Petrobras Rallies to 2015 High as Board Set to Review Earnings

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Stocks and bonds of Petroleo Brasileiro SA rose to their highest levels this year as the oil producer scheduled a board meeting to seek approval for delayed audited results that would reopen access to credit markets.

Petrobras’s shares climbed 0.9 percent to 12.53 reais at 3:55 p.m. in Sao Paulo, the highest price on a closing basis since Dec. 3. Its $2.5 billion in bonds due 2024 gained 2.01 cents to 99.90 cents on the dollar.

The Rio de Janeiro-based company, at the center of Brazil’s largest corruption scandal, said Monday it will present the board third-quarter and full-year 2014 results at an April 22 meeting and release them after approval. Such a move would avert a potential acceleration of debt payments.

“It seems like the flow of bad news is about to be over for Petrobras,” Andre Perfeito, the chief economist at brokerage firm Gradual Investimentos, said in a phone interview from Sao Paulo. “We should see more stability going forward for the company once the results are out. And it seems like they are on their way to being approved.”

The company has postponed the release of third-quarter results since November because of a lack of consensus over the size of graft-related writedowns. That has shut Petrobras out of international bond markets during a slump in oil prices and threatened the company’s spending plans. If the company fails to disclose the information by the end of May, it risks triggering an acceleration of payments on some debt.

Graft Writedowns

Petrobras didn’t mention if a meeting previously set for April 17 would proceed. The company will report adjustments of as much as 28 billion reais ($9.2 billion), including as much as 8 billion reais in graft-related writedowns, Valor Economico reported Tuesday, without saying where it got the information.

Petrobras’s shares have surged 30 percent in April on speculation the company will release the financial results and begin selling assets to ease cash constraints.

The oil producer’s troubles swelled last November after external auditor PricewaterhouseCoopers refused to sign off on financial results requested an independent internal investigation. Moody’s Investors Service cited the delays when it lowered Petrobras’s credit rating to junk in February.

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