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Petrobras' 2013 Output Decreases

Zacks Equity Research

Brazil’s largest integrated energy firm, Petroleo Brasileiro SA or Petrobras (PBR) provided its full-year 2013 production update. The company also reported its Dec 2013 production results.

Full Year Production

Brazil: In Brazil, the oil and gas output of Petrobras during 2013 was reported at 2.3 million barrels of oil equivalent per day (MMBOE/D), reflecting a fall of 1.5%, compared with 2012. The delay in beginning the Papa-Terra oil field project, situated in the Campos Basin, negatively affected the result.

The 2013 domestic oil production came in at 1.9 million barrels per day (MMBBL/D), representing a decrease of 2.5% from 2012.

However, domestic natural gas output during 2013 was recorded at 61.9 million cubic meters per day (m³/d), up by roughly 3.8% against 2012.

Abroad: Oil and natural gas output of the company from the international market was recorded at 219,552 BOE/D.

December Production

Brazil: During Dec, 2013, oil and gas output in the domestic market came in at 2.4 MMBOE/D, reflecting a marginal increase of 0.8% from the previous month. Commencement of production from new wells in the Campos Basin-based Marlim and Marlim Sul fields aided the results.
Oil production increased nominally by 0.4% to 2.0 MMBBL/D, as compared to the output produced during Nov, 2013.

Petrobras’ natural gas output was 63.3 million m³/d, up 3.0% compared with the earlier month, owing to the conclusion of planned shutdown activities.  

Abroad: Petrobras’ oil and gas production from the international market was recorded at 188,046 BOE/D, reflecting a decline of roughly 3.1% from Nov, 2013. Shutdown work in the Cascade and Chinook fields of the U.S hampered the results.

Oil production decreased 5.2% to 100,575.0 BBL/D, compared with the output in the previous month.

Moreover, Petrobras’ natural gas output decreased marginally by 0.6% to 14,861 thousand m³/d from Nov, 2013. Shutdown of production in Argentina’s Austral Basin fields hindered the output.

Fourth Quarter Estimate

Petrobras plans to release its quarterly results on Feb 14, 2014. The Zacks Consensus Estimate for Petrobras’ fourth quarter is 37 cents per ADR (American Depositary Receipt).

Zacks Rating

Petrobras currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile one can look at better-ranked players in the energy sector like Athlon Energy Inc. (ATHL), Warren Resources Inc. (WRES) and Profire Energy Inc. (PFIE), all of which carry a Zacks Rank #1 (Strong Buy).

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