Brazil government asks Petrobras to halt asset sales as it evaluates energy policy - Seeking Alpha

Brazil government asks Petrobras to halt asset sales as it evaluates energy policy | Seeking Alpha

Brazil government asks Petrobras to halt asset sales as it evaluates energy policy

Petróleo Brasileiro S.A. - Petrobras (PBR) By:

Carl Surran, SA News Editor
39 Comments

Joa_Souza/iStock Unreleased via Getty Images

Joa_Souza/iStock Unreleased via Getty Images

Petrobras (NYSE: PBR) -3.3% Wednesday after Brazil's Ministry of Mining and Energy tells the company to suspend asset sales for 90 days while the ministry re-evaluates its national energy policy.

The company for several years has been selling off a series of assets, including onshore oil fields, shallow-water offshore fields, refineries and stakes in related companies, seeking to reduce debt and focus its financial resources on production from its offshore fields.

Petrobras ( PBR) shares have shed 7% in the past two trading days on growing fears it will cut dividends and start subsidizing fuel under new President Luiz Inacio Lula da Silva.

With Brazil now being led by the "unpredictable" President Lula, investors are bracing for the worst, including the possibility of a steep dividend cut, JR Research writes in an analysis published recently on Seeking Alpha.