Petroleo Brasileiro SA Petrobras ADR
PBR: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $81.50 | Xtp | Nsvbjkzj |
Increasing Petrobras' FVE on Higher Oil Prices, but CEO Turnover Increases Risk
Business Strategy and Outlook
Despite turnover in top management, Petrobras appears to be sticking to the same key elements of its strategic plans—notably reduced leverage, disciplined capital spending, and modest production growth—that have righted the ship in recent years. The strategy is literally paying dividends as Petrobras is increasing payouts given the stronger cash flow resulting from higher oil price instead of plowing it back into value-destructive investment.