Petrobras (PETR4) meets with government and airlines this Thursday to discuss aviation kerosene

Petrobras (PETR4) meets with government and airlines this Thursday to discuss aviation kerosene
Petrobras (PETR4) meets with government and airlines this Thursday to discuss aviation kerosene
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Petrobras (PETR4) informed that it will meet this Thursday with representatives of the federal government and airlines to discuss possible changes in the conditions of aviation kerosene (QAV) for the sector.

“Nevertheless, considering that Petrobras’ participation in the aforementioned meetings is part of the company’s routine activities and that there has been no decision regarding the price of the QAV or the contractual supply model for the distributors, there is no relevant fact to be disclosed in relation to the topic”, stated the state-owned company.

The discussions take place at a time when the airline Gol (GOLL4) is undergoing judicial recovery in the United States and raises questions about whether the state-owned oil company will be used as an instrument to help airlines, raising fears of political interference in the company.

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At the beginning of the week, Genial Investimentos commented on the news about a possible use of Petrobras to help companies in the sector. “We don’t think the news is positive, but it’s important to remember that aviation kerosene represents a very small portion of the derivatives sold by the company and we think that any negative impact will have a negligible effect on the company’s results”, he assesses.

Guide Investimentos points out that the impact is marginally positive for airlines and neutral for Petrobras. Currently, Petrobras’ Bylaws protect it against the sale of fuels with interests different from those of its market peers. Therefore, this makes it difficult to sell QAVs at very low prices. The house’s analysts also mention that the sale of QAV is of little relevance to Petrobras’ total.

“Because of that. we expect a neutral reaction for Petrobras. The market is paying attention to the government’s measures to help Gol. So Gol’s shares could possibly react positively today”, highlights Guide.

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According to the president of Petrobras, Jean Paul Prates, the state-owned company will participate in the government’s plan to help airlines and will only be responsible for guiding the government on how the price of aviation fuel works. Thus, the executive made it clear that Petrobras will not artificially lower the price of fuel to subsidize a sector.

“Since the beginning of his mandate, Jean Paul Prates has always made it clear that Petrobras will not reduce fuel prices at the request of the government, but only based on its own formulas and discussions”, points out the BBI.

Kerosene is one of the main costs for airlines and reduces their profit margins. According to data from the National Civil Aviation Agency (Anac), the price of the QAV averaged R$ 4.44 in October last year, 12% lower compared to the same period in 2022. However, the price is 92. 1% above compared to October 2019 (R$ 2.31) – fuel price data is nominal.

(with Reuters and Estadão Conteúdo)

The article is in Portuguese

Tags: Petrobras PETR4 meets government airlines Thursday discuss aviation kerosene

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