Investor Optimism Led to State-Owned Company’s Valuation of R$ 319.928 Billion, Surpassing Vale on October 2

With the progress of presidential candidate Jair Messias Bolsonaro (PSL) in the latest voter surveys this Tuesday (2), Petrobras’ shares were boosted, reaching a valuation of R$ 319.928 billion, surpassing even Vale, which is now the second largest company in value in Brazil, followed by Ambev and Itaú in third and fourth place, respectively.

Bolsonaro’s policy of opening the Brazilian market to global capital is seen by investors as a good indicator for future projects in the country, as the candidate has an ideological bias towards privatization in the Golden Share modality, whereby the government would still have some decision-making power in Petrobras.

Despite this milestone, the highest valuation celebrated by the company in 2018 was in May, reaching R$ 388.845 billion. The Ibovespa, an index that gathers the main stocks traded on the São Paulo Stock Exchange, closed the day up 3.78%, at 81,593.85 points. There hadn’t been such a significant appreciation in the stock market since November 7, 2016.

Petrobras Director Says the Worst Phase for the State-Owned Company Is Over

Petrobras completed 10 years of production in the pre-salt on September 2, with the first oil at the Jubarte Field in Espírito Santo. Since then, 20 offshore production units have been incorporated into the national fleet, bringing production to an incredible 1.5 million barrels of oil every day. Despite some deals that incurred losses for the state company and corruption investigations, Petrobras is now entering a phase of “positive ascendance.” Check here what the new phase of prosperity will be for Petrobras in 2018.