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Petrobras (PBR) to Offload Assets in Paraguay and Maromba
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Moving ahead with its divestment goals, Brazil's state-run energy giant Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced plans to offload assets in Paraguay and Maromba field in the Campos basin. The company, grappling with huge debt, intends to reinstate its financial health through deleveraging efforts and divestment goals.
In Paraguay, Petrobras is set to divest its entire stake in three subsidiaries namely – Petrobras Paraguay Distribución Limited, Petrobras Paraguay Operaciones y Logística SRL and Petrobras Paraguay Gas SRL. These subsidiaries are involved in the distribution and sale of fuel, liquefied petroleum gas and lubricants. Currently, Petrobras being the largest fuel distributor in Paraguay operates 197 service stations and 113 convenience stores in the region. The company also operates Paraguay’s three airports.
Along with divestment of assets in Paraguay, Petrobras will also unload its stake in the Maromba oil field in the Campos Basin, offshore Brazil. Maromba is a heavy oil field located in shallow waters close to the fields of Peregrino and Papa-Terra. The company, which had earlier planned to develop the field through the use of floating production system, now considers Maromba as one of its non-core assets. Petrobras owns a 70% interest in the field while the rest 30% is held by U.S. energy giant Chevron Corporation (CVX - Free Report) .
Petrobras which aims to revive its financial health through the divestment program of 2015–2018, has already sold assets over $13.6 billion since Jan 2015. The company intends to raise another $21 billion over the next two years to garner $35 billion from asset sales. Last month, Petrobras announced plans to divest around 30 assets by the end of this year. These divestment plans are in sync with the company’s strategy to reinstate investor’s faith in the stock.
Zacks Rank & Key Picks
Petrobras is an integrated company that is involved in exploration, production, refining, retailing and transportation of petroleum and its byproducts, both domestically and internationally. The Brazilian multinational corporation is headquartered in Rio de Janeiro.
Delek US Holdings delivered a positive average earnings surprise of 60.68% in the trailing four quarters.
Canadian Natural Resources is expected to report year-over-year earnings grwoth of 724.76% in earnings in 2017.
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Petrobras (PBR) to Offload Assets in Paraguay and Maromba
Moving ahead with its divestment goals, Brazil's state-run energy giant Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced plans to offload assets in Paraguay and Maromba field in the Campos basin. The company, grappling with huge debt, intends to reinstate its financial health through deleveraging efforts and divestment goals.
In Paraguay, Petrobras is set to divest its entire stake in three subsidiaries namely – Petrobras Paraguay Distribución Limited, Petrobras Paraguay Operaciones y Logística SRL and Petrobras Paraguay Gas SRL. These subsidiaries are involved in the distribution and sale of fuel, liquefied petroleum gas and lubricants. Currently, Petrobras being the largest fuel distributor in Paraguay operates 197 service stations and 113 convenience stores in the region. The company also operates Paraguay’s three airports.
Along with divestment of assets in Paraguay, Petrobras will also unload its stake in the Maromba oil field in the Campos Basin, offshore Brazil. Maromba is a heavy oil field located in shallow waters close to the fields of Peregrino and Papa-Terra. The company, which had earlier planned to develop the field through the use of floating production system, now considers Maromba as one of its non-core assets. Petrobras owns a 70% interest in the field while the rest 30% is held by U.S. energy giant Chevron Corporation (CVX - Free Report) .
Petrobras which aims to revive its financial health through the divestment program of 2015–2018, has already sold assets over $13.6 billion since Jan 2015. The company intends to raise another $21 billion over the next two years to garner $35 billion from asset sales. Last month, Petrobras announced plans to divest around 30 assets by the end of this year. These divestment plans are in sync with the company’s strategy to reinstate investor’s faith in the stock.
Zacks Rank & Key Picks
Petrobras is an integrated company that is involved in exploration, production, refining, retailing and transportation of petroleum and its byproducts, both domestically and internationally. The Brazilian multinational corporation is headquartered in Rio de Janeiro.
Year to date, shares of Petrobras have lost 24%, underperforming the Zacks categorized Oil & Gas Emerging Markets integrated industry’s 9% decline.
However, the company delivered average positive earnings surprise of 18.51% in the last four quarters.
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the broader energy space include Delek US Holdings, Inc. (DK - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) . Both stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings delivered a positive average earnings surprise of 60.68% in the trailing four quarters.
Canadian Natural Resources is expected to report year-over-year earnings grwoth of 724.76% in earnings in 2017.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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