• 1 hour U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 9 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 9 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 3 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 3 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 3 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 4 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 4 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 4 days India Needs Help To Boost Oil Production
  • 4 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 4 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 4 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 4 days District Judge Rules Dakota Access Can Continue Operating
  • 5 days Surprise Oil Inventory Build Shocks Markets
  • 5 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 5 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 5 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 5 days Oil M&A Deals Set To Rise
  • 5 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 6 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 6 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 6 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 6 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 6 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 6 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 7 days The Capital Of Coal Is Looking For Other Options
Are Oil Stocks Close To A Breakout?

Are Oil Stocks Close To A Breakout?

As oil markets continue to…

Kurdistan Accuses Baghdad Of Planning Oil Field Seizure

Kurdistan Accuses Baghdad Of Planning Oil Field Seizure

Kurdistan authorities have accused the…

Petrobras Stock Hits 8-Year Low

On February 3, the stock price for Petroleo Brasileiro SA (Petrobras), Brazil’s flagship oil company, dropped by 5.8% to an eight-year low. Once one of the most valuable companies in the world, Petrobras has suffered from mounting debt and flagging production. Over one-quarter of the company’s value has vanished over the past year as Petrobras has struggled to lift production from its ultra-deepwater fields.

The huge loss in early February was also in part due to the broader sell off in emerging markets, but Petrobras’ troubles extend beyond mere market jitters. The much-hyped pre-salt deposits off the coast of Rio de Janeiro have thus far been a dramatic disappointment. The discoveries a few years ago catapulted Petrobras to new heights, and sparked talks of Brazil’s rise as a world power. Yet the company has been plagued with rising debt and government interference. For example, the state-run company sells fuel at artificially low prices and must use local content in its drilling operations – lowering revenue and increasing costs.

Related article: Shell to Sell Brazilian Oil Field to Qatar for $1bn

Petrobras comes in last in terms of free cash flow out of 113 oil and gas companies, according to Bloomberg. The company posted a $15.4 billion loss over the past year compared with ExxonMobil’s positive free cash flow position of $12.6 billion.

Petrobras hopes to turn things around in the coming years. It expects production and sales to slowly climb later this year, and despite the setbacks in the pre-salt, Petrobras produced a record level 371,000 barrels per day in December 2013. After adding six new platforms in recent months, it may finally reverse a two-year slide in production. Still, according to Bloomberg, the company has $112 billion in debt, and with capital expenditures set at levels higher than revenue, that number will likely climb.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News