The program, launched in January, offers an early retirement plan to employs. Petrobras said 8,298 employees agreed to be bought out, and 55% of them will leave the company in 2014.
Petrobras expects the program to save the company 13 billion Brazilian reais, about $5.85 billion, from 2014 to 2018. The company will write off 2.4 billion reais in the first quarter as a result of the program.
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TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins."