Petrobras faces strike amid labor disputes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2024
0mins
Should l Buy PBR?
Source: Bloomberg
Petroleo Brasileiro S.A.-Petrobras experienced a price decline of 3.77% today, reaching a 52-week high. This drop comes as the Nasdaq-100 is down 0.37% and the S&P 500 is down 0.46%.
The decline is attributed to a nationwide strike approved by Petrobras oil workers, set to begin on December 15, due to dissatisfaction with the company's labor agreement proposals. Despite this, Petrobras has stated that they do not expect the strike to impact operations significantly, as they have contingency plans in place. This situation reflects a sector rotation, as the stock moves against the backdrop of broader market weakness.
The implications of the upcoming strike could lead to increased scrutiny on Petrobras's labor practices and operational stability. Investors will be watching closely to see how the company navigates this labor dispute while maintaining production levels.
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Analyst Views on PBR
Wall Street analysts forecast PBR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PBR is 15.15 USD with a low forecast of 13.30 USD and a high forecast of 17.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 14.900
Low
13.30
Averages
15.15
High
17.00
Current: 14.900
Low
13.30
Averages
15.15
High
17.00
About PBR
Petroleo Brasileiro SA Petrobras is a Brazil-based company. The Company specializes in the oil, natural gas and energy industry. The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks. Its segments include Exploration and Production (exploration, development, and production of crude oil, natural gas liquids, and natural gas); Refining, Transportation, and Marketing (refining, logistics, transport, trading of oil products, ethanol export, shale processing); Gas and Power (transportation and trading of natural and imported gas); Biofuels (production of biodiesel and ethanol); Distribution (fuel distribution); and Corporate (administrative and support functions).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Energy Strategy Expansion: This acquisition is part of TotalEnergies' broader strategy to expand its exploration and development capabilities in Namibia, following its previous acquisition of a 40% interest in the PEL83 license, reflecting its commitment to diversifying energy resources.
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- Executive Meetings: TotalEnergies CEO Patrick Pouyanne met last week with Namibia's president and Galp's chairman to discuss next steps in developing oil and gas assets in the country, underscoring the company's commitment and future plans for the Namibian market.
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See More
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- Contract Expansion: Petrobras has expanded and renewed oil sales contracts with Indian state-owned refiners, representing a sales potential of up to 60 million barrels, with a total value that may exceed $3.1 billion, providing a significant revenue stream for the company.
- Contract Duration: The sales contracts with Indian Oil Corp., Bharat Petroleum, and Hindustan Petroleum will remain effective until March 2027, further solidifying Petrobras's position in the international market and enhancing its long-term revenue potential.
See More
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- Macro Analysis Support: Otavio Tavi Costa, CEO of Azuria Capital, noted that Brazil's largest energy company, Petroleo Brasileiro SA, is on the verge of a major breakout, indicating that the Brazilian market's rebound is closely tied to a larger shift in global markets, potentially signaling the start of a longer-term structural trend.
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See More
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