🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Brazil's Petrobras sells $587 million in assets, misses two-year target

Published 29/12/2016, 00:49
© Reuters. The logo of Brazil's state-run Petrobras oil company is seen on a tank in Sao Caetano do Sul
TTEF
-
PETR4
-
SMTO3
-
ALPEKA
-

By Luciano Costa and Tatiana Bautzer

SAO PAULO (Reuters) - Brazil's state-run oil company, Petroleo Brasileiro SA (SA:PETR4), on Wednesday announced the sale of ethanol and petrochemicals assets for $587 million (480 million pounds), but said it would still fall $1.5 billion short of its divestment target for the 2015-2016 period.

Among the assets sold were its 46 percent stake in ethanol producer Guarani SA, which was acquired for $202 million by its French partner Tereos SA [TEREO.UL], which will now own all of the company.

Petrobras, as the company is known, said it will also sell its two petrochemical units in the northeastern state of Pernambuco - Petroquimica Suape and Citepe - to Mexican group Alpek SAB de CV (MX:ALPEKA) subsidiaries Grupo Petrotemex SA de CV and Dak Americas Exterior SL for $385 million.

Even after a flurry of asset sales this month, Petrobras failed to meet its two-year divestment target of $15.1 billion.

The state oil company said in an emailed statement that a court injunction this month blocking its negotiations to sell the Tartaruga Verde and Bauna oilfields was to blame for missing the goal. The company announced in October Karoon Gas Australia Ltd was interested in these fields.

Petrobras said its 2017-2018 asset sale target would be automatically raised to $21 billion to compensate for the shortfall.

Petrobras is selling off noncore assets in a bid to reduce its $125 billion debt, the largest in the global oil industry.

Last week, the company said it would sell $2.2 billion worth of assets to France's Total SA (PA:TOTF), including stakes in oilfields and two thermal power stations.

That announcement came a week after Petrobras sold its 49 percent stake in sugar and ethanol joint venture Nova Fronteira Bioenergia SA to partner Sao Martinho SA (SA:SMTO3) for $133 million in shares.

© Reuters. The logo of Brazil's state-run Petrobras oil company is seen on a tank in Sao Caetano do Sul

Petrobras said the recent deals were exempted from the ruling by Brazil's audit court on Dec. 7 that temporarily suspended its asset sale program. These sales were allowed to proceed because they were in advanced stages, the company said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.