Petrobras (PETR4) returns BRL 439m, IRB (IRBR3) has cut price target, Cielo (CIEL3) falls 7.7% on the stock market after 3Q22.

Petrobras (PETR4) reported this Tuesday (1st) that it recovered R$439 million in the last quarter through release agreements. Amounts were received from companies such as Camargo Corrêa, Novonor (formerly Odebrecht) and SBM, as well as a cooperation agreement with Pedro Barusco.

Most of that amount comes from Camargo, which returned R$235 million to the oil company. SBM transferred R$113.7 million, while Novonor paid R$71.3 million.

Fees are due Petrobras’ victim status in crimes investigated under Car wash operation. THE Petrobras declares that he has taken appropriate measures in search of adequate compensation for the damage caused to him.

In addition to these recoveries, Petrobras recovered more than R$6.7 billion in cooperation, leniency and repatriation agreements. The conditions were concluded with the Federal Ministry of State (MPF), as well as with the Office of the Federal Controller (CGU) and the Office of the Federal State Attorney (AGU).

Besides that Petrobrassee other interesting things this Thursday:

Genial cuts price target on IRB Brasil (IRBR3)

• In a document published today, Genial Investimentos revised its price target on IRB Brasil (IRBR3) from R$1.20 to R$0.99. The broker also maintained a sell recommendation on the reinsurer’s stock.
• The decision followed an analysis of the report published by the company on October 20, which showed a net loss of BRL 164.5 million, accumulating BRL 224 million in the first two months of the third quarter of 22.
• “We thought 3Q22 could come in with an improvement RBI results as its largest client, BB Seguridade (BBSE3), reported a significant improvement in agricultural insurance in 2Q22. However, after these announcements, it became clear that the situation remains very challenging for RBI and that the recovery process should take place gradually”, comments the report.
• For the three-month balance, Genial expects a loss of R$297 million, a 21% improvement compared to 2Q22 and a 90% deterioration year-on-year. Analysts estimate that the loss ratio will be 121%, which is an improvement of 3.2 points and a deterioration of 1.7 points year-over-year.

Cielo (CIEL3) is down 7.7% on the day

• After the presentation of the quarterly balance sheet, shares of Ciel (CIEL3) fell 7.7%, to R$5.49. This effect was noted even though the results were well accepted in the market.
• In the last three trading sessions, the financial company’s shares have risen by 10% and now total 154% for the year, representing the best performance of the Ibovespa.
• Ciel’s balance sheet (CIEL3) reported a profit of R$422 million – an increase of 100% in the year – and R$653 million in financial results – a decrease of 147.9% in the accumulated twelve months.

MXRF11 manager sees promising outlook for 2023

• Also this Tuesday, XP Asset, Manager Maxi Income FII (MXRF11)was optimistic about the direction of real estate funds for 2023. Managers explained that, even with Selić at a level of 13.75%, the real estate sector has plenty of room for sustainable growth, given Brazil’s housing deficit of nearly 6 million homes.]
• For management, expectations of reduction inflation for 2023 and 2024 and the real possibility of a further reduction in the basic interest rate represent good prospects for the real estate sector.
• In the balance of the third quarter, the fund MXRF11 it had an average appreciation of R$ 0.329 per share. Already dividends were R$0.33 per paper in the quarter, an increase of more than 3% over the past three months.
• In addition, the fund has accumulated a monetary correction reserve of R$ 38.08 million, corresponding to 0.172 per share, which must be distributed to shareholders in the form of earnings.

Companies of the JBS Group (JBSS3) signed a financing agreement worth 1.5 billion dollars

• JBS (JBSS3) announced this Tuesday (1st) that group companies have entered into a USD 1.5 billion syndicated financing agreement. The contract was concluded with the Canadian Bank of Montreal, with a maturity of five years.
• According to material facts released by the company, the amount will be used to pay a financing the previous one was made in 2018. At that time, the amount involved in the operation was 900 million US dollars, according to the document.
• The contract in question was signed by JBS USA Lux SA, JBS USA Food Company, JBS Australia Pty Limited and JBS Food Canada ULC with the Royal Bank of Canada. The bond’s original maturity is set for 2023.
• operation syndicated loan abroad it differs from the issuance of debt securities, for example, in that it has shorter payment terms – usually up to five years. Companies such as Embraer ( EMBR3 ) and Banco Pan ( BPAN4 ) have resorted to the solution in recent months.
• The release of JBS Group’s quarterly balance sheet is scheduled for Thursday next week, 10. The market expectation is that the performance of the meatpacking company is below that recorded last year and even in the previous quarter.
• For Genial Investimentos, however, JBS’s diversification should ensure less volatility for the company’s results.
• Even if the main driver of its operations is the United States market, the company’s presence in Brazil, Australia, Europe — along with exposure to several other nations — “will still result in strong numbers for the largest meatpacking plant in the world.”
• On shares of JBS it ended this Tuesday (1st) quoted at R$24.90, practically the same result as the others. In the month of October, shares had a negative change of 3.34%, or 30% in a six-month comparison.
• Genial maintains a buy position on JBS, with a price target of R$50, aiming for an upside potential of around 100%.

Mercado Livre (MELI34) changes the delivery time for blocked products

• ON Free market (MELI34), e-commerce platform, has changed product delivery deadlines in some locations, as a preventive measure due to the unpredictability of protests against the results of the polls in this 2022 presidential election, in which Luiz Inácio Lula da Silva (PT) emerged victorious. Protesters blocked federal highways at more than 240 points and questioned President Jair Bolsonaro’s defeat. The information is from the newspaper Valor Econômico.
• For Valor, Mercado Livre informed in a note that, “given the need for new adjustments, it will inform its customers about the possible expansion delivery date. The company reinforces its commitment to its customers and to meeting the announced deadlines, which guarantee the quality of services and the fastest delivery in Brazil”.
• THE Federal Highway Police (PRF) released 419 roadblocks in the country and applied 438 assessments by early Tuesday evening (1), according to information posted on the agency’s Twitter account. Despite this, according to the PRF, there were bans or blockades in 20 countries at the time.

CSN (CSNA3) is under pressure, analysts say

• THE CSN (CSNA3) announced the results of the third quarter on Monday (31. The figures were in line with market expectations. However, according to the interpretation of BTG Pactual analysts, the operating indicators presented had some negative points
• Between August and September, CSN recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of R$ 2.7 billion. The figure is 17% lower compared to the previous quarter, but in line with the forecasts of BTG analysts.
• The house informs that it is CSN’s EBITDA the drop in iron ore and domestic steel prices had a negative impact.
• “Cost fundamentals remain inflated (e.g. metallurgical coal) and are slowly adjusting relative to revenues (falling prices and below-average volumes),” the analysts explain.
• The House informs that, separately, CSN delivered cash flow to the relevant shareholder of R$3.16 billion in the quarter. Even so, analysts said much of this result came from one-off working capital gains, “which dampens our enthusiasm.”
• BTG further states that management is announcing another reduction in iron ore target volume for this year (from around 37 million tons to 34 million tons) and is revising its forecast for CSN capex (from R$ 4.1 billion to R$ 3 billion).
• On the debt side, CSN also increased its leverage target, from 1.75x to 1.95x, “which is still reasonably limited, but again puts the company in a different position to global peers – in our view the company is prone to punishing investors”.
• In light of the deteriorating macro environment, increasing leverage and recurring operational issues, BTG analysts see higher/better value in other areas of their coverage

M. Dias Branco (MDIA3) makes its first international acquisition

• THE M. Dias Branco (MDIA3), which dominates the pasta and biscuit trade in Brazil, has begun its international expansion with the purchase of the Uruguayan brand Alimentos Las Acacias. The new portfolio company has annual sales of over R$120 million and an Ebitda margin of 14%.
• According to Gustavo Lopes Theodozio, vice president of control, investment and investor relations, this is the company’s “first step” in its internationalization strategy. Today, the company operates in more than 40 countries through the export of products.
• “Uruguay was in our plan because in the process of expansion it is natural to look for opportunities in nearby countries, then strong brands, companies with added value and good margins. In addition, it is a different culture, a different language, that is, the first step to serve a new consumer, in a different language, which will allow the company to continue with its expansion plan,” said Theodozio.
• The acquisition agreement was signed on Monday, and the integration of the brands will begin on Wednesday. The transaction will not need the approval of the Uruguayan regulatory authority because, among other things, this is M. Dias’ first acquisition in the country.
• “M. Dias has a much higher investment capacity than Las Acacias, to increase production in Uruguay, the product portfolio. Undoubtedly, with the potential of M. Dias, his knowledge of the sector and the wheat chain, the company will be able, with new investments, to expand to the Uruguayan market”, stated Theodozio.

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