PETROBRAS: Company To Gradually Shut Down Fertilizer Production

(RTTNews) - Brazilian state-owned oil company Petrobras will progressively shut down production of its fertilizer plants in Sergipe and Bahia (Fafen-SE and Fafen-BA, respectively) by the end of the current semester.

According to Petrobras, the decision is "aligned with the company's strategic position to fully withdraw from fertilizer production activities."

The oil company notes that these units reported negative results of approximately R$ 600 million and R$ 200 million, respectively, in 2017.

The oil company made a R$ 1.3 billion provision for impairment due to the production shutdown of this plants which was already presented in the financial report on the fourth quarter of 2017.

In a statement, Petrobras said the shutdown will start at the end of the first half of 2018 and that the company would adopt actions to conserve equipment and prevent environmental impacts, maintaining the integrity of the facilities with the closure of activities.

The company has also prepared a transition plan for suppliers and customers that will be implemented immediately, as well as actions to mitigate impacts that may occur in communities.