This is still a high-quality growth emerging market, though, and investors looking to play an eventual recovery in investor interest should give some thought to Petrobras (NYSE:PBR) - one of largest and best-known Brazilian companies.
A Strong Start to the Year
Petrobras got 2011 off to a good start. Net operating revenue rose 9% from last year (and 1% from the fourth quarter), helped by very strong price realizations in the E&P segment, as well as some modest production volume growth. Petrobras is still very much a Brazil play, as less than 10% of the company's oil and gas production comes from outside Brazil.
Gross profit rose 11% from last year, but operating income performance was flat (though up 26% sequentially). Operating income improved significantly in E&P, with 18% annual growth, but the refining business reversed to a loss due to the pressures of higher crude costs and frozen domestic pricing on refined products. The gas and electricity segment was also a strong performer (up 34% from last year), but is relatively small at less than 6% of total operating income. (For more, see Bargains In Brazil.)
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