⚡ Easily Trade – Apple, Microsoft, Tesla and Google Stocks – Open a FREE Account Here

      

Markets veto Petrobras CEO change; shares plummet by over 6%

Brazilian Petrobras announced the departure of its CEO and CFO this Wednesday, triggering a stock plunge as news emerged that a former regulator with views closer to those of President Luiz Inácio Lula da Silva will take over the helm of the state-owned oil company.

Alongside the confirmation of the CEO’s departure, Jean Paul Prates, after months of intense speculation about his tenure, Petrobras stated in a release that CFO Sergio Caetano Leite would also step down.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewCySEC, MISA, FSCAUSD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker >>

Prates lasted less than a year and a half in the role, becoming the fourth Petrobras CEO ousted in as many years for political reasons. His dismissal raises fears that Petrobras may be used as a tool to boost the Brazilian economy at the expense of minority shareholders.

Petrobras’ preferred shares dropped 6% in midday trading, making it the biggest loser on Brazil’s benchmark stock index, the Bovespa.

Industry analysts voiced concern, as Prates was seen as balancing market demands for disciplined capital spending and healthy dividends with political requirements to stabilize fuel prices and invest in job-generating sectors.

Prates’ removal represents a victory for members of Lula’s cabinet advocating for lower fuel prices, reduced dividends, and increased capital spending to create jobs and boost the economy.

Instead of Prates, the government appointed Magda Chambriard, former head of Brazil’s oil and gas regulator ANP under the previous administration of Lula’s Workers’ Party.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
Related Articles