NEW YORK (TheStreet) -- Shares of Petrobras (PBR.A) declined more than 5% to a 52-week low of $9.90 in morning trading Friday after the Brazilian state-run energy company delayed the release of its third-quarter earnings for a month.
The company was scheduled to release its earnings today, but the corruption scandal that has been affecting Petrobras for months intensified with the arrest of a second former company executive on Friday. Brazilian police arrested 18 people in a raid as part of the corruption investigation, according to BBC News.
Petrobras said it would weigh the results of an internal investigation into the multi billion-dollar laundering and bribery case and could amend its financial statements before it releases the results audited by PricewaterhouseCoopers, the company's independent auditor.
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The scandal was a focal point of Brazil's presidential election last month, which President Dilma Rousseff won. Rousseff was the Petrobras chairwoman from 2003 to 2010.
Separately, 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) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."