Tokai Fuji Brokerage comment on Summer share offering plans for Petrobras

Tokai Fuji Brokerage say Brazilian state-run Petrobras plans to complete its capitalization plan by end-July

Tokai Fuji Brokerage say Brazilian state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR) plans to complete its much-anticipated capitalization plan by end-July, CFO Almir Barbassa said late Friday.

Petrobras registered a fourth-quarter net profit of 8.1 billion Brazilian reals ($4.51 billion), up from BRL7.36 billion in the year-ago quarter.

The fourth-quarter net profit exceeded the median estimate of eight analysts polled by Dow Jones Newswires, which forecast net profit at BRL7.21 billion.

In a statement, Petrobras said higher international oil prices and increased domestic demand for diesel fuel and gasoline helped boost the company's bottom line in the fourth quarter.

The company also recorded net revenue of BRL47.6 billion in the fourth quarter, down 25% from BRL63.3 billion in the fourth quarter of 2008.

Earnings before interest, taxes, depreciation and amortization in the fourth quarter were BRL15.0 billion, up from BRL8.65 billion in the year-ago quarter.

The capitalisation proposal is part of a set of measures renovating Brazil's regulatory outline for the oil and natural gas industry. ‘’Petrobras expects the capitalization measure to be approved in Congress by end-May’’ Analysts at Tokai Fuji Brokerage stated reported.

"They are working with July because it appears the finest time to do the share offer," Tokai Fuji Brokerage said whilst reviewing the company’s capitalization.

Because of the expected size of the share offer--which some analysts have estimated could be as high as $75 billion--timing is very important, the executive said.

Many capital markets in the Northern Hemisphere will be in the midst of summer holidays in August, while September and October will be dominated by Brazil's presidential election.

Petrobras also expects to have final details on its 2010-2014 strategic investment plan before the capitalisation goes ahead, Tokai Fuji Brokerage added. The plan has initially projected investments at between $200 billion and $220 billion.

"They will need to have the tactical plot finalised before the share offer, because it will have to be taken to the market," Tokai Fuji Brokerage's Head of Trading, Brian McCarthy said.

In the 2009-2013 period, Petrobras planned investments of $174.9 billion.