Petro Rio S.A. HRTPF

RE:RE:Where will the future of HRT? The shareholders have an exit?

[Rzbern]

In my view the company announcing that is storing oil in the FPSO has some considerations:

 

It is possible that they not finding a buyer at the value that can sell, even in 0x0, but hold the operational running without burning cash. I think it is difficult because the market already offer below this equilibrium value of questionable breakeven of HRT. And as matter said, the company indirectly gives the message to the market that the current Brent price levels, the only asset, octopus, notably in end of life, which still had extracted some profit, now is officially producing money injury and therefore the company has no other asset that makes it viable. Thus, as an option or no option they decided to store the oil in the FPSO. HRT has no financial capacity to store oil indefinitely for a simple reason, they can not afford the costs of chartering FPSO without money borning in the cash. Will not hire other vessels to continue storage, because with this strategy would burn cash faster. If the global scenario of oil depression lasts more time, they will have to sell the oil at any price to relieve the FPSO to try to continue and that would be even more questionable. Continue producing injury? At current prices the company can not continue operating Polvo oil field. What to do with the appeal raised in debentures? They will use the resources of debentres to buy another active producer? Now, in this bad moment? They can not. Will buy dollar? What is the fate of this resource? In this scenario the company is not seeking another way out, should be liquidated.