Brazilian Oil Company Petrobras Shares Drop 3% After Quarterly Report Release; Experts Cite PPI Change As Main Cause of This Devaluation

Written by Paulo Nogueira

Published on 28/07/2023 at 13:04

Imagem: reprodução. Fonte: G1

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Petrobras Shares Face Significant Decline Following Second Quarter Production and Sales Report, Impacting Company’s PPI.

Petrobras, the Brazilian oil giant, experienced a drop of more than 3% in its stock price on Thursday, July 27, marking one of the largest declines on the stock exchange that day. This negative movement in Petrobras stocks came after the release of the company’s production and sales report for the second quarter, heavily impacting Petrobras’ PPI (Import Parity Price).

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What Are the Details of Petrobras’ Production and Sales Report?

According to the report from Petrobras, the daily production of barrels of oil equivalent (boe/d) remained at 2.6 million in the second quarter, a year-over-year reduction of 0.6%, impacting Petrobras’ PPI. In contrast, pre-salt production set a new record, exceeding the previous one with a production of 2.06 million boe/d, higher than the 2.05 million boe/d from the previous quarter.

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Petrobras also recorded a 15.7% increase in internal gasoline sales compared to the previous year, while diesel sales fell by 3.8%. The complete report from Petrobras, with potential implications for the PPI, is expected by next Thursday, August 3.

Based on this operational data, analysts from BTG Pactual, who even advised 3R Petroleum, projected a 23% drop in EBITDA for the second quarter to R$ 57.1 billion. According to them, the quarterly declines of 5% and 15% in oil and domestic fuel prices respectively are the main factors influencing the decline in Petrobras shares.

Can This Decline Impact Petrobras Shares and Future Prospects?

Although BTG Pactual analysts are less pessimistic about Petrobras in recent months, they emphasize that the “potential benefits” of investing in the state-owned company, especially considering the PPI and Petrobras shares, are not as clear as before.

Petrobras’ dividend policy, which has been a major attraction for investors, could strongly influence the stock price of Petrobras. Itaú analysts expect that the new dividend program will be launched by the end of the week, with Petrobras opting to distribute 50% of net profit. However, BTG analysts believe that a positive reaction would only occur if Petrobras announced a payout of more than 50%.

The introduction of a buyback program could also be a trigger for Petrobras shares. “But we believe it will only be well received if it is substantial, not included in the dividend payout calculation, and has a clear recurring schedule,” concluded BTG.

Via Bloomberg Intelligence

Petrobras-2Q-Sales-Report-Shows-Solid-Operation-Strategy-Shift Download

Brazilian Oil Company Petrobras Shares Drop 3% After Quarterly Report Release; Experts Cite PPI Change As Main Cause of This Devaluation

Petrobras Shares Face Significant Decline Following Second Quarter Production and Sales Report, Impacting Company’s PPI.

What Are the Details of Petrobras’ Production and Sales Report?

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

Can This Decline Impact Petrobras Shares and Future Prospects?

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Brazilian Oil Company Petrobras Shares Drop 3% After Quarterly Report Release; Experts Cite PPI Change As Main Cause of This Devaluation

Petrobras Shares Face Significant Decline Following Second Quarter Production and Sales Report, Impacting Company’s PPI.

What Are the Details of Petrobras’ Production and Sales Report?

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