Paula Arend Laier and Luciana Novaes Magalhaes, Reuters

SAO PAULO
EnergiesNet.com 1230 2024

– Shares of Brazilian energy company Brava Energia (BRAV3.SA), opens new tab soared on Friday following the firm’s announcement that it is in talks with banks to prepare for potential asset sales. Additionally, the company received approval from the country’s oil regulator to resume output at a key oilfield

Brava’s shares ended 10.6% higher, making it the top gainer on Brazil’s benchmark stock index Bovespa (.BVSP), opens new tab, which was down 0.5%.

Brava said on Friday in a statement that it was negotiating mandates with two banks to evaluate potential partnership transactions or asset sales.

According to people familiar with the matter, Brava is negotiating the mandates with Itau BBA and Bradesco BBI. Both Itau and Bradesco declined to comment.

Brava said that one of the two banks had presented an overview of the firm’s onshore assets to potential interested parties and set Jan. 9 as the date for proposals to be delivered.

Analysts at JPMorgan estimated that Brava’s onshore assets could be worth around $1.4 billion.

Investors were also upbeat on news that Brazil’s oil regulator ANP allowed Brava to resume production at the Papa-Terra field, which had been halted in September after ANP requested information about its platform’s operational systems.

“The company will begin preparations to resume production, which is expected to begin early next week,” Brava said in a securities filing.

Papa-Terra had been producing 15,000 barrels of oil equivalent per day at the time of the stoppage, according to Brava.

“We see the approval of Papa-Terra’s production resumption as positive and important for Brava’s deleveraging story going forward, which is the key component that supports our ‘outperform’ rating,” Santander analysts said.

Brava was created this year through a merger between 3R Petroleum and Enauta.

Reporting by Luciana Magalhaes and Paula Arend Laier; Additional reporting by Gabriel Araujo; Editing by Rod Nickel and Alistair Bell

reuters.com 12 27 2024