Petrobras (PBR) Faces Tax Setback Amid Oil Market Volatility
Petrobras (PBR), Brazil’s state-owned oil and gas company, experienced a setback on Monday as the country's tax appeal board, CARF, rejected the company's appeal regarding IRPJ (Income Tax) and CSLL (Social Contribution on Net Profit) taxes for 2013-14, per media reports.
The payable amount is a substantial 6.5 billion reais, approximately $1.25 billion USD. According to Petrobras, the board's decision is final. Despite this resolute verdict, PBR conveyed its intention to explore all avenues to safeguard its interests, including potential legal recourse.
The energy conglomerate clarified that it had previously accounted for the possibility of this loss, thereby allocating sufficient funds to cover the anticipated tax liability. Consequently, no additional provisions would be needed.
On Monday, Petrobras CEO Jean Paul Prates acknowledged the likelihood of increased volatility and speculation in oil markets due to the ongoing conflict as a result of heightened geopolitical tensions following the recent attack on Israel by Hamas. He further noted that this surge in oil volatility will serve as a demonstration of Petrobras' effective fuel pricing policy, affirming the company's capability to offset any potential adverse impact.
Zacks Rank & Other Key Picks
Currently, Petrobras sports a Zack Rank #1 (Strong Buy).
Some other top-ranked stocks in the energy sector are Matador Resources Company MTDR and Pioneer Natural Resources Company PXD, each currently sporting a Zacks Rank #1, and Diamondback Energy Inc. FANG, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed an upward earnings estimate revision for 2023 and 2024 over the past seven days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Pioneer's total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Diamondback Energy is an independent oil and gas exploration & production company with its primary focus on the Permian Basin, where it has around 491,000 net acres. With an attractive production profile, favorable industry trends and FANG’s low breakeven economics, the margin of safety on investment is likely very high. The company has witnessed an upward earnings estimate revision for 2024 in the past seven days.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
