• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes The Inconvenient Truth Of Electric Cars
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 3 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 5 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 2 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 5 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 8 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 3 hours The Plastics Problem
  • 10 hours Oil Demand Needs to Halve: Equinor
  • 4 mins The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 4 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 6 hours Cherry Picking Climate Data
  • 10 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 16 hours Solar Panels at 26 cents per watt
  • 17 hours Section 232 Uranium
A Worrying Sign For Global Oil Demand

A Worrying Sign For Global Oil Demand

It looks like we are…

The Irony of California’s Oil Dependence

The Irony of California’s Oil Dependence

California’s oil production has been…

Petrobras To IPO Fuel Unit

Petrobras

Brazil’s energy major Petrobras has prepared a proposal for the listing of its fuel unit, to be reviewed and approved by its board of directors, chief executive Pedro Parente told media. Parente added that "We see market conditions that are extremely favorable, with investors willing to pay high valuations to encourage good companies to list their shares."

The listing, which will involve a secondary placement of shares, according to Reuters, is part of Petrobras’ efforts to shrink its debt – the highest in the global industry at around US$100 billion. Its fuel unit, BR Distribuidora, was valued at US$10 billion by UBS Securities in 2015, but the divestment/spin-off plans of the parent were delayed by weak investor interest and other problems.

Petrobras has been struggling, besides its ballooning debt, with the weak price environment and a corruption scandal involving senior politicians, which led to the removal of President Dilma Rousseff. Earlier this year, the company announced a US$21-billion divestment and partnerships program, ambitious turn in an annual profit this year. The divestment plan includes, among other assets, 104 onshore fields in Brazil.

Related: Is There Still Hope For Higher Oil Prices?

This year could also mark the return of dividend payouts—which would be the first time since 2014—if Petrobras ends 2017 in the black. Chief executive Pedro Parente said, as quoted by Reuters, that “We really are keen to start paying dividends as fast as we can.”

The troubled company reported a net profit of US$1.417 billion for the first quarter of this year, up from a net loss of US$318 million for the year-earlier period. The company attributed the positive performance to 72-percent higher exports, at 782,000 bpd, at higher prices, as well as to lower oil and gas import costs. The latter were a result of higher production of oil and gas at home, which led to a 40-percent decline in imports.

By Irina Slav for Oilrpice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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