RIO DE JANEIRO, June 25 (Reuters) - Shares of Brazil’s state-run oil firm Petroleo Brasileiro SA, or Petrobras, on Wednesday added to the previous day’s losses on concern the government’s decision to sell the company new oil rights will weigh on the company’s already large debt and weak profit.
Some analysts said the move to sell 5 billion to 9 billion barrels of offshore oil rights to the company, announced by the government Tuesday afternoon, was an attempt to transfer future Petrobras profit to government coffers.
Preferred shares of Petrobras fell as much as 2.7 percent in the first minutes of trading in Sao Paulo, adding to losses of 3.6 percent recorded on Tuesday. They last traded 1.6 percent lower at 17.35 reais, close to three-week lows.
The shares are on track for their third straight day of declines.
The company’s common shares dropped 2.7 percent to 16.34 reais. (Reporting by Walter Brandimarte; Editing by Jeb Blount and Chizu Nomiyama)