São Paulo – The Petrobras Business Plan, announced in January, for the period from 2009-2013, is already fully financed. The statement was made yesterday (23), in São Paulo, by the financial and investor relations director at the company, Almir Barbassa. "In the first five months of the year, the company has obtained over US$ 30 billion in credit in Brazil and abroad. This was the greatest collection in history," he said.
According to Barbassa, Petrobras found different sources or credit. With the Brazilian Development Bank (BNDES) the organisation financed around US$ 12.5 billion and got loans from commercial banks, national and foreign, for the value of US$ 6.5 billion, with the objective of refinancing in future through longer term loans on the capital markets.
In March, the company issued US$ 1.5 billion in Global Notes on international capital market, being the first Brazilian company to go on the market after the crisis. The operation was overwritten 3.5 times and was aimed at over 230 investors, most turned to the fixed return market of companies with high level of investment.
In April, Petrobras announced the approval of a line of credit with the US Export – Import Bank, for the value of US$ 2 billion, to be withdrawn in different stages over the coming two years, according to imports of goods and services from the Untied States. In May, the company got financing of US$ 10 billion with the Chinese Development Bank (CDB) with 10-year maturity.
The Petrobras Business Plan, which estimates investment of US$ 174.4 billion in five years, was revised and contemplates a significant increase with regard to the previous plan 2008-2012, which forecasted investment of US$ 112.4 billion. The increase was the result of new projects evaluated at US$ 47.9 billion, of which 76.4% are turned to exploration and production.
According to the director, the announcement of greater investment in a period of global crisis increased the focus on the company Business Plan analysis. "Despite the crisis, we have announced a daring plan that caused significant work," he said. "The plan was well accepted, shares appreciated and we have had an exceptional performance since January," he said.
The performance of company shares on the São Paulo and New York markets was greater than that of the Ibovespa and Dow Jones indexes and than the appreciation of the Brent barrel of oil. At Bovespa, ordinary and preferred shares presented appreciation of 51% and 45%, respectively. On the US market, ADRs rose 71% and 80%.
According to Barbassa, over the last four years the company was benefited by a better evaluation of the risk to the Brazilian economy and of international oil prices. Production rose significantly, from 2 million barrels of oil equivalent a day (boed) in 2004 to 2.4 million boed in 2008, resulting in great cash flow, approximately 50 billion reals in 2008 (US$ 25 billion).
Arab investors
Barbassa also spoke about the possibility of future partnerships with Arab investors. "I am not going to name countries, but we have been talking with many potential Arab investors," he said.
"One of the possibilities (for partnerships) was discussed by president Lula in May when he was in Saudi Arabia, when the possible construction of a fertilizer factory was discussed," he said.
It is worth recalling that the Arab country is among the main global producers of raw material for fertilizers. Saudi Arabia produces around 2.7 million tonnes of sulphur, for example, raw material for production of phosphoric acid, much used in the production of fertilizers.
"It (the construction of the factory) was discussed, but much talk is still needed. Brazil requires fertilizers and Saudi Arabia, food," added the director. According to him, a partnership would result in a "win-win" for both nations.
*Translated by Mark Ament
