How Important Is The Upstream Business For Petrobras?

-46.35%
Downside
15.21
Market
8.16
Trefis
PBR: Petroleo Brasileiro logo
PBR
Petroleo Brasileiro

Petroleo Brasileiro Petrobras (NYSE:PBR), the Brazilian energy company, operates in all the major segments in the oil and gas value chain. However, the company drives the majority of its value from its upstream operations, which include exploration and production, and refining, marketing, and distribution of commodities. According to Trefis estimates, Petrobras’ upstream operations account for almost 90% of its total enterprise value, using an estimated 2016 EV/EBITDA multiple of 5.5x (see table below). In the following tables, we also show how the upstream operations have historically dominated Petrobras’ revenue as well as EBITDA growth. Consequently, we forecast the integrated company’s upstream operations to be crucial for its long-term value.

We have a price estimate of $10.40 per share for Petrobras, in line with its current market price.

See Our Complete Analysis For Petrobras Here

Relevant Articles
  1. Hess Corporation Stock Is A Risky Bet
  2. More Room For Growth In Enterprise Products Stock?
  3. Williams Companies Stock To Gain With Rising Natural Gas Demand
  4. Why Hess Corporation Stock Is A Good Bet In The Battered Energy Sector
  5. Down 50% This Year, Occidental Stock Has A Long Road To Recovery With Sizable Downside Risk
  6. Petrobras’ Revenue Is Looking Up With Tailwind From The Brazilian Economy

PBR-Q&A-4

PBR-Q&A-4-1

PBR-Q&A-4-2

Have more questions about Petrobras (NYSE:PBR)? See the links below:

View Interactive Institutional Research (Powered by Trefis):

Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap

More Trefis Research