary layoff, it seems the company might just easily achieve its target of the 12000 workers. The plan would bring in some $10 billion savings. The preliminary severance cost from the plan is expected to be around $1.21 billion.
In other news, Petrobras has also made headwinds in its asset divestiture plans. According to Reuters, the company has managed to seal the deal of selling 90% stake of its natural gas pipeline unit. According to the anonymous source from Reuters, the assets would be sold to a group of investors belonging to Canada’s Brookfield Asset Management. The 90% sale in the stake is expected to fetch in $5.2 billion.
Petrobras currently is the most indebted energy company in the world with debt levels exceeding $26 billion. The company, amidst a crude oil price crash, finds itself in a financial turmoil. It is doing its utmost to regain prestige and strengthen its liquidity position.