Petrobras plans to exit biofuels sector

• Petrobras (PBR +3.2%) says it plans to completely exit biofuels production as part of its 2017-21 strategic plan, after posted a net loss of 76M reais ($23.3M) in Q2.
• The exit from biofuels is part of PBR's broader strategic plan to exit non-strategic sectors such as gas distribution, fertilizer production and stakes in some petrochemicals assets.
• PBR runs three biodiesel plants in Brazil and owns minority stakes in seven sugar and ethanol mills; the company has the capacity to produce ~860M l/yr of biodiesel and, like much of the industry in Brazil, much of it is unused.