In 2023, Brazil’s major federal companies, including Petrobras, Banco do Brasil, BNDES, Caixa, and Correios, saw their profits drop by 24% to R$182 billion ($36.4 billion).
This downturn occurred in the first year of President Lula’s third term. Petrobras notably experienced a 33% reduction in profit to R$124.6 billion ($24.92 billion).
However, the oil giant secured its global position as the world’s fourth-highest-earning oil company even as its earnings fell from the previous year.
Petrobras claimed the second spot as a state-owned entity, trailing only behind Saudi Aramco.
BNDES saw a 5% decrease to R$11.9 billion ($2.38 billion). Conversely, Banco do Brasil and Caixa Econômica Federal enjoyed financial growth.
They reported gains of 11.3% to R$35.5 billion ($7.1 billion) and 15.5% to R$10.6 billion ($2.12 billion), respectively.
Factors such as the effects of global oil prices on Petrobras and BNDES’s decision not to sell shares influenced these results, which align with the current administration’s preferences.
Petrobras identified falling oil prices and reduced sales margins as significant challenges, mirroring trends seen by global oil corporations.
BNDES preserved its financial health by not rushing into share sales under the new government.
Despite climatic challenges, Banco do Brasil attributed its success to increased service revenue, especially in agribusiness finance.
Correios reduced its losses by 22%
Caixa improved its performance through enhanced financial margins and controlled default rates, anticipating further growth from new initiatives.
Correios reduced its losses by 22% to R$596 million ($119.2 million), benefiting from lower expenses and better financial outcomes, partly due to lesser currency fluctuations.
However, concerns about potential government interference in state-owned companies persist, amplified by legal changes that facilitated politically influenced appointments.
This situation emphasizes the delicate balance between political influence and effective public sector management, underscoring the importance of strategic leadership for these enterprises’ positive impact on Brazil’s economy.