Brazil's Petrobras Accelerates Asset Sales to Cut Debt
July 29 2016 - 7:39AM
Dow Jones News
By Rogerio Jelmayer
SÃO PAULO -- Brazil's state-run energy company Petróleo
Brasileiro SA, or Petrobras, is accelerating its plan to sell
assets, in an effort to reduce its huge debt.
The company, which has had Pedro Parente as CEO since May, on
Friday said it sold a 66% stake in its offshore license for a total
of $2.5 billion to Norway's Statoil ASA.
"(The deal) represents part of the Petrobras portfolio
management policy, which is giving priority to investment in assets
with greater potential for short term cash generation, capital
optimization and economies of scale, due to the standardization of
production development projects," Petrobras said.
The deal took place as the company is raising cash to cut its
huge debt. Petrobras is the world's most-indebted oil company, with
about $126 billion in debt.
Petrobras announced last year a plan to raise about $15 billion
with the sale of assets through the end of 2016 and this plan
gained ground under Mr. Parente.
Previously he was the top executive at the Brazilian unit of
U.S. agribusiness giant Bunge Ltd., and currently he also serves as
chairman of stock-market operator BM&FBovespa SA.
While he isn't a career oil man, Mr. Parente is no stranger to
Petrobras. He served on the company's board from 1999 to 2003. He
also knows his way around the government, having served as chief of
staff and deputy finance minister to former center-right Brazilian
President Fernando Henrique Cardoso.
On Thursday, Petrobras said it entered in exclusive talks with
Mexican petrochemicals company Alpek to sell its petrochemical
units Petroquimica Suape and Citepe. It didn't unveil the potential
amount to be raised from the sale.
In addition, the company said it would sell a controlling stake
in its fuel distribution subsidiary, known as BR Distribuidora,
after it failed to get sufficient bids for a minority stake. Now,
with plans to sell a controlling stake, a deal is likely to take
place soon, according to analysts.
BR Distribuidora is Brazil's largest gas station chain, with
some 7,500 outlets across the country.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
July 29, 2016 07:24 ET (11:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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