Petroleo Brasileiro S.A. Petrobras ADR (PBR)

Petrobras (PBR) stock plummeted by 6.77%, following the removal of the company's CEO, Jean Paul Prates, by the Brazilian government.

• CEO Ousted: The Brazilian government, holding a 50.3% stake in Petrobras, ousted CEO Jean Paul Prates, leading to the drastic decline in stock value. Prates' removal follows a decline in Petrobras' net profit in the first quarter, resulting in reduced dividend payments by the company.
• Financial Performance: Petrobras reported a notable decrease of nearly 38% in its bottom line for the week, attributed to lower sales and oil prices, leading to a nearly 15% decline in its top line during this period. Despite announcing dividends and interest on equity totaling $2.61 billion, the distribution amount fell short of Street expectations.
• Leadership Change: Brazil's President, Luiz Inacio Lula da Silva, appointed Magda Chambriard, the former Chief of Brazil's energy regulator ANP, as the new CEO of Petrobras. This leadership shakeup reflects the government's stance on lowering fuel prices and reducing dividend payouts, contrary to the desires of the company's investors.