Breaking News

Tweet TWEET

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.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.