Petrobras (PBR) - Still A Sure Thing?
By:
TraderMark Thursday, September 03, 2009 3:20 PM
I've often said to people the rate of change in this world is such that there are very few companies outside of the Johnson & Johnson's (
JNJ) or Procter & Gamble's (
PG) that you can buy and forget about for a decade. And the high(er) growth era for those type of stocks are long gone. One name I touted in 2007, and 2008 as a stock you could buy, go on a 10 year cruise and come back to was Brazilian oil giant Petrobras (
PBR). I thought this was the next Exxon (
XOM) or in fact better since it's almost like buying a Brazilian version of a Saudi Arabian energy conglomerate.
However, proving my point at how little is stable over any long term period of time - we have had some rumblings out of Brazil of late which could take the long term shine off of Petrobras. Some of the language is downright "Putin-like". This despite the fact Brazil
is moving into the top 10 world's producers of black gold.
- Brazil will be among the world’s top 10 oil producers within the “short term,” as the country develops offshore fields, Energy Minister Edison Lobao said.
- Petrobras Chief Executive Officer Jose Sergio Gabrielli said the company’s proved oil reserves may double in the next two years as the Tupi, Iara and Whales Park fields, whose licenses have already been granted, probably hold about 14 billion barrels of crude. The company plans to spend about $174.4 billion over the next five years, including more than $30 billion on the development of the pre-salt fields.
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