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Petrobras Turns to $15 Billion Question With Graft Cost Answered

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Petrobras Scandal to Cost $2.1B, What’s Next?

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Petrobras’s earnings report answers the question of costs from a graft scandal while posing a much bigger one: how can the state-run oil driller change a culture of mismanagement that led to record losses and debt.

Reporting its first audited results since August, Brazil’s national oil company disclosed a 44.6 billion-real ($15 billion) impairment, mainly from overpriced and unfinished refinery projects. That charge overshadowed a 6.2 billion-real corruption-linked writedown and drove a 2014 net loss of 21.6 billion reais that wiped out dividend payments. Shares fell as much as 9.4 percent Thursday.