Petrobras (PETR4) signs an addendum to the gas purchase contract from the Bolivian state company

A Petrobras (PETR4) informed that it has signed a new addendum to the natural gas purchase contract with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), a Bolivian state company that operates in the sector of exploration, production and sale of oil and derivatives.

According to the Brazilian company, the contract with Bolivia its signature occurred at the end of the internal governance procedures. The additive changes the delivery profile of the total volume of gas contracted by Petrobrasdepending on the availability of gas for export by YPFB.

The contract provides for the maintenance of a maximum volume of 20 million cubic meters per day, with greater flexibility in firm delivery and receipt commitments based on seasonality and supply availability.

According to Petrobras on Friday evening (15), the conditions guarantee “a contractually balanced supply for the companies and the possibility of additional sales of gas by YPFB to other Brazilian importers. Furthermore, [há] greater security and predictability of supply gas to the market served by Petrobras“.

Petrobras: what to expect in 2024 for those investing in the state-owned company?

Throughout 2023, the Petrobras saw the share price nearly double. Starting in January at R$17.90, the shares of the state oil company reached R$34.30 at the end of the year, with an increase of 91%.

Furthermore, shareholders have gained over the past 12 months with a dividend yield (DY) of 21.11%, ranking it as one of the best dividend payers listed on the Brazilian Stock Exchange.

Despite the last few months of apparent prosperity, the market has recently signaled some warning signs that could be negative for investors of the state-owned company.

One of these was the smaller profit the company presented in the third quarter of 2023 (accounted for through September). In total, in 3Q23 the Petrobras Net Profit (PETR4) was R$26.625 billion, a decrease of 42.2% compared to the same quarter of 2022 and 7.5% lower than the result of 2Q23.

Another factor that also concerns Petrobras investors These are changes in dividend policy, as well as the oil company’s latest investments, which have not been well received by some experts on the subject.

To understand something about the company’s prospects for next year and what the expectations are for those planning invest in Petrobras in 2024Here are 4 points to pay attention to:

1. Decline in company profit;
2. Petrobras Dividend Expectations in 2024;
3. Investments by the state company that displease the market;
4. Buy or sell Petrobras (PETR4)?

1. Petrobras (PETR4) profit falling and linked to the price of a barrel of oil

Suno Research CNPI analyst João Daronco is cautious about the end of the year for PETR4. “The fall in the price of a barrel of oil has a negative impact Petrobras profit and affects dividends. We must start the year in a more challenging scenario than 2023, which was already more difficult than 2022, ”she warns.

Regarding fuel prices, Daronco highlights the global economic context in which the oil company operates: economic pressure on large economies, such as the United States and China, compresses energy consumption, which means lower demand and a decline in prices.

“In the midst of war conflicts, the Brent oil price it should increase because supply is lower. But since energy consumption – and consequently oil – is associated with global activity, this is not what happens,” explains João Daronco, an analyst at Suno Research.

Daniel Cobucci, an analyst at BB Investimentos, has a similar analysis regarding the commodity price: “In the short term, our assessment is that the oil prices is expected to remain under pressure, in the context of a smaller-than-expected production cut by OPEC+ member countries and lower-than-expected demand, especially in China.”

He stresses, however, that Petrobras “does things the right way”, without transmitting international volatility. “[Petrobras] has managed to maintain an import window, while the capacity of use of the refining park has increased significantly”, which according to the analyst increases the market share and maximizes the results of the sector. In comparison, Combucci underlines that the Previously adopted company policy had a reduction in refining capacity, which allowed a higher level of imports at higher prices.

With Agência Brasil

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.