Benefits of high oil prices on Petrobras' (PBR) 1Q earnings will likely
be mitigated by the government's pricing policy, says Deutsche Bank. The
refining division should report EBITDA just shy of break even, as higher crude
oil wasn't fully passed through to consumers due to price controls, firm says.
PBR
had to import gasoline during the period due to high demand and lower ethanol
inventories, and situation worsened in 2Q, Deutsche says. Next major event for
PBR is release of five-year strategic plan, scheduled for this month; Deutsche
expects $265B capex. PBR reports 1Q after the close.