Possible bid for Petrobras gas pipelines and more news from the state-owned company; Mercado Livre, BB, Cesp and other radar highlights


SAO PAULO – The corporate news this Wednesday is for Petrobras (PETR3; PETR4). On Tuesday, the state-owned company received a cash payment of US$ 2.9 billion related to the obligations of Chinese partners CNODC and CNOOC in the co-participation agreement for the Búzios field, in the Santos Basin pre-salt, the company said in fact. relevant.

In addition, Reuters reported that US private equity firm EIG Global Energy Partners has sent Petrobras a binding bid worth hundreds of millions of dollars for the TBG and TSB pipelines.

On Tuesday, Mercado Livre announced the purchase of 100% of the Kangu parcel delivery platform, expanding its commitment to its own logistics as a differential in Latin America, one of the regions where e-commerce is growing the most in the world.

Meanwhile, Itaú BBA revised its recommendation for electrical, cutting the recommendation for Cesp (CESP6. See more highlights:

On Tuesday, Petrobras received a cash payment of US$ 2.9 billion related to the obligations of the Chinese partners CNODC and CNOOC in the co-participation agreement for the Búzios field, in the Santos Basin pre-salt, the company said in fact. relevant.

Now, the state-owned company will issue a certificate of payment to the National Agency for Petroleum, Natural Gas and Biofuels (ANP), the last step for the agreement to enter into force on September 1st. The agreement had already been approved by the ANP earlier this month.

According to information from Reuters, which cites a source, the US private equity company EIG Global Energy Partners sent Petrobras a binding offer of hundreds of millions of dollars for the TBG and TSB gas pipelines.

The state oil company put up for sale in December its stakes in the TBG, an asset of 2,593 kilometers that transports natural gas from Bolivia, and TSB, which operates in the south of the country, for sale.

Petrobras also informed that, in continuity with the material fact disclosed on August 4, 2021, it informs that it is currently paying the 1st installment of advance payment to shareholders for the year 2021.

The gross amount distributed, in the amount of approximately R$21 billion, corresponds to a gross amount of R$1.609911 per common and preferred share, based on the shareholding position of August 16, 2021.

Itaú BBA analysts renewed the estimates for the companies generating its coverage, updating the target prices from 2021 to 2022 and downgrading Cesp shares to marketperform (performance in line with the market average), maintaining the outperform recommendation ( performance above the market average) for Engie and Omega.

Analysts point out that generator shares underperformed the Ibovespa and the sector index, IEE, due to: i) higher interest rates; ii) worsening of the hydrological crisis, impacting the GSF [medida de risco hidrológico] and spot energy prices; and iii) an increase in investors’ appetite for risk after the reopening of the economy and upward revisions to the GDP figures.

“However, we believe this trend may start to change as the macro outlook has deteriorated and we now expect investors to buy high quality defensive names that are trading at a very attractive valuation,” they point out.

The changes in the main assumptions for the assessments of generators, due to the worsening of the hydrological crisis and macro perspective, are as follows: i) higher cost of equity (increase of 1 percentage point); ii) worst GSF deficit (20% for 2022 and 10% for 2023 onwards versus previous assumption of 5% for both cases); and iii) lower long-term energy price assumptions (R$150 / MWh for conventional energy versus previous assumption of R$160 / MWh). In addition, analysts updated the macro assumptions to incorporate higher inflation and higher
Selic rate

With these new premises, analysts cut the outperform recommendation for marketperform Cesp’s shares and reduced the target price (ex-dividends), reducing the target price from R$38 for 2021 to R$24.50 for 2022. Although they emphasize that Cesp is trading at an attractive implicit valuation (with an Internal Rate of Return [TIR]]of 8.9%), see no reason to buy the shares in the short term, given: i) the water crisis and the challenging prospects for the GSF; i) little visibility on the payment of the Três Irmãos Indemnity; iii) potential increase in the pension fund deficit; iv) low visibility of its growth strategy and v) increase in interest rates.

Engie, on the other hand, maintained its outperform, but the target price was reduced from R$49 to R$43.80. “We see Engie as a
high quality company, with an excellent history of capital allocation and attractive valuation (traded at an implicit IRR of 8.7%)”, the analysts point out.

Furthermore, despite the challenging hydropower prospects, Engie is one of the few companies with a relatively comfortable energy balance to offset the impact of the GSF. Finally, analysts expect Engie to complete the sale of the Jorge Lacerda and Pampa Sul coal plants by the end of the year, ending its coal exposure in line with its focus on ESG.

Omega was also maintained with an outperform recommendation, but with a cut in the target price from R$ 44 for 2021 to R$ 37.80 in 2022.

“In our opinion, Omega is one of the few companies to benefit from this challenging hydropower outlook, given its exposure to wind and solar assets. We expect positive earnings trend going forward, as the second half of the year will be much better given the ‘wind seasonality’. In addition, we like their history of capital allocation and the latest acquisitions have added value”, they assess.

Bank of Brazil (BBAS3)

Banco do Brasil announced on Tuesday a reinforcement of R$ 10.5 billion in additional resources for financing in agribusiness, with R$ 2 billion destined to producers who had losses due to frost.

The remaining R$ 8.5 billion will be earmarked to support the expansion of technology, sustainability and infrastructure in the field, through the launch of the BB Investimentos Agro Program, said the bank’s president, Fausto Ribeiro, during an event broadcast over the internet. “There will be no shortage of resources to meet the demands of rural producers”, emphasized the executive.

Enauta informed that the Atlanta Field is operating again with all the wells of the Early Production System, after the completion of the repair of the heaters.

The company expects to initially produce around 20,000 barrels of oil per day with the operation of the three wells, after the stabilization period, which represents a record of Enauta’s daily production.

Additionally, activities are underway to expand the water treatment capacity of FPSO Petrojarl I and thus increase oil production. The completion of the first stage, which provides for an expansion of 35% in the volume of treated water, is scheduled for the end of 2021.

In August, the company began the bidding process for the equipment and services necessary to drill a fourth well, aiming to increase the field’s production capacity. The drilling of this well is scheduled for the third quarter of 2022, with production expected to start by the end of next year.

Located in the Santos Basin, the Atlanta Field is operated by Enauta Energia, a wholly owned subsidiary of the company, which holds 100% of this asset.

Free Market (MELI34)

Mercado Livre announced on Tuesday the purchase of 100% of the Kangu parcel delivery platform, expanding the bet on own logistics as a differential in Latin America, one of the regions where e-commerce is growing the most in the world. The transaction, for an undisclosed amount, takes into the Mercado Livre the structure of around 5,000 Kangu points spread across 700 cities in Brazil, in addition to Mexico and Colombia.

Created in 2018, Kangu uses small neighborhood stores as collection and delivery points for parcels, which expands the logistics network without the need to depend on third parties, such as the Post Office. Since last year, it has had Mercado Livre as a partner, whose demand for e-commerce has grown strongly since 2020, given the isolation imposed by the pandemic.

Itaú BBA sees the news as slightly positive for MercadoLibre as it contributes to the improvement of its logistics in Brazil. The purchase can help develop the option for customers to return goods through the Post Office or Kangu partner stores, and also reduce delivery costs. The bank maintains an outperform recommendation for the Free Market share on Nasdaq (MercadoLibre), with a target price of US$ 1,971 for MELI papers, which closed on Tuesday on Nasdaq for US$ 1,855.29.

On Tuesday, Juarez Saliba de Avelar, appointed as CEO of JV Mineração, a joint venture in mining integrated by Cosan, stated that the company should start producing in Pará in 2025 with a capacity of 10 million tons of iron ore per year , which should be expanded considering the large mineral resources in the Carajás region, where the giant Vale already operates.

Itaú BBA assesses Mosaico’s quarterly results as a negative surprise, which indicates not only a transient weakness but also a worrying deterioration over the growth outlook for the company’s core business. The bank assessed Mosaico’s recent performance based on a detailed analysis of its website traffic, app usage and referrals to online stores. The bank says it assesses the company’s recent slump not only affects its forecasts for short-term growth, but indicates challenging longer-term trends for the price-comparison business.

The bank downgraded Mosaico’s recommendation from outperform to marketperform and reduced the target price from R$39 for 2021 to R$13 in 2022, an increase of only 2.4% compared to Tuesday’s price of R$12.70 .

Infracommerce (IFCM3)

Also highlighted, Itaú BBA held a meeting with the CEO of Infracommerce, Kai Schoppen, the CFO Raffael Quintas, the head of investor relations, Fabio Bortolotti and the investor relations manager, Gabriela Albuquerque.

According to the bank, after the results for the second quarter of 2021, the management offered information about mergers and acquisitions, the partnership with Abad and the competitive environment. The bank maintains an outperform assessment on the name and target price for 2022 of R$27.90, an upside of 67.4%.

(with Reuters and Estadão Content)

Free course teaches stock exchange consistency to earn and monetize capital. Participate!