5.97 +0.56 (10.35%)
Pre-market: 6:26AM EDT
|Bid||5.71 x 40700|
|Ask||5.91 x 40000|
|Day's range||5.14 - 5.53|
|52-week range||4.01 - 17.17|
|Beta (5Y monthly)||1.90|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||0.27 (4.96%)|
|Ex-dividend date||11 Nov 2019|
|1y target est||15.44|
A move by Brazil's Petrobras on Thursday to slash output, capital spending and dividends brings the state-run oil firm into alignment with global rivals confronted with a global pandemic and a plunge in crude prices. Petrobras has thrilled investors over the last two years with its rapid-fire sale of dozens of non-core assets, as the company's management pushes to drive down debt. Brazil-listed preferred shares in Petroleo Brasileiro SA , as the firm is formally known, are off over 50% this year, among the worst performers of all major, publicly listed oil companies.
A price war between the world's oil powerhouses is leaving many producers in Latin American struggling to cover production costs, boosting chances of output cuts and investment delays in coming months. Global oil price benchmarks have had their steepest declines in decades in a perfect storm of falling demand during the coronavirus epidemic and surging supplies after Russia and Saudi Arabia failed to reach a deal to extend output cuts.
As Brazil's stock market hit record highs in January, Economy Minister Paulo Guedes said the country could raise up to 150 billion reais ($30 billion) with sales of state-owned companies through share offerings, mergers and acquisitions. With the market down 40% from its peak as the coronavirus pandemic rattles Brazil and tips the global economy toward recession, the minister will have to slash his ambitions. Brazil's government, which has run six straight years of deficits, was counting on asset sales to limit its shortfall to 124 billion reais this year.
The recent collapse in oil prices could chop $300 million to $600 million off 2020 exploration budgets in Brazil, which has emerged as one of the world's hottest offshore oil plays, specialists at consultancy Wood Mackenzie told Reuters. Before oil prices collapsed in the wake of failed OPEC talks earlier this month, the consultancy had forecast that some $3 billion would be invested in exploration in Brazil, with state-run Petrobras, Royal Dutch Shell PLC and Norway's Equinor ASA leading the charge.
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(Bloomberg) -- Petroleo Brasileiro SA tumbled after crude prices sank the most since 1991, triggering an analyst downgrade and raising concern over the pace of the company’s debt reduction.Petrobras’s American depositary receipts fell 31% to $7.26 in New York Monday, the most on record. Oil markets crashed more than 30% after the disintegration of the OPEC+ alliance set off a price war between Saudi Arabia and Russia.Bradesco BBI sees a bearish scenario for crude and downgraded Petrobras to neutral from outperform. The scenario makes it harder for Brazil’s state-controlled oil producer to reach its goal of cutting net debt to about 1.5 times Ebitda, said analyst Vicente Falanga. He said it probably won’t get below that metric until after 2025.“Deleveraging should take much longer,” he wrote in a report, while slashing his price target to $11 from $18. Higher dividends “should not happen anytime soon.”Under Chief Executive Officer Roberto Castello Branco’s administration, Petrobras has sought to shore up its balance sheet and focus on ultra deep-water fields. Further weakness can’t be ruled out and oil prices could potentially collapse to as low as $25 per barrel, Falanga said.“Whatever the long-term outcome of this war is, one thing is clear to us,” he said. “The short term will get pretty ugly.”Petrobras bonds led declines in Brazil and were among the worst performing corporate debt in emerging markets, along with notes from YPF SA and Petroleos Mexicanos. Dollar notes due in 2043 fell as much as 18 cents, the most since they were issued in 2013, to 99 cents, sending the yield to 5.7% from below 4.5% last week.(Updates stock move in second paragraph)\--With assistance from Aline Oyamada.To contact the reporter on this story: Vinícius Andrade in São Paulo at email@example.comTo contact the editors responsible for this story: Courtney Dentch at firstname.lastname@example.org, Lisa Wolfson, Scott SchnipperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Petrobras (PBR) generated positive free cash flow for the 19th consecutive quarter, with the metric surging to $5,650 million from $4,262 million recorded in last year's corresponding period.
Britain's Centrica chartered a vessel to supply liquefied natural gas (LNG) this month to power firm Centrais Elétricas de Sergipe S.A. (CELSE) , launching Brazil's first private LNG terminal. Brazil has been implementing reforms to end the monopoly of Petroleo Brasileiro SA, known as Petrobras, in supplying natural gas to the domestic market. The new terminal was developed before the reforms were announced last year.
Brazil's development bank BNDES sold on Wednesday $5.2 billion in common shares it owned in state-controlled oil company Petroleo Brasileiro SA , two people with knowledge of the matter said. Petrobras priced the offering at 30 reais per common share, a discount of 1.57% relative to Wednesday's closing price. BNDES sold 22 billion reais in shares, the sources added.
RIO DE JANEIRO/HOUSTON (Reuters) - A former trader at oil firm Petrobras has signed a plea bargain agreement with Brazilian prosecutors investigating bribery allegations, defense lawyers and prosecutors said, a potential breakthrough in a case involving some of the world's top commodity trading houses. Rodrigo Garcia Berkowitz, who was a trader at Petrobras' Houston office until he was charged with accepting bribes in late 2018, reached the deal in principle in December, the lawyers said. Prosecutors alleged in December 2018 that Vitol, Glencore Plc and Trafigura [TRAFGF.UL], among other trading firms, funneled tens of millions of dollars of bribes from 2011 to at least 2014 to employees of state-run Petroleo Brasileiro SA , as Petrobras is formally known.
Workers at Brazilian oil company Petrobras approved a plan to go on strike from Saturday, protesting a plan by the state-controlled firm to close a fertilizer plant and fire its 396 workers. Oil workers federation FUP said it had already informed Petrobras, or Petroleo Brasileiro SA, about the plan. FUP said that despite the strike it has no plans to hurt fuel supplies in the country.
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Valaris (VAL) expects cost-cut efforts to lead to more than $265 million in operating cost savings by the end of the June quarter of 2021.