Loss of the Pharol improve to 56.1 million – the Observer

In the first nine months of 2015, the Pharol, which is the shareholder of reference of the brazilian operator Oi, in the process of recovery), recorded a loss of 137.3 million euros.

In a statement sent to comissão do mercado de Valores Mobiliários (CMVM), the Pharol explained that the loss reflected mainly a loss of 48.8 million euros, as a result of a downward revision of the recovery value of the debt instrument Rioforte", as well as "a loss of five million euros related to the depreciation of the option to purchase".

The result of the first nine months of this year was still influenced by the "operating costs consolidated income statement 6.1 million euros" and the "net gain of 4.9 million euros resulting from the reversal of the impairment recorded on the investment in Oi, in the amount of 225,6 million euros, that more than compensated for the appropriation of the accumulated losses of the Oi" until September in the amount of 220 million euros.

In the same period, the result before taxes, interest, depreciation, and amortization (EBITDA) was negative in six million euros, an improvement compared to 16.9 million euros a year earlier.

"This reduction is explained by high reduction of third party services relating to consulting and legal advice" and "lower personnel costs and lower indirect taxes".

staff costs amounted to 1.6 million euro, a reduction compared to € 2.7 million recorded between January and September 2015.

The Pharol said that, "following the statements of the judicial administrators, who reported in their last press release that it cannot be excluded that the seizure of the goods required by the Public Prosecutor to prevent prolonged, or even definitely, your recovery and distribution to creditors, the amount of the expected recovery of the debt instrument Rioforte was revised and reduced to 9,56% of their nominal value".

Confronted with exogenous factors of high impact on your income statement and your balance sheet – that, in the third quarter, the impairment recorded in the credit about the Rioforte is an example, Pharol is still strongly committed to reducing the risks of change in the value of its assets and in control very strictly their operating costs," said the president of the Pharol, Luís Palha da Silva, quoted in a statement.

"In Oi, the Pharol will continue to give your cooperation for the process of judicial recovery is a success, catering to the interests of all different stakeholders [involved parties] in the presence", he added.