Petrobras share price falls 6% and reaches lowest value since November

RIO DE JANEIRO, BRAZIL – After the president called Petrobras’ behavior a betrayal, the speaker of the House talked of “corporate terrorism,” and the most powerful voting bloc in Congress spoke of “war” and breaking the company’s monopoly, investors started dumping the stock.

Petrobras preferred shares fell 6.09% on Friday (17). Each paper is now worth R$27.31. It is the lowest value since November 23, 2021, 8 months ago.

The reason: the company had previously announced a further increase in fuel prices, which caused resentment at the top of the Bolsonaro government and in Congress.

Petrobras has lost value since late May with the prospect of an interest rate hike in the United States that could plunge the world’s largest economy into recession. That also contributed to the decline in its shares on Friday.

The Ibovespa, the stock exchange’s main index, lost the symbolic figure of 100 thousand points. It ended the week at 99,824 points. The daily decline was 2.9%.

The securities of the state-owned company, traded on the New York Stock Exchange, fell 3.89% to trade at US$ 11.61.

Here are the increases already announced for products sold to traders:

Gasoline – 5.18% increase per liter, will rise from R$3.86 to R$4.06;
Diesel – a 14.26% increase per liter, from R$4.91 to R$5.61.

The new prices will take effect from Saturday (18).

Cooking gas will not be readjusted. The commodity’s price was adjusted for the last time on April 8.

THE LARGEST PROFIT OF THE BIG OIL COMPANIES

Petrobras recorded the largest profit among the major oil companies in the first quarter of 2022: US$8.6 billion (R$44.6 billion).

The state-owned company’s profit exceeded that of companies such as Shell, Chevron, ExxonMobil, TotalEnergies, Equinor, and BP.

The Brazilian state-owned company is the second most profitable among the major oil companies analyzed by Poder360. Petrobras converted 31.6% of its revenues into profits in the January-March period. It lost only to China’s CNOOC, which recorded 37.7% of profit over revenue.

With information from Poder360

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