APBR (ord) APBRA (pref) Petrobras Brasil

[el_intrepido]

Will The Rally In Petrobras Brasileiro SA – Petrobras (ADR) (PBR) Continue Or It Is Short Lived?
Petrobras Brasileiro SA – Petrobras (ADR) (NYSE:PBR) shares witnessed about 20% gain last week triggering fresh interest in the stock due to increasing oil prices. However, there remained a question whether it was a short-lived one or can continue, which means whether there were any fresh catalysts to support the rally. In the current week, the trend reversed to drag the stock to the negative territory. While it is quite possible that the buyers of last week might have resorted to selling this week, the fact is that there are no positive catalysts to continue the rally. There was also some bad news in respect of the corruption charges involving the company. None-the-less, let’s see whether the rally can continue or is a short lived one.
Losses To Exceed Significantly

One of the significant negative catalysts is the projection of a wider loss than expected by Petrobras Brasileiro SA – Petrobras (ADR) (NYSE:PBR) in April. Reuters report indicated that the company might suffer losses well beyond 6.2 billion reais in April. However, the State-managed energy giant’s losses could exceed 20 billion reais or $5.3 billion. The company was caught on the wrong side with its officials involvement in the alleged corruption scandal. In April, the company had taken a loss of over 44 billion reais in assets in a delayed earnings report. That was due to weak oil prices, as well as currency.

Petrobras Brasileiro SA – Petrobras (ADR) (NYSE:PBR)’s write-downs at refineries were linked with the presently ongoing Operation Carwash or Lava Jato scandal. In the last more than a year, the company suffered a lot due to the weakening global oil prices. The company had high ambition of becoming the world’s biggest oil company. However, the hope has been shattered with the continued downtick in the global oil prices. As the hopes of the oil prices turning the cards back are proving to be futile, the company had no alternative but to reduce its capital expenditures by nearly 40%. Currently, the oil giant seems to be facing multiple issues that would directly impact the results of the company.

Poised To Dump Several Oil Rigs

The Brazil-based Petrobras Brasileiro SA – Petrobras (ADR) (NYSE:PBR) is now on the verge of dumping several oil rigs. That would directly impact a number of drilling companies in the United States. Jefferies Oilfield Services analyst, Eduardo Royes, pointed out a trade publication and noted the future contracts are the silver lining that offset some of the cuts. The analyst believes that the company is close to finalizing an agreement to allow as many as 9 – 10 rigs earlier than expected. However, the important aspect of the decision is that it would mostly be applicable to rigs, which have already been declared as dead or left.

The second aspect is that it appears to come in return for the backlog of rights that Petrobras Brasileiro SA – Petrobras (ADR) (NYSE:PBR) wants to retain. Aside from these things, the company also appears to be interested in negotiating additional traditional blend, as well as extended contracts. The possible deals would be likely to be positive at least modestly for the offshore drilling industry. In addition, backlog term would prove to be a positive one for the company. Jefferies also expects a modest negative-to-neutral impact on other rig companies. It only appears that the company has come close to doing something at least now. It should have taken the decision to dump some rigs long ago and should have decided which rights it wants to retain for the long-term and trim down the unwanted rights at least in the near-term. The backlog contracts might help to some extent accelerate attrition and help outer year S/D. Jefferies analyst thinks that if it can help the company’s demand, which could another silver lining.

Involved In Scandals

The entire region of Brazil is groped with corruption and scandal charges involving the government-controlled companies and officials from the government. There were also an allegation of corruption against the political leaders, whether ruling or the opposition parties. Petrobras Brasileiro SA – Petrobras (ADR) (NYSE:PBR) is also caught in the political uncertainty or the corruption or scandal charges. Its officials were also allegedly involved in the scandal thus impacting its financial numbers.

The notable charges are that Brazilian President, Dilma Rousseff’s, ruling coalition members were accused of conspiracy involving the directors, as well as contracts of Petrobras Brasileiro SA – Petrobras (ADR) (NYSE:PBR). The objective was to extort kickbacks, as well as bribes. The multiple issues, like the sinking economic growth, as well as the level of corruption, have dragged down the popularity of the current government and the president to a record low. Therefore, an impeachment of the President cannot be ruled out. The head of the lower house, Eduardo Cunha, were also reportedly involved in corruption scandal though he denied any wrongdoing. He has allegedly received kickbacks through an account in a Swiss bank despite his denial.

Conclusion

There are no favorable catalysts as far as Petrobras Brasileiro SA – Petrobras (ADR) (NYSE:PBR) is concerned. The available information suggests that there is little that the company could gain by dumping its oil rigs. On the oil pricing front, there is nothing significant happening. Similarly, there is a threat of further budget cut if the oil price continued to be sluggish. The government is also probing the company’s and its officials’ role in the recent bribery, as well as kickbacks scandal that is rocking the nation. Therefore, the recent share price is due to the overall market sentiments towards oil companies and nothing to warrant a continued rally. The company should first get itself cleared of the scandals.

Disclaimer: The opinions and data expressed herein by the author are not an investment recommendation and are not meant to be relied upon in investment decisions. The author is not acting in an investment advisory capacity, nor is this an investment research report. The author’s opinions expressed herein address only select aspects of potential investment in securities of the company or companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that potential and existing investors conduct thorough investment research of their own, including detailed review of the companies’ SEC filings, and consult a qualified investment advisor. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice.

http://investcorrectly.com/20151015/wil ... ort-lived/

[jabalina]

Recién salía en Bloomberg "Petrobras solicita interrumpir venta local de bonos", qué interpretación le dan a eso?

Parece que al mercado no le gustoen el pre comenzo a bajar y rapido.

[dneop]

Hoy otro dia
Me tiene tan podrido.....

[el_intrepido]

Petrobras suspende oferta de R$ 3 bi em debêntures por 'cenário adverso
http://www1.folha.uol.com.br/mercado/20 ... erso.shtml

Petrobras pedirá interrupção de análise de oferta de debêntures de R$3 bi
http://br.reuters.com/article/topNews/i ... F620151015

[eduechaniz]

Recién salía en Bloomberg "Petrobras solicita interrumpir venta local de bonos", qué interpretación le dan a eso?

[JMDC]

Cordobes, estoy en ERAR, aunque mi unico objetivo el año entrante seran electricas creo yo, por las expectativas de un cambio tarifario (al margen de la quita de subsidios)

Para entrar esperas corrección post elecciones ? A mi no me gusta comprar pampa y edn después de la suba que tuvieron 2013 en adelante. ...al menos sin una corrección. .igual edn no la compro ni ahí jaja

en realidad me gusta tran por los precios, pero en si quiero esperar a que se hable formalmente del tema, de ultima pagare peaje!

[NeoRevolution]

Como me equivoque con la cotizacion del precio del crudo.
Mi opinion era que pasabamos los 50 dolares como si nada.
Lo siento,pido disculpas.
Saludos para todos.

Para mí le falta poco

[El Castigador]

Cordobes, estoy en ERAR, aunque mi unico objetivo el año entrante seran electricas creo yo, por las expectativas de un cambio tarifario (al margen de la quita de subsidios)

Para entrar esperas corrección post elecciones ? A mi no me gusta comprar pampa y edn después de la suba que tuvieron 2013 en adelante. ...al menos sin una corrección. .igual edn no la compro ni ahí jaja

[JMDC]

Cordobes, estoy en ERAR, aunque mi unico objetivo el año entrante seran electricas creo yo, por las expectativas de un cambio tarifario (al margen de la quita de subsidios)

[cirote]

http://seekingalpha.com/news/2830446-pe ... email_link

[El Castigador]

hola cordobes, totalmente de acuerdo, nuevamente creo que interpretaron este emoticon ( ) con una expresion de deseo, lo que expuse es simplemente para mi la unica razon por la cual rusia toma parte en la contienda.
dicho sea de paso, yo nisiquiera tengo 1 papel hoy aca y hace rato vengo pensando que hacer guita aca esta atado a que la gente muera en medio oriente, en ningun momento avale las medidas.

Todo aclarado entonces. Que papeles tenes che? O estas esperando oportunidades ?

[jabalina]

Hola jabalina. .no debe pedir disculpas. ..cada uno hace su análisis y expone su opinión. ..lo bueno es que usted lo hizo antes..en este caso el tiempo no le dio la razón pero absolutamente todos nos equivocamos. ..muchos dicen. .."si....yo estaba seguro que el mínimo de pbr era 3,71 .."
Ahora como ve el petróleo jabalina? Yo salvo evento extraordinario lo veo en no más de 60 por un año al menos

Mi opinion de que el petroleo superaba tranquilamente los 50 dolares es que si los paises petroleros llevaban el petroleo a 55 dolares,para los EE UU no le servia seguir extrayendo petroleo no convencional, porque sus costos de extraccion superan los 60 o 65 dolares.
Mire estos ultimos dias,lei informes de varios analistas petroleros y estos insisten mucho que las energias alternativas como la eolicas ,las termicas y las solares cada dia son un poco mas economicas y mas eficientes,aparte ya hay mas progresos con los autos electricos,por lo que segun ellos el consumo de petroleo va a caer.
Yo tengo mis dudas de esto ultimo.
Por lo que veo el mercado del petroleo le esta dando la razon a estos analistas.
Si no hay una reduccion en la produccion de petroleo o algun suceso no previsto en medio oriente; va a ser dificil que el crudo supere los 55 dolares durante el 2016.
Veremos como sigue esto.
Saludos.

[JMDC]

hola cordobes, totalmente de acuerdo, nuevamente creo que interpretaron este emoticon ( ) con una expresion de deseo, lo que expuse es simplemente para mi la unica razon por la cual rusia toma parte en la contienda.
dicho sea de paso, yo nisiquiera tengo 1 papel hoy aca y hace rato vengo pensando que hacer guita aca esta atado a que la gente muera en medio oriente, en ningun momento avale las medidas.

[Mr Duck]

JMDC ES UN CABALLERO QUE PIDE DISCULPAS. BUENA PARA EL FORO.[/quote]

Buen día! Coincido. Saludos.

[El Castigador]

JMDC yo tengo apbr lanzado...y seguramente me ejerzan. ..pero tenga o no una persona acciones de petroleras no es para andar deseando misiles para que suba el petróleo creo yo
Saludos