Petrobras History of Failed Plans Raises Doubt over New Promises



For Fabio Fuzette, a fund manager with Antares Capital in São Paulo, Petrobras Chief Executive Aldemir Bendine has done little to explain how the company will keep its promise to cut debt.

Most important, Fuzette said, Bendine's promise depends on raising $57.7 billion by 2019 from asset sales, restructuring and closing operations.

"That's absurd," Fuzette said. "It's more than the company's total market value. They are being too aggressive."

But if that goal is not met, Petrobras' debt will likely rise, said Auro Rosenbaum, senior oil and gas analyst with Banco Bradesco SA.

The situation is made worse by low oil prices, he added. Petrobras expects benchmark Brent crude to rise to an average of $70 a barrel in 2016-2019 from about $60 today. Oil prices, though, averaged $92 a barrel in the eight years between the release of the 2008-2012 plan and Monday's cuts.

(Reporting by Jeb Blount; Editing by Richard Chang)


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