Petrobras (PBR) Unlikely to Sell Its 36% Stake in Braskem
Petrobras (PBR), the state-owned oil and gas company of Brazil, indicated that it is not interested in turning Braskem SA (BAK) into a government-owned company. Also, PBR is not planning to sell its 36% stake in BAK, per a newspaper Valor Economico report.
The company is a major stakeholder in Braskem, along with conglomerate Novonor that owns a controlling stake in the company but attempted to sell it to repay creditors after entering bankruptcy protection.
Sergio Caetano Leite, the chief executive officer of Petrobras, reportedly told analysts in a private call that the firm views petrochemicals as a strategic business since the transition to green energy might reduce the profitability of gasoline. He also added that all the big integrated companies have a relevant petrochemicals division.
Petrobras has the right of first refusal and the tag-along rights in case of a potential sale. However, per officials, the company is waiting for Novonor’s decision prior to taking any action.
To date, Novonor has received three non-binding offers for Braskem from Unipar Carbocloro SA, J&F Investimentos SA, and a third from Abu Dhabi National Oil Co. and Apollo Global Management. Petrobras intends to preserve at least its existing ownership in the firm and doesn't see any of the proposals moving further, per media reports.
Zacks Rank & Key Picks
Currently, Petrobras carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy space are CVR Energy Inc. CVI, Murphy USA Inc. MUSA and Crestwood Equity Partners LP CEQP. While CVI sports a Zacks Rank #1 (Strong Buy), both MUSA and CEQP carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is an independent refiner and marketer of high value transportation fuels. Headquartered in Sugar Land, TX, CVI has 1,470 employees. It is also engaged in nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP.
Murphy USA serves 1.6 million customers daily and owns a dedicated line on the Colonial Pipeline. It operates stations near Walmart supercenters and is a low-cost, high-volume fuel seller. This enables the company to attract significantly more transactions than its peers.
Headquartered in Houston, TX, Crestwood is a master limited partnership that provides a wide range of fee-based infrastructure solutions in major U.S. shale plays like the Bakken Shale, Delaware Basin, Powder River Basin, Marcellus Shale and others. The company is least exposed to commodity price fluctuations since it generates stable fee-based revenues from diverse midstream energy assets via long-term contracts.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
Crestwood Equity Partners LP (CEQP) : Free Stock Analysis Report
