Petrobras sees US$4.3b 2016 loss, but fourth quarter up

[RIO DE JANEIRO] Brazil's troubled national oil company Petrobras posted a US$4.255 billion loss in 2016 but ended in positive territory for the fourth quarter, executives said Tuesday.

Petrobras, which has been pounded by a giant corruption scandal shaking Brazilian politics, said the final three months of the year saw a return to profit at US$717 million.

That made 2016 better overall than the previous year, when the company recorded an US$11 billion loss.

But it was the third annual loss in a row for the huge company, struck by falling oil prices as well as the corruption scandal.

The company said in an earnings statement that the uptick in the last quarter was mainly due to investments and revaluing assets.

The Petrobras scandal erupted in 2014 and has landed numerous executives and politicians in jail.

Close allies of Brazil's President Michel Temer have been implicated as he tries to steer Brazil out of its worst recession in decades.

That has raised the risk of further political instability following the impeachment of his predecessor Dilma Rousseff last year.

AFP