Petrobras: A Shadow Of Its Former Self?
Back in 2008, Goldman Sachs listed Petrobras’ share price at $60. Today, it commands $20 a share, and we expect that price to fall further in the future. The Brazilian oil giant just is not what it once was.
Investors are mostly scared by the simple fact that Petrobras [PBR 21.98 0.17 (+0.78%) ] does not exist to make a profit for them, but rather to serve the nation in whatever way the Brazilian government sees fit. Following a multi-billion dollar secondary share offering a few years ago and government intervention capping fuel prices and therefore profit, investors are worried that the government is trying to ever increase its control in the company.