Morgan Stanley Is 'Fine Tuning' Petrobras Estimates

In a report published Friday, Morgan Stanley analysts maintained an Equal-Weight rating on

, while trimming their 4Q14 estimates for the company. The company is scheduled to report its 4Q14 estimates on April 22. The EBITDA estimates for 4Q14 and 2014 have been reduced from R$20,641 to R$16,686 and from R$68,271 to R$64,316, respectively. The EPS estimates for 4Q14 and 2014 have been reduced from R$0.54 to R$0.30 and from R$1.78 to R$1.54, respectively. The estimates have been trimmed to reflect "lower margins on the refining segment vs. our prior expectations," the analysts said. "Still, we forecast the refining segment to deliver positive Ebitda, following 14 quarters of negative print, driven by the sharp decline of global oil prices and higher domestic fuel prices in local currency." On April 22, apart from the 4Q14 results, "a lot of focus" would be on "the size of the write-off and/or impairment that will be booked on the back of the ongoing corruption investigation," the analysts added.