Dallas, Texas 02/26/2014 (FINANCIALSTRENDS) – PetroleoBrasileiroPetrobras SA (ADR)(NYSE:PBR) has sought government support in bringing the steep oil and gas prices to make it more plausible for oil and exploration companies to survive in the marketplace. Pressure on margins besides drop in production and steep expenses of discovery, exploration are all appearing to play on this oil and gas major’s financial health.
With the supported fuel price increase, PBR may just about post some good quarterly earnings. The price rise in fuel is perhaps the only way forward for companies such as PetroleoBrasileiroPetrobras SA (ADR)(NYSE:PBR) to sustain the increasing losses.
The recent rise in prices has been in the range of 4 to 8 on two types of fuel-gasoline as well as diesel. This price rise was in November allowing PBR the only chance in over a year to trade-off on the low prices. However, PetroleoBrasileiroPetrobras SA (ADR)(NYSE:PBR) remained consistent selling fuel in line with its earlier prices, which was at least 11 percent lesser than the market prices of not local stations but global prices as well.
Analyst back the oil producer
PetroleoBrasileiroPetrobras SA (ADR)(NYSE:PBR) however, has positive mandate from the likes of Deutsche Bank SA. Accordingly, PBR is found to have gained by over 2.1 per cent during the previous session. This also implies that the increase was in the region of $11.67.
PetroleoBrasileiroPetrobras SA (ADR)(NYSE:PBR) is headquartered in Rio de Janeiro, Brazil and has been for several years now been in the business of end-to-end oil as well as gas services provider. PBR has been providing services through six segments – exploration, production, refining, transportation as well as marketing. Additionally, distribution as well as biofuel segments are core business areas for this oil play major. The extent of its services and level of integration allows this company to provide services for commercial as well as retail consumers.