NEW YORK (TheStreet) -- Shares of Petrobras (PBR.A) are gaining, up 5.41% to $7.40 in early market trading Wednesday, after CEO Maria das Graças Foster offered to resign yesterday as the Brazil-run oil and gas company faces an increasingly intensifying alleged bribery scandal, Reuters reports.
"I need to be investigated. We all need to be investigated. That takes time," Foster told reporters at the company's headquarters in Rio de Janeiro.
American and Brazilian legal teams were hired to conduct an internal investigation of the Brazilian state-owned energy company, Reuters added.
On Tuesday Petrobas, the biggest oil producer in ultra-deep waters announced its plans to cut spending as oil prices collapse as it's becoming increasingly difficult for the company to tap debt markets amid its ongoing corruption scandal, according to Bloomberg.
The company plans to freeze its investments in the Premium I and Premium II refineries in northeastern Brazil, and will sell assets to protect its cash position, Bloomberg added.
Petrobras is a Brazil-based integrated oil and gas company, operating through seven segments.
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."