Lupatech Extends Rally on Upcoming Brazil Oil Bid Round
Lupatech SA (LUPA3), a Brazilian oil- services provider, extended a rally today as investors bet it will win new business from companies buying exploration licenses in a bidding round in May.
Lupatech, based in Caxias do Sul, jumped 14 percent to 2.50 reais at 12:29 p.m. in Sao Paulo, extending gains this year to 51 percent. The stock soared 24 percent on Jan. 18 after announcing that Thiago Piovesan took over as Chief Financial Officer.
“With the new bid round the outlook is positive,” Bruno Piagentini Caloni, an analyst at brokerage Coinvalores, said by phone from Sao Paulo. “The market is viewing the management changes well.”
Last year Lupatech acquired San Antonio Brasil to expand into the onshore drilling and services market. The company also sells equipment and services for offshore production facilities. Brazil plans to sell 172 exploration blocks on land and off the country’s northeastern coast in May.
To contact the editor responsible for this story: James Attwood at email@example.com