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Petrobras (PBR) Reverses to Earnings in Q4, Lags Estimates
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Brazil's state-run energy giant Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) announced fourth-quarter profit of $754 million or 6 cents per share, compared with a loss of $9,421 million or 72 cents in the year-earlier quarter. Higher production and cost cuts were primarily responsible for the turnaround.
However, the bottom line came below the Zacks Consensus Estimate for a profit of 20 cents on continued low oil prices and operational challenges that include its involvement in a money-laundering scandal, which has scarred its credit metrics.
The troubled national oil company’s net operating revenues of $21,403 million was shy of the Zacks Consensus Estimate of $22,414 million and the year-earlier level of $22,147 million.
Production & Prices
The Rio de Janeiro-headquartered company’s total oil and gas production during the fourth quarter reached 2,868 thousand oil-equivalent barrels per day (MBOE/d) – 80% liquids – up from 2,777 MBOE/d in the same period of 2015.
Compared with the fourth quarter of 2015, Brazilian oil and natural gas production – constituting 96% of the overall output – increased 6% to 2,746 MBOE/d.
During the fourth quarter of 2016, the average sales price of oil in Brazil jumped 36% from the year-earlier period to $45.71 per barrel.
For the year ended Dec 31, 2016, production of natural gas and crude oil reached 2,790 MBOE/d, essentially flat from 2015.
Petroleo Brasileiro S.A.- Petrobras Price, Consensus and EPS Surprise
During the three months ended Dec 31, 2016, Petrobras’ capital investments and expenditures totaled $4,269 million, sharply lower than the $5,419 million incurred in the year-ago period.
For the full-year 2016, the company spend $15,859 million, down 31% from 2015. This enabled Petrobras to trim its massive debt load. At the end of the quarter, the company had net debt of $96,381 million, as compared to $100,425 million as of end-2015. Net debt-to-capitalization ratio was approximately 55%. Additionally, Petrobras has cash and cash equivalents of $21,205 million.
Price Performance
Regarding price performance, Petrobras' ADRs increased 65% over the last one year, which comfortably outpaced the 40% gain for Zacks categorized Oil & Gas - Integrated - Emerging Markets industry.
Zacks Rank & Stock Picks
Petrobras currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
One can look at Antero Resources Corp. (AR - Free Report) , Pioneer Natural Resources Co. (PXD - Free Report) and Abraxas Petroleum Corp. (AXAS - Free Report) as good buying opportunities for investors interested in the energy space. While Antero Resources and Pioneer Natural Resources are Zacks Rank #1 (Strong Buy) stocks, Abraxas Petroleum carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Founded in 2002, Denver, CO-based Antero Resources is an independent oil and natural gas company with focus on liquids-rich natural gas in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. The company has an excellent earnings surprise history. It surpassed estimates in each of the last four quarters at an average rate of 239.10%.
An independent oil and gas exploration and production company based in Irving, TX, Pioneer Natural Resources focuses on the Permian Basin in Texas. The 2017 Zacks Consensus Estimate for this company is $2.04, representing some 1.118.68% earnings per share growth over 2016. Next year’s average forecast is $5.16, pointing to 153.27% growth.
Founded in 1977, San Antonio, Texas-based Abraxas Petroleum is an independent domestic energy company with assets in Texas, Wyoming, North Dakota, and Montana. Over the past 7 days, the Zacks Consensus Estimate for fiscal years 2017 and 2018 increased 25% and 171%, to 15 cents and 19 cents per share, respectively.
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Petrobras (PBR) Reverses to Earnings in Q4, Lags Estimates
Brazil's state-run energy giant Petroleo Brasileiro S.A., or Petrobras (PBR - Free Report) announced fourth-quarter profit of $754 million or 6 cents per share, compared with a loss of $9,421 million or 72 cents in the year-earlier quarter. Higher production and cost cuts were primarily responsible for the turnaround.
However, the bottom line came below the Zacks Consensus Estimate for a profit of 20 cents on continued low oil prices and operational challenges that include its involvement in a money-laundering scandal, which has scarred its credit metrics.
The troubled national oil company’s net operating revenues of $21,403 million was shy of the Zacks Consensus Estimate of $22,414 million and the year-earlier level of $22,147 million.
Production & Prices
The Rio de Janeiro-headquartered company’s total oil and gas production during the fourth quarter reached 2,868 thousand oil-equivalent barrels per day (MBOE/d) – 80% liquids – up from 2,777 MBOE/d in the same period of 2015.
Compared with the fourth quarter of 2015, Brazilian oil and natural gas production – constituting 96% of the overall output – increased 6% to 2,746 MBOE/d.
During the fourth quarter of 2016, the average sales price of oil in Brazil jumped 36% from the year-earlier period to $45.71 per barrel.
For the year ended Dec 31, 2016, production of natural gas and crude oil reached 2,790 MBOE/d, essentially flat from 2015.
Petroleo Brasileiro S.A.- Petrobras Price, Consensus and EPS Surprise
Petroleo Brasileiro S.A.- Petrobras Price, Consensus and EPS Surprise | Petroleo Brasileiro S.A.- Petrobras Quote
Capital Spending & Balance Sheet
During the three months ended Dec 31, 2016, Petrobras’ capital investments and expenditures totaled $4,269 million, sharply lower than the $5,419 million incurred in the year-ago period.
For the full-year 2016, the company spend $15,859 million, down 31% from 2015. This enabled Petrobras to trim its massive debt load. At the end of the quarter, the company had net debt of $96,381 million, as compared to $100,425 million as of end-2015. Net debt-to-capitalization ratio was approximately 55%. Additionally, Petrobras has cash and cash equivalents of $21,205 million.
Price Performance
Regarding price performance, Petrobras' ADRs increased 65% over the last one year, which comfortably outpaced the 40% gain for Zacks categorized Oil & Gas - Integrated - Emerging Markets industry.
Zacks Rank & Stock Picks
Petrobras currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
One can look at Antero Resources Corp. (AR - Free Report) , Pioneer Natural Resources Co. (PXD - Free Report) and Abraxas Petroleum Corp. (AXAS - Free Report) as good buying opportunities for investors interested in the energy space. While Antero Resources and Pioneer Natural Resources are Zacks Rank #1 (Strong Buy) stocks, Abraxas Petroleum carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Founded in 2002, Denver, CO-based Antero Resources is an independent oil and natural gas company with focus on liquids-rich natural gas in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. The company has an excellent earnings surprise history. It surpassed estimates in each of the last four quarters at an average rate of 239.10%.
An independent oil and gas exploration and production company based in Irving, TX, Pioneer Natural Resources focuses on the Permian Basin in Texas. The 2017 Zacks Consensus Estimate for this company is $2.04, representing some 1.118.68% earnings per share growth over 2016. Next year’s average forecast is $5.16, pointing to 153.27% growth.
Founded in 1977, San Antonio, Texas-based Abraxas Petroleum is an independent domestic energy company with assets in Texas, Wyoming, North Dakota, and Montana. Over the past 7 days, the Zacks Consensus Estimate for fiscal years 2017 and 2018 increased 25% and 171%, to 15 cents and 19 cents per share, respectively.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>