November 28, 2022
Lira says Petrobras needs to provide enough information on fuel prices and stock market declines

Lira says Petrobras needs to provide enough information on fuel prices and stock market declines

Fuel (Image: Getty Images)

São Paulo – The President of the Chamber of Deputies, Arthur Lira (PP-AL), said Thursday (16) that the explanations on fuel prices at the plenary session of the Chamber of Deputies this week by the President of Petrobras (PETR3;PETR4), Joaquim Silva and Luna were not satisfied and argued that the government company should provide more appropriate information on the matter.

In a live broadcast by Necton Investimentos, Lira said he’s not advocating price stabilization, but rather that Petrobras shares some of the wealth with the Brazilian population.

After Lira’s speech, even at the beginning of the trading session, PETR3 shares fell by 2.71%, while PETR4 securities fell by 3.11%. However, the shares eased the declines and closed the trading session at their lowest levels at 0.93% and 0.87% respectively, trading at R$26.72 (ON shares) and R$26.10 (PN shares).

The CEO of Petrobras spoke last Tuesday (14) at an in-room hearing.

Silva e Luna said during the hearing that Not all changes in fuel prices are directly related to the actions of the state-owned company. He pointed out that “when there is a fluctuation in prices, it does not mean that Petrobras had any effect on the price.”

According to Bradesco BBI, Petrobras’ CEO was very firm in his answers and emphasized that after several years of financial recovery, the company was ready to repay society through dividends.

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He also noted that Petrobras pays about R$20 billion in annual dividends to the government (in line with our estimates) and also about R$540 billion in royalties, and that the government should know what to do with these resources. The CEO also emphasized that fuel parity is an important pillar for the company to continue investing in platforms and avoid lower production. Overall, we think the CEO has been very clear about the path that lies ahead for the company,” BBI highlighted.

It should be noted that the lira has been criticized Company management in a message posted on Twitter After the House confirmed that the head of the state-owned company will attend a hearing in the House of Representatives on Tuesday to talk about fuel prices.

Everything is expensive: petrol, diesel, cooking gas. What does Petrobras have to do with this? (…) The plenary becomes the public committee to question the weight of company prices in all of us. Petrobras must be remembered: the Brazilians are its shareholders,” wrote the chamber’s president, which the investors understood as a sign of disposition to potential interventions.

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The position of the lira came in the wake of the attacks on the pricing policy pursued by “Petrobras” in the face of high inflation. Following the chamber’s head’s comments, New York’s Petrobras interest rate index fell more than 2% in Monday’s extended session to close at 1.16%. On Wednesday, the company’s shares rose.

(with Reuters and Estadão content)

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