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Market sees signs of continuity in indications to Petrobras (PETR4); FUP demands changes

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Petrobras shares were up 0.77% close to market close, while the Ibovespa was down 1.6% (Image: Bloomberg)

The nominations for five directorates of the Petrobras (PETR4) made by the CEO Jean Paul Prates pleased market analysts, who saw a “sense of continuity” in the presence of career employees of the oil company among those appointed to command the areas of commercialization, exploration, production and refining.

On the other hand, the announcement made the day before by the company was followed by a manifestation that maintained the tone of the Single Federation of Petroleum Workers (FUP).

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The union entity linked to the PT, the president’s party Luiz Inacio Lula da Silvareinforced this Friday requests for changes in the oil company.

“The fact that one of his first decisions as CEO was to appoint members of senior management who are career Petrobras employees… is encouraging,” said analysts at the BTG Pactualin a report to clients, pointing out that only one of the nominees does not belong to the oil company’s staff.

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Approval of names may take a few more weeks. But BTG analysts pointed out that they did not see major obstacles or resistance from internal committees, “mainly due to their long records in senior positions at Petrobras that provide a (much needed) sense of continuity”, they stressed.

Petrobras shares operated at a high of 0.77% close to the market close, while the Ibovespa fell 1.6%.

Prates has appointed five new directors, who will now undergo integrity and eligibility tests within the company in the coming weeks, before their approvals can be decided by the company’s Board of Directors.

The fact that one of his first decisions as CEO was to appoint senior management members who are career Petrobras employees (Image: REUTERS/Paulo Whitaker)

Currently, Petrobras’ board of directors has nine chairs, including the CEO. So far, Prates has not named names for the financial, governance and sustainability boards.

He recently confirmed that he will create, in a second moment, an energy transition directorate.

analysts of Credit Suisse they also highlighted in a note to clients that technical names mitigate the “risks of political appointments”.

Prates held meetings with different wings of his party, the PT, to define his list of nominations, but most nominees so far have extensive experience at Petrobras.

Pressures for Change

Without mentioning names or making any value judgments in relation to the nominees, the general coordinator of the Single Federation of Petroleum Workers (FUP), Deyvid Bacelar, said in a note this Friday that “in addition to technical capacity, professionals committed to the Petrobras reconstruction project”.

Bacelar also said that he will accompany Prates’ administration and demand promises made by the Lula government.

“For Petrobras to return to being an integrated company, operating throughout the national territory and valuing its workers and the national industry, many changes will have to be carried out in the company”, he said.

Petrobras Cubatao
For Petrobras to return to being an integrated company, operating throughout the national territory and valuing its workers and the national industry (Image: REUTERS/Paulo Whitaker)

Among the promised changes, Prates previously indicated that he should reduce the payment of dividends, prioritizing the allocation of capital in large projects.

The theme is viewed with trepidation by the banks, who still point out fears in the face of the new management.

In reporting to clients, The Citi highlighted seeing risks involving Petrobras, “due to possible changes in the company’s long-term strategy and uncertainty about its future capital allocation”.

The bank also warned of possible changes in its fuel pricing policy.

Source: Moneytimes

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