Brazilian oil giant Petrobras said on Friday that its cash burn could reach $1 billion a month in periods of extreme stress and volatility, noting the current level of uncertainty in being able to accurately predict spending.
The state-owned firm, formerly known as Petroleo Brasileiro S.A., cited current costs, expenses, and volatile oil prices but did not provide further details about its current cash burn rate or the projected stress scenarios.
The statement was published in response to press reports of an internal event in which finance and investor relations director Andrea de Almeida said that the company could be spending $1 billion of cash per month.
Petrobras also stated that it has kept the market informed of all measures taken to mitigate the coronavirus pandemic and fall in oil prices, steps which it says will ensure a solid cash position this year.
(Reporting by Marta Nogueira Writing by Jamie McGeever; Editing by Marguerita Choy)