Petrobras (PBR) Stock Falls, Halting Production

Shares of Petrobras (PBR) are sliding today despite higher oil prices as the company gets the nod to interrupt production.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Petrobras (PBR) - Get Report  are dropping 1.22% to $8.11 this afternoon after the company received approval from the National Petroleum, Natural Gas and Biofuel Agency in its home country of Brazil to halt production across 16 platforms today.

The energy company hopes to reduce costs and recover some losses registered in 2015 - the largest-ever for the company at $10.37 billion, or $34.8 billion Brazilian real, the Rio Times reports.

Petrobras may pause production in oil fields in the Ceara, Rio Grande de Norto, Sergipe, Bahia and Espirito Santo regions for 12 months.

Oil prices are up this afternoon, crude oil (WTI) rising 0.42% to $45.87 per barrel and Brent crude gaining 0.4% to $47.56 per barrel.

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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