Petrobras (Ba2/BB-/BB-). The most undervalued O&G company in the world among majors

th-largest in the 2020 Global Fortune 500.Petrobras controls significant oil and energy assets in 16 countries in Africa, North America, South America, Europe, and Asia.It is known worldwide for its ultra-deep water oil exploration technology.Petrobras had its best operating performance in 2020, overcoming considerable challenges from the pandemic, contraction in global demand for fuels and low prices.The company reached annual production records of 2.28 mbpd of oil and LNG and 2.84 mboed of total production.

Previous production records had been reached in 2015, of 2.23 mboed and 2.79 mboed, respectively.We believe Petrobras bonds will outperform in the near future recovering from the recent sell-off caused by surprising management.