We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Petrobras' (PBR) TAG Divestment Plan Set to Get a New Boost
Read MoreHide Full Article
Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) can bring its divestment plan regarding pipeline operator Transportadora Associada de Gás ("TAG") back to life in November, per Bloomberg. The sale was designed to curb its debt burden.
Last September, the Brazilian state-run integrated energy company announced its decision to sell 90% of its stake in its wholly-owned subsidiary TAG. The decision was part of Petrobras’ move to come out of its huge debt burden, which scarred its credit metrics. The sale of TAG was in line with Petrobras’ strategy of improving financial health through its divestment program.
However, this June, the Brazilian Federal court suspended the company’s initiatives to strike a $7-billion deal with Engie SA for the TAG assets. The court passed a ruling against the sale of TAG to France-based Engie SA, due to discrepancies in Petrobras’ way of advancing with the sale. It was believed that the sale was not publicized well enough to stimulate ample competition.
Currently, Engie SA and Caisse de Depot et Placement du Quebec, a Canadian pension fund, are planning to offer around $9 billion for TAG. Petrobras is finalizing terms with these two companies for the transaction, which will likely be used later in a second round of bids for the TAG properties. Although the TAG divestment plan is still facing uncertainties regarding federal rulings, Petrobras plans to reach a conclusive agreement by 2018-end. These efforts can enable the company to save time, provided it receives a green signal from the Congress.
The company is making serious efforts to revive its reputation and improve leverage situation. It also emerged from the multibillion-dollar money laundering and bribery case, settling all the claims against it. The company is entering into various strategic partnerships with foreign oil giants to drive exploration momentum. In this regard, Petrobras has inked deals with major energy companies like TOTAL S.A. , Royal Dutch Shell plc and Equinor (EQNR - Free Report) .
So far, successful cost-cut initiatives and aggressive divestment programs have helped Petrobras in its endeavor to trim the debt load. At the end of June 2018, the company had a net debt of $73,662 million, decreasing from $84,871 million at the end of 2017 and $96,381 million as of Dec 31, 2016.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Petrobras' (PBR) TAG Divestment Plan Set to Get a New Boost
Petróleo Brasileiro S.A. or Petrobras (PBR - Free Report) can bring its divestment plan regarding pipeline operator Transportadora Associada de Gás ("TAG") back to life in November, per Bloomberg. The sale was designed to curb its debt burden.
Last September, the Brazilian state-run integrated energy company announced its decision to sell 90% of its stake in its wholly-owned subsidiary TAG. The decision was part of Petrobras’ move to come out of its huge debt burden, which scarred its credit metrics. The sale of TAG was in line with Petrobras’ strategy of improving financial health through its divestment program.
However, this June, the Brazilian Federal court suspended the company’s initiatives to strike a $7-billion deal with Engie SA for the TAG assets. The court passed a ruling against the sale of TAG to France-based Engie SA, due to discrepancies in Petrobras’ way of advancing with the sale. It was believed that the sale was not publicized well enough to stimulate ample competition.
Currently, Engie SA and Caisse de Depot et Placement du Quebec, a Canadian pension fund, are planning to offer around $9 billion for TAG. Petrobras is finalizing terms with these two companies for the transaction, which will likely be used later in a second round of bids for the TAG properties. Although the TAG divestment plan is still facing uncertainties regarding federal rulings, Petrobras plans to reach a conclusive agreement by 2018-end. These efforts can enable the company to save time, provided it receives a green signal from the Congress.
The company is making serious efforts to revive its reputation and improve leverage situation. It also emerged from the multibillion-dollar money laundering and bribery case, settling all the claims against it. The company is entering into various strategic partnerships with foreign oil giants to drive exploration momentum. In this regard, Petrobras has inked deals with major energy companies like TOTAL S.A. , Royal Dutch Shell plc and Equinor (EQNR - Free Report) .
So far, successful cost-cut initiatives and aggressive divestment programs have helped Petrobras in its endeavor to trim the debt load. At the end of June 2018, the company had a net debt of $73,662 million, decreasing from $84,871 million at the end of 2017 and $96,381 million as of Dec 31, 2016.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>