Goldman Sachs downgrades Petrobras for seeing policy uncertainties for the next few years

Analysts at Goldman Sachs cut their recommendation of Petrobras shares from “buy” to “neutral”, citing increased uncertainty around policies to be adopted in the coming years, according to a report sent to clients after the publication of third-quarter results.

The day before, Petrobras reported a net profit of R$ 46.09 billion between July and September, up 48% over the same period last year, as oil prices soared.

In addition, the oil company’s board also approved the payment of dividends of BRL 3.3489 per outstanding preferred and common share, or the equivalent of BRL 43.68 billion, handily surpassing giants in the sector in the West, according to Reuters calculations.

“Dividend payments have been a focus of oil investors, while the president-elect and other officials have mentioned their intention to decrease dividend payments and promote investments in refining and renewable energy, where Petrobras does not have a significant track record,” they said. Goldman analysts in the report.