How Important Is The Upstream Business For Petrobras?
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
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Have more questions about Petrobras (NYSE:PBR)? See the links below:
- How Will Petrobras’ Oil & Gas Production Move In The Next Five Years?
- How Will Petrobras’ Revenue Move If Crude Oil Prices Rebound Over The Next Two Years?
- How Will Petrobras’ Revenue Move If Crude Oil Prices Continue To Remain Depressed Over The Next Two Years?
- Is It Time For Crude Oil Prices To Recover?
- Petrobras’ 2Q’16 Earnings Plunge On The Back Of Lower Commodity Prices
- Here’s Why We Revised Petrobras’ Price Estimate To $11 Per Share
- Petrobras Q1 Earnings: Revenues And Earnings Suffer Due To Low Oil Price Environment, Company Cuts Capex
- How Are Petrobras’ Revenue & EBITDA Composition Expected To Change By 2020?
- What’s Petrobras’ Revenue & Earnings Breakdown In Terms of Different Products?
- What’s Petrobras’ Fundamental Value Based On Expected 2016 Results?
- How Is Petrobras’ Revenue & EBITDA Composition Expected To Change in 2016?
- By What Percentage Can Petrobras’ Revenues Grow Over the Next Five Years?
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