Brazilian miner Vale SA may adopt hedge-accounting rules to smooth out the impact of currency fluctuations like those that slammed its second-quarter earnings, Chief Executive Murilo Ferreira said on Thursday.Under hedge accounting, companies set aside some dollar-denominated export proceeds to compensate for the impact of exchange-rate moves on the local-currency value of debt, spreading currency gains and losses over several years. The practice is allowed under the International Financial Reporting Standards of the IFRS Foundation, the accounting rule-book used by Vale.As Brazil's real currency has weakened, companies have seen the local currency value of dollar debts soar and the cost of servicing the debt rise. State-run oil company Petroleo Brasileiro SA, Brazil's largest company by revenue, last month said it had begun to use hedge accounting in May."We had a strong financial performance in a challenging environment," Ferreira said in a conference call with analysts and journalists. "The financial impact of forex does not reflect our true operations."
Petroleo Brasileiro SA Petrobras (Petrobras) is a Brazil-based integrated oil and gas company. Shares of PBR traded higher by 4.11% or $0.55/share to $13.94. In the past year, the shares have traded as low as $12.03 and as high as $24.83. On average, 17355000 shares of PBR exchange hands on a given day and today's volume is recorded at 14726730.
Petroleo Brasileiro SA Petrobras (Petrobras) is a Brazil-based integrated oil and gas company. Shares of PBR-A traded higher by 3.67% or $0.52/share to $14.68. In the past year, the shares have traded as low as $13.20 and as high as $23.88. On average, 7450350 shares of PBR-A exchange hands on a given day and today's volume is recorded at 4657703.
Vale SA (Vale) is a Brazil-based metals and mining company. Shares of VALE traded higher by 4.7% or $0.66/share to $14.69. In the past year, the shares have traded as low as $12.39 and as high as $21.88. On average, 17618200 shares of VALE exchange hands on a given day and today's volume is recorded at 26734872.
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