Petroleo Brasileiro SA Petrobras (ADR)(NYSE:PBR) Refinances Trade Finance Loans

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Petroleo Brasileiro SA Petrobras (ADR)(NYSE:PBR) refinanced trade finance loans worth $1.32 billion with two large banks, as part of a plan to smooth out impending amortizations through the close of the decade.

The details

In a recent securities filing, Petroleo reported that it contracted a $321 million trade financing contract with Banco Bradesco with maturity in 2024 and prepaid $250 million of a trade facility worth $1 billion with Credit Agricole SA, whose date of maturity was extended by 2 years through December 2022. The company also agreed to fully recompense a trade note with Caixa Econômica Federal that was due next year in November. Petroleo is the world’s most indebted prime oil company.

In unrelated news, Brazil’s antitrust regulator Cade has signed deals with the largest petroleum gas suppliers to settle charges that the firms formed a cartel and colluded to fix rates in the Center-West and Northeastern regions of the nation. Liquigas Distribuidora SA, which is a subsidiary firm of state-controlled oil firm Petroleo Brasileiro, agreed to pay 65 $21 million in fines and committed to terminate the cartel practices.

In the matter of Center-West region, peer Companhia Ultragaz SA will compensate a 2 million-real fine. In August, Cade blocked the deal between the two rival companies fined recently. Ultrapar Participações had decided last year to acquire Liquigas in a deal valued at 2.8 billion reais. The Liquigas contract was part of an extensive asset sale program intending to lower the oil company’s debt.

In the last trading session, the stock price of Petroleo declined more than 3% to close the week at $9.80. The decline came at a share volume of 1,100 compared to average share volume of 15.45 million. After the recent decline, the market cap of firm was noted at around $63 billion. The 52-week range of stock is 7.61 – 12.56.

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