As one of the largest exporters of commodities on the planet, Brazil is once again repositioning itself in the world economic scenario
Even in the face of a great moment of economic crisis, driven by the Covid-19 Pandemic that slowed down most of the world's financial sectors, large companies in Brazil achieved historic profits in the first months of 2022. Of the ten companies that presented the highest revenues so far this year, nine broke records, driven by the rise of commodities in the global market.
But before presenting the list of the 10 companies in Brazil that had the most record profits so far in 2022, we first need to understand what commodities are and why they contributed to results never before recorded by companies, even in the face of a global financial crisis.
The translation of the word "commodity” means “merchandise”. A few years ago, this term was used to refer to goods sold by companies as a whole. But over time, “commodity” came to be used to talk about basic raw material products.
Commodities, therefore, are products of agricultural origin or mineral extraction, in the raw state or with a small degree of industrialization, produced on a large scale and intended for foreign trade. Generally, their prices are established by the international supply and demand of the commodity, causing their derivatives to also undergo readjustments as events in the global market interfere.
Examples of commodities
Commodities have no differences in who or where they were produced. These products generally have little industrialization, high level of commercialization of great worldwide importance.
Examples of commodities traded by Brazil to other countries are: oranges, corn, coffee, maize, soy, wheat, sugar and cotton (commodities of agricultural origin). In addition to these, we can mention: Wood, energy and water (commodities of environmental origin); Euro, US dollar, Real and federal government bonds (financial commodities), in addition to gold, iron ore, natural gas, ethanol, crude oil (mineral commodities).
Indeed, the price of oil on the global market was one of the factors that contributed to the immense profit of Petrobras in the first three months of 2022. The state-owned company, whose largest shareholder is the Union, is in first place among the companies with the best revenues in the period. See the detailed list below.
Companies that made the most profits so far in 2022 in Brazil
A Petrobras earned no less than R$ 44,5 billion in net profit between the months of January, February and March of this year (disclosed period). The best performance in a quarter among all the most profitable companies in Brazil. In 2021, the oil company's profits were “only” R$ 1,2 billion.
During the first quarter, the price of oil rose by 66% on the world market, compared to the same period in 2021. The rise was further accelerated due to the war in ukraine, because Russia, which is the second largest exporter and third largest producer of global oil, accounting for about 12% of global supply, suffers from economic sanctions.
It so happens that Petrobras practices its pricing policy based on the international oil market. That is, when it increases abroad, it also increases here, with the price of gasoline and diesel being the most affected. In March, Petrobras promoted the biggest diesel readjustment since January 2021 (24,9% of S-10 in refineries). Fuel accounted for 48% of the state-owned company's revenues in the first quarter.
A OK earned more than R$ 23 billion so far this year. Iron ore contributed to revenues as the price of the product rose 100% in the last two years, reaching US$ 160 in April, against US$ 80 in April 2020.
A Suzano also, which is also one of the largest Brazilian companies, has improved the performance of the last two years and this year has already surpassed the 10,3 billion in profits recorded in 2022.
Other companies in the ranking of the 10 companies that earned the most in 2022:
- Bradesco: BRL 7 billion
- Itaú Unibanco: BRL 6,743 billion
- Banco do Brasil: BRL 6,66 billion
- JBS: BRL 5,142 billion
- Banco Santander: BRL 3,946 billion
- Braskem: BRL 3,884 billion
- Itaúsa: BRL 3,719 billion
Commodity prices and the impact on our lives
Brazil is one of the largest exporters of commodities on the planet. Domestic economic growth has always been directly linked to the production of raw materials and highly important agricultural goods in the world.
When there is high demand, the price of commodities increases and producers earn more. On the other hand, if demand is low, the price is devalued. Therefore, those who produce are harmed and need to reduce their values to be able to sell.
It is important to remember that commodities have an intense movement, with constant fluctuations in prices. This can make the prices of products from raw materials more expensive.
