Shares jump 7% amid rising oil prices; here’s what to expect from the company – Money Times


brave energy

Brava Energia performs among the biggest gains on the Ibovespa this Tuesday (24) (Image: Brava Energia)

The actions of the Brave Energy (BRAV3) finally gain momentum on the Stock Exchange and perform among the biggest gains of the Ibovespa (IBOV) this Tuesday (24), after accumulating losses of more than 15% in the last month.

The company rises on a day of advance oil. The commodity jumped 2% on Tuesday, after China announced its largest stimulus package since the pandemic.

Brava, the result of the merger between 3R Petroleum and Enauta, debuted on the stock exchange on September 9. The move was welcomed by analysts and investors, who saw the birth of a company with production capacity that places it alongside Prio (PRIO3), but with a much more attractive price.

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However, amid the shutdown of the Papa Terra field, the company's largest, and the weakness of oil, the shares experienced days on the negative side of the Ibovespa – a bad mood seen as temporary by analysts.

According to the Genialthe company has, among other triggers, the operational entry of the Atlanta Field FPSO in 2024, appropriation of synergies and possible interest in divestments announced by the new CEO.

Papa-Terra's operational return in December 2024 could also boost the shares, according to the brokerage.

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Papa Terra to return in December, says Brava

Last week, Brava informed the market that the expectation for the return of production from the Papa Terra field was updated to the beginning of December 2024.

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.

For the Itau BBAthe resumption of production from the field in December is a more conservative expectation to ensure that the company can meet all ANP requirements on the platform by the defined date, given that they had to reduce the number of workers on the platform.

BBA analysts point out that the company has been facing a challenging time in delivering large projects due to unexpected events.

“However, once this phase is complete, they (company executives) expect to have greater free cash flow generation, as well as better visibility into a shareholder return metric that will satisfy the diverse profiles within the company's shareholder base.”

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