For Magda Chambriard, “dialogue” is key to reconciling different perspectives

05/28/2024

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Magda Chambriard — Foto: Leo Pinheiro/Valor

Petrobras must be a profitable company that simultaneously serves the interests of both private and governmental shareholders, said the new CEO of the state-run company, Magda Chambriard, on Monday. In her first press conference after taking over the company, the executive noted that the plan is to align the company’s operations with shareholders’ interests while adhering to business logic. She added that “dialogue” is the key to balancing the different interests of investors.

Ms. Chambriard took office on Friday after being elected by the company’s board, replacing Jean Paul Prates, who was dismissed on May 14 by President Lula following months of public criticism and clashes with factions within the government.

The new CEO mentioned that when Mr. Lula invited her, he requested that she manage the company with respect for society. She said the company is committed to fulfilling promises with agility and accelerating efforts, can ensure returns for all shareholders, and must meet societal expectations, “understanding that we have to deliver returns.”

“If we make a profit and meet the interests of public and private shareholders, we will pay dividends,” said Ms. Chambriard, adding that changes in the company’s board, if they happen, will be driven by the need to adjust profiles. She noted that she is still getting to know the current board members.

When asked about the second half of the extraordinary dividends for 2023, which the company is expected to allocate by the end of this year, Ms. Chambriard said she still needs to study the matter: “I took over on Friday, so I need to look into this more carefully.”

Another crucial point for her is the exploration of new oil and gas frontiers, such as the Equatorial Margin and the Pelotas Basin. Ms. Chambriard stressed the importance of maintaining the company’s reserves, noting that the production peak of the pre-salt is imminent. The current challenge, she added, is ensuring energy security while managing the transition in the sector. “The company’s efforts must be accelerated,” she said.

Ms. Chambriard believes that the Ministry of the Environment (MMA) needs to understand better the country’s and the company’s need to drill wells in the Equatorial Margin. Brazil’s environmental protection agency IBAMA, linked to the MMA, denied an environmental permit for drilling a well in the Foz do Amazonas basin, and the company has appealed the decision, which is still pending.

“We need to discuss with the MMA and show that the company exceeds the legal requirements for environmental care,” she said. She added that issues like the exploration of the Equatorial Margin should be discussed in the National Energy Policy Council (CNPE), which she considers the most appropriate forum, with final arbitration by President Lula. The internationalization of the company, seeking areas in other countries for oil exploration and production, is on the table, but she said that the “priority is the Brazilian territory.”

According to Ms. Chambriard, the company’s experts will assess whether the repurchase of the Mataripe refinery is a good deal for the state-run company. “Refining interests us as a value aggregator.” The company is negotiating with Mubadala Capital to re-enter the refinery, which was sold in 2021.

Ms. Chambriard said that the oil company needs to increase the “availability” of its products in the market. “We must guarantee that the company is sustainable and continues with high production levels,” she added. She defended the current fuel pricing policy and said the company will continue with the goal of “Brazilianizing” prices. “It is undesirable to bring daily instability to fuel prices.”

Regarding the contract between Petrobras and the petrochemical company Unigel, Ms. Chambriard noted that the case is under review and that the company will address any concerns raised by the public spending watchdog TCU. “I will not override a respected institution like the TCU,” she said, adding that “no one here wants to waste money, and the company will continue with the contract with Unigel if it proves profitable.”

“We need to explain to regulatory bodies that fertilizers are a good business,” Ms. Chambriard said, adding that the company cannot have “excessive compliance” that leads to inertia and that Petrobras will discuss projects and their timeliness.

Unigel leased two fertilizer factories from Petrobras in late 2019, in Camaçari (Bahia state) and Laranjeiras (Sergipe state), which had been mothballed due to unprofitable operations. The petrochemical company resumed production at the two units but suspended activities again last year, citing a drop in international urea prices not matched by natural gas costs, making operations unviable.

In December, the companies signed a “tolling” agreement—an industrial processing contract on demand—worth R$759.2 million for Unigel to provide industrialization, storage, shipping, and post-sale services for urea, ammonia, and Arla (used to reduce emissions from diesel vehicles).

*Por Kariny Leal, Fábio Couto — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/