Petrobras shares reacted positively to today’s news about the departure of three company directors: Paulo Roberto Costa (Supply), Renato Duque (Services) and Jorge Zelada (International Operations). Result: the common and preferred shares rose almost 1% .
Less government, more efficiency…
The stock gains seem to reflect a certain relief by the market about the resignations of these executives. According to Valor, many analysts believe that the laid off directors were more politically rather than technically oriented, guiding the company’s management into what was considered excessive spending and resulting in a financially inefficient operation.
So far, no major banks that closely follows Petrobras has made any public comment on the management style of Graca Foster, who’s been wearing the CEO post for the last 72 days. As one executive puts it, the market is “waiting to see” what is her management profile. When the new Directors are announced, the market should have a clearer view of this. “Let’s first see who are the replacements. But I think that this change in management is something very positive,” said the unnamed source.
Now former directors Paulo Roberto Costa and Renato Duque were seen by the market as the main reason for the outrageous increase in spending by Petrobras recently. In the case of Costa because of the simultaneous investment programs in four new refineries and, Duque, because of the failed attempt to develop a strong shipbuilding industrial park in the country.