World's Petrobras unveils plan to boost asset sales,

Petrobras unveils plan to boost asset sales, deepwater investment

SAO PAULO / RIO DE JANEIRO (Reuters) - Brazilian state-run oil company Petroleo Brasileiro SA (PETR4.SA) plans to raise some $ 26.9 billion through asset sales and 
partnerships by 2023, in anticipated production boom of front edge on investment boosting Brazil
World's Petrobras unveils plan to boost asset sales,
A worker walks on the heliport at the Brazil's Petrobras P-66 oil rig in the offshore Santos basin in Rio de Janeiro, Brazil September 5, 2018. REUTERS / Pilar Olivares
 1.   biggest
Petrobras intends to make $ 84.1 billion in investments from 2019 to 2023, above $ 74.5 billion in forecast in 2018 to 2022 plan, it said in a five-year investment program unveiled on Wednesday 2morning.
oil traders
The firm also moderately cut its production forecast, but still forecast production by 10 percent next year, and then 5 percent every year through 2023.
Petrobras is trying to stay on the course of efforts to reduce the oil companies worldwide - $ 88 billion in gross debt - through divestments and Brazil's coveted offshore pre-salt area on an investment 4.   focus.

Brazil's Center for Infrastructure, a consultant at Adriano Pires, said "The strategic plan came within the expectations of the market, a reasonable increase in oil prices, with significant refining divestments and an ambiotic         5  leverage target."

In a call with investors, Petrobras Chief Financial Officer Rafael Grisolia said the company expects to attract partners for its refineries in the short term.
6   staff
While the plan appeared to contain no major surprises, it was just as prosecutors in Brazil accused that trading giants Vitol [VITOLV.UL], Trafigura [TRAFGF.UL], and Glencore (GLEN.L) paid over $ 30 million in bribes to Petrobras employees

The allegations are another black eye for Petrobras, which is the center of Brazil's sprawling "Car Wash" corruption investigation, and the firm is eager to clean up its image.
7  prosecutors
Preferred Brazil-listed shares in Petrobras edged up 0.3 percent in afternoon trade, while the previous year's losses .BVSP was little changed.

Whether or not the company sticks to the plan, Pires added, the right-wing President-elect Jair Bolsonaro

"The challenge of the next government is to maintain this plan," he said.

Bolsonaro, a former lawmaker and military officer, last month named Roberto Castello Branco, a University of Chicago-trained economist, to succeed in the current chief executive officer Ivan Monteiro, who is set to step down on Jan. 1.    petrobras houston

While Castello Branco has said he favors selling noncore assets, some of the generals close to Bolsonaro, who have the oil company as a "strategic asset," may put the brakes on any radical restructuring bid.
8    petrobras nigeria
Petrobras will maintain its focus on deepwater exploration and production, especially in Brazil's coveted pre-salt blocks, an offshore area where billions of barrels are locked beneath a thick layer of salt under the ocean.

Even so, the company reduced its oil production target to 6 percent in annualized growth from 8 percent in its last plan.

"Frankly, I've lost count of how many times the production targets have been slashed over the past five-plus years," said Pavel Molchanov, Raymond James at an energy analyst.

Petroleo Brasileiro SA Petrobras25.61PETR4.SASao Paulo Stock Exchange + 0.27 (+ 1.07%) PETR4.SAGLEN.L.BVSP

  petrobras subsidiaries

The oil company also disclosed its return on investment capital should be up to 11 percent in 2020, as it sells assets and cuts debt.

Its ratio of net debt to earnings before interest, taxes, depreciation, and amortization should fall to 1.5 times by the end of that year, it added, from a goal of 2.5 by the end of 2018.

Post a Comment