For the government, Caio Paes de Andrade has full legitimacy to take over Petrobras

The management of Caio Paes de Andrade as president of Petrobras has “total legitimacy” and it is the government’s right, as the majority shareholder, to appoint the executive without complying with all the procedural rite provided for by capital market legislation and the company itself.

According to federal government sources interviewed by the CNN , Paes de Andrade will be endorsed by the General Shareholders’ Meeting as soon as it is held and who, until then, will act fully as president of Petrobras from the moment of his inauguration. For people involved with the change at Petrobras, the noise around the change in command tends to subside from now on.

Regarding the change in the oil company’s International Parity Policy, which is a point of contention and source of the open crisis against Petrobras, the sources heard by the column say that the decision is under the responsibility of the new president, as well as probable changes in the company’s board. .

In addition to the lack of professional experience in the oil and gas sector, the fact that Caio Paes de Andrade’s approval did not pass the scrutiny of the Shareholders’ Meeting reinforced the perception that interference in Petrobras’ governance will be more incisive than under the management of former presidents.

The oil company’s shares rose more than 6% on the market this Monday. For Conrado Ramos José, head of research at Somma Investimentos, the rise in shares is not directly related to the approval of Paes de Andrade, as if it were a relief at the end of this chapter involving the state-owned company. “Oil and other commodities are rising this Monday, which boosts the shares of companies in the sector,” he told the CNN .

The greatest probability being considered by the market is that Petrobras will increase the time for readjustments until the elections, without directly changing the PPI. In a report sent to clients, Eleven Financial analysts do not expect a continued recovery in the value of the shares.

“We believe that future price adjustments will take place after a longer period than the last ones, so as not to pass on the strong volatility of international market prices. In the meantime, we expect that the company’s quotes will continue to suffer negatively from the uncertainties regarding its pricing policy”, says the Eleven analysis.