Oil Price Increase Ensures Profit for Commodity Sector Companies in the Coming Months

Written by Roberta Souza

Published on 09/05/2022 at 21:25

Updated on 09/05/2022 at 21:26

Fonte: Depositphotos

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Due to the Rise in Fuel Prices from Oil, Companies in the Commodity Sector Will Maintain Their Profit Over the Next Few Months

The giant Petrobras, as well as other publicly traded oil companies, are expected to continue reporting good results in the upcoming quarters of 2022, according to specialists consulted by the Broadcast website. The company released its earnings report related to the commodity on Thursday evening (5), showing a 3,718% increase in profit in the first quarter of this year, compared to the same period last year, and a 41.4% increase compared to the last three months of the year, totaling R$ 44.5 billion.

According to Infomoney, the reason for believing in profit over the coming months is the hope that oil prices will continue to rise with demand exceeding supply, due to sanctions imposed by the European Union on Russia, with a total embargo on the commodity – products of animal origin or mineral extraction in raw form, whose prices are determined by international supply and demand of the merchandise. Oil is a commodity.

According to Nicolas Silva, head of the Expert Desk at CM Capital, even with OPEC’s (Organization of the Petroleum Exporting Countries and allies) plan to maintain increases in commodity production, the decline in oil stocks is likely to raise its price.

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Dividend Payments Also Boost the Oil Sector

Another factor that could generate substantial profits for the oil sector is the payment of dividends, specifically for the company Petrobras. Yesterday, the company announced anticipated earnings of about R$ 3.17 per share to be paid to shareholders on its database until May 23, 2021. This data refers to the first quarter of the year.
For Ricardo Peretti, equity strategist at Santander Brokerage, the news that the commodity is generating profits for sector companies may keep investors excited at the forefront while downplaying concerns about the 5% annual increase in oil extraction costs predicted for commodity companies.
The two “but” factors regarding the positive profit outlook for oil sector companies were only considered taking into account the effects of lockdowns in China due to the COVID-19 outbreak, which may hinder the development of growth in the Asian country, reflecting on the global economy. Additionally, there are also the upcoming elections in Brazil, which generate turbulence in the country and may create, especially for Petrobras, the risk of political interference, reports Rodrigo Crespi, analyst at Guide Investimentos. This Friday, 07, during the earnings presentation made by Petrobras, President Jair Bolsonaro once again attacked the oil company, criticizing its profit and calling again for Petrobras not to pass on the new fuel price increases.

Regarding Top Picks recommendations – investments that an institution shows to its clients – for the next week, Ativa opted to completely change its portfolio. Camil ON, Gol PN, SulAmérica ON, Natura ON, and Banco Inter Unit were removed to include BRF ON, Cosan ON, Marfrig ON, Lojas Renner ON, and Vale ON.
BB Investimentos only kept Petrobras PN in its portfolio and replaced Kepler Weber ON, Multiplan ON, Portobello ON, and Trisul ON with Alpargatas PN, Bradesco PN, Suzano ON, and Taesa Unit. You can check the other stocks here at this link.

Oil Price Increase Ensures Profit for Commodity Sector Companies in the Coming Months

Due to the Rise in Fuel Prices from Oil, Companies in the Commodity Sector Will Maintain Their Profit Over the Next Few Months

Dividend Payments Also Boost the Oil Sector

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Oil Price Increase Ensures Profit for Commodity Sector Companies in the Coming Months

Due to the Rise in Fuel Prices from Oil, Companies in the Commodity Sector Will Maintain Their Profit Over the Next Few Months

Dividend Payments Also Boost the Oil Sector

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

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An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

Seen from space, an image taken by an astronaut shows in Argentine Patagonia the exact point where a colossal glacier, a turquoise-blue lake, and a greenish arm of water meet, creating one of the rarest and most impressive landscapes in the region.

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