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Petrobras Implements Voluntary Layoff; 6,100 Take the Offer
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According to a report published by Reuters, Brazil's state-run energy giant, Petroleo Brasileiro S.A. or Petrobras’s (PBR - Free Report) previously launched voluntary layoff program has been accepted by 6,100 employees. This is part of an effort by the company to cut spending, reduce its debt level and strengthen its balance sheet.
In Apr 2016, the Rio de Janeiro-based oil producer launched this program to lay off 21% of its staff or around 12,000 workers between 2016 and 2020. Petrobras estimates savings of up to 33 billion reais or $9.20 billion. This voluntary retrenchment program, if accepted by all eligible employees, is expected to cost around 4.4 billion reais, with each employee receiving between 212,000 reais and 706,000 reais to take redundancy.
With the help of this initiative, the company intends to trim its workforce of 57,000 people to suit the needs of its business plan. This should not only enhance productivity but also generate value for the company. The deadline for the proposed plan, which has been accepted so far by around half of the eligible employees, is by the end of August.
Petrobras, with around $123.92 billion in long-term liabilities, is the most indebted energy company in the world. The company engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. Additionally, the company sells crude oil and oil products produced at natural gas processing plants in domestic and foreign markets. It is also involved in the refining, logistics, transport, and trading of crude oil and oil products. Moreover, the firm exports ethanol and invests in petrochemical companies.
For the second quarter, the company reported profit of $106 million compared with $171 million in the year-earlier quarter. Lower production as well as weak oil prices resulted in the underperformance. Lower economic activities in Brazil, along with decreased crude oil export, compounded the woes.
Currently, the company carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the broader energy sector are Murphy USA Inc. (MUSA - Free Report) , Enbridge Energy Partners, L.P. and China Petroleum & Chemical Corp. . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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Petrobras Implements Voluntary Layoff; 6,100 Take the Offer
According to a report published by Reuters, Brazil's state-run energy giant, Petroleo Brasileiro S.A. or Petrobras’s (PBR - Free Report) previously launched voluntary layoff program has been accepted by 6,100 employees. This is part of an effort by the company to cut spending, reduce its debt level and strengthen its balance sheet.
In Apr 2016, the Rio de Janeiro-based oil producer launched this program to lay off 21% of its staff or around 12,000 workers between 2016 and 2020. Petrobras estimates savings of up to 33 billion reais or $9.20 billion. This voluntary retrenchment program, if accepted by all eligible employees, is expected to cost around 4.4 billion reais, with each employee receiving between 212,000 reais and 706,000 reais to take redundancy.
With the help of this initiative, the company intends to trim its workforce of 57,000 people to suit the needs of its business plan. This should not only enhance productivity but also generate value for the company. The deadline for the proposed plan, which has been accepted so far by around half of the eligible employees, is by the end of August.
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Petrobras, with around $123.92 billion in long-term liabilities, is the most indebted energy company in the world. The company engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. Additionally, the company sells crude oil and oil products produced at natural gas processing plants in domestic and foreign markets. It is also involved in the refining, logistics, transport, and trading of crude oil and oil products. Moreover, the firm exports ethanol and invests in petrochemical companies.
For the second quarter, the company reported profit of $106 million compared with $171 million in the year-earlier quarter. Lower production as well as weak oil prices resulted in the underperformance. Lower economic activities in Brazil, along with decreased crude oil export, compounded the woes.
Currently, the company carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the broader energy sector are Murphy USA Inc. (MUSA - Free Report) , Enbridge Energy Partners, L.P. and China Petroleum & Chemical Corp. . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>