Tag Archives: Processed products

Petrobras Brasil was chasing buyers in India as oil exports took off | Instant News


RIO DE JANEIRO (Reuters) – As Petrobras controlled by the Brazilian state PETR4.SA rapidly increasing oil production and exports, executives are looking for a new market: India.

In an interview as part of the Reuters Commodities Trade Summit, Chief Executive Roberto Castello Branco said crude oil sales to China – an increasingly important export market for Brazilian oil – will continue to pick up amid strong industrial growth there and an increase in some off-field countries. the largest beach in the world in Brazil.

But Petrobras’ newly reorganized marketing and logistics division is actively seeking additional markets, especially in Asia.

The company, for example, has begun chasing new buyers in India, which Petroleo Brasileiro SA hopes to formally call the company, hopes to become a relevant client within three years as it moves to diversify its buyer mix and minimize its dependence on China. .

“We hope this has a positive evolution in the near term, in roughly three years to have a consolidated position in the (Indian) market,” Castello Branco told Reuters.

The company is also increasing its fuel oil exports to Singapore. The country, which acts as a shipping hub, has increased purchases of low-sulfur Petrobras fuel to comply with new maritime laws intended to reduce greenhouse gas emissions. Production from the large deep sea Buzios field enlarged Brazil’s oil surplus and enabled Petrobras to raise its 2020 production target by 5% in recent weeks.

Producers are also bracing for stronger internal competition as they sell refineries and try to end the near-near monopoly of Brazilian fuel production. “To face stronger competition, we put the logistics, sales and marketing divisions … to act as active sellers, not passive sellers,” said the CEO. Although recently rising to become the third largest oil supplier to China, ahead of the United States, Brazil is still a relatively small seller to the Asian country compared to Russia and Saudi Arabia, says Castello Branco – but not for lack of appetite. China will absorb all the oil Brazil has to offer and often pays a premium for sweet crude from Brazil’s Tupi fields, he said. In April, Petrobras hit a historical figure of 1 million barrels per day of crude shipped to China as a sharp drop in internal fuel consumption diverted oil from domestic refineries. “At the moment, we don’t have the capacity to sell 1 million (barrels per day),” said Castello Branco. “With increased oil production, we will have the availability to do that.”

Reporting by Sabrina Valle; Edited by Kirsten Donovan and Marguerita Choy

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Exxon pressured Australia to release aid to refineries in January | Instant News


MELBOURNE (Reuters) – Exxon Mobil Corp. XOM.N urged the Australian government to start providing assistance to the country’s refineries in January following last week’s decision by BP plc BP.L to shut down the nation’s largest refinery.

FILE PHOTOS: Exxon sign seen at a gas station on the outskirts of Chicago, Norridge, Illinois, USA, October 27, 2016. REUTERS / Jim Young / Photo File / Photo File

Exxon has Australia’s oldest refinery at Altona near Melbourne, which can process 90,000 barrels of oil per day, the smallest of the nation’s four refineries. The site supplies about half of the fuel for the state of Victoria, which has been hit by one of the world’s longest and most stringent coronavirus lockdowns.

Exxon said the prolonged lockdown “has put unprecedented pressure” on Altona, causing the plant to suffer losses.

The Victorian government last week relaxed restrictions restricting people to the 5 km (3 mile) zone around their homes and allowed shops and restaurants to reopen for the first time since August 2.

The Australian Government is in talks with the refining industry about offering A $ 2.3 billion ($ 1.6 billion) of incentives over 10 years to keep refineries open to support national fuel security.

The two other refiners in the country, Viva Energy VEA.AX and Ampol ALD.AX, are considering closing their refinery.

Exxon said the proposed six-month time frame for talks with the government was “too long given the short-term challenges faced by all refineries” and was working with refining industry groups and the government to get the first part of fuel safety. package released in January 2021.

The Maritime Union of Australia (MUA) said the government should take over BP’s plant in Kwinana, Western Australia, the only refinery on the west coast, to prevent fuel supply disruptions.

“More than 90 percent of Australia’s liquid fuel has already arrived via foreign-owned and operated tankers, but that figure will only increase if the Kwinana refinery is allowed to close,” MUA Assistant National Secretary Ian Bray said in a statement.

($ 1 = 1.4259 Australian dollars)

Reporting by Sonali Paul; Edited by Christian Schmollinger

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Petrobras Brasil said a major divestment was nearing the finish line | Instant News


RIO DE JANEIRO (Reuters) – Petrobras is in the advanced stages of several major divestments, executives said on Thursday, suggesting that the company’s ambitious deleveraging program could accelerate after a lull during Brazil’s worst coronavirus outbreak.

PHOTO FILE: PHOTO FILE: Brazil’s state-owned Petrobras oil company logo is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File

Speaking to analysts after the company’s third-quarter results, executives at Petroleo Brasileiro SA PETR4.SA, as the state-owned oil company is officially called, said it hopes to complete negotiations to sell the RLAM refinery by the end of the year and recently received a binding offer for the REMAN refinery, in the Amazon city of Manaus.

The company expects to receive binding offers for the REPAR refinery in southern Brazil in December, they added.

Petrobras has sought to sell dozens of non-core assets in recent years in a bid to reduce debt and sharpen its focus on offshore oil production and exploration. Among the divestments are sales of nine refineries which are expected to raise more than $ 10 billion cumulatively for the company.

But the divestment process has struggled in recent months amid falling crude oil prices and a more general slowdown in the global economy.

The company expects Brazil’s antitrust authorities to approve the sale of its Liquigas gas distribution unit in November, said Chief Financial Officer Andrea Almeida.

The company is also continuing to examine initial public offerings for its middle offshore asset collection, he added.

Executives are not very optimistic about some of the other divestments.

Chief Executive Roberto Castello Branco said plans to sell his stake in the TBG gas pipeline unit, which links Brazil and Bolivia, were hampered by regulatory issues.

The company will not sell its stake in the Braskem SA petrochemical company BRKM5.SA until the company makes significant improvements in terms of governance and environmental obligations, he added.

Brazil-listed preferred stock in Petrobras rose 2.3% in afternoon trade, after the company beat margin forecasts late Wednesday, even as profit missed expectations on a one-time fee.

Brazil’s benchmark Bovespa equity index .BVSP up 1.2%.

In terms of production, executives marked a moderate drop in fourth quarter output and an increase in lifting costs due to scheduled maintenance. However, they said, a number of new wells had been operating in some of the company’s most promising offshore fields in the fourth quarter.

The company has noticed a short-term decline in demand for its products in Europe due to the rise of COVID-19 there, said André Chiarini, head of logistics and trading of the company. However, demand for Petrobras fuel in China remains strong, he added.

Reporting by Gram Slattery and Luciano Costa; Edited by Kirsten Donovan and David Evans

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Petrobras Brasil said a major divestment was nearing the finish line | Instant News


RIO DE JANEIRO (Reuters) – Petrobras is in the advanced stages of several major divestments, executives said on Thursday, suggesting that the company’s ambitious deleveraging program could accelerate after a lull during Brazil’s worst coronavirus outbreak.

PHOTO FILE: PHOTO FILE: Brazil’s state-owned Petrobras oil company logo is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File

Speaking to analysts after the company’s third-quarter results, executives at Petroleo Brasileiro SA PETR4.SA, as the state-owned oil company is officially called, said it hopes to complete negotiations to sell the RLAM refinery by the end of the year and recently received a binding offer for the REMAN refinery, in the Amazon city of Manaus.

The company expects to receive binding offers for the REPAR refinery in southern Brazil in December, they added.

Petrobras has sought to sell dozens of non-core assets in recent years in a bid to reduce debt and sharpen its focus on offshore oil production and exploration. Among the divestments are sales of nine refineries which are expected to raise more than $ 10 billion cumulatively for the company.

But the divestment process has struggled in recent months amid falling crude oil prices and a more general slowdown in the global economy.

The company expects Brazil’s antitrust authorities to approve the sale of its Liquigas gas distribution unit in November, said Chief Financial Officer Andrea Almeida.

The company is also continuing to examine initial public offerings for its middle offshore asset collection, he added.

Executives are not very optimistic about some of the other divestments.

Chief Executive Roberto Castello Branco said plans to sell his stake in the TBG gas pipeline unit, which links Brazil and Bolivia, were hampered by regulatory issues.

The company will not sell its stake in the Braskem SA petrochemical company BRKM5.SA until the company makes significant improvements in terms of governance and environmental obligations, he added.

Brazil-listed preferred stock in Petrobras rose 2.3% in afternoon trade, after the company beat margin forecasts late Wednesday, even as profit missed expectations on a one-time fee.

Brazil’s benchmark Bovespa equity index .BVSP up 1.2%.

In terms of production, executives marked a moderate drop in fourth quarter output and an increase in lifting costs due to scheduled maintenance. However, they said, a number of new wells had been operating in some of the company’s most promising offshore fields in the fourth quarter.

The company has noticed a short-term decline in demand for its products in Europe due to the rise of COVID-19 there, said André Chiarini, head of logistics and trading of the company. However, demand for Petrobras fuel in China remains strong, he added.

Reporting by Gram Slattery and Luciano Costa; Edited by Kirsten Donovan and David Evans

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Brazil’s Petrobras posted solid margins, but a one-time fee hit the advantage | Instant News


RIO DE JANEIRO (Reuters) – Petrobras Brazil posted unexpected losses thanks to non-recurring fiscal costs, even as operating income was supported by a recovery in fuel sales and oil revenues.

FILE PHOTO: The logo of Brazil’s state-owned Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / File Photo

In Wednesday’s securities filing, Petroleo Brasileiro SA PETR4.SA, the official title of the state-owned oil company, recorded a third-quarter loss of 1.546 billion reais ($ 275 million). Income before interest, tax, depreciation and amortization (EBITDA), adjusted for one-time items, was 33.4 billion reais, above Refinitiv’s estimate of 29.7 billion reais.

Among the one-time charges the company highlighted were a 1.9 billion reais payment to two state governments to settle unpaid tax disputes, as well as a significant bond buyback program. The decline in the Brazilian real against the US dollar helped amplify some of the losses, the company added.

Petrobras said that, excluding one-time items, the company will post a net profit of 3.2 billion reais, beating Refinitiv’s estimate of 736 million reais.

Among the positives for the company is significant sales growth, especially gasoline and diesel. Net revenue was 70.7 billion reais in the quarter, up 39% from the previous period.

“The recovery in sales of diesel and gasoline is prominent,” the company said. “These products were severely affected by COVID-19 in the second quarter and the recovery is the strongest in our portfolio, both in terms of volume and price.”

Crude oil exports to China – which have skyrocketed in recent quarters as production increased as the worst pandemic passed – slowed to pre-pandemic levels. Meanwhile, exports to other markets such as the United States, Spain and Indonesia have grown significantly since the second quarter.

Even Chinese demand may have recovered later in the quarter.

Brazil jumped to become China’s third-largest crude supplier in September, import data showed on Sunday, as independent Chinese refiners scooped up cheap supplies of relatively high-quality South American exporter oil.

Petrobras said that average production costs fell from $ 7.90 per barrel of oil equivalent in the second quarter to $ 4.50 in the third, thanks in part to increased efficiency and partly due to real depreciation.

($ 1 = 5.62 reais)

Reporting by Gram Slattery and Sabrina Valle; Edited by Christian Plumb and Sam Holmes

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