UBS Adjusts Price Target on Petroleo Brasileiro to $23 From $22, Maintains Buy Rating

Braskem creditors demand a $3B capital injection from owners Petrobras and IG4 Capital. The company plans to reject the proposal. Braskem is restructuring $10.9B in debt. Petrobras holds 47.03% of voting shares, IG4 holds 50.11%. A deal must be reached by 22 November 2026 to avoid bankruptcy.

Petrobras' board approved a new Brazilian government diesel subsidy program, adding to an existing subsidy. The new program offers 1 real per liter for 30 days, extendable. Petrobras received 448M reais in gasoline subsidy payments for July 16-31, totaling $1.9B in cumulative fuel-support receipts.

Petrobras received $85M in subsidies, raising total to $1.9B. The company will participate in a new diesel subsidy program, offering R$1.00 per liter for 30 days, potentially extendable. Petrobras can combine this with an existing R$1.12 per liter subsidy. The subsidies help Petrobras manage fuel price volatility and maintain profitability.

Sempra (SRE) subsidiary signed a 20-year LNG supply deal with Petrobras (PBR) for 0.8M tonnes/year, starting in 2030-2031. The agreement covers 6.2% of Port Arthur LNG Phase 2's capacity. Terms and earnings impact were not disclosed. Construction costs are estimated at $14B. Sempra plans to sell 45% of its infrastructure unit by Q3 2026.

Petrobras signed contracts for eight offshore exploration blocks in Côte d’Ivoire, marking a significant expansion in Africa. The company will operate all blocks with a 90% stake, while PETROCI Holding holds 10%. Petrobras plans to invest $109 billion through 2030, with $7.1 billion allocated for exploration. The move aligns with its strategy to diversify reserves and boost production.

Petrobras Brasileiro (PBR) reported record Q2 2026 results, with highest net and gross profits in its history. Production reached 2.7 million barrels per day, exceeding targets by 200,000 barrels. Oil exports increased by 12%, and refining utilization surpassed 100%, reducing imports by 40%. The company plans to reduce debt to $65 billion and focus on international expansion.