Petrobras to face securities probe after CEO resignation

petrobras CEO securities investigation
Photo: Brenda Rocha/Blossom/Shutterstock

Brazil’s Securities and Exchange Commission (CVM) on Monday opened an investigation into the disclosure of José Mauro Coelho’s resignation as the chief executive officer of Petrobras. According to CVM systems, the securities watchdog has launched a probe on “news, material facts, and releases.” 

A securities filing announcing Mr. Coelho’s resignation was published just before the 10 am opening bell — leading to the suspension of trading of Petrobras shares. A new suspension came later in the morning as the company announced its new interim CEO, Exploration and Production Officer Fernando Borges.

Per consultancy Economática, the company lost BRL 27.3 billion (USD 5.3 billion) in market value on Friday alone, despite having announced hikes to gasoline and diesel prices. After opening the day down on Monday, Petrobras shares were up by 1 percent at 3 pm, with markets reacting positively to Mr. Borges’ appointment by the board of directors.

José Mauro Coelho was the third Petrobras CEO named by the government since President Jair Bolsonaro took office. He was also the shortest-tenured one, leaving the state-controlled company just over two months after taking office.