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Report: Petrobras may take over some Eletrobras thermal power stations

Published 08/15/2017, 12:38 PM
© Reuters.  Report: Petrobras may take over some Eletrobras thermal power stations
PBR
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EBR
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  • Petrobras (PBR +1.4%) may take over some thermal power stations run by Eletrobras (EBR +1.2%) in exchange for forgiving some of the utility company's billions of dollars in debt, Reuters reports, citing the Valor Econômico newspaper.
  • EBR's overdue fuel bills with PBR total nearly 16B Brazilian reais (~$5B), according to the report; PBR has supplied EBR's thermal power plants for years but it now wants to raise cash and is looking to collect the overdue bills.
  • A deal with EBR is considered important for PBR since a large part of its debt is held by fuel distribution subsidiary BR Distribuidora, and investors would be more interested in considering an IPO of Distribuidora if the debt is resolved.
  • Now read: Petrobras - Petroleo Brasileiro S.A. 2017 Q2 - Results - Earnings Call Slides


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