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Petrobras (PBR) Resumes Abreu's Project to Boost Capacity
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Petrobras (PBR - Free Report) , the leading Brazilian oil company, revealed its plans to resume construction of another production line at its Abreu e Lima refinery. This strategic move is expected to enhance its production of diesel fuel and other valuable products. The resumption of work on the new unit, scheduled to begin operations in 2027, is expected to contribute to Petrobras' long-term growth.
This blog delves into the details of this expansion plan, highlighting its potential impact on the company's future performance.
The Abreu e Lima Refinery Project
The Abreu e Lima refinery in Ipojuca, Pernambuco, Brazil, is a significant asset in PBR's portfolio. The refinery, with an initial estimated investment of $18.5 billion, aims to process heavy crude oil from the Pre-Salt region, boosting the country's refining capacity and reducing its reliance on imported fuels.
Resumption of Construction
After facing temporary setbacks and construction breaks in 2015, Petrobras now confirms the resumption of work on the new production line at the Abreu e Lima refinery.
This decision aligns with the company’s new strategic plan, which focuses on optimizing operations, expanding production capabilities and securing a strong position in the global oil market.
Increased Production of Diesel Fuel and Other Products
The primary objective of the new production line is to improve Petrobras' output of diesel fuel and other valuable products. This move comes in response to the growing demand for diesel fuel in Brazil, driven by various sectors such as transportation, industry and agriculture.
By expanding its production capacity, the company aims to meet the market's needs while maintaining its leading position in Brazil’s energy sector.
Impact on Petrobras' Strategic Plan
The recommencement of construction at the Abreu e Lima refinery reflects PBR’s dedication to effective execution of its strategic plan. This initiative aligns with the company's broader objectives, including improving operational efficiency, optimizing costs and enhancing overall competitiveness.
By expanding its production capabilities, Petrobras positions itself as a key player in Brazil’s oil and gas industry. It is poised to meet the country's energy needs and contribute to its economic development.
Evolution Petroleum is worth approximately $268.48 million. EPM currently pays dividends of 48 cents per share, or 5.95% on an annual basis.
The company currently has a forward P/E ratio of 7.30. In comparison, its industry has an average forward P/E of 10.40, which means EPM is trading at a discount to the group.
Global Partners is valued at around $1.04 billion. In the past year, its units have risen 44.8%.
The partnership currently has a forward P/E ratio of 9.01. In comparison, its industry has an average forward P/E of 14.10, which means GLP is trading at a discount to the group.
NGL Energy Partners is valued at around $526.39 million. In the past year, its units have risen 180.9%.
The partnership currently has a forward P/E ratio of 4.59. In comparison, its industry has an average forward P/E of 14.10, which means NGL is trading at a discount to the group.
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Petrobras (PBR) Resumes Abreu's Project to Boost Capacity
Petrobras (PBR - Free Report) , the leading Brazilian oil company, revealed its plans to resume construction of another production line at its Abreu e Lima refinery. This strategic move is expected to enhance its production of diesel fuel and other valuable products. The resumption of work on the new unit, scheduled to begin operations in 2027, is expected to contribute to Petrobras' long-term growth.
This blog delves into the details of this expansion plan, highlighting its potential impact on the company's future performance.
The Abreu e Lima Refinery Project
The Abreu e Lima refinery in Ipojuca, Pernambuco, Brazil, is a significant asset in PBR's portfolio. The refinery, with an initial estimated investment of $18.5 billion, aims to process heavy crude oil from the Pre-Salt region, boosting the country's refining capacity and reducing its reliance on imported fuels.
Resumption of Construction
After facing temporary setbacks and construction breaks in 2015, Petrobras now confirms the resumption of work on the new production line at the Abreu e Lima refinery.
This decision aligns with the company’s new strategic plan, which focuses on optimizing operations, expanding production capabilities and securing a strong position in the global oil market.
Increased Production of Diesel Fuel and Other Products
The primary objective of the new production line is to improve Petrobras' output of diesel fuel and other valuable products. This move comes in response to the growing demand for diesel fuel in Brazil, driven by various sectors such as transportation, industry and agriculture.
By expanding its production capacity, the company aims to meet the market's needs while maintaining its leading position in Brazil’s energy sector.
Impact on Petrobras' Strategic Plan
The recommencement of construction at the Abreu e Lima refinery reflects PBR’s dedication to effective execution of its strategic plan. This initiative aligns with the company's broader objectives, including improving operational efficiency, optimizing costs and enhancing overall competitiveness.
By expanding its production capabilities, Petrobras positions itself as a key player in Brazil’s oil and gas industry. It is poised to meet the country's energy needs and contribute to its economic development.
Zacks Rank and Key Picks
Currently, PBR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum (EPM - Free Report) and Global Partners (GLP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and NGL Energy Partners (NGL - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is worth approximately $268.48 million. EPM currently pays dividends of 48 cents per share, or 5.95% on an annual basis.
The company currently has a forward P/E ratio of 7.30. In comparison, its industry has an average forward P/E of 10.40, which means EPM is trading at a discount to the group.
Global Partners is valued at around $1.04 billion. In the past year, its units have risen 44.8%.
The partnership currently has a forward P/E ratio of 9.01. In comparison, its industry has an average forward P/E of 14.10, which means GLP is trading at a discount to the group.
NGL Energy Partners is valued at around $526.39 million. In the past year, its units have risen 180.9%.
The partnership currently has a forward P/E ratio of 4.59. In comparison, its industry has an average forward P/E of 14.10, which means NGL is trading at a discount to the group.