For Petrobras, the hits just keep on coming.
In what seems to be a daily drumbeat of bad news, the Brazilian state energy company announced on Monday that it will not meet production targets for the year, with oil production growth of only 6 percent or less. Petrobras originally expected growth of between 6.5 percent and 8.5 percent for the year.
The news comes in the wake of Brazilian investigators raiding the company's offices on Friday, as they dig into a graft scandal locally called "lavo jato" or "car wash," a reference to allegations of money laundering. As a result, the company's board announced on Friday that it won't publish a profitability update until mid-December. Petrobras does not know when it will be able to publish audited results.
The company vowed on Monday it will investigate the graft allegations.
"We are working with all our strength to have the (audited) earnings report ready and to cooperate with the investigation in the hope that it is resolved quickly," Chief Financial Officer Almir Barbassa said in a conference call.
The stock was already under pressure due to the decline in oil prices.
Petrobras' offshore oil is expensive. Oil industry experts say it costs on average $80-$85 per barrel to extract, because it is so far off the coast in deep water. Internationally trade Brent crude was trading Monday at only about $79 a barrel.
—Reuters contributed to this report