Brazilian state-run oil giant Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced natural gas and oil production of 2.72 million barrels of oil equivalent per day (BOE/d) for Apr 2017. The reported output is less than the 2.74 million BOE/d produced in March. The company's domestic production contributed 2.6 million BOE/d in April, while the rest was generated abroad.
The average domestic production of oil was 2.1 million barrels per day (bpd), down 1% from March. The decline in oil production may be attributed to scheduled stoppages on three platforms. However, domestic natural gas production, except for liquefied natural gas, inched up 1% month-over-month to 78.5 million cubic meters per day. This increase may be attributed to resumed operation of FPSO Cidade de Angra dos Reis in Santos Basin.
Petrobras' natural gas and oil production for April, at the pre-salt layer, was 1.5 million (bpd), flat with the March level. However, the reported figure was 50% higher than the year-ago period. This was owing to the commencement of production in FPSO Cidade de Saquarema and FPSO Cidade de Caraguatatuba. The growth in production from FPSOs Cidade de Maricá, Cidade de Paraty, and Cidade de Itaguaí also contributed to the increase.
However, the well testing in the Lucius and Hadrian South fields in the United States had an adverse effect on the company's natural gas production abroad, which decreased 12% from March to 9.6 million cubic meters per day.
About the Company
Petrobras is one of the largest Latin American integrated companies, which is involved in the exploration, production, refining, retailing and transportation of petroleum and its byproducts, both domestically and internationally. The company is headquartered in Rio de Janeiro.
Petrobras belongs to the Zacks categorized Emerging Markets Integratedindustry. Its shares gained 11.23% over the last one month compared with the broader sector’s increase of 4.17%.
Zacks Rank and Stocks to Consider
Petrobras presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in oil and energy sector are SunCoke Energy, Inc. (SXC - Free Report) , Alliance Holdings GP, L.P. (AHGP - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy’s sales for the current year are expected to increase 10.58% year over year. The company had a positive earnings surprise of 120% in the first quarter of 2017.
Alliance Holdings’ sales for the current quarter are expected to increase 5.07% year over year. The company recorded a positive average earnings surprise of 18.04% in the last four quarters.
Canadian Natural Resources’ sales for the current year are expected to increase 44.64% year over year. The company recorded a positive earnings surprise of 30.77% in the first quarter of 2017.
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