Petrobras profits plunge 89% in 2Q; underperforming assets dumped | Stockbroker |
This wouldn't have happened under old management,” said Deyvid Bacelar, who represents Petrobras workers on the board. “I'm still trying to understand; I don't know why the board moved so fast, some of the impaired projects have social and economic benefits that could have been saved if the board was ready to negotiate.”
The company's historic $17 billion April write-down in the wake of a price-fixing, bribery and political kickback scandal had faced resistance from the previous board. Yet in the face of lawsuits and investor outcry, the government replaced politicians and generals in its controlling board bloc with market professionals.
Bacelar, a member of the FUP oil-workers federation, a major backer of Brazilian President Dilma Rousseff's Workers' Party-led government, said the write-downs could ease the path for asset sales, a move he and FUP strongly oppose.