Political uncertainties associated with Brazil’s now concluded general elections that brought an end to the presidency of Jair Bolsonaro did not prevent South America’s largest oil company, Brazil’s Petrobras, from racking up net profits totalling US$9 billion dollars, over the most recent quarter, though that return was down from the previous quarter while reflecting a 48 per cent improvement over the same period last year.
With concerns that had been mounting that the political anxieties that preceded the recent poll might negatively affect the operations of the company, Petrobras had reportedly endured what one report described as “turbulent weeks on the stock markets” arising out of uncertainties about the country’s post-elections future.
Prior to the October 2 general elections, the administration of President Bolsonaro had reportedly experienced differences of opinion with the country’s giant oil company, Petrobras, over fuel prices though there had been no reports of direct state intervention in the running of the company, including its investment policy.
Petrobras has disclosed, meanwhile, that it will disburse around US$8.5 billion in dividends, a disclosure that has reportedly prompted local criticism that such large ‘rewards’ to shareholders will undermine the company’s investment capacity.
At the beginning of this year it was disclosed that Brazil’s oil production was expected to increase by around 300,000 barrels per day, a rise of around 10 per cent from 2021.
