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This excerpt taken from the PBR 20-F filed May 22, 2009. Commodity
Price Risk
PifCo enters into derivative transactions in order to mitigate
the impact of fluctuations in the price of crude oil and
byproducts. PifCo uses futures contracts, swaps and options to
protect its margins in anticipation of purchases and sales in
the international markets, as shown in the sensitivity analysis
above.
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