Petroleo Brasileiro S.A. or Petrobras ( PBR Quick Quote PBR - Free Report) recentlyinked a deal to sell its entire 49% stake in the wind farm Eólica Mangue Seco 1 — Geradora e Comercializadora de Energia Elétrica S.A. to Vinci Infraestrutura Gestora de Recursos Ltda. subsidiary V2I Transmissão de Energia Elétrica S.A. The Eólica Mangue Seco 1 wind farm, which owns and operates a wind farm with a capacity of 26 megawatt is located in Guamaré in the state of Rio Grande do Norte. It is part of a group of four wind farms, namely Mangue Seco 1, Mangue Seco 2, Mangue Seco 3 and Mangue Seco 4 and together these farms constitute a 104 megawatt wind power complex. Per the terms of the deal, the buyer will make full payment of R$42.5 million to the seller. Management confirms that the plan is in sync with the company’s strategy to cut costs and improve its capital allocation. Upon fulfilling all the necessary conditions, such as the consents from Banco do Nordeste do Brasil, the wind farm development financer, and the Administrative Council for Economic Defense (CADE), the sale will be closed. In a separate press release, management announced that Petrobras also signed a contract to divest its jointly-owned Mangue Seco 3 and 4 projects to V2I Transmissao de Energia Eletrica. The farms’ ownership comprises 51% stake held by Wobben Windpower and 49% by the company. The deal is valued at R$89.9 million, referring to Petrobras' 49% interest. The buyer will make payments in two instalments to the seller of which R$22.5 million is already cleared while the remaining R$67.4 million will be paid with the completion of the deal. In the meantime, Petrobras continues to look for a prospective buyer for the divestiture of its entire 51% share in Mangue Seco 2. Company Profile Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. The company’s activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks. The activities also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons besides other energy-related operations. Zacks Rank & Key Picks Petrobras currently has a Zacks Rank #3 (Hold). Some better-ranked players in the space are energy DCP Midstream Partners, LP ( DCP Quick Quote DCP - Free Report) , Plains Group Holdings, L.P. ( PAGP Quick Quote PAGP - Free Report) and Altus Midstream Company ( ALTM Quick Quote ALTM - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Legal Marijuana: An Investor’s Dream Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027. Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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