A day after posting the fourth highest profit ever recorded by a company in the country, Petrobras plummeted on stock exchanges, amid fears about political uncertainties and questions about a new dividend distribution.
The preferred shares of the state-owned company fell 5.51% this Friday (3). The company’s most traded shares on the Brazilian Stock Exchange are still up 24.5% in 2022, whose unit value rose from R$19.10 to R$28.30 in the period. The price, however, has been falling sharply since the peak of R$37.72, recorded on October 21, a week before the second round of elections.
On Thursday, the company had reported a profit of R$ 46.1 billion in the third quarter, which led to the approval of the distribution of R$ 43.7 billion in dividends.
The positive result was praised by the market as another result of the strategy of focusing on more profitable projects and reducing investment, but the optimism did not resist the news the next day.
This Friday, investment banks began to downgrade the company. Earlier this morning, Goldman Sachs cut the oil company’s assessment from “buy” to “neutral”, citing uncertainties around policies adopted in the coming years.
It was followed at the end of the day by Ativa Investimentos. “We believe that the company will undergo changes that will alter the perception of its risk by the market”, wrote the analysts of the asset manager.
“Such changes go through its current operational efficiency, governance, investments, capacity to generate operational cash and, consequently, the remuneration of its investors”, he said.
To worsen the mood of investors regarding the state’s shares, the Public Ministry with the Federal Audit Court asked for the suspension of dividend payments by Petrobras, which in the first half of the year became the largest dividend payer in the world.
The high payments were already being questioned by unions close to the PT and by the party’s president, Gleisi Hoffmann. “We do not agree with this policy that takes away from the company its investment capacity and only enriches shareholders,” she said.
Petrobras’ performance was quite different from other oil companies, which benefited from the rise in oil with the possibility of greater opening in China, the country that consumes the most raw material. The Brazilian 3R Petroleum, for example, recorded a 7.16% appreciation of its shares.
“Petrobras delivered excellent results in the quarter, but the stock dropped a lot because of this action asking for the suspension of dividend payments. The market is already understanding this as an interference of the new government in the company”, said Rodrigo Moliterno, head of equity at Petrobras. Veedha Investments.
“The approval of the dividends led to harsh criticism by the new government, which believes that the resources should remain in the company’s cash for investments in its activities”, reinforced Cassiano Konig, partner at GT Capital Investimentos.
In a meeting with analysts to detail the balance of the third quarter, Petrobras’ management defended the current strategy and said that there are no plans at this time to change the shareholder remuneration policy.
He repeated that the shareholder remuneration policy provides for the payment of quarterly dividends whenever the company is below its indebtedness target. He also said that the outflow of funds does not jeopardize the company’s future.
The decision for changes in dividends, however, belongs to the board of directors, stressed Araújo. The collegiate, today with a majority aligned with the Jair Bolsonaro (PL) government, is usually renewed after the inauguration of new presidents of the Republic.
Petrobras executives also answered questions about governance starting next year. The executive director of Institutional Relations and Sustainability, Rafael Chaves, avoided making assumptions about what could change with the new government.
But he said that Petrobras today is not the same company as it was before Operation Car Wash. According to him, the company has undergone improvements, with mechanisms related to governance and also in the most strategic way.
The director also highlighted other new mechanisms, such as the State-Owned Companies Law and the anti-corruption law, which also bring more security to investors. “We guarantee much more transparency, much more visibility to shareholders before any setbacks happen in these mechanisms that I mentioned.”
Araújo stated that there are still no talks to start the transition to the new government underway at the state-owned company and indicated that the company will not offer resistance. “Let’s do our part to collaborate for an effective transition,” he said.
with Reuters
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
