Petrobras has adopted a series of actions to face the pandemic and the oil price shock. The initiatives, announced this Thursday (26/3), are in line with the recommendations of the World Health Organization (WHO) and the Ministry of Health and aim to contribute to the efforts of the population and Brazilian authorities to mitigate the risks of the disease.
The state-owned company donated 600,000 diagnostic tests to Covid-19 to the Sistema Único de Saúde (SUS), which were imported from the United States and will arrive in Brazil in April. The company also created a multidisciplinary group of professionals from its research center (Cenpes) to evaluate and propose solutions in partnership with universities, companies and institutions that can help to fight the coronavirus.
As a result of the abrupt reduction in prices and demand for oil and fuels, the company is adopting a series of measures to reduce disbursements and preserve cash in this scenario of uncertainties, in order to reinforce its financial strength and resilience of its businesses.
Among them, the disbursement of committed credit lines (Revolving Credit Lines), in the amount of approximately US $ 8 billion and, as announced on 3/20/2020, which entered the cash register this week and two new lines totaling R $ 3.5 billion.
The company will postpone to December 15 the payment of dividends announced on February 19, based on the annual result of 2019, in the amount of R $ 1.7 billion. This proposal will be submitted to the approval of the Ordinary General Assembly, which was rescheduled for April 27.
Petrobras also announced a reduction and postponement of spending on human resources, in the total amount of R $ 2.4 billion, postponing the payment of the 2019 Performance Award Program and overtime. The state-owned company will not collect FGTS or pay vacation bonuses, according to Provisional Measure No. 927, of 2020, and will postpone the payment of 30% of the total monthly remuneration of the president, directors, executive and general managers.
There are also plans to cancel the level advancement and promotion processes for employees and the level advancement of paid functions in 2020 and a 50% reduction in the number of employees on partial alert in the next three months and temporary suspension of all training.
Petrobras reduced investments scheduled for 2020 from US $ 12 billion to US $ 8.5 billion (US $ 7 billion in cash), mainly due to postponements of exploratory activities, interconnection of wells and construction of production facilities and refining, and the devaluation of the real against the US dollar.
“In this sense, the company decided to reduce a total of 100 thousand barrels of oil per day (bpd) of its oil production until the end of March, due to the oversupply of this product in the foreign market and the reduction in the world demand for oil. The company evaluates market conditions and, if necessary, makes new adjustments in oil production, always guaranteeing safety conditions for people, operations and processes. ”