Page 11 - LatAmOil Week 44 2021

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The NOC also pointed out in its statement that it has been lately,” he said during a speech broad-
without non-recurring items, its net income cast live on social media.
in the third quarter would only have been During the same speech, Bolsonaro stated
BRL17.37bn ($3.1bn). Additionally, it reported that he would try to alter the company’s pricing
that its EBITDA (earnings before interest, taxes, policy, according to a Reuters report. Since it is
depreciation and amortisation) had totalled the country’s main importer and producer of
BRL60.74bn ($10.84bn) during the same fuel, Petrobras controls domestic prices for die-
period. sel and gasoline. As a result, Brazilian politicians
Meanwhile, Petrobras’ gross debts dropped have in the past forced it to take huge losses in
to $59.59bn, accomplishing the company’s tar- order to keep prices at the pump artificially low,
get of reducing its debt to less than $60bn more the news agency added. ™
than a year before the official deadline of end-
2022. Rodrigo Araujo, the NOC’s chief financial
and investor relations officer, called this success
a sign of “the company’s commitment to a tech-
nical and balanced management.”
Araujo continued: “Petrobras’ debt reached
more than $130bn in 2014, a figure that was
around $160bn, if we also consider the char-
ters that were accounted as debt from 2019 on
with the adoption of IFRS 16. For many, this
debt seemed unpayable, and today it is finally
reaching a healthier level. Everyone who is part
of this company has contributed to this and is
responsible for the reduction of over $100bn in
little more than seven years.”
Petrobras issued the statement about its
third-quarter performance shortly after Brazil’s
right-wing President Jair Bolsonaro said that
the company was too successful. “It should be a
company that makes a profit that isn’t so high as Petrobras’ gross debts have dropped below $60bn (File Photo)

Brazilian leader inches closer

to privatisation of Petrobras

BRAZILIAN President Jair Bolsonaro said Correios, Reuters added.
again last week that he was considering privatis- The president had said last month that he was
ing the national oil company (NOC) Petrobras considering the idea of privatising Petrobras, as
and that the government had begun evaluating gasoline prices continue to rise. He also stated
options for divesting its stake in the firm. that he would discuss the idea with his economic
“This is on our radar,” Bolsonaro said during advisors. Also last month, Brazil’s Economy
a radio interview, according to a Reuters report. Minister Paulo Guedes said the government
The president indicated, though, that Bra- might sell a portion of its controlling stake in the
silia did not intend to sell the state-run firm to NOC in order to finance welfare programmes.
just any bidder. “[Privatising] a company is not Energy costs have recently stoked politi-
just putting it on a shelf and whoever offers the cal debate in South America’s largest country,
highest bid takes it,” he commented. “It is very where consumer inflation rates have hit double
complicated.” digits. Price increases have, in turn, undermined
Fernando Bezerra, the government’s top rep- Bolsonaro’s popularity ahead of next year’s pres-
resentative in the Senate, told Reuters last week idential election.
that government officials were also looking into Previously, Brazil’s right-wing politicians
proposals for privatising Petrobras via a share have said they opposed privatising Petrobras,
sale. He also stated, however, that it was not on the grounds that the firm was crucial to the
clear whether a bill would be sent to the National country’s national interests. But the government
Congress this year to make a sell-off possible. sold BR Distribuidora, a fuel distribution com-
Bolsonaro’s right-wing government is cur- pany previously owned by Petrobras, in 2019,
rently focused primarily on plans for the pri- and the state-run electricity firm Eletrobras is
vatisation of Brazil’s national postal service expected to go private early next year.

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