Petrobras to Amalgamate Its Thermal Power Stations to Attract Investors

09/27/2016 - 11h12

After a failed attempt to sell its thermal power stations, Petrobras has decided to change strategy in order to market its shares. The new idea is to group all its units into one company, so as to offer a bigger stake in the business to one lucky investor.

The state-run company currently has 20 thermal power stations, with a total installed capacity of 6,239 megawatts (MW), according to data from the National Agency of Electrical Energy (Aneel).

When considered altogether, these power stations mean that Petrobras is the sixth largest company in this sector in terms of resources for generating electrical power.

Petrobras tried to offer combined deals selling power stations and LNG (Liquid Natural Gas) import terminals, but nobody took the bait. However, Pedro Parente was appointed as President of the company last May, and since then Petrobras has changed strategy.

The company has decided to continue actively using its facilities to generate energy, but now in partnership with a new investor.

Revealed last week, the plan predicts investments of US$ 74.1 billion in the next five years (25% less than the last business plan from 2015) and establishes a new sales target, of US$ 19.5 billion between 2017 and 2018.

In the meantime, Petrobras will cool off its activity in the petrochemical, fertiliser and biocombustibles sectors. Instead, it will try and look for companies to invest in these areas.

With regard to thermal energy, the company says it will reorganise its business plan before putting shares up for sale again. "The idea is to group all the shares 'in the same basket'", says Petrobras director of Refined Gas, Jorge Celestino.

Translated by GILLIAN SOPHIE HARRIS

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