Post Earnings Coverage as Petrobras Reported FY16 Results

Upcoming AWS Coverage on Bill Barrett Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 30, 2017 / Active Wall St. announces its post-earnings coverage on Petroleo Brasileiro S.A. – Petrobras (NYSE: PBR) and (NYSE: PBR-A). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on March 21, 2017. The Rio de Janeiro, Brazil-based Company’s quarterly sales revenues were down on a year-over-year basis, however it posted positive EPS for the reported quarter. Register with us now for your free membership at:

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One of Petrobras’ competitors within the Oil & Gas Drilling & Exploration space, Bill Barrett Corp. (NYSE: BBG), reported on March 02, 2017, its Q4 and full year 2016 financial and operating results, provided 2017 operating guidance and establishes initial 2018 production growth outlook. AWS will be initiating a research report on Bill Barrett in the coming days.

Today, AWS is promoting its earnings coverage on PBR and PBR-A; touching on BBG. Get our free coverage by signing up to:

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Earnings Reviewed

During Q4 FY16, Petrobras’ sales revenues came in at $21.40 billion, which was lower than $22.15 billion recorded at the end of Q4 FY15. Sales revenue for the reported quarter fell short of market consensus estimates of $22.41 billion.

The Brazil’s state-run oil Company reported net income attributable to the shareholders of $754 million, or $0.06 per share, in Q4 FY16 compared to net loss attributable to shareholders of $9.42 billion, or $0.72 per diluted share, in Q4 FY15. Market analysts had forecasted the Company to report net income of $0.20 per share in Q4 FY16.

For full year FY16, Petrobras’ sales revenues stood at $81.41 billion compared to $97.31 billion in FY15. The Company’s net loss attributable to shareholders during FY16 was $4.84 billion, or $0.37 loss per share, versus net loss of $8.45 billion, or $0.65 loss per share, in FY15.

Operating Metrics

Petrobras’ gross profit fell marginally during Q4 FY16 to $6.93 billion from $6.99 billion in the past year’s comparable quarter. Meanwhile, gross margin for Q4 FY16 and the year ago quarter remained constant at 32%. The Company reported operating income for Q4 FY16 of $3.58 billion versus operating loss of $10.45 billion in Q4 FY15. Furthermore, adjusted EBITDA increased during Q4 FY16 to $7.53 billion from $4.92 billion in the prior year’s comparable quarter.

In Q4 FY16, Petrobras’ total oil and gas production in Brazil was 2,868 thousand oil-equivalent barrels per day (kboed) up from 2,777 kboed in Q4 FY15. However, oil and gas production outside Brazil was down to 122 kboed in Q4 FY16 from 192 kboed in the prior year’s same quarter. Furthermore, net export increased during the reported quarter to 329 thousand barrels per day (kbpd) from 166 kbpd in Q4 FY15.

Cash Matters and Balance Sheet

In the quarter ended on December 31, 2016, Petrobras’ net cash provided by operating activities was $7.21 billion compared to $6.60 billion in the prior year’s corresponding quarter. The Company’s free cash flow in the reported quarter stood at $3.63 billion versus $1.93 billion in Q4 FY15.

The Company’s cash and cash equivalents balance fell to $21.21 billion as on December 31, 2016, from $25.06 billion at the close of books on December 31, 2015. Meanwhile, the Company’s net debt was down to $96.38 billion as on December 31, 2016, from $100.43 billion as on December 31, 2015. Furthermore, net debt to adjusted EBITDA ratio was 3.76 as on December 31, 2016, compared to 4.27 as on December 31, 2015.

Stock Performance

At the close of trading session on Wednesday, March 29, 2017, Petrobras’ American Depositary Shares (ADS) climbed 3.76% to end the day at $9.66. A total volume of 20.85 million shares were exchanged during the session. The Company’s share price has gained 64.85% in the past twelve months. The stock currently has a market cap of $61.58 billion.

Petrobras’ ADS for preferred share finished yesterday’s trading session at $9.26, rising 4.75%. A total volume of 6.71 million shares exchanged hands, which was higher than the 3 months average volume of 6.09 million shares. The stock has advanced 14.75% and 100.87% in the last six months and past twelve months, respectively. At Wednesday’s closing price, the stock’s net capitalization stands at $60.40 billion.

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