During Tuesday’s Afternoon trade, Shares of Petroleo Brasileiro SA - Petrobras (ADR) (NYSE:PBR), gain 4.81% to $5.12, as following the oil producer’s declaration on Monday to reduce investments for this year as it works to ease debt, Bloomberg reports.
Specifically, the oil giant will trim investments this year to $25 billion from $28 billion.
“We view the declared changes as a key part of this process and believe it should assist to improve investor confidence in the company’s ability to withstand the current, very difficult environment,” Bank of America analysts stated.
This is the second time in three months that the company is reducing its spending plan, Reuters noted.
Based in Rio de Janeiro, Petrobras operates as an integrated energy company in Brazil and internationally.
The Ibovespa extended its longest rally in 13 months after Petroleo Brasileiro SA, the oil producer at the center of Brazil’s largest graft probe, declared a plan to cut investments as it tries to shore up its finances. According to Bloomberg
Brazilian stocks and the real also rose on optimism that government spending cuts will be upheld in a Congressional vote. Lawmakers are planned to meet Tuesday in Brasilia after lower house President Eduardo Cunha said they’ll probably uphold President Dilma Rousseff’s vetoes of spending bills that would have boosted the budget deficit.
Petróleo Brasileiro S.A. Petrobras operates as an integrated energy company in Brazil and internationally. Its Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of crude oil and oil products produced at natural gas processing plants in domestic and foreign markets.
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