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Petrobras (PBR) to Sell Full 27.88% Stake in Deten Quimica

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PetroleoBrasileiro S.A. or Petrobras (PBR - Free Report) recently commenced the sale process of its entire 27.88% ownership in the petrochemical company DetenQuímica S.A. (Deten). Per management, the plan is in sync with the company’s strategy to reduce expenses and enhance its capital allocation to maximize shareholder value.

Located in the Camaçari industrial complex in Bahia, Deten petrochemical is the sole national manufacturer of Linear Alkylbenzene (LAB) and involved in manufacturing and selling of the major raw ingredients used in the production of biodegradable liquid and powder detergents.

Also last month, Petrobras inked a deal to sell its overall stake in the Rabo Branco field to PetromProdução de Petróleo&Gás Ltda. (Petrom). The whole deal value worth $1.5 million was deposited in a guarantee account in favor of the company. Management confirms that the plan is consistent with its overall cost-reduction goal and capital-deployment improvement.

The onshore field of Rabo Branco is located to the south of the Carmópolis field in the Sergipe-Alagoas Basin of the state of Sergipe. The state-run energy giant owns 50% interest in this concession while the remaining part is held and operated by Produção de Óleo e Gás Ltda. or Petrom.

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 & Other Key Picks

Petrobras currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the energy space include Sprague Resources LP (SRLP - Free Report) , SilverBow Resources Inc. (SBOW - Free Report) and Continental Resources, Inc. (CLR - Free Report) , each presently sporting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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