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Petrobras (PBR) Shares Dip After CARF Appeal Dismissed

Petrobras PBR, Brazil's state-owned oil and gas company, reported that it recently received an unfavorable decision from the country’s Administrative Council of Tax Appeals ("CARF"). The Panel denied, by majority, the special appeals submitted by the company. It also determined that taxes would be owed to PBR on payments for chartering vessels to companies abroad in 2010, 2011 and 2013, totaling more than R$ 18 billion.

The debts became legally binding in the administrative realm with this ruling. Following the outcome of the administrative procedure, the company will take proper legal actions to oppose the collection, as well as guarantee the debt.

The CARF's judgement does not include an accrual in the company's financial statements. Rather, it means that risks of losses are quite likely and are the object of an explanatory note in the financial statements.

As a result of this unfavorable judgment, shares of PBR witnessed a 2.6% decline on Mar 15, 2023, while consistently following a downtrend since the last six months. The stock has moved down more than 21% since late September.



Image Source: Zacks Investment Research


Zacks Rank & Key Picks

Currently, Petrobras carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks for investors interested in the energy sector are CVR Energy CVI and Valero Energy Corporation VLO, each currently sporting a Zacks Rank #1, and Murphy USA Inc. MUSA, carrying a Zacks Rank #2 (Buy).

CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023 and 2024.

Valero Energy is a global manufacturer and marketer of transportation fuels and petrochemical products. With 15 refineries spread across Canada, the United States and the U.K., it has a daily refining capacity of 3.1 million barrels. Over the past 30 days, VLO has seen an upward revision in earnings estimates for 2023 and 2024.

Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward revision in earnings estimates for 2024.

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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report

Valero Energy Corporation (VLO) : Free Stock Analysis Report

CVR Energy Inc. (CVI) : Free Stock Analysis Report

Murphy USA Inc. (MUSA) : Free Stock Analysis Report

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Zacks Investment Research