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Petroleo Brasileiro (PBR - Free Report) , the Brazilian state-run oil company, recently announced that it has received an Official Letter 166/2023/GM-MME from the Brazilian government's Ministry of Mines and Energy ("MME"). The letter requests the company to suspend its sales of assets for 90 days. This is due to the ongoing reassessment of the National Energy Policy and the establishment of a new composition of the National Energy Policy Council.
Petrobras has stated that it will comply with this request while respecting the company's governance rules and commitments made to government entities, without jeopardizing its own interests. The board of directors will carefully review the ongoing processes and commitments pertaining to civil law and governance rules, as well as any punitive clauses and their consequences. This assessment will enable governance bodies to evaluate potential legal and economic risks while adhering to applicable governing rules and regulations, including rules of secrecy.
Petrobras, one of the largest companies in Brazil, has been under pressure to divest its non-core assets to reduce debt and increase shareholder value. The company has been selling off assets in the recent years to reduce its debt load. While the suspension of assets sales will delay the company's plans to reduce debt, it will enable the government to reassess its National Energy Policy and make any necessary changes.
The Brazilian government has been under pressure to address the country's energy needs, particularly as it plans to switch to a low-carbon economy. The government is currently reviewing its energy policies to ensure that they are in line with its commitments under the Paris Agreement (CNPE). The CNPE, which is responsible for setting energy policy, will likely play a key role in shaping the country's energy policies in the coming years.
Petrobras’ suspension of assets sales is a significant development in Brazil’s energy sector. It will allow the government to reassess its energy policies and make necessary changes. The board of directors’ careful review of ongoing processes and commitments will help mitigate potential legal and economic risks.
Petrobras, headquartered in Rio de Janeiro, is Brazil’s largest integrated energy firm and one of the largest in Latin America.
Zacks Rank and Other Key Picks
Currently, PBR carries a Zacks Rank #2 (Buy). Investors interested in the energy sector might also look at some other top-ranked stocks like NGL Energy Partners (NGL - Free Report) sporting a Zacks Rank #1 (Strong Buy) and Energy Transfer (ET - Free Report) and Halliburton (HAL - Free Report) both holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NGL Energy Partners is worth approximately $365.07 billion. Its shares have increased 28.7% in the past year.
NGL Energy Partners LP is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.
Energy Transfer LP is valued at around $39.80 billion. ET delivered an average earnings surprise of 11.43% for the last four quarters, and its current dividend yield is 9.49%.
Energy Transfer LP currently has a forward P/E ratio of 8.93. In comparison, its industry has an average forward P/E of 10.40, which means Energy Transfer LP is trading at a discount to the group.
Halliburton is valued at around $33.44 billion. In the past year, HAL stock has increased by 40.2%.
TX-based Halliburton Company, headquartered in Houston, is one of the largest oilfield service providers in the world with a trailing four-quarter earnings surprise of roughly 5.87%, on average.
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Petrobras (PBR) Suspends Asset Sales Amid Policy Review
Petroleo Brasileiro (PBR - Free Report) , the Brazilian state-run oil company, recently announced that it has received an Official Letter 166/2023/GM-MME from the Brazilian government's Ministry of Mines and Energy ("MME"). The letter requests the company to suspend its sales of assets for 90 days. This is due to the ongoing reassessment of the National Energy Policy and the establishment of a new composition of the National Energy Policy Council.
Petrobras has stated that it will comply with this request while respecting the company's governance rules and commitments made to government entities, without jeopardizing its own interests. The board of directors will carefully review the ongoing processes and commitments pertaining to civil law and governance rules, as well as any punitive clauses and their consequences. This assessment will enable governance bodies to evaluate potential legal and economic risks while adhering to applicable governing rules and regulations, including rules of secrecy.
Petrobras, one of the largest companies in Brazil, has been under pressure to divest its non-core assets to reduce debt and increase shareholder value. The company has been selling off assets in the recent years to reduce its debt load. While the suspension of assets sales will delay the company's plans to reduce debt, it will enable the government to reassess its National Energy Policy and make any necessary changes.
The Brazilian government has been under pressure to address the country's energy needs, particularly as it plans to switch to a low-carbon economy. The government is currently reviewing its energy policies to ensure that they are in line with its commitments under the Paris Agreement (CNPE). The CNPE, which is responsible for setting energy policy, will likely play a key role in shaping the country's energy policies in the coming years.
Petrobras’ suspension of assets sales is a significant development in Brazil’s energy sector. It will allow the government to reassess its energy policies and make necessary changes. The board of directors’ careful review of ongoing processes and commitments will help mitigate potential legal and economic risks.
Petrobras, headquartered in Rio de Janeiro, is Brazil’s largest integrated energy firm and one of the largest in Latin America.
Zacks Rank and Other Key Picks
Currently, PBR carries a Zacks Rank #2 (Buy). Investors interested in the energy sector might also look at some other top-ranked stocks like NGL Energy Partners (NGL - Free Report) sporting a Zacks Rank #1 (Strong Buy) and Energy Transfer (ET - Free Report) and Halliburton (HAL - Free Report) both holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NGL Energy Partners is worth approximately $365.07 billion. Its shares have increased 28.7% in the past year.
NGL Energy Partners LP is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.
Energy Transfer LP is valued at around $39.80 billion. ET delivered an average earnings surprise of 11.43% for the last four quarters, and its current dividend yield is 9.49%.
Energy Transfer LP currently has a forward P/E ratio of 8.93. In comparison, its industry has an average forward P/E of 10.40, which means Energy Transfer LP is trading at a discount to the group.
Halliburton is valued at around $33.44 billion. In the past year, HAL stock has increased by 40.2%.
TX-based Halliburton Company, headquartered in Houston, is one of the largest oilfield service providers in the world with a trailing four-quarter earnings surprise of roughly 5.87%, on average.