Petrobras: Stocks Fell 8% in One Month and President Asks for Resignation, What Is Happening with the State-Owned Company?

On This Monday, June 20, the State-Owned Company Petrobras (PETR3;PETR4) Announced That Its Interim President, Mauro Coelho, Resigned Following Conflicts With Bolsonaro and Lira, Who Is in Charge of the Chamber of Deputies.

 The resignation of the president of Petrobras occurred in a context of conflicts, where there was a new price increase implemented by the institution last Friday, June 17. According to Mauro, the price variation by the multinational oil company was crucial for them to keep up with the external market.  It is worth noting that the state-owned company’s shares have experienced a cumulative drop of at least 8% in just one month, but ended with a slight increase after the resignation (1.1%). The departure of the current president may indicate a possible improvement for the fuel economic sector. After all, the rise in the company’s shares in just one year is around 40%. With the news of the resignation, and in an attempt not to harm the largest shareholders of the institution, B3, the Brazilian stock exchange, announced that it was suspending the trading session for the state-owned company in the morning, as by nearly noon, the losses had already reached 2%. 

Petrobras Shares Have Resumed Trading. The State-Owned Company Faces Intense Political Climate With the President of the Republic and Has Been Facing Criticism 

Even before noon, the state-owned company’s shares began trading on B3. Petrobras has been subject to a series of criticisms from Jair Bolsonaro, who argues that they are to blame for transferring the entire external market price to Brazilians. The transfer of external market prices is happening because, according to the multinational, the previous values were outdated by at least two digits and the institution was losing profit. 

After the announcement that a new price increase would be implemented, both Congress and Minister André Mendonça of the Supreme Federal Court (STF) criticized the institution and stated that it was acting against Brazilians.

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In several Brazilian states, the price of gasoline is already over R$ 7, one of the highest prices ever seen. With the new increase in diesel,  it will start being quoted at over R$ 6. In the state of Santa Catarina, managed by Carlos Moisés, gas stations have been allowed to vary fuel prices by more than two digits since 2021. Truck drivers, despite being among the most affected in this sector, claim that they should not be the only ones to protest. 

In light of the negative prices charged by the institution,  Arthur Lira (PP-AL), president of the Chamber of Deputies, had, in previous weeks, called for the immediate resignation of the president of Petrobras, arguing that it was the best course of action for the Brazilian economy. Conflicts on the matter have been ongoing for three weeks. Over the weekend, the president of the Chamber of Deputies spoke out on social media against the state-owned company, stating that it should not confront the people because Brazil could face consequences. The post received thousands of likes and shares.