Brazil's Petrobras elects new CEO as fuel price pressures mount




  • In Business
  • 2022-06-27 17:43:06Z
  • By Reuters
 

By Rodrigo Viga Gaier and Rafaella Barros

RIO DE JANEIRO (Reuters) - The board of directors of Brazil's Petrobras elected Caio Paes de Andrade as its new chief executive on Monday, as a messy management transition at the state-run oil company inches toward conclusion.

Andrade, a former economy ministry official, was also voted onto the company's board ahead of his election as CEO, the company said in a securities filing, a move required under Petrobras bylaws.

Andrade had been tapped by Brazilian President Jair Bolsonaro last month to run the firm and is set to replace Chief Exploration and Production Officer Fernando Borges, who took over as interim CEO after Jose Mauro Coelho resigned earlier this month.

Coelho, as well as his two predecessors, were brought down after clashes with Bolsonaro over the company's fuel pricing policy. The far-right president's popularity has taken a beating due to rising diesel and gasoline prices and high inflation.

Of particular interest to investors will be any potential changes to the company's current policy of partially pegging domestic fuel prices to international rates.

The incoming CEO told a corporate committee last week that he had not received any guidance from the government regarding changing the firm's pricing policy.

In an interview late on Sunday, however, Bolsonaro said that Andrade had agreed with Mines and Energy Minister Adolfo Sachsida to run a "quick x-ray of Petrobras and reveal exactly what the PPI (import parity price) is."

"He will tell if fuel prices need to be readjusted immediately or if there is a grace period," Bolsonaro said.

Reuters reported earlier, citing sources, that the board had approved Andrade's nomination in a 7-3 vote.

In the Monday filing, the company said his term will last until April 13, 2023.

Brazil-listed preferred shares in Petrobras were frozen before the announcement. They had gained 5.82% in intraday trade, after analysts at Itau BBA resumed coverage of the company with an "outperform" rating.

(Reporting by Rafaella Barros and Rodrigo Viga Gaier; Writing by Gabriel Araujo and Gram Slattery; Editing by Richard Chang and Marguerita Choy)

COMMENTS

More Related News

Biden to oil industry: Don
Biden to oil industry: Don't raise prices as hurricane nears

President Joe Biden on Wednesday warned oil and gas companies against increasing prices for consumers as Hurricane Ian neared landfall along Florida's...

Biden warns oil and gas industry not to hike energy prices over Hurricane Ian
Biden warns oil and gas industry not to hike energy prices over Hurricane Ian

President Biden warned U.S. energy companies against using the impacts of Hurricane Ian to hike gas prices in remarks Wednesday morning. "Do not use this as ...

Biden says he spoke with Florida governor about Hurricane Ian
Biden says he spoke with Florida governor about Hurricane Ian
  • US
  • 2022-09-28 14:37:49Z

WASHINGTON (Reuters) -U.S. President Joe Biden said on Wednesday he had spoken with Florida Governor Ron DeSantis the prior day about Hurricane Ian, adding that the federal government had met every request for help from the coastal state. Biden also warned oil companies not to use the storm as a pretext to raise gasoline prices, which spiked earlier this year under pressure from Russia's invasion of Ukraine. "Do not, let me repeat, do not...use this as an excuse to raise gasoline prices or gouge the American people" Biden said, speaking at a White House event on hunger.

Bolsonaro campaign to evangelicals: Brazil
Bolsonaro campaign to evangelicals: Brazil's soul at stake
  • World
  • 2022-09-27 13:01:27Z

Off a byway outside Salvador, past an evangelical church and down a short path, Thiago Viana was preparing a celebration. Two new members of his temple...

EMERGING MARKETS-Buoyant dollar weighs on Latam FX; stocks sink
EMERGING MARKETS-Buoyant dollar weighs on Latam FX; stocks sink

* FX, stocks falls to lowest level in over 7 weeks * Czech national bank expected to hold interest rates * Mexico likely to raise key interest rate...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • devis assurance auto
    (2022-06-28 08:42:42Z)

    TROUVER L’ASSURANCE FAITE POUR VOUS AU MEILLEUR PRIX

    REPLY
  • 안전놀이터
    (2022-06-28 13:55:24Z)

    I personally use them exclusively high-quality elements : you will notice these folks during:

    REPLY

Top News: Business