Petrobras ADRs Drop for Sixth Day on Debt Level Concern
Petroleo Brasileiro SA’s American depositary receipts posted their longest losing streak in five months as O Estado de Sao Paulo reported that the state-run oil company is warning the government that its debt ratios may rise.
Petrobras ADRs fell 2.3 percent to $15.81 at the close of trading in New York in its sixth straight day of declines, the longest streak since the period ended Sept. 4. Brazilian markets are closed today and tomorrow for Carnival holidays.
Petrobras Chief Executive Officer Maria das Gracas Foster told Finance Minister Guido Mantega that the company’s ratio of net debt to earnings before interest, taxes, depreciation and amortization will rise, O Estado newspaper reported on Feb. 8 after markets closed, citing a person it didn’t identify.
The ratio may increase to 3.5 in the fourth quarter, the newspaper reported. The company’s press office didn’t respond to a telephone call and e-mail request seeking comment.
Petrobras reported a net-debt-to-Ebitda ratio of 2.8 in the last quarter, up from 1.6 times in the year-ago period, according to data compiled by Bloomberg.
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