Brava shares fall after release of estimated return to production at Papa Terra field (Image: Disclosure)
The actions of the Brave Energy (BRAV3) are responsible for the biggest falls in the Ibovespa (IBOV) this Thursday (19), after the company informed the market that the expectation of return of production from the Papa Terra field was updated to the beginning of December 2024.
At around 11:30 am, the shares fell 7.63%, to R$19.26.
According to analysts of the Bradesco BBI e Agora Investmentsthe expectation was for a faster resumption of operations, which justifies the negative market reaction.
“On the other hand, the company has now issued an expectation of when production should occur, which should help to anchor expectations,” they consider.
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According to the document released by the company, after the scheduled shutdown that began on July 27, production was restarted on August 29 and stabilized at 15 thousand barrels per day via six wells (PPT-12, PPT-16, PPT-17, PPT-22, PPT-37 and PPT50).
At the request of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), Brava interrupted production on September 4 to provide clarifications about the number of people on board and maintenance activities.
“In this context, the company chose to move forward with inspection and maintenance items that were scheduled for the coming months, keeping the units on scheduled shutdown, in order to maximize the operational safety of the asset,” he explains.
Brava Energia has potential for growth, says Safra
The company, that arose from the 3R e Enautahas not yet taken off on the stock exchange. Since its debut, the stock has fallen 12%, amid the oil weak and negative news, such as the shutdown of the Papa Terra field.
However, if the investor is patient, he or she could catch an 84% rise in the stock, considering today's prices. At least that's the view of the Harvest. The recommendation is to buy and the target price is R$35, according to a report released on Tuesday (17).
The bank updated the company's expectations. According to analyst Conrado Vegner, Brava's shares are trading at a very attractive price of 2 times the EV/Ebitda (enterprise value over operating income) for 2025.
According to the analyst, the company is about to become a major independent player in the oil and gas sector. Latin America.
“With a diversified portfolio and 500 million boe of proven reserves, we expect its production to exceed 110,000 boe in the coming years, which should boost its free cash flow,” he says.
*With Renan Dantas