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Banking industry

Petrobras Shares Rise as Company Announces Rare 100 Year Bond Sale

Strategic Insights

— 2 min read

Petrobras shares are gaining momentum, up 0.48% to $8.39, after the Brazilian state-run oil company announced a rare 100-year bond sale. The move aims to showcase the company's strength, which has been threatened by an ongoing corruption scandal and investigation in recent months. Additionally, Petrobras is considering selling some of its assets in the Gulf of Mexico as part of its divestment plan, which could further streamline the company. Despite the efforts, the company's financials remain under scrutiny, with TheStreet Ratings team rating Petrobras as a Sell with a ratings score of D.

Key Takeaways:

  • Petrobras shares are rising after the company announced a rare 100-year bond sale, aiming to demonstrate its strength amidst a corruption scandal.
  • The bond sale is led by Deutsche Bank and JPMorgan, with the initial price thought at 8.85% for the first U.S. dollar-denominated bond since 2014.
  • Petrobras is considering selling some of its assets in the Gulf of Mexico as part of its divestment plan, potentially cutting $13.7 billion in assets this year.
  • The company's return on equity has sharply decreased compared to the same quarter one year prior, a signal of major weakness within the corporation.
  • Petrobras' debt-to-equity ratio of 1.31 is relatively high compared to the industry average, indicating a need for better debt level management.
  • The company's earnings per share have declined by 41.55% over the past 12 months, with a net income decrease of 18.3% compared to the same quarter one year ago.
  • TheStreet Ratings team rates Petrobras as a Sell with a ratings score of D, citing disappointing return on equity, high debt management risk, and generally disappointing historical performance.

Statistics:

  • Petrobras shares have risen 0.48% to $8.39 in early market trading on Monday.
  • The company is selling a rare 100-year bond with an initial price thought at 8.85% for the first U.S. dollar-denominated bond since 2014.
  • Petrobras plans to cut $13.7 billion in assets this year as part of its divestment plan.
  • The company's return on equity has decreased by 100% when compared to the same quarter one year prior.
  • Petrobras' debt-to-equity ratio is 1.31, relatively high compared to the industry average.
  • The company's earnings per share have declined by 41.55% over the past 12 months.
  • Net income has decreased by 18.3% when compared to the same quarter one year ago, dropping from $2,280.00 million to $1,862.00 million.

Sources:

  • Reuters: "Petrobras to sell 100-year bond, its first since 2014"
  • Folha de S.Paulo: "Petrobras to consider selling assets in Gulf of Mexico"
  • TheStreet Ratings Report: "PETROLEO BRASILEIRO SA- PETR (PBR) Rating"

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