Petrobras (NYSE
BR-A) is a Brazilian state-run oil company known for its significant role in the global energy sector. It operates in the exploration, production, refining, and distribution of oil and gas. As a major player in the industry, Petrobras competes with other global oil giants like ExxonMobil and Chevron. The company is set to release its quarterly earnings on February 26, 2025, with analysts estimating an earnings per share of $0.70 and projected revenue of approximately $125.9 billion.
Petrobras has recently secured two export credit notes worth 6.5 billion reais, equivalent to $1.14 billion, in collaboration with Banco do Brasil. These notes, maturing in 2032, include sustainability commitments, as highlighted by Petrobras in a securities filing. This move is part of the company's strategy to fund export-related financial operations and maintain liquidity, which is expected to reduce carrying costs.
In addition to its financial maneuvers, Petrobras is focusing on increasing its diesel production by approximately 120,000 barrels per day this year. This increase is due to the expansion of S-10 diesel production, a low-sulfur variant, in refineries such as Abreu e Lima, Replan, and Revap. This expansion aligns with the company's efforts to enhance its production capabilities and meet growing demand.
Petrobras has also announced a new oil discovery in the offshore Buzios field, reinforcing the pre-salt potential of this area. The discovery was made through the 9-BUZ-99D-RJS well, located in the western region of Buzios. This field is the second largest in Brazil by production, and Petrobras holds nearly a 90% stake in the project, operating it in partnership with Chinese companies CNOOC and CNPC.
Financially, Petrobras presents a price-to-earnings (P/E) ratio of approximately 5.13, indicating a relatively low valuation compared to its earnings. The company's price-to-sales ratio is about 0.91, suggesting that its stock is priced at less than its annual sales per share. With an enterprise value to sales ratio of around 1.43 and an enterprise value to operating cash flow ratio of approximately 3.48, Petrobras reflects a strong valuation in relation to its cash flow generation. The debt-to-equity ratio is approximately 0.82, showing a moderate level of debt relative to equity, while the current ratio of about 0.94 indicates its ability to cover short-term liabilities with short-term assets.
