Brazil: Petrobras has devalued US$17.33 billion since the elections

Petrobras has lost R$84.8 billion (US$17.33) in market value since the results of the second round of the presidential elections.

It went from R$448.7 billion on October 28, 2022, to R$363.9 billion on Friday (May 12, 2023).

The survey was conducted by Einar Rivero, TradeMap’s commercial head, upon request from Poder360.

On the first business day after the 2nd round of voting, the state-owned company devalued R$34.2 billion to R$414.5 billion.

The drop in the company’s shares on the B3 (São Paulo Stock Exchange) intensified when they were valued at R$301 billion on December 14 last year.

This price was the lowest recorded since May 4, 2021.

The survey of the company’s market value does not consider the dividends paid by the company during the period.

In percentage terms, the drop in the market value of Petrobras after the victory of President Luiz Inácio Lula da Silva (PT) was 18.9% until Friday (May 12, 2023).

Ibovespa, B3’s main index, dropped 5.30% in the same period.

Petrobras recovered part of the losses in 2023.

The market value rose from R$ 345.9 billion on December 30 to R$363.9 billion on Friday (May 12).

The company’s preferred shares fell 2.68% at 11:50 am this Monday (May 15, 2023).

The common shares fell 3.17%.

Petrobras will discuss the methodology of gasoline and diesel prices this week.

The changes need the approval of the executive board of the state company. According to a statement, any changes “will be based on technical studies.

RISK OF FURTHER DROP

The numbers show a worsening trend in the market value of the state-owned company.

The oil price on the international market indicates a slowdown in economic activity worldwide, boosted by China’s economy.

The price of a barrel of Brent crude is close to US$75.50. On December 30, it was worth US$85.91.

Lula’s government wants Petrobras to limit fuel price increases.

The expectation is that the state-owned company will have revenue frustration with the new price policy.

In addition, the company intends to focus management on investment in refining and renewable energy.

Since the Michel Temer (MDB) government, efforts have been aimed at getting oil out of the ground.

With information from Poder360

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