Jair Bolsonaro Backtracks on Petrobras Privatization, Causing State-Owned Company to Lose R$12.5 Billion in Stock Value

On October 10, Jair Bolsonaro Made a Statement Regarding the Privatization of Petrobras That Discouraged Investors and Shareholders This Week

Jair Bolsonaro, along with the coordination of his party (PSL), decided to waive his plan for the privatization of Petrobras last Wednesday, which resulted in a depreciation of R$12.5 billion for the state-owned company or 8.36%. This fact surprised shareholders and investors, right after the Stock Market recorded the second largest increase of the year on October 2, bringing Petrobras to R$319.928 billion, all based on interviews and official statements from the right-wing candidate.

What Did Jair Bolsonaro Say That Would Justify This Drop?

Everything happened when he stated in an interview that the “core” of Petrobras would not be for sale at this first moment and that his goal is to remove it from the monopoly of exploration and production, so that there is greater competitiveness, quality in services, and prices practiced in the market. Along with these statements from Jair Bolsonaro, the PSL also endorsed this assertion saying that there are no plans for privatization of the state-owned company in the short term.

In addition to the Petrobras issue being one of the main topics for Jair Bolsonaro in the energy sector, it is not the only one. It is even possible to compare his government plan with his rival in the electoral dispute, Fernando Haddad, there are many counterpoints and differing opinions, although they are solid plans that can be implemented. The fact is that Petrobras has been increasing its production and recovering its purchasing power, according to its business plan established until 2022, regardless of the candidate who wins the second round election on October 28, most of the challenges related to the state-owned company have already been overcome this year, as stated by the director of Petrobras in September of this year.