Petrobras "overweight"

07/01/04 - J.P. Morgan Securities

LONDON, July 1 (New Ratings) – Analysts at JP Morgan Securities maintain their "overweight" rating on Petrobras (PBR).

In a research note published this morning, the analysts mention that Petrobras’ Barracuda-Caratinga project has been delayed by about four-six months. The delay would result in an estimated production shortfall of 86kpbd in 2005, the analysts add. JP Morgan Securities expects the financial damages payable by Halliburton for the delay would offset the negative impact on Petrobras’ earnings.