Societe Generale Maintains a Hold Rating on Petroleo Brasileiro

By Austin Angelo

In a report issued on November 14, John Herrlin from Societe Generale maintained a Hold rating on Petroleo Brasileiro (NYSE: PBR). The company’s shares closed yesterday at $9.83.

According to, Herrlin is a 1-star analyst with an average return of -4.0% and a 43.6% success rate. Herrlin covers the Basic Materials sector, focusing on stocks such as Occidental Petroleum, Anadarko Petroleum, and Cenovus Energy Inc.

Currently, the analyst consensus on Petroleo Brasileiro is Moderate Buy and the average price target is $13, representing a 32.2% upside.

In a report issued on November 8, Merrill Lynch also reiterated a Hold rating on the stock.

Based on Petroleo Brasileiro’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $21.75 billion and GAAP net loss of $5.08 billion. In comparison, last year the company earned revenue of $22.45 billion and had a GAAP net loss of $1.03 billion.

Petróleo Brasileiro SA engages in the oil and gas exploration, production, and distribution activities. It operates through the following segments: Exploration and Production; Refining, Transportation, and Marketing; Distribution; Gas & Power; Biofuel; International; and Corporate. The Exploration and Production segment involves crude oil, natural gas liquids, and natural gas exploration, development, and production. The Refining, Transportation and Marketing segment involves refining, logistics, transportation, trading operations, oil products and crude oil exports and imports, and petrochemical investments. The Distribution segment refers to the distribution of oil products, ethanol, and vehicle natural gas to wholesalers and through Petrobras Distribuidora S.A., its retail network in Brazil. The Gas & Power segment includes transportation and trading of natural and liquefied natural gas, the generation and trading of electric power, and the fertilizer business. The Biofuel segment involves the production of biodiesel and its co-products, and ethanol-related activities such as equity investments, production, and trading of ethanol, sugar, and the excess electricity generated from sugarcane bagasse. The International segment engages in the exploration and production of oil and gas, refining, transportation and marketing, distribution, and gas and power operations outside of Brazil. The Corporate segment comprises the financing activities not attributable to other segments including corporate financial management, and central administrative overhead and actuarial expenses. The company was founded on October 3, 1953 and is headquartered in Rio de Janeiro, Brazil.