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Petrobras (PBR) Calls Off Lubnor Refinery Sale to Grepar
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Petrobras (PBR - Free Report) , Brazil's state-owned oil and gas company, terminated negotiations to divest its Lubnor refinery to Grepar, an investment holding company. The deal was expected to be finalized on Nov 25. The decision followed Grepar’s failure to meet certain conditions that Petrobras set for the sale.
The Lubnor refinery, located in Mucuripe, Ceará, Brazil, has a processing capacity of 8,200 barrels per day and produces a range of products, including asphalt and naphthenic lubricants. Grepar agreed to pay $54 million for the refinery and associated assets.
Petrobras stated that it remains committed to Lubnor's operational continuity and will ensure the safety and reliability of its units. The company is currently evaluating its options for the refinery's future.
Reasons for the Termination
The specific reasons behind Grepar's failure to meet the conditions have not been publicly disclosed. However, industry analysts speculate that the company may have faced financial difficulties or regulatory hurdles.
Implications for Petrobras
The termination of the Lubnor deal could have a number of implications for Petrobras. The company will need to find a new buyer for the refinery, which could be a lengthy and challenging process. Additionally, Petrobras may have to invest additional capital in the refinery to maintain its operations.
Implications for the Brazilian Refining Industry
The Lubnor deal was seen as a sign of Petrobras's commitment to divesting its refining assets and focusing on upstream exploration and production. The termination of the deal could raise doubt regarding Petrobras' divestiture plans and have a negative impact on Brazil’s refining industry.
The Williams Companies is valued at $44.27 billion. WMB currently pays a dividend of $1.79 per share, or 4.92% on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments.
Oceaneering International is worth approximately $2.10 billion. In the past year, its shares have risen 42%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
Liberty Energy is valued at $3.33 billion. LBRT currently pays a dividend of 20 cents per share, or 1.01% on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to North American onshore exploration and production companies.
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Petrobras (PBR) Calls Off Lubnor Refinery Sale to Grepar
Petrobras (PBR - Free Report) , Brazil's state-owned oil and gas company, terminated negotiations to divest its Lubnor refinery to Grepar, an investment holding company. The deal was expected to be finalized on Nov 25. The decision followed Grepar’s failure to meet certain conditions that Petrobras set for the sale.
The Lubnor refinery, located in Mucuripe, Ceará, Brazil, has a processing capacity of 8,200 barrels per day and produces a range of products, including asphalt and naphthenic lubricants. Grepar agreed to pay $54 million for the refinery and associated assets.
Petrobras stated that it remains committed to Lubnor's operational continuity and will ensure the safety and reliability of its units. The company is currently evaluating its options for the refinery's future.
Reasons for the Termination
The specific reasons behind Grepar's failure to meet the conditions have not been publicly disclosed. However, industry analysts speculate that the company may have faced financial difficulties or regulatory hurdles.
Implications for Petrobras
The termination of the Lubnor deal could have a number of implications for Petrobras. The company will need to find a new buyer for the refinery, which could be a lengthy and challenging process. Additionally, Petrobras may have to invest additional capital in the refinery to maintain its operations.
Implications for the Brazilian Refining Industry
The Lubnor deal was seen as a sign of Petrobras's commitment to divesting its refining assets and focusing on upstream exploration and production. The termination of the deal could raise doubt regarding Petrobras' divestiture plans and have a negative impact on Brazil’s refining industry.
Zacks Rank and Key Picks
Currently, PBR carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies (WMB - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International, Inc. (OII - Free Report) and Liberty Energy Inc. (LBRT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is valued at $44.27 billion. WMB currently pays a dividend of $1.79 per share, or 4.92% on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments.
Oceaneering International is worth approximately $2.10 billion. In the past year, its shares have risen 42%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
Liberty Energy is valued at $3.33 billion. LBRT currently pays a dividend of 20 cents per share, or 1.01% on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to North American onshore exploration and production companies.