CEO says oil SÃO PAULO, BRAZIL – In four years time Petrobras will have a smaller structure but be much more profitable than today, assured the oil giant’s CEO, Aldemir Bendine on Tuesday, adding that the divestment program adopted by the company this year will be increased next year.
Petrobras CEO Aldemir Bendine, photo courtesy of Petrobras
“I can guarantee that the divestment next year will be stronger and greater than one can imagine,” he said during an end-of-the-year breakfast with reporters. “We have no doubts that we will reach the planned value due to the negotiations underway.”
For Bendine the company will come out of this crisis strengthened and although it will be smaller than it is, it will become ‘more profitable than today with greater operational capacity’.
The CEO said that the company was able to surprise the market with the gains obtained from the selling of part of Gaspetro’s stocks to the private sector. “We obtained much more than expected and without transferring the control of the subsidiary,” he stated.
Petrobras will have a ‘robust’ cash flow to meet commitments and the expected challenges in the year to come, said the CEO. The challenge now, said Bendine was to pay off the debts with the divestment program. “The improvement in efficiency alone will not be sufficient to bring the debt to a more comfortable level,” he concluded.
In October Petrobras, announced it was reducing its forecast for investments in 2015-2016 by US$11 billion and operational expenditures by US$7 billion due to the decline of international oil prices and the recent appreciation of the U.S. dollar
giant will have a smaller structure but be much more profitable than today.
Any thoghts? Will be easy to compete and its ready to start shipping and contracts are already signed. No need for new customers for the time being
Despite the ongoing corruption scandal at Petroleo Brasileiro or Petrobras (PBR), some institutional investors gobbled up U.S. shares in the third quarter.
Based on the most recent activity for holders with a greater than 0.5% stake in PBR, Capital Research & Management (Capital World Investors), the largest institutional holder, increased its stake by 19,844,654 shares in the third quarter, according to FactSet. Capital Research holds 4.7% of the U.S.-traded ticker, at 174,905,653 shares.
Bloomberg A Petrobras oil rig.
Other Petrobras ADR ownership stats based on recent filings:
HSBC Global Asset Management UK, which owns a roughly 0.7% stake in PBR, increased its position by 13,675,792 shares to 25,347,826 shares as of Sept. 30, according to FactSet.
Merrill Lynch was a net buyer in the third quarter, with UK-based Merrill Lynch International bumping up its position by 4,326,994 shares to 6,834,291, while Merrill Lynch, Pierce, Fenner & Smith in the U.S. sold 1,178,942 shares, bringing its position to 6,682,042 shares during the quarter.
D. E. Shaw purchased 3,740,773 shares in the third quarter, putting it at number 23 among the top 25 institutional holders with 0.10% of outstanding shares.
Wellington Management sold 8,958,997 shares in the third quarter, bringing its position to 17,978,295 shares.
The top mutual fund holder, the American Funds New Perspective Fund (ANWPX), increased its position in the third quarter by 16,896,436 to 29,325,000; it controls roughly 0.8% of outstanding shares. The second largest holder, listed by FactSet as the DFA Dimensional Emerging Markets Value Fund (DFEMX), also added shares as of July 31.
Institutional holders accounted for 13% of the Petrobras ADR shares outstanding as of December 1, while funds accounted for 5%, according to FactSet.
I agree but how long will it take to get through it. In the mean time loosing so much money and have to hold PBR. I am as well as so many others are loosing so much money. Regarding the debt, seems like the goverenment will step in if needed, which I think is a good part as said the other day by the Finance Minister. Time will tell
Europe will buy more LNG from USA in coming years and its good for Cheniere to buy cheap from US and sell to rest of the world at a fair cheap price. Cheniere will do fine in coming years. Not too many terminals are going to built in coing years either. Four terminals in Canada are on hold or delayed. Good luck longs
Any thoughtful comments.