For the past couple years, it was pretty easy to decide on whether to invest in Petrobras (PBR 1.43%) or other integrated majors like Total (TTE 1.39%) or BP (BP 0.71%). With constant issues with labor costs and government regulations that pretty much make losses on the sale of gasoline and diesel a foregone conclusion, Petrobras was likely the last one on any big oil shopping list. However, if you look deeper into the numbers at Petrobras, there were some small seedlings that might suggest the company might finally start to become a more profitable company.
One of the major changes at Petrobras is that more and more of its production is now coming from the low-decline, high margin pre-salt formaiton of the southern coast. Find out why this is an important development for the company, some other minute changes that signal a turnaround, and whether Petrobras is worthy of being put in the discussion with other the likes of Total and BP again by tuning into the video below.
