Petrobras reports record loss from corruption-linked writedowns

Brazil's state-owned oil company Petrobras published audited 2014 results overnight that contained its biggest-ever loss of $7.2bn (£4.8bn) due to huge costs relating to corruption.

Write-downs linked to corruption amounted to $2bn (£1.3bn), after a decade of alleged kickbacks, bribes and inflated construction contracts that are continuing to be investigated by Brazilian prosecutors.

The country's politicians were involved in the company's corruption scheme, which forced the company's former CEO Maria das Graças Foster to resign in February.

Read more: Petrobras CEO and five executives quit amid corruption scandal

The publication of results on Wednesday, before the end-of-April deadline, averted a potentially huge forced debt repayment.

But chief executive officer Aldemir Bendine warned the company was not out of the woods yet, with additional revisions to the accounts possible if prosecutors found there more corruption-related cases.

Petrobras guarantees a return to normality in its relationship with investors, shareholders and creditors

"From here on in, Petrobras guarantees a return to normality in its relationship with investors, shareholders and creditors in Brazil and abroad," he said.

“We have made our best efforts to turn the page on this sad chapter that the company has passed through,” he added.

The publication of these results came later than expected, after auditor PriceWaterhouseCoopers refused to certify the company's accounts due to doubts over the results.

In addition, former Petrobras' head of refining and supply, Paulo Roberto Costa was sentenced to prison for money laundering and racketeering on Wednesday, accused of diverting $6m (£4m) from the refinery works in Pernambuco.

The company, which remains the world's most-indebted oil company, last month said it planned to sell $13.7bn (£9.1bn) of assets in the next two years.

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