SAO PAULO - Brazilian government-run oil company Petroleo Brasileiro SA (Petrobras) has planned to finance $208.7 billion in projects that have been approved, and has a further $27.8 billion in projects under evaluation that have yet to be financed, the company's chief financial officer said Monday.
The investment plan is well-financed, and the company won't need to sell new shares to raise capital, Almir Barbassa said during a presentation on the firm's latest five-year plan. The company should become cashflow-positive from 2016, he added.
Barbassa said the company will work to keep its investment grade rating, as that's key to keeping costs of funding in check. Petrobras, as the company is known, will work to keep debt level below 35% of capital, he said.
Borrowing plans, at around $16 billion per year, are "fairly comfortable," and below debt issuance in recent years, the executive said.
Copyright (c) 2012 Dow Jones & Company, Inc.
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