Latest figures released by Petrobras SA (ADR) (NYSE:PBR), the largest oil company in Latin America, have shown a substantial increase in the volume of oil produced in October, 2014, as against the same month last year. On 28th October, 2014, the company released the news that it had managed to almost double its production from 302,000 bpd last year to 640,000 bpd in this particular month alone. This caused the YoY output to shoot up to 11.5%, meaning 2.6 million bpd and favorably impacted the domestic and monthly production too.
For a company which has been involved in one of the biggest scandals in the country, Petrobras SA (ADR) (NYSE:PBR)’s performance is definitely inspiring and echoes the stance taken by Jose Eduardo Cardozo, Justice Minister of Brazil. Following is the ethos which he has dictated for the company –
“Petrobras will not stop. On one hand the investigation is going to continue; on the other hand Petrobras cannot stop.”
While people have been clamoring for President Dilma Rousseff’s impeachment in the light of the scandal that involves several influential personalities, Brazilian Police Force has been playing its part with plenty of gusto too. Not only have they conducted raids and thorough searches of several corporate and construction firms in Brazil but have also arrested 23 people and frozen assets worth $270 million.
On her part, President Rousseff has affected a complete change in her strategy wherein earlier she had been forced to admit the occurrence of wrong-doing at Petrobras SA (ADR) (NYSE:PBR) and now has cited it as a landmark happening in the country. Nicknamed ‘Car Wash’, this investigation which has spanned several major cities like Sao Paulo, Brasilia, Rio De Janeiro and Parana will, she said –
“It is a symbolic case for Brazil. This will change forever the relationship between Brazilian society, the Brazilian state and private companies.”
In spite of this as also the overall lackluster performance of the Brazilian economy, the country remains bullish in the eyes of foreign investors who feel that there are several plus points which continue to draw investments from abroad. When combined with the fact that Petrobras SA (ADR) (NYSE:PBR) made the most of its P 55 and 62 platforms, does it not reflect on the resilient nature of the company as also the economy in its entirety?
This article has been written by Vinita Basu.