State-owned oil company Petrobras announced it has asked banks for USD 8 billion in revolving credit lines in order to “strengthen the company’s liquidity, to protect itself in the current crisis caused by the Covid-19 pandemic and oil prices shock.”
On March 19, President Bolsonaro informed the company had slashed prices once more, bringing the total cut on gasoline prices to 30.1 percent and 29.1 percent on diesel prices in 2020.
Petrobras has also proposed a BRL 39.41 billion budget for 2020—28 percent smaller than 2019—ahead of its general shareholder meeting on April 22. The company expects to spend BRL 31.04 bn for its E&P division, BRL 6.23 bn on refining activities, and BRL 2.13 bn for the administrative sector.
Petrobras has also announced new appointments to its board. The federal government has nominated retired Navy officer Ruy Schneider. If confirmed, the company would have two military members on its board.
Petrobras preference shares (PETR4) were 3.2 percent up at the moment of publication, while ordinary shares (PETR3) were 2 percent up at São Paulo’s stock exchange, B3.