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Petrobras (NYSE:PBR) -2.2% in trading Monday as President-elect of Brazil Luiz Inacio Lula da Silva Interview will start this week with candidates to run the company, Reuters reports, could be the start of several months of uncertainty for state-owned companies.
To do a Petrobras restart’ (PBR) strategy that includes spending on renewable energy, refineries and job creation, as well as phasing out plans to privatize the company, Lula plans to increase revenue in the first and second levels of management company, according to the report.
It can take 2-4 months to install a new C suite; The company’s rules require at least 45 days for board review, approval, and shareholder voting on the board member who will be the next chief executive officer.
Such a positive timeline would require current CEO Caio Paes de Andrade to step down on January 1, but technically his term runs until April and so far he has yet to give any indication that it is willing to do so; Andrade start work in June after being nominated by outgoing President Jair Bolsonaro.
Lula’s advisors also say that Petrobras (PBR) should direct more of its profits into investments than recent generous dividend payment.
