Stanislav Ermilov • 54 Comments
Thu, Nov. 17, 6:56 PM
- Petrobras (PBR, PBR.A) approves the sale of its liquefied petroleum gas unit to Ultrapar Participações (NYSE:UGP) for 2.8B reais ($819M), confirming earlier reports.
- The market considered the price tag on the high side; PBR preferred shares, the company's most widely traded class of stock, closed 3.2% lower after gaining as much as 3% during regular trading.
- Analysts at Banco BTG Pactual and Banco Brasil Plural say the deal will be subject to tough scrutiny by Brazil's government antitrust agency CADE.
Fri, Sep. 23, 7:00 PM
- As it pursues more debt reduction, Petrobras (PBR -4%) will sell its stake in Braskem SA (BAK +1.2%) before the end of 2018, its chief financial officer says.
- There's not an exact date, but Petrobras included that stake in its plan to raise $19.5B through divestitures over the next couple of years.
- Petrobras is the No. 2 shareholder in Braskem, holding 36% of capital and 47% of voting power. Braskem's market cap is about $5.2B.
- Earlier, Petrobras agreed to sell the Nova Transportadora do Sudeste natural gas distribution unit for $5.2B to a Brookfield-led consortium.
Fri, Sep. 23, 7:10 AM
- The purchasing consortium is made up of Brookfield Infrastructure (NYSE:BIP) and institutional clients of Brookfield Asset Management (NYSE:BAM).
- As reported earlier this month, the $5.2B deal is for 90% of Petrobas' (NYSE:PBR) Nova Transportadora do Sudeste S.A., a system of natural gas transmission assets in Southeast Brazil.
- BIP's investment will be a minimum of 20% of the deal value.
- Closing is targeted before year-end.
Thu, Sep. 8, 9:59 AM
- Petrobras (PBR +2.4%) says it concluded negotiations to sell natural gas pipeline unit Nova Transportadora do Sudeste to a group of investors led by Brookfield Asset Management (BAM -0.2%).
- PBR, which did not unveil the value of the sale, says the terms will be presented to its board and disclosed publicly after the board’s approval.
- Previous reports have indicated that the value of the deal could reach $5.2B.
Fri, Jul. 29, 8:34 AM
- Statoil (NYSE:STO) agrees to acquire a 66% stake in the BM-S-8 Brazil offshore license from Petrobras (NYSE:PBR) for $2.5B.
- The license includes a substantial part of the Carcará oil field in the Santos basin, one of the world’s largest discoveries in recent years; STO estimates that the license covers recoverable volumes of 700M-1.3B boe.
- For PBR - the world’s most indebted oil company, with ~$126B in debt - the deal nudges it closer to its goal of selling more than $15B in assets by year-end; ahead of today’s news, it had managed to raise only ~$2B.
- The deal “is significant for the industry as it represents the first example of Petrobras giving up operatorship of Brazil’s pre-salt Santos basin assets,” Jefferies says.
- For STO, the acquisition - its biggest in five years - strengthens its already significant presence in Brazil and sets up the country as one of the most important contributors to the company’s output in the next decade.
- STO says its debt ratio would rise to 32.7% after the transaction from 31.2% at the end of Q1 and 22.4% a year ago, but that it had achieved a competitive price.
Mon, Jun. 13, 12:58 PM
- Ultrapar (UGP +3.7%), Brazil's second-biggest fuel distributor, jumps ~4% after agreeing to acquire smaller peer Alesat Combustíveis for 2.17B reais ($635M) in a move that makes it more competitive with Petrobras' (PBR -2.8%) distribution unit.
- UPR’s Ipiranga fuel distribution unit already had more than 7,200 gas stations across Brazil, and the combined company adds another 2K stations to bring its market share near 18%, approaching PBR's market leading BR Distribuidora's nearly 20% market share from 7,500 service stations.
- PBR has said it wants to sell at least 25% of its distribution unit to a strategic partner as part of its plan to sell $15B of assets to pay down debt.
Wed, Mar. 2, 3:34 PM
- Argentina's Pampa Energia (PAM -3.1%) has offered ~$1.2B to buy Petrobras' (PBR +8%) 67% stake in Petrobras Argentina (PZE +1.4%), with a final deal likely to be completed within two months, Reuters reports.
- The PBR board approved exclusive talks with PAM for up to 60 days, according to a Brazilian securities filing.
- If completed, the sale would be one of the first major deals in PBR's plan to sell $15B of assets by the end of 2016.
Apr. 8, 2015, 12:53 PM
- Royal Dutch Shell’s (RDS.A, RDS.B) planned acquisition of BG Group offers some relief to Petrobras (PBR +1.3%) at a time the Brazilian company needs all the help it can get.
- The deal gives Shell access to BG’s highly prized offshore oil fields in Brazil’s Santos Basin; BG’s Brazilian portfolio will become a key growth driver for Shell, with production set to increase to 557K bbl/day by 2020 from 144K in 2015, Jefferies analysts say.
- The deal is "a big validation for Brazil," according to UBS; PBR’s asset valuation has been constrained by a lack of cash to develop projects and poor governance standards, but the Shell-BG offer implies that PBR "could raise dozens of billions of dollars should it decide to sell minority stakes in pre-salt assets combined."
- Also, Shell is a capable operator that already has experience operating in Brazil and has the potential to provide support technically - and even possibly financially - for Petrobras.
Nov. 13, 2013, 7:13 AM
Aug. 18, 2013, 1:03 AM
- Petrobras (PBR) has raised $2.1B from the divestment of holdings in a number of petrochemical and oil-exploration projects.
- These include the sale of a 35% stake in a Santos Basin program to China's Sinochem for $1.54B. The other participants in the project are Shell (RDS.A) with 50% and ONGC with 15%.
- Petrobras has also sold holdings in a petrochemical facility, a Gulf of Mexico bloc and a thermal energy company in Brazil.
- Petrobras offloaded the assets to help finance a $237B five-year investment program. The firm had intended to sell $14.8B of assets this year but has reduced the target to $9B due to the difficulty of making the divestments.
Oct. 3, 2012, 3:52 PM
Count BHP Billiton (BHP -1.2%) among big players pursuing a stake in Petrobras' (PBR -1.3%) Gulf of Mexico oil fields, a pairing that would significantly bolster BHP's already strong presence in the Gulf, WSJ reports. PBR has stakes in more than 100 exploration blocks in the Gulf; its sale plans are part of a broader effort to raise ~$15B through divestments.| Oct. 3, 2012, 3:52 PM | 1 Comment
Oct. 3, 2012, 3:54 AM
Petrobras (PBR) is in talks with three prospective buyers to sell them $4B-$6B worth of stakes in oil blocks in the Gulf of Mexico, with Brazilian media reports saying Shell (RDS.A), Exxon (XOM), Chevron (CVX) and BP (BP) are likely to be the most interested. The divestments are part of Petrobras' strategy of selling $14.5B worth of non-core assets.| Oct. 3, 2012, 3:54 AM
Jul. 2, 2012, 8:32 AMPetrobras (PBR) will pay ~$820M to assume full control of Pasadena Refining Systems, ending a legal dispute with a former partner, the Brazilian state-run oil company said over the weekend. PBR, which acquired a 50% stake in Pasadena in 2006, said it reached an agreement to buy the remaining stake from Belgium group Transcor Astra. | Jul. 2, 2012, 8:32 AM
Jan. 24, 2012, 11:54 AM