While most oil companies are suffering in the wake of the big spill, investors are becoming more confident in Brazil’s Petrobras because it doesn’t operate in the Gulf of Mexico.
- As BP shares continue to fall, shares of Brazilian oil company Petrobras have remained stable for weeks.
- Petrobras plans to make more stock available for sale later this summer, indicating that it’s doing well despite other oil companies suffering from the oil spill.
- While the oil spill is hurting stocks associated with the Gulf, investors are confident that oil companies elsewhere (like Petrobras) could actually benefit.
Facts and Figures
- Petrobras plans to offer $25 billion in equity this summer
- If they do sell all of their offered stock, it would be the second largest equity offering ever
- Petrobras operates worldwide – from Turkey to New Zealand to, of course, Brazil
Best Quote
“Petrobras does not have the headline risk that BP does right now. Investors are unlikely to move away completely from the oil sector but substitute from one company to another.” – Gerry Sparrow, Chief Investment Officer, Sparrow Capital