Petróleo Brasileiro S.A. (Petrobras) reported weak 1Q 09 results, with revenues below our estimates, whereas the operating and earnings performance exceeded our expectations. 1Q 09 revenues declined y-o-y during the quarter, given lower realized hydrocarbon prices. Going forward, we remain cautious regarding the company’s ability to generate enough operating income due to the erosion of its revenues, given low…

Petroleo Brasileiro S.A.’s (Petrobras) common stock price has appreciated 27.3% since our last update report achieving our target price on 18 March 2009. We believe the Petrobras common stock is fairly valued at current levels hence we downgrade the common stock to a HOLD from a BUY. We will reassess the common stock rating in our next update report As we anticipate a negative currency impact on the ADR over the medium term, given current price…

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On 23 January 2009, Petroleo Brasileiro S.A.’s (Petrobras) announced a 55% increase in its capital expenditure plans between 2009 – 2013, which reflects plans to invest US$28.6 bn in FY 2009 and US$174.4 bn in total between FY 2009 and FY 2013. The company also expects to increase its long term production as three new systems are expected to begin production by FY 2013. As we believe…