Petrobras Nears a Deal to Regain Control of Key Fertilizer Plants

In a significant development,Petróleo Brasileiro S.A. - Petrobras PBR is nearing a deal with Unigel to resume management of two crucial fertilizer plants located in the northeast part of Brazil. These facilities were leased to Unigel in 2019 as part of Petrobras’ divestment strategy.Under the proposed deal, PBR will manage the plants and Unigel will be hired to operate and maintain them for five years.Although Unigel has agreed the deal, the company's management is awaiting a report from the PBR's working group on fertilizers before approving it.An Insight Into the Key Fertilizer PlantsThe two key fertilizer plants were leased to Unigel in 2019 as part of PBR’s divestment strategy. However, high natural gas prices rendered the plants unprofitable, leading to the plants being nonoperational in 2023.In 2023, Brazil’s president wanted to revive operations at both plants to reduce the country’s dependence on imported fertilizer, leading to PBR reversing its strategy. The two companies agreed on a tolling contract, whereby PBR would supply natural gas in return for fertilizers. However, the tolling arrangement fell through as it would have caused Petrobras a loss of $79.81 million.Nevertheless, the ongoing negotiations are designed to provide both parties with a sustainable and profitable framework.Future ImplicationsPetrobras’ 2025-2029 Business Plan highlights the importance of the fertilizer segment in its portfolio. By integrating fertilizer production with its oil, gas and energy transition goals, the company aims to capture new streams while addressing domestic agricultural demands.The revival of these plants also reflects Brazil’s broader commitment to economic self-reliance and sustainable growth.PBR’s Zacks Rank and Other Key PicksHeadquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil. Currently, PBR has a Zacks Rank #2 (Buy).Investors interested in the energy sector might look at other top-ranked stocks like ARC Resources Ltd. AETUF, Gulfport Energy Corporation GPOR and YPF Sociedad Anónima YPF.ARC Resources, Gulfport Energy and YPF Sociedad Anónima currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.YPF Sociedad Anonima is an international energy company based on the integrated business of hydrocarbons. The Zacks Consensus Estimate for YPF’s 2024 earnings indicates 50.59% year-over-year growth.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report YPF Sociedad Anonima (YPF): Free Stock Analysis Report Gulfport Energy Corporation (GPOR): Free Stock Analysis Report Arc Resources Ltd. (AETUF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks