trending Market Intelligence /marketintelligence/en/news-insights/trending/odAiYQfv8zlbKqKh66TqJg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

Petrobras planning further divestitures as it looks to focus on upstream sector

A Utility Company Efficiently Sharpens Its Focus on the Credit Risk of New Customers

S&P podcast - Coronavirus pandemic, oil price crash shake up energy sector

Case Study: A Utility Company Efficiently Sharpens Its Focus on the Credit Risk of New Customers

Energy Evolution Podcast

Energy Evolution Why solar energy could get even cheaper


Petrobras planning further divestitures as it looks to focus on upstream sector

Already almost $13 billion into a divestment plan that began in January, Petróleo Brasileiro SA is still looking to sell more assets and investments as it looks to establish itself as an asset-heavy oil and gas exploration and production company, executives said the company's second-quarter earnings call.

The Brazilian state-run oil major is planning to sell more stake in the fuel distribution firm Petrobras Distribuidora SA, CEO Roberto Castello Branco said Aug. 2.

"We still have a 37.5% stake in [Petrobras Distribuidora's] capital, which in the future we intend to sell partially or wholly," Branco said.

However, an executive said during the second-quarter earnings call that the sale of the shares might be until 2020.

In July, the company closed the secondary public offering for its fuel distribution unit, which raised 9.63 billion Brazilian reais. Petrobras initially had a 71.25% stake in the distribution firm.

Petrobras is also considering the sale of its stake in petrochemicals firm Braskem SA, in which it holds a 36.22% interest.

In addition, Petrobras is still working on selling eight refineries, deepwater fields and production fields, with target completion in 2021, Chief Financial and Investor Relations Officer Andrea Marques De Almeida said during the call.

"We almost sold all the assets that we put in the market and it is a very good competitiveness," she said.

Branco said Petrobras is realigning itself to be a world-class asset-heavy company in oil and gas exploration and production and an asset-light company in midstream operations.

The CEO said the company is committed to completely disengage from the natural gas transportation and distribution business and to reduce purchases to less than 50%.

Petrobras is working to eliminate its participation in the gas distribution concessions MontevideoGas SA and Conecta SA that consumed $200 million in 15 years, Branco said, after Petrobras completed an agreement with the Uruguayan government to return the concessions.

So far in 2019, the firm sold seven assets for a total of $12.78 billion.

Petrobras also revised its capital expenditures for the year to a range of $10 billion to $11 billion from the initial allocation of $16 billion. The amount does not include estimates to be invested in exploration block bid rounds in the second half of the year.

The company produced an average of 2.63 million barrels of oil equivalent per day during the second quarter, down from 2.66 million boe/d in the prior-year period.

Petrobras reported a net income of $4.81 billion, or 36 cents per share, for the second quarter, up from $2.79 billion, or 22 cents per share, a year earlier.

As of Aug. 1, US$1 was equivalent to 3.82 Brazilian reais.