Mines and Energy Minister Adolfo Saxida on Tuesday (21) criticized the overall profits made by Petrobras compared to other oil companies. The state-owned company made a profit of $8.5 billion in the first quarter of this year, while the average profit of companies in the sector was $2.1 billion, the official said.

Governments are making “sacrifices” by cutting taxes, the minister said, and Petrobras, of which the government is the largest shareholder, should do the same.

The minister again defends the privatization of the company – Photo: Billy Boss/Agência Câmara de Notícias/Disclosure/ND

The speech took place at a public hearing in the Chamber of Deputies, where the minister once again defended the privatization of the company, saying that it would increase competition in the industry.

During the hearing, Sachsida said that companies around the world are paying attention to the social and environmental aspects of their operations, and Petrobras should take this into account. In addition, he referred to the pandemic and the scenario of the war in Ukraine, which affected world prices.

Profits and dividends

The Minister presented data for the first quarter of this year, which showed that Petrobras is responsible for 10% of world production, but with a profit of 31%.

The minister revealed that in the first quarter of this year, Petrobras was responsible for 10% of global production and posted a profit of $8.5 billion, while the average profit of companies in the sector was $2.1 billion. In 2021, the company would be second in terms of dividend distribution.

Even criticizing the state-owned company, which has replaced the president twice this year alone, the minister says that the government has no way to interfere in its management. “You can’t interfere with fuel prices. It’s not controlled by the government, and frankly, pricing is a decision of the company, not the government. In addition, we have a legal framework that prevents the state from interfering in the management of the company, even if the state is the majority shareholder,” he said.

abbreviation ICMS

MP Mauro Benevides Filho (PDT) said government tax cuts would harm health and education and that fuel prices would continue to rise. He said that based on the information he received from Petrobras, there will be a new adjustment of about 10% at the end of July.

Benevides asked Sachsida why the government reduced its participation on the board of directors of Petrobras from seven to six seats, but the minister said he was checking this information.

MP Wanderlei Makris (PSDB) has proposed that the government set up a fund with the dividends it receives to lower fuel prices. But, he says, the government is acting like an opposition, criticizing and even proposing CPI against the company.

According to MP Marco Bertaiolli (PSD), the country needs to choose whether Petrobras will be public or private. “Now it belongs to the state when it matters and maintains its monopoly. Now he is private when he is interested in the distribution of dividends. Thus, this is a company that has one foot on every canoe. A company that pays dividends does not deserve a monopoly,” he said.

debt

For Congressman Felipe Francischini (União), Petrobras’ pricing policy, which follows international growth, was important in reducing the company’s debt, which was estimated at $160 billion in 2014.

In 2014, the company’s debt was $160 billion – Photo: Fernando Frazao/Agência Brasil/ND

Adolfo Sahcida said prices would be lower if the country completed the refineries planned by the previous government. According to him, the processing capacity will be 51% higher than the existing one.

MP Carlos Zarattini (PT-SP) said that PT left power six years ago and nothing has been done to expand recycling since then.

*According to Câmara de Notícias agency.