Before we get into the details on PBR, a micro cap company that caught our attention is Earth Life Sciences Inc. (CLTS). Earth Life Sciences Inc. (OTCMKTS:CLTS) has been on the uptick ever since the company announced that the Company is acquiring all of the assets of White Channel Project which is based in British Columbia, Canada and is comprised primarily of Silica-Gold. Earth Life Sciences, Inc. is also acquiring all of the assets of Gold Buck Project which is 35 miles east of Williams Lake, British Columbia, Canada, and is comprised primarily of Copper-Gold. The entire PR can be read HERE. It appears more news could be on the horizon from the company potentially drawing attention from traders and investors.
Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) has agreed to import shale gas from the US and is expected to receive its first shipment soon. The news was released through a person familiar with the matter, but the company has yet to make a public announcement. However, PBR continues to suffer financially and analysts expect it to drop to $2 per share, with a loss in its 4Q2015. Like many other oil companies, Petrobras has been affected by the decline in oil prices and has lost over 40% of its market value over the last year.
Unfortunately, apart from the market conditions, PBR also suffers from several corruption charges and an increasing debt load. Oil prices are not expected to improve very soon, which creates more problems for Petrobras. The company expects to experience low cash generation, an increasing funding gap and a lower reserve base, during the next few months.
PBR has now agreed to buy LNG from Cheniere Energy Inc. to market in Brazil, which is considered to be the biggest buyer in the Atlantic Basin. Cheniere has begun loading LNG from its Sabine Pass terminal, for the sale. The deal comes at a time when the rest of the world faces oversupply, resulting in lowered prices. It is expected that demand for LNG in South America would continue to increase, owing mainly to a drought in Brazil. Petrobras had already bought a total of 80 LNG cargoes in 2015 and is expected to purchase another 50 in 2016.
Credit Suisse has identified that PBR would also find it difficult to increase the domestic prices, until late 2016 or early 2017. However, PBR has decided to lower its capital expenditure by $12 billion and has also lowered its production target. Unfortunately, the company also has debts of $12 billion, due in 2016 and 2017.
Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) lost 4.21% of its share value, during the February 23 trading session, after having a trade volume of 25.7 million, to close at $3.53.
