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Petrobras (NYSE:PBR) -6.9% After the market closed on Tuesday, news broke that CEO Jean Paul Prates had been fired by Brazilian President Luiz Inacio Lula da Silva and replaced by Magda Chambriard, the former head of Brazil’s oil and gas regulator ANP.
Prates becomes CEO It was not long after Lula took office in January 2023, but speculation about changes at the top has been going on for months due to a dispute over dividend payments.
The chief executive’s departure represents a victory for members of Lula’s cabinet, who have been pushing for lower domestic fuel prices, dividend cuts and increased capital spending to create jobs.
Citi analysts Gabriel Barra and Andres Cardona wrote that Plates’ exit is “a deterioration in Petrobras’ governance and a downside risk to the investment thesis” ”. “The new CEO comes under pressure to complete his investment plan and accelerate capital expenditure expansion, which could have a negative impact on the company’s dividend payments.”
Petrobras’ board of directors will meet on Wednesday to discuss the proposed departures, the company said.
