1. What is the Company’s capital expenditures plan for the next few years?
ANSWER:
According to the 2006-2010 Business Plan, total investments of $56.4 billion have been foreseen for the period, of which $34.1 billion are to be applied in the Exploration and Production (E&P) activities; $11.4 billion in Downstream; $6.7 billion in Gas & Energy; $1 billion in Distribution; $1.1 billion in the Corporate segment; and $2.1 billion in Petrochemicals. Check out the Company’s Strategic Plan.
2. What is project finance?
ANSWER:
Project finance is a structured finance model that Petrobras uses in addition to the usual sources of corporate finance raised in the financial market. The Company raises resources from investors and finance entities through Special Purpose Companies (SPCs), set up for each project as a means of implementing some of its new business enterprises. These projects are developed in such a way as to minimize the funding and guarantees on the part of the Company. They are implemented without impacting the Company’s budget and debt in accordance with the prevailing accounting rules and Brazilian laws. Project finance allows the inherent risks of an oil industry project to be suitably diluted.
3. How does Petrobras contribute to the primary surplus of the Federal Government and how is the Company impacted as a result?
ANSWER:
In addition to contributing decisively to the Country’s direct fiscal surplus (Petrobras is the largest individual source of taxes in Brazil), Petrobras’ primary surplus itself represents about 10% of the government’s primary surplus.
The recent IMF decision to include Brazil in its pilot projects for excluding public capital expenditures in infrastructure from the primary surplus calculations could result in additional resources being made available for the Petrobras’ budget.
RSS Central
1. What is the Company’s capital expenditures plan for the next few years?
