Tomahawk, WI 06/09/2014 (Basicsmedia) – Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), an integrated Brazilian Gas & Oil company recognized on the international front, has had a meek Q1, this year. The company has a market cap of $91.2 billion and has a P/E ratio that equals to 8.2. Over the past 1 month, PBR has traded 25.0 million shares, estimated on a daily average.
Poor Quarterly Gains, Despite Hard Work
In Q1-2014, PBR’s EPS declined quite humongously, by 43.3% year-over-year. Throughout FY 2013, the company procured stable and significant earnings, aptly showcasing the company’s capabilities in sound and precise management of its earnings. PBR’s EPS stayed steady in 2012 and 2013 at $1.70 per share.
In the recent quarter, PBR obtained a gross operating cash flow of $3,981.00 million, dropping awkwardly by 46.59%, year-over-year. The firm’s growth rate plunged in Q1-2014. In terms of net change in income, Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has underperformed; income amassed in Q1-2014 was $2.280.0 million, falling short of Q1-2013’s income of $3,854.00 million, by 40.8%.
It can be comprehended that the company is passing through a phase of headwinds in its Brazilian operations owing to the deteriorating operating environment. Certainly, the government functioning in Brazil has a role to play behind such poor performances.
PBR Approaches Brazilian FM
Guido Mantega, Brazil’s Finance Minister, is increasingly pressing the oil and gas companies to lower their respective fuel prices. Lately, PBR authorities have had an approach the FM requesting him to allow a sustained rise in the retail price of fuels across the country. Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) representatives were part of a coterie of fuel generation and distribution companies operating in Brazil, who approached the FM.
FM Nixes Chances For Rise In Fuel Prices
The team had argued that this current measure adopted to continuous artificial ceiling on the country’s fuel prices will have a detrimental impact upon the companies. The firms will increasingly be susceptible to low credit ratings, which in turn would be a cause of concern for the firms to raise enough loans to make for the cost of oil and gas. However, even such prudent arguments failed to urge the FM look into this scenario or introspect.