Dishonesty and law breaking has led PetroleoBrasileiroPertrobras SA (ADR)(NYSE:PBR) to the evaluation and judgment of its damage.A report was generated regarding this issue by Reuters two days ago.
PetroleoBrasileiroPertrobras SA (ADR) (NYSE:PBR) showed their security filings this Friday in which they made it clear that the elaborated evaluation was being carried on already, and have made a judgment about the consequences, which might show a loss due to damage for third and last quarter of fiscal year 2014 (4QFY14). These damage losses might have a bad impression on the total revenue generation, although consequences of future damage loss have not yet been exhibited. Apart from that, no specific day for the declaration of result has been provided.
In addition to this unrecoverable loss another report was provided on the same day that uncovered the news ofclosure of one of the vital oil production watercraft P-58,located at a distance from the shore.This shutdown was because of the non-uniformity found in the production system in the watercraft by Petroleum regulatory authority of the state (ANP).
P-58 has been term as FPSO which points to its floating production, storage and offloading craft.It produced more than 100,000 tanks of oil daily in January this year, which meant 4.1% of Rio de Janeiro-based organization’s income earned per month.
P-58 was winded up aftersome dangerous events happened in a couple of purification plantsand the death-dealingeruption reported on other ships before a month. These happenings in various purification plants provoked the worker union to take an action regarding protection of labors working on PetroleoBrasileiroPertrobras SA (ADR) (NYSE:PBR) locations.
Brazils’ National Oil Union Confederation gave its point of view regarding the situation,that PetroleoBrasileiroPertrobras SA (ADR) (NYSE:PBR) has been under huge pressure, which ultimately prompted it to take a decision for closing its P-58 (FPSO) and offloading ships.Because of dishonesty and law-breaking issues, Brazilian oil producing organizations are going through a lot of challenges.They held their scheme of capital spending investment of$221 billion till the end of current decade.With the net debt of $135.2 billion in late third quarter of fiscal year 2014, PetroleoBrasileiroPertrobras SA (ADR) (NYSE:PBR) is marked as the most beholden organization in the whole world.
When P-58 was made functioning, it wasn’t fully accomplished and had insufficient facilities along with their services under-development, which were primarily required for assurance of security and protective functioning. Workers working on FPSO reported that during their construction phase, when the craft wasn’t even on a shipyard but at sea, they were being convinced to accomplish their task.They were then successful in registering their issues at ANP state’s Petroleum regulatory authority, which allowed them to stop their work and said that the construction was death-dealing along with greatly costly.
According to the confirmation report of PetroleoBrasileiroPertrobras SA (ADR) (NYSE:PBR),shutting down this closure was not permanent but was for security purposes. P-58 had a capacity to produce 180,000 oil tanks daily, out of which it produced only 60%. This performance is expected to be uplifted while it is in its nonfunctional state.