Petrobras S.A.

Solaron research shows evidence of governance risks and political interference almost two years before major corruption scandal breaks

PETROBRAS S.A.

Petrobras is a semi public multinational oil company and one of the world’s largest oil companies.

Since 2014 Petrobras has been at the centre of a high profile corruption scandal, which resulted in an 80% drop in share price between Septem-ber 2014 and March 2016. This wiped more than US$100bn off the company’s value and has contributed to the impeachment of the Brazilian President.

In June 2012 Solaron’s research warned of a number of social and governance risks at Petrobras, including:

• Political interference.• Overreliance on contractual labour.• Poor health and safety disclosures.

June 2012 Solaron research on Petrobras highlights social and governance risks.

April 2013 Solaron’s follow up research indicates further evidence of political interference.

March 2014 Former Director arrested for corruption and kickbacks.

November 2014 Police raid Petrobras offices.

January 2015 – Losses of US$7bn announced for 2014 – 2015.