Petrobras delayed results should prevent forced Brazilian debt repayment

Brazil's oil giant has been involved in contracts fixing, bribery and political corruption scandals
The company produced 2.286 million barrels per day in 2014

Brazilian oil company Petrobras is due to finally deliver its fourth quarter results on Wednesday night, heading off the threat of a forced government debt repayment of around 5% of Brazil's gross domestic product.

Part of the state-run company's debt is issued under US law, which requires the audited results by the end of April.

The publication of results was delayed due to legal hold-ups around a contract-fixing scandal, bribery and political corruption.

If the company publishes its quarterlies on Wednesday it will forgo having to make forced payments of up to $110bn (£66.98m), which the Brazilian government would be assumed to fund.

"The publication of the financial statements should significantly decrease the likelihood of events with negative direct credit implications for the sovereign," Moody's said in a note.

These results will also allow investors to asses the impact that political corruption scandals had on the company.

By the end of 2014, the company – that has more than 14,000 active wells and operates in countries across America, Asia and Africa- reached a record daily production of 2,286 million barrels per day.

In 2015 Petrobras lost access to capital markets. Therefore, the company is expected to cover its financial needs this year with a combination of bank loans and asset sales of about $ 6,100, as reported by Reuters.

You may also enjoy reading:

Gazprom charged by EU regulators over Eastern Europe