Petrobras shares saw a sharp decline on Friday (8) following the release of the oil company's 2023 balance sheet, with lower profits and reduced dividend payments to shareholders.
With investors fearing pressure from President Luiz Inácio Lula da Silva (PT) on the company's decisions, the state-owned company lost over R$ 55 billion ($ 11 billion) in market value.
It was the biggest drop in Petrobras stock price since February 2021 when then-President Jair Bolsonaro (PL) criticized diesel price adjustments amid threats of truckers' strikes and subsequently decided to replace then-Petrobras President Roberto Castello Branco with Joaquim Silva e Luna.
Petrobras' preferred shares (without voting rights) fell 10.57%, while common shares (with voting rights) dropped 10.44% on the Brazilian stock exchange. At the lowest point of the day, preferred shares fell by 13.1%, and common shares dropped by 14%, with the company losing R$ 70 billion.