Petrobas, Parex Resources – Complexities of foreign jurisdiction hydrocarbon investing
For the past 12 months, they generated about USD$37 billion in cash.
The history of Brazil and Petrobras I will not explore in this post, but needless to say, it is quite the story about how very profitable state-owned resource enterprises are, not shockingly, not optimized for shareholder returns.
We fast forward to Parex Resources (TSX: PXT), which, just like Petrobras, on paper looks extremely cheap.