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Petrobras (New York Stock Exchange: BBR) -6.9% Post-market on Tuesday following news that CEO Jean-Paul Prats was… Disqualified He will be replaced by Brazilian President Luiz Inacio Lula da Silva, and Magda Chamberillard, former head of the Brazilian oil and gas regulator ANP.
Pratts became CEO of January 2023, shortly after Lula took office, but the change at the top has been the subject of speculation for months due to a row over dividends.
The CEO's departure represents a victory for members of Lula's government who have been pushing for lower domestic fuel prices, lower dividends and increased capital spending to create jobs.
Prats' exit is “a deterioration in Petrobras' management and… Downside risk “As for the investment thesis,” Citi analysts Gabriel Parra and Andres Cardona wrote. “The new CEO arrives with pressure to deliver on the investment plan and accelerate capital expenditure expansion, which could negatively impact the company's dividend payout.”
The Petrobras (PBR) board of directors will meet on Wednesday to discuss the proposed departure, the company said.