Peter Millard – Bloomberg Businessweek, 06/14/2012
Petroleo Brasileiro SA (PETR4) is the worst investment among the world’s biggest oil companies this year as Brazil’s state-controlled producer suffers delays and cost overruns developing the largest oil finds in more than a decade.
Petrobras, as the world’s biggest producer in waters deeper than 300 meters (984 feet) is known, has lost 19 percent for investors this year in U.S. dollar terms, the worst performance by oil companies with a market value of more than $50 billion, according to data compiled by Bloomberg. Colombia’s Ecopetrol SA (ECOPETL) returned 41 percent and Cnooc Ltd., China’s biggest offshore producer, yielded 10 percent, marking the biggest winners.
Petrobras slashed its 2020 production target by 11 percent yesterday and said its developments, mainly offshore, will cost $141.8 billion, 11 percent more than planned. The company, based in Rio de Janeiro, has had the biggest drop in production per share over the past two years of the 10 biggest oil companies after a $70 billion share offering in 2010, according to Bloomberg Industries data.