Petroleo Brasileiro Petrobras SA (ADR) (PBR), Diamond Offshore Drilling Inc (DO): Who Will Benefit From Brazil’s Pre-Salt Region?

For Diamond Offshore Drilling Inc (NYSE:DO), Brazil is a very important factor to its overall business. From 2010 to 2012 the percentage of Brazilian revenues increased from 36.8% to 46.1%. Because of Diamond Offshore’s strong ties with Petrobras, Diamond Offshore yielded 33.3% of its total revenues from that company. Diamond Offshore, who is 50.4% owned by Loews, received 12.5% of the company’s revenues from Brazilian company OGX Petroleo e Gas. The 12.5% earned through OGX Petroleo e Gas coupled with the 33.3% from Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) totals 45.8% of its 2012 revenues from these two Brazilian companies.

As Brazil is looking to develop its Pre-Salt region over the next 10 to 15 years, this will create outstanding opportunities for many companies. Three companies looking to reap the rewards of Brazil’s transformation are Petrobas, Halliburton and Diamond Offshore Drilling Inc (NYSE:DO). As each of these companies will directly benefit from the Brazil’s transformation, look for increases in earnings and revenues moving forward.

The article Who Will Benefit From Brazil’s Pre-Salt Region? originally appeared on Fool.com and is written by Jeff Williams.

Jeff Williams has no position in any stocks mentioned. The Motley Fool recommends Petroleo Brasileiro S.A. (ADR).

Jeff is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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