Petrobras Gas Station
Overview of Petrobras Performance
Petrobras, the Brazilian state-owned oil company, saw its stocks fall by around 2% on Tuesday following the release of disappointing first-quarter results, impacted by less profitable fuel sales.
In May 2023, Petrobras implemented a new pricing policy praised by Brazilian President Luiz Inácio Lula da Silva, urging the company to keep prices at the pumps low as part of its mandate to serve the country.
In December, the government also increased the mandatory blend of biodiesel in diesel from 12% to 14%.
Factors Affecting Petrobras' Performance
Both changes could have affected Petrobras' quarterly earnings, according to Aldren Vernersbach, an economist at the Federal University of Rio de Janeiro specializing in the oil and gas sector.
"One thing that is a consensus is that diesel and gasoline prices need to adjust," Vernersbach said.
During an analyst call, Petrobras' CFO, Sergio Leite, confirmed the impact of the biodiesel blend on the company's results but stated that lower profit margins were the result of Russian diesel pressure entering the Brazilian market.
Leite mentioned that the company continuously evaluates its business strategy and that current fuel prices allow it to remain profitable.
Financial Details and Analysis
Petrobras attributed weaker profits mainly to lower sales, a drop in oil prices, and a reduced profit margin for diesel sales compared to late 2023. The company also cited a weaker exchange rate.
For more information on related topics, consider exploring:
APRNEWS/STOCKS, APRNEWS/SPORTS, APRNEWS/POLITICS, APRNEWS/BUSINESS, APRNEWS/TECH
Te puede interesar
Lo más visto
