STXNEWS LATAM-JPMorgan says Petrobras shares could gain from price hike

martes 28 de octubre de 2014 07:43 GYT

Analysts at JPMorgan Securities led by Felipe dos Santos said a potential increase in gasoline and diesel prices at refinery gate for Brazilian state-controlled oil producer Petróleo Brasileiro SA would be "positive for the company's cash flow" and could have a "positive impact on shares." The analysts cited a Tuesday report by Brazilian newspaper O Estado de S. Paulo saying that the federal government would be close to awarding a fuel price readjustment for the company. The information, which Estado did not say how it obtained, was not confirmed by Petrobras, as the company is known.

Dos Santos and his team said, citing the newspaper, that the increase would be lower than what Maria das Graças Foster, Petrobras' chief executive officer, has been asking for.

Preferred shares of Petrobras, the company's most widely traded class of stock in São Paulo, slumped 12.3 percent on Monday, after President Dilma Rousseff's re-election victory over the weekend dashed hopes of less state meddling on the company's affairs over the next four years.