Petrobras (PBR) Stock Hits One-Year High, Then Falls Despite Oil Production Increase

NEW YORK (TheStreet) -- Shares of Petrobras  (PBR)  reached yet another 52-week high of $20.94 on Wednesday but then declined nearly 2% in afternoon trading.

The Brazilian state-owned energy company announced its oil production rose in August to mark the seventh consecutive month in which production has increased. Petrobras produced approximately 540,000 barrels of oil per day last month.

Maria das Gracas Silva Foster, the company's CEO, said Petrobras was close to producing 2.1 million barrels per day from pre-salt oil fields. Foster spoke at Latin Oil Week in Rio de Janeiro and reiterated Petrobras' goal to increase oil production by 7.5% in 2014, according to Forbes.

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The stock was down 1.65% to $20.31 at 3:17 p.m. More than 33.5 million shares had changed hands, compared to the average volume of 22,074,800.

Separately, TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

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