Petroleo Brasileiro Petrobras SA (NYSE:PBR)’s hands out contracts even as profits contact
Petroleo Brasileiro Petrobras SA (NYSE:PBR)reported a $2.73M profit in its Q2 or $0.46/ADR share in comparison to the loss of $685M or $0.10/ADR share in the same quarter in 2012. Keep in mind that that One PBR ADRs is equivalent to, two Petrobras shares on the IBOVESPA exchange. Despite the fact that the company reported a profit in the Q2, it could not meet analyst projections.
If you glance through the company’s statements, you will see that it received a bit of a boost due to higher fuel prices in the domestic market and simultaneously reduced its exploration expenditure. The company has also adopted a new accounting-practice that has helped it curb financial losses.
The company has also awarded new contracts to the Technip and DOF joint-venture. These contracts span the construction of 4 new pipe-lay support vessels. Both, Technip as well as DOF have a 50% stake each in the joint venture. They have now been awarded 8 new contracts. Technip’s combined value stands at around €1.35B. In addition to the actual construction of the pipelay, the contract also covers installation of the flexible pipes in the Brazilian waters.
Two of these PLSV’s will have a laying-tension capacity of 300-tons. The fabrication will take place in Brazil and will have a high national-content. The other 2 vessels will be designed to have a laying-tension capacity of 650-ton. This will enable the installation of big diameter-flexible pipes in different ultra-deepwater settings such as those that exist in the Brazilian pres-salt.
Vard Holdings Limited will manage the designing and construction of the 4 PLSV’s.
Under the joint venture agreement, Technip will be managing the flexible-pipelay while DOF will be in charge of all the marine operations. The PSLV’s are scheduled to be delivered in 2016-2017. These contracts will last for 8 years from the date the operations commence and they may be renewed for a further 8 years.