The Zacks Analyst Blog Highlights: Petroleo Brasileiro, Royal Dutch Shell, W&T Offshore, Dril-Quip and Luxfer Holdings

The Zacks Analyst Blog Highlights: Petroleo Brasileiro, Royal Dutch Shell, W&T
                   Offshore, Dril-Quip and Luxfer Holdings

PR Newswire

CHICAGO, Aug. 20, 2013

CHICAGO, Aug. 20, 2013 /PRNewswire/ --Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Petroleo Brasileiro SA
(NYSE:PBR-Free Report), Royal Dutch Shell plc (NYSE:RDS.A-Free Report), W&T
Offshore Inc. (NYSE:WTI-Free Report), Dril-Quip Inc. (NYSE:DRQ-Free Report)
and Luxfer Holdings PLC (NYSE:LXFR-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of
the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Petrobras to Shed $2.1B in Assets

The board of directors of the Brazilian energy behemoth, Petroleo Brasileiro
SA or Petrobras S.A. (NYSE:PBR-Free Report), has sanctioned the sale of its
$2.1 billion petrochemical, oil properties. Moreover, the company is planning
to wrap up its property sale by the second half of this year, in order to
support its $9.9 billion asset divestment program.

As per the authorization, Petrobras will hand over its entire ownership (35%)
in block BC-10 to Sinochem Group – a conglomerate in China – for a total
consideration of roughly $1.54 billion. Europe's largest oil company, Royal
Dutch Shell plc (NYSE:RDS.A-Free Report) and India's state-owned company, Oil
& Natural Gas Corp. ("ONGC"), hold 50% and 15% stakes in the block,
respectively. 

Included in the sanction, Petrobras will divest all of its interests in
Petroquimica Innova, for a consideration of $372 million to Videolar SA.
Innova is a petrochemical firm that engages in the manufacture of styrene,
ethylbenzene and polystyrene, which are utilized to produce household
appliances and other products.

Moreover, as part of the permission given by the board, Petrobras will sell
its 33%, 100% and 60% ownerships in MC 613, GB 244 and EW910 blocks,
respectively, for about $185 million. All the blocks are based in the U.S.
Gulf of Mexico.

The remaining stakes in the EW910 property is owned by W&T Offshore Inc.
(NYSE:WTI-Free Report), an independent energy firm. Moreover, the remaining
67% interest in the MC 613 asset is held by Royal Dutch Shell. The buyers of
the properties have not been declared yet.

Management declared that the sales are subject to the approval of the
regulators.

Headquartered in Rio de Janeiro, Petrobras' activities include: exploration,
exploitation and production of oil from reservoir wells, shale and other
rocks, and refining, processing, trade and transport of oil and oil products,
natural gas and other fluid hydrocarbons, in addition to other energy-related
activities.

The Brazilian government, the company's majority shareholder, has a history of
political interference in Petrobras' affairs. We do not expect this situation
to change in the short- to medium-term. This may impact the company's
performance, since the interest of the government might not coincide with that
of the minority shareholders.

Petrobras currently retains a Zacks Rank #5 (Strong Sell), implying that it is
expected to significantly underperform the broader U.S. equity market over the
next 1 to 3 months.

Meanwhile one can look at energy firm Dril-Quip Inc. (NYSE:DRQ-Free Report)
that offers value. The stock currently sports a Zacks Rank #1 (Strong Buy).

Luxfer Holdings Falls to Strong Sell

Zacks Investment Research downgraded Luxfer Holdings PLC (NYSE:LXFR-Free
Report) to a Zacks Rank #5 (Strong sell) on Aug 16, 2013.

Why the Downgrade?

Shares of Luxfer Holdings have dropped 0.5% since the company reported its
second quarter of 2013 results on Aug 12. Adjusted net income plummeted 8.3%
year over year to $10.0 million. Diluted earnings per ADS came in at 36 cents,
behind the Zacks Consensus Estimate of 40 cents.

Revenue for Luxfer Holdings decreased 2.1% year over year due primarily to
weak results from the Elektron Division and $1.0 million negative impact from
foreign currency translation. Gas Cylinders Division's revenue grew 13.7% year
over year while Elektron Division posted 15.3% year-over-year decline.

Talking of expenses and margins, cost of sales in the quarter represented
75.2% of total revenue, a slight increase from 74.9% reported in the year-ago
quarter. Operating margin in the quarter was 12.3%, down 190 basis points,
year over year.

For fiscal 2013, management of Luxfer Holdings anticipates trading profit to
be $60.5 million-$63.5 million in 2013, down $5.0 million-$8.0 million from
2012 results. Weak results are anticipated from European automotive and the
U.S. defense markets in the quarters to come.

In the last 7 days, the Zacks Consensus Estimate for Luxfer Holdings has gone
down by 10.1% to $1.51 for 2013 and has declined 9.2% to $1.78 for 2014. Also,
we have an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of -6.6%
and -2.8% for 2013 and 2014, respectively.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of
the Day pick for free.



About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative
analysis to help investors know what stocks to buy and which to sell for the
long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded
stocks. Our analysts are organized by industry which gives them keen insights
to developments that affect company profits and stock performance.
Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the
latest analysis from Zacks Equity Research. Subscribe to this free newsletter
today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978. The later formation of the Zacks Rank, a proprietary stock picking
system; continues to outperform the market by nearly a 3 to 1 margin. The best
way to unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email newsletter; Profit
from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED
to be worth your time! Register for your free subscription to Profit from the
Pros.



Get the full Report on PBR - FREE

Get the full Report on RDS.A - FREE

Get the full Report on WTI - FREE

Get the full Report on DRQ - FREE

Get the full Report on LXFR - FREE



Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities
(including a broker-dealer and an investment adviser), which may engage in
transactions involving the foregoing securities for the clients of such
affiliates.



Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com



Past performance is no guarantee of future results. Inherent in any investment
is the potential for loss. This material is being provided for informational
purposes only and nothing herein constitutes investment, legal, accounting or
tax advice, or a recommendation to buy, sell or hold a security. No
recommendation or advice is being given as to whether any investment is
suitable for a particular investor. It should not be assumedthat any
investments in securities, companies, sectors or markets identified and
described were or will be profitable. All information is current as of the
date of herein andis subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment
Research does not engage in investment banking, market making or asset
management activities of any securities. These returns are from hypothetical
portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced
monthly with zero transaction costs. These are not the returns of actual
portfolios of stocks. The S&P 500 is an unmanaged index. Visit
http://www.zacks.com/performance for information about the performance numbers
displayed in this press release.



SOURCE Zacks Investment Research, Inc.

Website: http://www.zacks.com