NEW YORK (TheStreet) -- Shares of Petrobras (PBR) - Get Report were gaining in early afternoon trading after Brazil's oil and gas Secretary Marcio Felix said the government might allow the state-owned company to sell stakes in several offshore oil blocks, Reuters reports.
The move would require a change in Brazil law.
Asset sales would help the Rio de Janeiro-based energy company fund its development, Felix told Reuters.
Petrobras currently holds about $125 billion in debt and CEO Pedro Parente has been considering options to cut costs.
Felix said that Petrobras will be owed money by the government after they agree on the value of the oil in the blocks, Reuters notes.
Separately, 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.
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 generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
You can view the full analysis from the report here: PBR