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Petrobras (PBR) Board Okays Settlement of 4 Individual Suits
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Brazilian energy giant Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced that its Board of Directors has agreed to settle four investor lawsuits filed in the Federal Court of New York. The company has set aside $372 million in provision for the settlement of the lawsuits, which is $8 million above what had been provisioned in Sep 2016.
The company intends to resolve lawsuits filed by New York City Employees Retirement System (and others), Transamerica Income Shares, Inc. (and others), Internationale Kapitalanlagegesellschaft mbH, Lord Abbett Investment Trust - Lord Abbett Short Duration Income Fund (and others).
The lawsuits filed by the shareholders will help recoup losses triggered by the various corruption, money laundering and bribery schemes tied to company contracts. The settlement of the cases would resolve uncertainties, costs and potential liabilities associated with the disputes.
Petrobras, a few months back, had signed agreements to close 15 individual lawsuits. With the current agreement to resolve the additional lawsuits, the company has reached a settlement in 19 individual actions out of the total 27 that were consolidated with the class action.
Zacks Rank and Key Picks
Petrobras is Brazil’s largest state-controlled energy firm, operating in segments like exploration, refining, marketing, transporting, distribution and biofuels. The company currently carries a Zacks Rank #5 (Strong Sell).
Petrobras’ mismanagement and involvement in the money laundering and corruption cases have worsen the credit metrics of the company making it difficult for the firm to find creditors.
Petrobras underperformed the Zacks categorized Oil & Gas Emerging Markets Integrated industry over the last three months. During the aforesaid period, shares of Petrobras fell 0.3% while the broader industry gained around 4%.
Pioneer Natural Resources Company has posted average positive earnings surprise of 21.86% in the last four quarters.
Semgroup Corporation has posted average positive earnings surprise of 79.10% in the last four quarters.
Range Resources Corporation is expected to report year-over-year growth of 21.16% and 41.18% in its revenue and earnings.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
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Petrobras (PBR) Board Okays Settlement of 4 Individual Suits
Brazilian energy giant Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced that its Board of Directors has agreed to settle four investor lawsuits filed in the Federal Court of New York. The company has set aside $372 million in provision for the settlement of the lawsuits, which is $8 million above what had been provisioned in Sep 2016.
The company intends to resolve lawsuits filed by New York City Employees Retirement System (and others), Transamerica Income Shares, Inc. (and others), Internationale Kapitalanlagegesellschaft mbH, Lord Abbett Investment Trust - Lord Abbett Short Duration Income Fund (and others).
The lawsuits filed by the shareholders will help recoup losses triggered by the various corruption, money laundering and bribery schemes tied to company contracts. The settlement of the cases would resolve uncertainties, costs and potential liabilities associated with the disputes.
Petrobras, a few months back, had signed agreements to close 15 individual lawsuits. With the current agreement to resolve the additional lawsuits, the company has reached a settlement in 19 individual actions out of the total 27 that were consolidated with the class action.
Zacks Rank and Key Picks
Petrobras is Brazil’s largest state-controlled energy firm, operating in segments like exploration, refining, marketing, transporting, distribution and biofuels. The company currently carries a Zacks Rank #5 (Strong Sell).
Petrobras’ mismanagement and involvement in the money laundering and corruption cases have worsen the credit metrics of the company making it difficult for the firm to find creditors.
Petrobras underperformed the Zacks categorized Oil & Gas Emerging Markets Integrated industry over the last three months. During the aforesaid period, shares of Petrobras fell 0.3% while the broader industry gained around 4%.
Better-ranked players in the industry include Pioneer Natural Resources Company (PXD - Free Report) , Semgroup Corporation and Range Resources Corporation (RRC - Free Report) . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 stocks here.
Pioneer Natural Resources Company has posted average positive earnings surprise of 21.86% in the last four quarters.
Semgroup Corporation has posted average positive earnings surprise of 79.10% in the last four quarters.
Range Resources Corporation is expected to report year-over-year growth of 21.16% and 41.18% in its revenue and earnings.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>