• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 5 mins DUMB IT DOWN-IMPEACHMENT
  • 5 mins Greta named Time Magazine "Person of the Year"
  • 5 hours POTUS Trump signs the HK Bill
  • 1 hour Everything you think you know about economics is WRONG!
  • 5 hours americavchina.com
  • 6 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 1 day WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 1 day Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 6 hours Winter Storms Hitting Continental US
  • 6 hours Aramco Raises $25.6B in World's Biggest IPO
  • 16 hours Can Renewable Natural Gas Compete With Diesel?
Are Energy Stocks Hot Again?

Are Energy Stocks Hot Again?

The ill-performing energy sector could…

Why Exxon’s Stock Could Hit $100 In 2020

Why Exxon’s Stock Could Hit $100 In 2020

Oil and gas giant ExxonMobil…

Petrobras: A Shadow of its Former Self

Back in 2008 Goldman Sachs listed Petrobras’ share price at $60, now-a-days it commands $20 a share, and we expect that price to fall further in the coming days. The Brazilian oil giant just is not what it was.

Investors are mostly scared by the simple fact that Petrobras does not exist to make a profit for them, but rather to serve the nation in whatever way the Brazilian government sees fit. Following a multi-billion dollar secondary share offering a few years ago and government intervention capping fuel prices and therefore profit, investors are worried that the government is trying to ever increase its control in the company.

The situation is further exacerbated by the fact that Petrobras has just reported its worst earnings in over a decade, losing over 1.35 billion Brazilian reais ($668 million), down from the 10.9 billion reais in profit it made this time last year.

Chief Executive Maria das Gracas Foster, said that they “are working to recover our profitability.” Although her task is not an easy one as Petrobras’ profits will continue to be low, due to the fact that it does not have the refining capacity to produce the fuel that it needs, so must import it.

Even as the price of oil has increased, shares in Petrobras have remained low, struggling to stay above $20 for months. Long gone are the days of the $60 a share dream.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play