Petrobras

PBR

Market cap $121B

PBR awards SBM Offshore a pair of contracts for the Sergipe Deepwater project in Brazil's offshore Sergipe-Alagoas Basin.

PBR cuts diesel prices by 9.6% to 3.3 reais per liter under a federal subsidy plan that offsets fuel taxes and eases domestic costs.

Brazil's state-run oil firm, Petrobras, will lower diesel prices to distributors by ​0.3515 reais per liter starting on June ‌1, it said in a statement on Sunday, after the government announced a cashback system to producers and importers.

Brazil's state-run ​oil firm Petrobras' ‌negotiation with SBM Offshore for two ​floating oil ​and gas production vessels (FPSO) ⁠for its Sergipe ​deepwater project is ​done, an executive from the company said ​on Thursday.

Petrobras presents a mixed outlook after FQ1 results, with EPS and revenue below consensus and a 15% YOY dividend decline. Despite the prevailing bullish sentiment and a low forward P/E (~4.8x), I maintain a more tempered view on PBR. Several downside risks offset the positives behind the prevailing optimism.

Petrobras is a low-cost oil producer with a breakeven near $50/barrel and strong leverage to elevated Brent prices. PBR trades at a steep valuation discount to global peers, reflecting Brazil-specific political and debt risks, but offers a compelling forward yield potential. I expect a sustainable dividend yield approaching 10% at a 50% payout ratio, with upside as new FPSOs and higher oil prices flow through results.

Here is how Petrobras (PBR) and Helix Energy (HLX) have performed compared to their sector so far this year.

Petroleo Brasileiro S.A., or Petrobras  ( PBR ) and APA Corporation APA have both benefited from improving sentiment toward oil and gas stocks, with their shares posting similar gains recently.

Brazil's state development bank BNDES has ​cut its stake in state-run oil firm Petrobras and in ‌power company Axia Energia by selling shares from both this month, four sources told Reuters on condition of anonymity.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?