Petrobras (PBR) Stock Falling After Hours, Brazil Has No Plans to Privatize

Shares of Petrobras (PBR) are falling in after-hours trade despite the Brazilian government’s announcement that it would not privatize the company.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Petrobras (PBR) - Get Report  are down 1.57% to $8.26 in after-hours trade after the Brazilian government announced that it had no plans to privatize the state-run company, Reuters reports.

Petrobras' CEO Pedro Parente said the government is still deciding whether to sell its controlling share in several units to help improve the company's finances.

"I want to leave my opinion very clear, I don't believe Brazilian society is mature enough to even discuss privatization," Parente said today.

Petrobras is behind in its divestment program and still has $14 billion assets to sell this year. Parente added that management will stick to the sale target for this year, however.

Oil is also falling this afternoon, with crude oil (WTI) down 1.61% to $45.21 per barrel and Brent crude is falling 1.39% to $46.95 per barrel.

Petrobras is a Brazilian-based integrated energy company.

Separately, TheStreet Ratings rated this stock as a "sell"with a ratings score of D.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: PBR

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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