According to reports from a Morgan Stanley & Co analyst, Petróleo Brasileiro SA or Petrobras may have its asset values slashed by as high as 8.1 billion dollars or 21 billion reais and have the dividends cut as the result of some ongoing investigation into the suspected money-laundering and graft at the oil produced controlled by the state based in Brazil.
Bruno Montanari, an analyst, placed for Petrobras shares that are US-traded the price target, as the said firm is known, put under review and was in the process of having earnings estimates reassessed. This is the punishment it gained after the scandal. On Wednesday, such note was received by Reuters.
As what Montanari said, there exists an internal investigation, the one that Maria das Graças Foster, the chief executive, kicked off while prosecutors from the federal department discovered evidence of some criminal scheme which was operating within the said company for several years, must result to some asset writedown which ranges from five to 21 billion reais.
Also, he said that a dividend cut might have impacts on the common shares of the company.
The said report is underscoring the headwinds that Petrobras is facing, which was the Brazilian economy’s crown jewel before, but became the country’s symbol of fall-from-grace during the recent years.