BRAZIL · STATE COMPANIES
Key Facts
- The country Brazil, where the federal government controls its largest oil company and two big banks.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
- What happened President Luiz Inácio Lula da Silva won a new term on Sunday 25 October 2026.
- The company Petrobras is worth R$800 billion (about US$148 billion), a record, since 14 October 2026.
- The output Own oil and gas output hit a record 3.51 million barrels a day in the third quarter.
- Not announced No official change at Petrobras, Banco do Brasil or Caixa had been announced by 1 November.
Petrobras, the oil company that Brazil’s federal government controls, is heading into the new term of President Luiz Inácio Lula da Silva at record highs. It was worth R$800 billion (about US$148 billion) at the close of trading on Wednesday 14 October 2026.
For US readers, the open question is whether Lula replaces the leaders of Petrobras and of two state banks, Banco do Brasil and Caixa. No official announcement had been made by Sunday 1 November 2026, and our Brazil coverage will report any decision.
In Plain English
Petrobras is Brazil’s national oil company, and the federal government is its largest shareholder. Its president, Magda Chambriard, is the chief executive and has led it since May 2024.
Banco do Brasil is a large bank that the federal government controls, and Caixa Econômica Federal is a bank that the government owns. Together with the oil company, they are the state firms where a leader’s choice shapes lending, fuel policy and investment.
Lula Wins a New Term
Brazil’s electoral court announced on Sunday 25 October 2026 that Lula had won the presidential runoff, with 64,256,232 votes (51.79%). Flávio Bolsonaro, a senator and son of former President Jair Bolsonaro, of the Liberal Party, received 59,826,041 votes (48.21%).
The court’s president, Supreme Court Justice Kassio Nunes Marques, made the announcement. Lula leads the Workers’ Party, a left-wing party, and the win gives him a new term as Brazil’s president.
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What Is Known About Petrobras Under Lula
On Thursday 29 October 2026 Petrobras announced a third oil discovery in one well, called Morpho. Its president, Magda Chambriard, credited the company’s technical persistence.
The well lies in block FZA-M-59, off the coast of Amapá state, in 2,886 metres of water. Chambriard said the find raises hopes for the Equatorial Margin, Brazil’s deep-water northern oil frontier, and the drilling ship now moves to the Potiguar Basin.
On Wednesday 14 October 2026 Chambriard said that anyone who bet against Petrobras would lose money. By that day the preferred shares were up about 100% in 2026, and the common shares about 110%.
Petrobras by the Numbers
Petrobras reported record own oil and gas output of 3.512 million barrels of oil equivalent a day in the third quarter of 2026. That is 11.7% more than a year earlier and 5.3% more than in the second quarter.
In the second quarter it earned R$52.4 billion (about US$9.7 billion), up 97% from a year earlier. Its adjusted EBITDA, a measure of operating profit before interest, taxes and depreciation, was R$93.8 billion (about US$17.4 billion).
It approved R$17.4 billion (about US$3.2 billion) in dividends and interest on equity, a form of shareholder payout, for that period. Gross debt stood at US$70.8 billion, below the US$75 billion ceiling in its 2026-2030 business plan.
Who Controls Petrobras
The company’s shareholder table for September 2026 shows the federal government holding 29.02% of total capital and 50.26% of the common shares. Common shares carry the votes, so that majority is what gives Brasília control.
The state development bank BNDES holds 1.05% directly and 5.38% through its investment arm BNDESPar. Foreign investors hold 48.73% of total capital, including 21.59% held as American depositary receipts, which are US-listed certificates for Brazilian shares.
Banco do Brasil and Caixa
Banco do Brasil and Caixa are state banks that carry out much of the government’s credit policy, including farm loans and home loans. As controlling shareholder, the federal government has the final say on who leads them.
Public speculation about new leaders at both banks has followed the election, but neither the presidency nor either bank has confirmed a decision. The same applies to the oil company, where no change has been announced.
What It Means for US Readers
The receipts trade on the New York Stock Exchange as PBR for common shares and PBR.A for preferred shares. A change at the top of a state company can move those prices and the dollar bonds.
The company also supplies much of Brazil’s fuel, so its pricing affects costs across the economy. US energy investors will watch whether Morpho and record output keep its expansion on course.
What Is Not Known
It is not known whether Lula will keep Chambriard at the oil company, or who would lead Banco do Brasil and Caixa. No official decision on any of the three had been made public by 1 November.
The date of the full third-quarter financial results is not given in the production release. Nor is it known whether the government will seek changes to dividend or pricing rules.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
Who runs Petrobras?
Magda Chambriard is the president of Petrobras and has led the company since May 2024. The federal government is its controlling shareholder.
Does Brazil’s government control Petrobras?
Yes, the federal government holds 50.26% of the common shares, which carry the votes. Its stake in total capital is 29.02%, per the company’s September 2026 table.
Can Americans invest in Petrobras?
Yes, through American depositary receipts that trade on the New York Stock Exchange. Holders of these receipts own about 21.59% of the company’s capital.
Has Lula announced changes at state companies?
No, not officially. By Sunday 1 November 2026, no change of leaders at the oil company or the two banks had been announced.
How is Petrobras doing financially?
In the second quarter of 2026 it earned R$52.4 billion (about US$9.7 billion) and reported record production. Third-quarter oil and gas output was a record 3.512 million barrels a day.
Sources: Petrobras Investor Relations, shareholding structure (September 2026), 1 November 2026; Petrobras, third-quarter 2026 production and sales release, 28 October 2026; Petrobras, Morpho well third discovery release, 29 October 2026; Petrobras, market value record release, 15 October 2026; Petrobras, second-quarter 2026 results release, 6 August 2026; Superior Electoral Court (TSE), second-round result, 26 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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