September 27, 2022

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Petrobras: The new president must maintain pricing policy - 04/07/2022 - Market

Petrobras: The new president must maintain pricing policy – 04/07/2022 – Market

The first market reactions to Jose Mauro Coelho is nominated for the presidency of Petrobras She was reliable in the continuity of the company’s strategy and business policies, including Who determines the price of fuel.

Analysts and investors see limited scope for changes in management, due to the short time before elections and To protect against political interference It was incorporated in the State-Owned Companies Law and in the Company’s Articles of Association.

Coelho is a name with technical knowledge of the sector and good traffic with government, but with little experience in corporate management. In the past 14 years, he has worked for federal agencies associated with the energy sector.

This choice did not motivate representatives of minority investors who have a relevant stake in the company, but it was also not criticized. The assessment is that it was a potential solution to the difficulties in finding a name a week before the shareholder meeting.

Coelho’s name was announced just a day after the resignation of Chancellor Adriano Perez, the first government candidate to replace General Joaquim Silva y Luna at the helm of the state-owned company.

Peres was questioned for possible conflicts of interest with his activity as a consultant, as he defended the interests of gas and thermal generation companies.

Coelho, who currently holds a seat on the board of directors of PPSA (Pré-Sal Petróleo SA), the state-owned company responsible for managing the union’s interests in the pre-salt areas, Already defended the practice of international fuel prices When he was in MME (Ministry of Mines and Energy).

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“Given its technical background and role in PPSA, we do not foresee any interference with current strategy or focus,” analysts Luiz Carvalho, Matheus Enfeldt and Tasso Vasconcellos of UBS BB wrote.

“We believe that in the short term, Petrobras regulations and Brazilian law reduce the potential for interference in company policies,” add Bruno Amorim, João Frizo and Guilherme Costa Martins, of Goldman Sachs.

The market is also pointing to Marcio Webber’s selection to chair the board as another sign that there will be no change in the company. He is already a member of the League and was chosen to replace the candidacy of Flamengo’s president, Rodolfo Landim, who also withdrew from the dispute over the vacant position.

For analysts at UBS BB, Weber “will contribute to the continuity of Petrobras’ strategy and provide some stability in the period of change, particularly on the eve of elections.” He is also pleased to be nominated

Analyst Ilan Albertman, of Ativa Investimentos, highlights that defining names should reduce uncertainty Which caused significant fluctuations in the value of state shareswhich was negotiated differently from its international competitors.

The names of Coelho and Weber will be appreciated by shareholders next Wednesday (13). At the assembly, the government is trying to sign eight more names, four of whom are vying for reappointment: Weber, Roy Flack Schneider, Murillo Marocim and Sonia Villalobos.

Coelho, Luiz Enrique Caroli, Carlos Lisa Brandao and Eduardo Carrier would be rookies on the state board, if approved by the shareholders, who are trying to sign seven more names for the 10 contested jobs — the eleventh belongs to the employee representative.

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