|Bid||13.96 x 40000|
|Ask||14.04 x 800|
|Day's range||13.89 - 14.18|
|52-week range||12.68 - 17.90|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||0.27 (1.89%)|
|Ex-dividend date||11 Nov 2019|
|1y target est||20.16|
Brazil’s oil production jumped by 20.4 percent on the year to set a new production record of 3.168 million barrels per day (bpd) in January,
(Bloomberg) -- The Brazilian state development bank unloaded its voting stake in oil giant Petroleo Brasileiro SA, raking in 22 billion reais ($5.2 billion) as part of a wave of asset sales aimed at reversing years of growing government influence in Latin America’s biggest economy.BNDES, as the bank is known, sold all 734 million common shares, including over-allotments, for 30 reais apiece, according to a regulatory filing. That represented a slight discount to Wednesday’s close, signaling demand held up well in the face of sinking crude prices. Petrobras today surged as much as 5% to 31.99 reais.“The discount was pretty small, especially when you consider the size of this offering,” said Fernando Fontoura, a fund manager who helps oversee 310 million reais at Persevera Asset Management in Sao Paulo. “Unless oil prices continue to be a hurdle, there should be more room for the stock to rise now that the share sale’s overhang is behind us.”The share sale is the biggest in Brazil since Petrobras’s record-breaking $70 billion offering a decade ago. Back in 2010, it was a booming oil powerhouse with ambitions to more than double output and cement its monopoly on a massive offshore discovery. Now, it’s slimmed-down company that never came close to hitting its end-of-the-decade production target.In all, President Jair Bolsonaro aims to raise up to 150 billion reais through the sale of state assets this year, which forms a cornerstone of his program to turn more of the economy over to the private sector in a bid to jump-start stagnant growth.Founded in 1952, BNDES was created to develop industry and infrastructure. Decades later, lending exploded under President Luiz Inacio Lula da Silva and his protege, Dilma Rousseff. At one point, BNDES’s $200 billion loan portfolio topped that of the World Bank’s. Much of the financing backed companies like Petrobras and meatpacker JBS SA, which were dubbed “national champions” by local newspapers, as they embarked on ambitious acquisition sprees and global expansions. BNDES has promised to sell off its JBS stake, which is valued at roughly 15.8 billion reais.“The government’s doing the right thing by guiding the development bank to sell stakes in companies that can tap into the market and focusing on those that can’t,” said Adriano Pires, an oil analyst at consultancy firm CBIE in Rio de Janeiro.The state-run Petrobras has also been slimming down in recent years. Under Chief Executive Officer Roberto Castello Branco, the oil producer has sold assets including operations in Africa and exited businesses such as fertilizers. It’s part of his mission to shore up the balance sheet and focus on ultra deep-water oil fields discovered in 2006 that sit under a thick layer of salt.Wednesday’s transaction kicks off what Santander Brasil SA and Bank of America Corp. forecast will be a bumper year for equity offerings in the South American nation. Santander says almost half of the expected volume for 2020 will be tied to the government, including the BNDES stake sales and the planned initial public offerings of state-controlled bank Caixa Economica Federal’s subsidiaries.Credit Suisse Group AG led the deal, which could help the Zurich-based bank rise in the equity-underwriter rankings in Brazil. It placed ninth on the scoreboard last year, data compiled by Bloomberg show. Bank of America, Morgan Stanley, Goldman Sachs Group Inc., XP Investimentos SA, Banco Bradesco BBI SA, Banco do Brasil SA and Citigroup Inc. also participated.(Updates stock move in second paragraph)\--With assistance from Felipe Marques and Rachel Gamarski.To contact the reporters on this story: Cristiane Lucchesi in Sao Paulo at firstname.lastname@example.org;Vinícius Andrade in São Paulo at email@example.com;Sabrina Valle in Rio de Janeiro at firstname.lastname@example.orgTo contact the editors responsible for this story: Julia Leite at email@example.com, Jessica Brice, Daniel CancelFor 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.
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.
(Bloomberg) -- Petroleo Brasileiro SA is starting this decade much the same way it started the last: with a highly anticipated share sale. The similarities end there.Back in 2010, Petrobras was a booming oil powerhouse with ambitions to more than double output and cement its monopoly on a massive offshore oil discovery. In 2020, it is a scandal-scarred company that never came close to hitting its end-of-the-decade production target. Ten years ago, Brazil’s government used a record-breaking share offering to increase its stake. Now, the national development bank known as BNDES is unloading Petrobras stock as both the government and the state-run oil producer slim down.BNDES will sell as much as 734.2 million voting shares, including over-allotments, in a secondary offering set to be priced after markets close today. The shares, equal to almost 10% of the company’s voting stock, are worth as much as 22.6 billion reais ($5.3 billion) based on Tuesday’s closing price of 30.75 reais apiece. It’s the biggest share sale in Brazil since Petrobras’s $70 billion offering in 2010.While the hype around the company may have quieted down since then, some portfolio managers argue it’s now a much more attractive target for investment. Cash from operations has almost doubled, even as Petrobras shed assets, and the producer is no longer bleeding money by subsidizing the domestic price of gasoline. Voting shares trade at about 10.5 times estimated earnings, compared with a multiple of about 8.5 in 2010.“It’s a very different moment for Petrobras,” said Andre Ribeiro, who helps oversee 8 billion reais ($1.9 billion) in assets at equity fund Brasil Capital.Under Chief Executive Officer Roberto Castello Branco, Petrobras has sold assets including operations in Africa and exited businesses such as fertilizers. It’s part of his mission to shore up the balance sheet and focus on ultra deep-water oil fields discovered in 2006 that sit under a thick layer of salt.“Back then, the market was willing to write the company a blank check to invest billions of dollars in what was essentially a crapshoot,” Ribeiro said. “Today, we know the pre-salt is profitable and that exploration costs are among the most competitive in the world. The company has unloaded debt, and more divestments are coming.”Of course the company faces headwinds as well. Oil is trading at the lowest price in a year amid fears the lethal coronavirus will imperil demand. And global investors are increasingly seeking out companies with good environmental, social and governance credentials, which are often tough metrics for oil producers. BlackRock, the world’s biggest investment firm, with $7.4 trillion in assets, has said it plans to make emissions a fundamental consideration in its investments.The BNDES offering, which is being led by Credit Suisse Group AG, is part of a deluge of state asset sales that are expected to reach 150 billion reais by year-end. Privatizations are central to the government’s economic agenda, which is aimed at slashing debt, bolstering fiscal accounts and fueling growth. Today’s sale doesn’t change the government’s control of Petrobras.Anticipation of the share sale has prompted some investors to sit on the sidelines in recent weeks, said Fernando Fontoura, a fund manager who helps oversee 310 million reais at Persevera Asset Management in Sao Paulo. Petrobras’s voting shares are down 3.9% since the start of the year, compared with a 0.1% drop for Brazil’s benchmark Ibovespa index.“Investors know they will probably be able to buy the stock at a discount,” Fontoura said. “All eyes are on the offering.”Alpha Key Capital Management’s Christian Keleti is among managers that have been converting holdings into cash to have money on hand for upcoming Brazilian equity offerings, including Petrobras.“We’ve been reducing exposure to Brazil equities and piling up cash,” he said. “It’s not only because some stocks have become more expensive, but also because February will be a strong month in terms of offerings.”To contact the reporters on this story: Vinícius Andrade in São Paulo at firstname.lastname@example.org;Sabrina Valle in Rio de Janeiro at email@example.com;Felipe Marques in Sao Paulo at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Jessica Brice, Brendan WalshFor 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.
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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Anglo-French firm Perenco, UK-based Trident Energy and Premier Oil Plc are among the companies examining the purchase of a cluster of Petrobras oilfields in Brazil known as Polo Garoupa, seven told sources told Reuters in recent weeks. The deliberations are preliminary, and it is possible none of the firms will purchase the mature fields in Brazil's offshore Campos Basin, at least under the terms Petrobras is offering, added the sources, who requested anonymity to discuss confidential matters.
2020 could see a number of high-profile oil auctions, and where 2019 was a mixed bag in terms of asset assets, this year is shaping up to be more promising
The U.S. crude benchmark finished sharply lower last week amid speculation that OPEC and its allies are deeply divided over Saudi Arabia's push for deeper production cuts.
Norway's $1 trillion (779.4 billion pounds) sovereign wealth fund has removed Brazilian oil firm Petrobras from a watchlist of firms that could be dropped as investments due to ethical concerns, the central bank said on Tuesday. Petrobras was put under observation in 2016 over corruption risks. The fund's ethics watchdog, the Council on Ethics, believed the risk of corruption at Petrobras was now reduced, the central bank, which manages the fund, said.
Petrobras (PBR) is committed to investing in deepwater and ultra-deepwater assets, especially pre-salt, which is likely to generate maximum returns.