Amit Kupfer
United Kingdom
From $PBR.A (Petroleo Brasileiro ADR) 2026-2030 business plan: "The projects continue to stand out for their dual resilience (economic and environmental) and high economic value, comprising a portfolio viable under scenarios of low oil prices in the long term, with the ๐ฉ๐ซ๐จ๐ฌ๐ฉ๐ž๐œ๐ญ๐ข๐ฏ๐ž ๐›๐ซ๐ž๐š๐ค๐ž๐ฏ๐ž๐ง ๐๐ซ๐ž๐ง๐ญ ๐ฉ๐ซ๐ข๐œ๐ž ๐จ๐Ÿ ๐ญ๐ก๐ž ๐ฉ๐จ๐ซ๐ญ๐Ÿ๐จ๐ฅ๐ข๐จ ๐š๐ฏ๐ž๐ซ๐š๐ ๐ข๐ง๐  ๐”๐’$ ๐Ÿ๐Ÿ“ ๐ฉ๐ž๐ซ ๐›๐š๐ซ๐ซ๐ž๐ฅ. * Brent Crude oil price today: $63.60 "Due to increased operational efficiency and higher production deliveries throughout the year, the current ๐จ๐ข๐ฅ ๐ฉ๐ซ๐จ๐๐ฎ๐œ๐ญ๐ข๐จ๐ง ๐ฉ๐ซ๐จ๐ฃ๐ž๐œ๐ญ๐ข๐จ๐ง ๐Ÿ๐จ๐ซ ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ“ ๐ข๐ฌ ๐š๐ฉ๐ฉ๐ซ๐จ๐ฑ๐ข๐ฆ๐š๐ญ๐ž๐ฅ๐ฒ ๐Ÿ.๐Ÿ’ ๐ฆ๐ข๐ฅ๐ฅ๐ข๐จ๐ง ๐›๐š๐ซ๐ซ๐ž๐ฅ๐ฌ ๐ฉ๐ž๐ซ ๐๐š๐ฒ (๐›๐ฉ๐)" Look at the infographic below. "Petrobras forecasts reaching, during the five-year period, ๐š ๐ฉ๐ž๐š๐ค ๐จ๐ข๐ฅ ๐ฉ๐ซ๐จ๐๐ฎ๐œ๐ญ๐ข๐จ๐ง ๐จ๐Ÿ ๐Ÿ.๐Ÿ• ๐ฆ๐ข๐ฅ๐ฅ๐ข๐จ๐ง ๐›๐ฉ๐ ๐ข๐ง ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ–". It is currently selling for a ~5x FCF multiple, with zero credit given for the quality of its assets (which are the best in the world), its growth prospects, and the high margins the company generates, even in the current somewhat depressed oil price environment. Consider the possible compounding effect of higher production coupled with moderately higher oil prices by 2028.
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