Petrobras’ new CEO makes positive first impression with analysts

In her first comments to the media as Petrobras' new CEO, Magda Chambriard defended – as expected – exploration in new frontiers and increased investment in the Brazilian federal oil company’s production chains, such as refining, natural gas and shipbuilding. 

"Petrobras' exploration efforts have to be accelerated, including off Amapá state. This is a matter of the country's energy security," said Chambriard on Monday during a press conference in Rio de Janeiro. Amapá state is in the Foz do Amazonas basin in the environmentally sensitive Equatorial Margin.

She also said it is necessary to intensify the production of renewable energies, guaranteeing the sustainability of the company, which aims to reach net zero carbon emissions by 2050. 

The former head of Brazil’s oil and gas watchdog ANP, who began her career as an engineer at Petrobras, assured that the state-run firm will be managed with respect for the interests of all shareholders, including private ones, focusing on business sustainability.  

"We have a great company in our hands, which has to give a return, comply with compliance rules, be sustainable, respect people and the environment, but at the same time serve the interests of majority and minority shareholders," she said. 

Chambriard's remarks were well received by the market, given the ever-present fears about the possibility of increased political intervention in the company. 

At the same time, they were in line with the ambitions of the government and local oil unions, which expect Petrobras to be more active as a driver of national development. 

Sidney Lima, an analyst at Ouro Preto Investimentos, highlighted Chambriard's pledge to guarantee that Petrobras will pay dividends if it makes a profit. 

"This positioning ends up bringing a little peace of mind," Lima told BNamericas, recalling the discussions about dividends that ended up undermining the management of Chambriard's predecessor, Jean Paul Prates.   

Another positive point, in the analyst's view, was the indication that she will maintain a fair fuel pricing policy that is less vulnerable to international market fluctuations.

"The big question will be whether Chambriard's management will be rigorous enough in terms of the effectiveness of investments, focusing on areas that guarantee a financial return," Lima said.

In addition to investing in renewable sources, Chambriard indicated that Petrobras intends to return to the fertilizer segment and did not rule out the repurchase of the Mataripe refinery in Bahia state, which was sold to the Mubadala group during the previous government of Jair Bolsonaro. 

Mahatma dos Santos, technical director of Brazil’s oil, gas and biofuels strategic studies institute Ineep, said Chambriard signaled the adoption of a pragmatic position regarding both the company's profitability ambitions and the distribution of dividends. 

"It seems that there shouldn't be a significant change in the shareholder remuneration policy," he told BNamericas. 

"She has put Brazil's energy security at the heart of Petrobras' business strategy and the resumption of the company as an instrument for boosting the oil and gas sector and national production chains." 

Santos said the news conference reflected Chambriard's technical profile. 

"She gave indications that the priorities of her management are well aligned with both Petrobras' current strategic plan and the agenda set by the federal government," he added.