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Petrobras (PBR) Closes Sale of 50% Stake in BSBios for R$322M

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Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently informed that it completed the divestment process of its entire 50% stake in the local biodiesel plants operator BSBios.

Last December, management announced that the company’s fully-owned subsidiary Petrobras Biocombustivel SA (PBio) inked a deal with an investment company RP Participacoes em Biocombustiveis SA to sell its overall interest in BSBios.

The deal worth R$322 million was completed upon fulfilling all the necessary conditions. Of the total amount, R$67 million was credited to the escrow account that will be used to compensate for any eventual contingencies while R$2 millionwas received by PBio in the form of an advance last December.

Per management, BSBios possesses two biodiesel fuel plants in the south of Brazil, one in Passo Fundo, Rio Grande do Sul and another in Marialva, Parana. Both have the combined capacity to produce 828,000 cubic meters of fuel volumes annually.

In a separate press release, Petrobras announced that it recently entered into an agreement to sell its Landulpho Alves Refinery (RLAM) to Abu Dhabi’s Mubadala Capital for $1.65 billion, contingent on regulatory approvals.

For quite some time, Petrobras has been looking for a lucrative divestment bid for its RLAM in the Brazilian state of Bahia from prospective buyers. Notably, in June 2020, Mubadala Investment Company began exclusive talks with Petrobras officials after submitting the best offer to purchase the company’s RLAM and getting invited to negotiate the deal. However, discussions were stalled due to some reasons. Then again last December, this state energy producer mulled over an option from the Mubadala Group.

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. Its operations also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons apart from other energy-related operations.

Zacks Rank & Key Picks

Petrobras currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Matador Resources Company (MTDR - Free Report) , Plains Group Holdings, L.P. (PAGP - Free Report) and Denbury Inc. , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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