Petrobras (NYSE:PBR) warned Thursday that its new management could change its fuel pricing policy, which “may have a material adverse impact on our business, results, financial condition and the value of our securities.”
“In light of the statements made by Brazilian President, a new Executive Board and management team or Board of Directors may propose changes to our pricing policy, including a decision that such policy does not seek alignment with international parity pricing,” the company said in its 2021 Annual Report and Form 20-F filed with the SEC.
“In the future, there may be periods during which our product prices will not be at parity with international product prices. Actions and legislation imposed by the Brazilian government, as our controlling shareholder, could affect these pricing decisions,” the company said in the filing.
Separately, Petrobras said a Rio de Janeiro state court ruled against it in a case brought up by Paragon Offshore Nederland, a former supplier of oil and gas prospecting rigs, in an action estimated at 1.9B reais ($398M), of which 59M reais already were written down.
The fuel price policy warning comes days after Brazil President Bolsonaro moved to replace CEO Joaquim Silva e Luna with economist Adriano Pires, which was generally received with a sigh of relief by investors.