Petrobras (PBR) Refineries Achieve Record Utilization in Q3 2023
Petrobras (PBR), Brazil’s state-owned oil and gas company, reported a remarkable surge in refinery utilization. By the close of September 2023, Petrobras' nine refineries collectively achieved an impressive 97% utilization rate for the second consecutive month, per a company announcement made earlier last week.
This improved performance during August and September culminated in a total utilization factor (TUF) of 95.8% for the third quarter of 2023. This marks the highest utilization rate since 2014, signaling a robust recovery in the oil processing sector.
Notably, Petrobras' Paulínia Refinery (Replan) in Sao Paulo, Brazil's largest with a capacity of 434,000 barrels per day (b/d), set a new record in September. The refinery processed the highest volume of crude oil since February 2015, attaining a TUF of 98.4%.
According to PBR, the nine refineries also achieved a record oil derivatives production during the third quarter of 2023. The S-10 diesel output reached 464,000 b/d, surpassing the previous high of 419,000 b/d set in second-quarter 2023. Gasoline production also rose to 423,000 b/d, marking the highest quarterly output since the fourth quarter of 2013.
Petrobras attributed this remarkable performance to a combination of high operational reliability and availability of refining units, efficient logistics and seamless market service operations. These achievements were further supported by advanced technology and process digitalization.
Jean Paul Prates, president of Petrobras, expressed pride in the company's track record in overcoming challenges. He highlighted the substantial role Petrobras plays in the national production of derivatives, underscoring Brazil's importance as its key source of energy.
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, Pioneer Natural Resources Company PXD and Diamondback Energy Inc. FANG, each currently sporting a Zacks Rank #1. 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 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. Its 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 30 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 2023 in the past seven days.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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