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Petrobras (PBR -2.8%) slides on news it won’t need as many drilling rigs as planned in an...

Petrobras (PBR -2.8%) slides on news it won’t need as many drilling rigs as planned in an important deepwater project, inciting worries the purchase will detract from spending on existing projects. But Simmons analysts say the move is positive overall because PBR is "showing some restraint on capex and that well productivity has been better than they may have originally planned."
Comments (2)
  • dividend_growth
    , contributor
    Comments (2878) | Send Message
     
    PBR is going to accumulate a gigantic debt load in USD terms by 2015, just in time for shale oil production to reach critical volume and the US to begin tightening.

     

    It will be hit by a double whammy of plunging crude oil prices and rising USD. But I couldn't care less if People's Republic of Brazil is again forced to dump its shares at bargain prices!
    30 Nov 2012, 11:56 AM Reply Like
  • saratogahawk
    , contributor
    Comments (1587) | Send Message
     
    The reason they won't "need" as many is because the drilling community is really antsy about contracting with them now. Furthermore, Sete is a disaster and will not deliver new build drill rigs on schedule further hurting PBR. Buy it at your own risk.
    30 Nov 2012, 02:10 PM Reply Like
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