October 7, 2022
Vale and Steel stocks rise after yesterday's drop, Millius saw a strong rally;  M.Dias Branco offers 4% after purchase

Vale and Steel stocks rise after yesterday’s drop, Millius saw a strong rally; M.Dias Branco offers 4% after purchase

São Paulo – Verbs of the Valley (VALE3) rises more than 1% after falling by about 5% the day before, in a recovery day for iron ore price. However, the scenario remains cautious for the company’s assets, now with Morgan Stanley reducing the recommendation on ADRs for miners, seeing a lack of catalysts in the short term. CSN Mineração shares (CMIN3), which also lowered its recommendations, also advanced about 0.7%.

However, steel mills such as Usiminas (USIM5) and gerdau (GGBR4) reported more expressive gains, with an increase of about 3% for USIM5 and about 1.5% for GGBR4, while CSN (CSNA3) runs close to stability.

I also highlighted those in Méliuse (cash 3), which recovered and rose more than 4%, after the US bond yield fell on that date, after five sessions of advances yields. Higher interest rates tend to particularly affect the technology sector as these companies have longer cash flows and are more affected by higher long-term interest rates.

Meat Manufacturers Inventory, with an emphasis on JBS (JBSS3) and for Minerva (BEEF3Climb up hard. The day before, Santander had highlighted Minerva as the top pick in the sector.

The actions of Ambev (ABEV3) is up more than 1% on news of higher prices and M.Dias Branco is up nearly 4% with the announcement of the acquisition of Latinex. Check out more highlights:

According to information from Folha de S. Paulo, Ambev, owner of brands such as Skol, Brahma, Antarctica, Bohemia and Stella Artois, has increased the price of beer.

According to the report from restaurant owners in São Paulo, from Friday (1) there will be a 5% to 6% increase in beer and beer, including disposable packaging. Other press releases that the report can access talk about transfers from Monday (27) or from Saturday (2).

The Brazilian Association of Bars and Restaurants (Abrasel) confirmed the price increase and stated that the adjustment should be in line with the inflation accumulated in the past 12 months, around 10%.

According to Credit Suisse, the news is positive, supporting pricing strength in the industry to mitigate the 2022 headwinds. “Prices vary across channels, brands, packages, and regions, noting AmBev’s more flexible approach to launch,” analysts assess.

m days white (MDIA3)

M. Dias Branco, the leader in the biscuit and pasta markets, announced Tuesday that it has signed a contract to acquire Latinex at an initial price of R$180 million, which could reach R$272 million when the goals are met. set forth in the agreement.

According to a related fact, Latex enhances the presence of M. Dias in “health food” (healthy food) and snacks, as well as its entry into seasoning strips, sauces and condiments.

West Wing (WEST3)

On Tuesday, Westwing signed a memorandum of understanding to buy 100% of the share capital of Zarpo, an online travel agency. The company works in partnership with hotels, resorts, lodges, and airlines. The value of the operation is not disclosed.

According to Westwing, Zarpo operates through a model based on three main pillars: organization, attractive pricing, and service excellence.

“The acquisition of Zarpo (through the completion of the process) is another important step in our strategy to expand into lifestyle categories with great commitment to our mission: to inspire every person to discover more beauty in their life,” says the company.

With this strategy, Westwing intends to continue its controllable market expansion journey that allows it to conquer new customers through commercial synergies between platforms and better serve its base of more than 9 million registered users of Westwing.

Engie Energias Complementares Participações, controlled by Brazilian Engie, announced on Tuesday the acquisition of Assu Sol Geração de Energia SPE, the company that owns the Assú Sol photovoltaic complex project, in Rio Grande do Norte, according to a statement.

The total value of the operation is R$41.25 million, with payments made in accordance with key milestones related to the project development schedule.

According to the statement, the estimated total capacity of the project is 750 MW and will be developed in the same area in which the company has been operating since 2017, the Assú V photovoltaic plant.

Vale informed the market that all 39 employees who were at the Totten Underground Mine, in Sudbury, Ontario, Canada, Already on the roof. The miner said that the rescue operation was completed safely and everyone is fine.

“Bringing 39 safe and healthy employees home has been our top priority, and we are delighted that our contingency plan has worked to achieve this result. Everyone is now safe and deserve our deepest respect for their perseverance,” said Eduardo Bartolomeo, President of Vale.

Staff at the mine were on a Sunday shift when axle damage disrupted the usual transmission system (a type of elevator). The personnel left the mine with the support of the Vale rescue team through a secondary exit ladder system.

Crude prices remain on the company’s radar. You are Commodity futures recovered part of the losses After the decline at the start of the week, though, China’s energy shortage worsened, reinforcing expectations of a decline in steel production in the country.

In Singapore, iron ore futures rose 1.5% to $114.45 a ton at 3:28 pm local time, after falling 7.4% on Tuesday, while prices in China rose 2.4%. Steel futures also closed higher in Shanghai.

AES Brazil (AESB3)

AES Brasil, in a statement to the market, informed that it has raised 1.12 billion Brazilian reals in the subsequent share offering.

AES Brasil, in which US energy company AES Corp. is a major shareholder, announced the sale of 93 million new shares for R$12 per share, roughly 11% off the previous day’s close of R$13.48.

He informed that the shares will start trading on the Sao Paulo Stock Exchange on September 30. The company intends to use the proceeds to fund the growth of its renewable energy portfolio.

AES Brasil currently operates hydro, wind and solar power plants in Brazil, with a total installed capacity of 4.4 GW.

Investment banks Bradesco BBI, Itaú BBA, Credit Suisse Brasil, Santander and HSBC coordinated the offer.

Eletrobras informed that the total amount of credit that The company will receive from the Fuel Consumption Account (CCC) in the amount of R$ 2.67 billion, after Anil’s deliberations.

The decisions result from the end of eight inspections (periods one and two) referring to Amazonas Energia, Ceron, Eletroacre and Boa Vista Energia, covering the period from July 2009 to April 2017, according to a company statement.

“It has been established by Aneel that Eletrobras will receive this amount in 60 monthly installments, to be updated by the IPCA, with repayment commencing in the CDE 2022 budget,” the company said.

The Electricity Company also stated that Enil will inform the Ministry of Mines and Energy of the content of the decision.

Azul has announced that it has ordered up to 10 Cessna Gran Caravan EX aircraft, from US company Textron TXT.N, for use by its subsidiary Azul Conecta airline. The company said in a press release that the order includes five confirmed orders and five recall options.

Azul said two planes will arrive in Belo Horizonte on October 6 and three more by the first quarter of 2022. The planes are configured to carry up to nine passengers, plus two crew members.

Azul Conecta owns 14 Cessna Gran Caravan, as well as three cargo ships of the same manufacturer. The company flies to more than 25 destinations in the country and is working to enhance Azul’s air network connectivity.

Renova Energia’s board of directors has agreed to hold an extraordinary general meeting on October 29 to decide on the proposed merger of its subsidiaries, in accordance with the merger protocol. If the deal is approved, the company will merge Chipley SP, Espra Holding, CMNPAR Fifty-Four, SF 123 and five Centrais Eólicas Itapuã.

Petrobras announced to the market that it has signed on Tuesday a lease agreement for the Bahia Liquefied Natural Gas (LNG) Regasification Plant (TR-BA) with the US company Excelerate, in the amount of approximately R$102 million, valid until December. 2023.

According to the state-owned company, the initiative is an important step in the process of opening up and increasing the competitiveness of the natural gas sector in Brazil, and is stipulated in the Terms of Commitment to the Endowment (TCC) signed with the Administrative Council. Economic Defense (KED) to build an enabling environment for the entry of new investors into the sector.

With negotiations concluded, Excelerate with support from Petrobras is seeking to transfer the licenses and permits needed to operate a new gas-to-gas regasification vessel on TR-BA. Once the company is operational, Petrobras will move its vessel with the same functionality as the TR-BA to the Pecém LNG Regasification Terminal in Ceará.

The company also informed that partner CNOOC Petroleum Brasil Ltda. (CNOOC) expressed interest in exercising an additional 5% premium purchase option, In the transfer of the cumbersome surplus production-sharing contract of the Buzios field, in the Santos Basin before the salt.

This purchase option has already been provided in the contract signed with the auction partners for the volume exceeding the agreement on the transfer of rights for the Búzios field, held on November 6, 2019. The company is still waiting to be located for CNODC Brasil Petróleo and Gas Ltd.. (CNODC).

The estimated amount that Petrobras will receive in cash upon closing of the operation for a portion of CNOOC, on a dollar basis at R$5.42 billion, will be $2.08 billion, as follows: (i) $1.45 billion in compensation, subject to contract modifications and; (2) $630 million to pay off the signing bonus, referring to CNOOC’s additional involvement. The values ​​will be updated until the closing date of the deal.

Still on the company’s radar, it announced the halt of gas production at the Manatee field located in the Camamo basin, Bahia state due to a leak in the onshore part of the export pipeline. The operation of the pipeline was interrupted, and the teams moved to repair it, with the pipeline expected to return by the end of this week.

Petrobras is the operator of the Manatee field with a 35% stake, in partnership with Enauta Energia (45%), GeoPark (10%) and Petro Rio Coral Exploration Petrolífero (10%).

(with Bloomberg, Reuters, and Estadão content)

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