Petrobras (PBR) Stock Falls, Selling Nine Oil Fields
NEW YORK (TheStreet) -- Shares of Petrobras (PBR) - Get Report are declining 8.03% to $6.87 in Tuesday morning trading as the company will place nine small, shallow-water oil fields for sale in an effort to reduce its large debt load.
Brazil's state-run oil company said the oil fields, located in Sergipe and Ceara, produced an average 13,000 barrels of oil equivalent per day last year, representing 0.5% of the company's total production.
The sale is part of Petrobras's $15 billion divestment strategy.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Petrobras's weaknesses include 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
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 article's author.