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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (170081)	6/25/2012 8:49:21 PM
From: elmatador	Respond to of 206158

Yep. Pragmatic Dilma put new CEO to right the ship.

To: Bearcatbob who wrote (170081)	6/25/2012 10:16:36 PM
From: JimisJim	4 Recommendations Read Replies (1) \| Respond to of 206158

That has really put the hurt on my (now) 2nd biggest client... I have literally spent big chunks of the past 6 years doing nothing but submit proposals (and countless revisions) for PBR work/contracts -- client even opened an office a few blocks from PBR HQ and hired local talent... still PBR delays and delays... contract awards as well as actual E&P work... has been sort of a mini-bust for oilpatch companies who hitched their wagons to the PBR juggernaut (or at least that was how they were perceived and behaved the last 6 yrs. at least that I can personally attest to)... add in the criminal (not civil, criminal) charges for very small spills and I can testify that the bloom is off the rose as far as most western OSX companies are concerned when it comes to meeting PBR's ever elongating deadlines... you have no idea how many all-nighters/weekends/you name it many of us put in to meet some PBR deadline only to learn a couple or three months later that the entire process will start over in a few months... the drain on engineering man-hours is surprising... /pbr rant Jim PS. To be clear, though, my client does get PBR contract work, esp. their US operations in the GOM, but also what little is actually happening in the new/big offshore fields, and thus, in full disclosure, I still do derive a significant (but shrunken) portion of my income directly and/or indirectly doing work for them.

To: Bearcatbob who wrote (170081)	6/26/2012 9:14:05 PM
From: Dennis Roth	1 Recommendation Respond to of 206158

Petrobras (PBR) Company Update Strategy in check Strategy in check. Even though we been have structurally cautious on Petrobras’ shares for the past 1.5 years, we have recently been hoping for a more bullish case based on a cheap stock with improving sentiment. But it turned out hope was only hope after all. Instead we are now faced with a not-so- cheap stock with deteriorating sentiment (and balance sheet). In the past two weeks, it was not evident that Petrobras is a ‘master of its destiny’ in two crucial drivers: capex (increased from $224bn to $236bn) and downstream prices (disappointing increases of 7.8% and 3.9% for gasoline and diesel). The structural story gets better only in 2014 (if not later), with stronger production growth and more refining capacity. Until then, we remain Neutral. We provide four key takeaways after management’s detailed presentation. Takeaway #1: Downstream earnings drag gets better only end 2014. The two expected refineries (RNEST and COMPERJ) will be purely diesel-focused by design, bringing no easing to surging gasoline imports. With no gasoline refineries on the horizon, PBR expects to solve this equation with import-parity prices and higher ethanol. We see both solutions unrealistic so far. Takeaway #2: Fast pre-salt, slow post-salt. Mr Formigli gave a solid argument for a decrease in post-salt production targets and not pre-salt. As the pre-salt has scale, PBR has tangible advantage to expedite development, even when reservoir knowledge is not perfect. For the post salt-this is not the case as development is taken on a project-by-project basis. We also note strong decrease in operational efficiency in the past four years in the Campos basin, which contributed to lower performance in the post-salt projects. Takeaway #3: Mixed local content feelings. Ms Foster is trying to ‘re-educate’ the market about PBR’s rationale and positioning in local content, de-mystifying the fact that equipment built abroad has no delay. At the same time, we sensed some reluctance to admit larger delays and higher costs in equipment built locally. Takeaway #4: Aggressive financing assumptions are still the case, as the plan counts on a import price-parity that is not current reality. 9 pages, 9 charts and tables in pdf format. Download available at sendspace.com