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Petrobras Reports Sequential Decline in October Production

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Brazil's state-run energy giant Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced that its October production has decreased from its record output in September this year.

During October, Petrobras’ total production was 2.81 million barrels of oil equivalent per day (MMBOE/D), down 2.4% from 2.88 MMBOE/D during the prior quarter. Nonetheless, the September production of the company touched a new monthly record as it crossed the Aug 2016 mark of 2.72 MMBOE/D.

Investors should know that out of the total October production, output of 2.68 MMBOE/D was generated from Brazil, while the remaining 0.12 MMBOE/D was produced outside the country.

Oil Production

The October oil output in Brazil totaled 2.19 million barrels per day (MMB/D), down 2% sequentially due to production stoppages for maintenance of Floating Production, Storage and Offloading (FPSO) units. However, Petrobras revealed that the output achieved so far indicates that the company is nearing its yearly oil production projection of 2.145 MMB/D in Brazil. 

Natural Gas Output

The October natural gas output in Brazil was 77.5 million m³/day, down 4.5% from the September output. This was because production was halted for maintenance works of FPSO vessels during the month.

However, outside Brazil, natural gas production totaled 9.7 million m³/d, up 2.2% sequentially as production was restarted in Hadrian South, U.S.

Pre-salt production

The company’s pre-salt output during October fell almost 3% sequentially to 1.42 MMBOE/D. Oil output from the pre-salt layer came in at 1.14 MMB/D compared with 1.17 MMB/D in September. 

Zacks Rank & Stock Picks

Petrobras currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked players in the energy sector are Ultra Petroleum Corp. (UPLMQ - Free Report) , EQT Midstream Partners, LP (EQM - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) .   

Ultra Petroleum is likely to witness year-over-year earnings growth of 425.8% in the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EQT Midstream is projected to witness year-over-year earnings growth of almost 12% in the current year. It has a Zacks Rank #2 (Buy).

Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2.

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