NEW YORK (TheStreet) -- Shares of Petrobras (PBR) continue to decline, down 1.52% to $9.80 in morning trading Monday, after the Brazilian state-owned energy company delayed its fiscal third-quarter results last week amid a deepening corruption scandal.
Petrobras planned to meet with investors and analysts, followed by reporters at 8 a.m. Eastern to address the delay in issuing its results. The company was scheduled to release its earnings Friday, 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 on Friday 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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Some investors remain concerned that the energy company could default on approximately $12 billion in bonds if it does not report audited third-quarter results by the end of the year.
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 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."