⁍ Petrobras is in advanced stages of several major divestments, executives said on Thursday.
⁍ The company’s ambitious deleveraging program may quicken after a pause during the worst of the novel coronavirus outbreak in Brazil.
⁍ Petrobras has been working to sell dozens of non-core assets in recent years.
– Brazil’s state-run oil company is getting ready to wrap up the sale of two of its refineries in the coming months, as part of a plan to reduce its debt and refocus on offshore oil production and exploration, Reuters reports. The company, known as Petrobras, is in final negotiations to sell its RLAM refinery in the city of Manaus and its REMAN refinery in the city of Manaus, executives said yesterday. The company also plans to sell its REPAR refinery in the south of the country in December. Petrobras has been working to sell dozens of non-core assets in recent years in a bid to reduce debt and sharpen its focus on offshore oil production and exploration. Among those divestments are the sale of nine refineries that are expected to rake in well over $10 billion cumulatively for the company. The company expects Brazilian antitrust authorities to approve the sale of gas distribution unit Liquigas in November. The company also continues to examine an initial public offering for a collection of offshore midstream assets. Chief Executive Roberto Branco said a planned sale of its stake in the TBG gas pipeline unit, which connects Brazil and Bolivia, was being held up by regulatory issues. The company will not sell its stake in petrochemical company Braskem SA until that firm makes significant improvements related to governance and environmental liabilities, he added. Brazil-listed preferred shares in Petrobras were up 1.1% in yesterday afternoon trade, after the company beat margin estimates on Wednesday evening, even as profit missed expectations due to one-off charges.
Source: https://www.reuters.com/article/petrobras-outlook/update-2-brazils-petrobras-says-major-divestments-nearing-finish-line-idUSL1N2HK2FH