We revise our future outlook to bullish on Petroleo Brasileiro Petrobras (PBR), based upon achieving 98 percent of nominal capacity, 31 percent increase in EBITDA, operational efficiencies and production start-up in the field of Campos basin and Gulf of Mexico. In our opinion, the company's expansion plans, its cost control philosophy and the expected increase in production activities, will enable the company to further improve its profitability position.
PBR's bright future prospects are reflected in its production start-up of Baleia Azul field in the Campos Basin, which will enable the company to add 100,000 barrels per day to its production capacity by February 2013. Moreover, investment in another lucrative project of oil and gas exploration in Chinook water field would help the company add 80,000 barrels of oil per day to its production portfolio. Currently, the company is on the track towards strengthening its position and becoming attractive for value investors.
In Q3, the company benefited profits of $2,744 million, as compared to a loss of $685 million in the third quarter of 2011. It has also expanded its margins by making its operations more efficient. PBR's EBITDA increased by 31 percent over the course of last one year.
Read more..
No comments:
Post a Comment