North American manager GQG reaches 5% stake in Petrobras

Petrobras released this Thursday (21) a relevant fact informing that the North American investment manager GQG Partners increased its stake in the company.

The total exposure of the manager's client portfolio is now 187,199,112 common shares and ADRs (American Depositary Receipts), representing approximately 5.03% of the common shares issued by the company.

With the percentage reached by the manager, GQG is now entitled to a seat on Petrobras' board of directors.

In the statement to the oil company, the manager informs that "this is a minority investment that does not have the objective of changing the composition of control or the administrative structure of the Company".

The document adds that "it does not intend to acquire, on behalf of its clients, any additional shares issued by the company with the intention of acquiring control or changing the administrative structure of the company".

For the managing partner of A&M Infra, Rivaldo Moreira Neto, the acquisition of the shareholding proves the growing interest of international investors in Petrobras due to the amount of reserves and the profitability it offers.

Before the start of the conflict in the Middle East, there was a certain stability between supply and demand in the oil market. "The trend was for prices to fall, for more well-behaved Brent prices," he explained.

With the conflict reluctant to end and prices rising above UU$100.00 per barrel, the business became "extraordinarily profitable".

Rivaldo Neto explains that Petrobras has one of the lowest and most resilient production costs in the sector. "It can return with a barrel at US$35.00. At US$100.00 it is even more profitable."

In addition to profitability, the company has expanding reserves with a forecast of peak production in 2030.

"We have a peak here being built on top of very profitable assets. Not only productive in terms of volume, but also attractive due to the return, because production costs are very competitive", he states.

Specialist in the oil and gas segment, Rivaldo Moreira Neto draws attention to the strategic movement of GQG Partners, at a time when Petrobras is close to its peak market value.

"It is not a downward movement in shares and perhaps reinforces the fund's strategic angle of being on the board of directors, even paying a price that is not an opportunity."

Board of directors
Access to the board of directors is another point that can justify the search for 5% shareholding. Access to strategic information and a privileged position in monitoring the company's decisions and analyzes can explain the purchase of shares even at a high market price.

Another factor pointed out by Rivaldo Neto as a possible interest of the North American manager in Petrobras is the proximity of the presidential elections in Brazil. "Every four years, we can change the government, we can change the direction of the company. Not only the people, but also the strategic direction. And I'm already there and I can be part of the game, and influence the game more.", he concluded.

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Source: CNN