Petrobras wants a new methodology for fuel price adjustments.
According to Petrobras' Chief Financial Officer and Investor Relations Director, Almir Barbassa, the new readjustment methodology, if approved, focused on "predictability," was designed to avoid jeopardizing the goals set out in Petrobras' business plan.
Isabela Vieira
Reporter from Agência Brasil
Rio de Janeiro - Petrobras' Chief Financial Officer and Investor Relations Director, Almir Barbassa, confirmed on Monday, the 28th, that the company intends to make changes to the methodology for adjusting fuel prices. The proposal was approved by the state-owned company's board of directors.
"The main product of this methodology is greater predictability in the company's cash flow generation and the expectation that it will reduce leverage [use of third-party capital for investment] to acceptable levels," he said.
The company's president, Graça Foster, asked the company's Board of Directors, chaired by Finance Minister Guido Mantega, last Wednesday (23) to adjust prices to the market. The board requested further clarifications, which must be presented on November 22.
According to Barbassa, the new readjustment methodology, if approved, focused on "predictability," was designed to avoid jeopardizing the goals set out in Petrobras' business plan.
Currently, in order to avoid impacting inflation, Petrobras absorbs the difference between the higher import price of diesel and gasoline and the price practiced in the local market. However, by bearing this cost, the company has fewer resources to invest and less borrowing capacity.
Edited by: Davi Oliveira