HRT Participacoes em Petroleo SA (HRTP3) plunged to a record and trading volume surged as the company abandoned a third well this year after failing to find crude.
The oil and gas company’s shares sank 13 percent to 1.75 reais at 11:49 a.m. in Sao Paulo, the lowest since the stock started trading in October 2010. Volume was 1.4 times the three-month daily average. The Ibovespa stock benchmark added 1.2 percent.
HRT is abandoning a well in in Namibia after finding no oil to produce, according to a regulatory filing on July 19 after the market closed. The company already had left one dry well in the African country and another in northern Brazil’s Solimoes Basin in May.
UBS AG recommended selling the stock after the announcement and cut its 12-month price target to 1.80 reais from 5.50 reais, citing concern regarding the company’s earnings outlook.
HRT, based in Rio de Janeiro, had dropped 63 percent this year, while the Ibovespa (IBOV) retreated 21 percent during that same period.
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