Page 11 - LatAmOil Week 33 2019

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NEWS IN BRIEF
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the binding phase related to the sale of its entire 93.7% stake in Breitener Energetica, located in the state of Amazonas.
Parties quali ed for this phase will receive a letter with detailed instructions on the divest- ment process, including guidelines for due dili- gence and submission of binding proposals.
is release complies with Petrobras’ divest- ment methodology, in agreement with the special regime for the divestment of assets by federal mixed-capital companies, provided for in Decree 9,188/2017. is operation is in line with the company’s portfolio optimisation and improvement of capital allocation, aiming at cre- ating value for our shareholders.
Petrobras, August 16 2019
Vantage Drilling
International reports results
for Q2-2019
Vantage Drilling International reported net income attributable to controlling interest of approximately $590.7mn or $116.96 per share for the three months ended June 30, 2019, com- pared to a net loss attributable to controlling interest of $31.1mn or $6.22 per share for the three months ended June 30, 2018.
e net income stems from the recent pay- ments by Petrobras Venezuela Investments & Services (PVIS), a subsidiary of Petroleo Bra- sileiro (Petrobras), of approximately $690.8mn to Vantage Deepwater Company (VDEEP), one of our subsidiaries, and by Petrobras America (PAI), a subsidiary of Petrobras, of approxi- mately $10.1mn to Vantage Deepwater Drilling (VDDI), also one of our subsidiaries. e pay- ments were made pursuant to an agreement between the parties and in satisfaction of the pre- viously rendered arbitration award and related US judgment con rming the award.
The dispute arose following the Petrobras parties’ termination of the agreement for the provision of drilling services for the Titanium Explorer dated February 4, 2009, between PVIS and VDEEP and which had been novated to PAI and VDDI. e Petrobras parties claimed the Vantage parties had breached their obligations under the drilling contract. e Vantage parties immediately led the international arbitration claim against PAI, PVIS and Petrobras, claiming wrongful termination of the drilling contract.
In July 2018, the international arbitration panel ruled in favor of the Vantage entities, rendering an arbitration award of $622mn plus
interest against PVIS, PAI and Petrobras. In May 2019, the US District Court for the South- ern District of Texas con rmed the arbitration award and denied the Petrobras parties’ petition to vacate the award.
As previously announced, the Petrobras par- ties led their notice of appeal to the US Court of Appeals for the Fi h Circuit seeking the reversal of the US judgment. e Vantage parties believe there is no basis for reversal and intend to vigor- ously contest the appeal.
The three months ended June 30, 2019 includes drilling contract termination revenue of approximately $594.0mn and interest income of approximately $106.9mn associated with the payments, together with related legal contin- gency fee and income taxes. Adjusting for these items, pro-forma net loss for the three months ended June 30, 2019 was approximately $37.4mn or $7.41 per share.
As of June 30, 2019, Vantage had approxi- mately $896.8mn in cash, including $10.4mn of restricted cash, compared to $239.4mn in cash, including $14.4mn of restricted cash, as of December 31, 2018.
Ihab Toma, CEO, commented: “I am very pleased about our agreement with the Petrobras parties and their payments to us in aggregate of approximately $701mn. Separately, I am pleased to report that we continue to achieve operational and safety excellence, recording 99% revenue
efficiency for the quarter and over two years without a lost time incident. We remain focused onprovidingthebestservicetoourcustomers.” Vantage Drilling, August 14 2019
Petrobras reports on debt
pre-payment with China
Development Bank
Petrobras reports that today it fully prepaid a nancing contract with China Development Bank (CDB) due in 2024, totaling $3bn.
The company also notified CDB on the advanced payment of another loan, in the amount of $5bn and whose maturity would be in 2027, to be made on December 16, 2019, as allowed in the contract. is pre-payment will result in the termination of the preferential sup- ply obligation of 100,000 barrels of oil equivalent per day (boepd) to Chinese companies under market conditions and for the same period of the loan.
ese operations are in line with the compa- ny’s liability management strategy, which aims at improving the amortisation pro le and the cost of debt, taking into account the deleverag- ing target set forth in its 2019-2023 Business and Management Plan.
Petrobras, August 14 2019
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