Petrobras profits slammed by Bolsonaro

Petrobras profits slammed by Bolsonaro

Energy















Bloomberg

Petrobras posted strong first quarter results thanks to growing oil production during this year’s rally, prompting a rebuke from President Jair Bolsonaro who wants it to contain fuel prices ahead of an October election.

Bolsonaro called on Petrobras to freeze gasoline and diesel prices, adding that its profits are unacceptable during a crisis. Recently elected Chief Executive Officer Jose Mauro Coelho will be put to the test as the gap between Petrobras’s refinery gate prices and international levels widens.

Latin America’s biggest oil producer announced 48.5 billion reais ($9.7 billion) in additional dividends to be paid in 2022, that mainly correspond to results from the first quarter. It exceeds the 44.56 billion reais it reported in net income for the period. “Look at the abusive profit,” Bolsonaro said.

Brazil’s oil giant readjusted prices in March, but is selling fuel below international rates again, raising concern among investors who saw it turn from the world’s most indebted oil producer to a cash cow in the past five years.





2022-05-07