Dallas, Texas 09/03/2013 (Financialstrend) – Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) posted a profit during the 2nd quarterly period.
The company registered a profit of $2.73 million or $.46 per ADR share as against a loss of $685 million during the corresponding period of 2012.
Keep in mind, 1 share of Petrobras ADRs is equivalent to 2 scrips of Petrobras on the IBOVESPA exchange.
Even though Petrobras made profit during the second quarterly period, it fell short of most analyst hopes.
Brazil finance minister says no verdict yet on fuel price augmentation
More conflicting signs from Brazil’s administration on the query of a possible increase in fuel rates, as the finmin said that no verdict has been made; last week, a representative for President Rousseff refused the administration was thinking about any price alterations.
Petrobras (PBR -3%), witnessing profits constricted by frozen domestic rates and a deteriorating Brazilian currency vs. the U.S. currency, has appealed to the administration for an increase in wholesale rates of fuels like gasoline, diesel and others.
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) may just be the best energy scrip to buy
2012 was an awful year for the company. Poor investments, like purchasing a processing plant in Pasadena, California and contracted oil fabrication were a few of the causes why 2012 was less-than-perfect.
The acquirement of the refinery in Pasadena was a blunder as Petrobras paid around $1 billion and when it attempted to sell it, the firm bagged an offer of just $180 million. In contrast, oil fabrication was low as well at 1.9 million bpd during January last year as against 2.1 million bpd during January the previous year.
But, this situation is beginning to alter. Here are 3 operational causes why Petrobras’ future looks hopeful:
1. Oil, pre-salt and natural gas fabrication numbers look hopeful
2. Production levels to augment to 20 million boe by the year 2020