Petrobras History of Failed Plans Raises Doubt over New Promises
The new outlook for 2020 is 3.7 boepd, 11 percent less than the 2008-2012 plan promised for this year.
Annual revisions drove the 2020 goal as high as 6.42 million boepd in 2011 and planned five-year investment to $237 billion in 2013.
COST OF FAILURE
The cost to investors has been huge. Petrobras was worth more than $200 billion when the 2008 plan was released, making it one of the world's 10 largest companies.
Two years later Petrobras raised $70 billion in the world's largest-ever share sale. Today, Petrobras is worth $56 billion.
And as Petrobras goes forward the financial situation is less promising than in 2008.
At more than $120 billion, Petrobras' debt is the largest of any oil company, equal to 113 percent of its capital and more than double its market value. The comparable figures for Exxon Mobile Corp are $32 billion and 16.7 percent.
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