Roberto Samora & Gram Slattery

RIO DE JANEIRO – Brazil’s Petrobras reported a record first quarter net income, beating forecasts, minutes after Jair Bolsonaro, the Brazilian president, criticized Brazil’s state-run oil firm’s financial performance, claiming that its executives have no empathy for people.

Petroleo Brasileiro SA as it is officially known posted a quarterly net loss of 44.56 billion Brazilian reais ($8.86billion) in a Securities filing. This was higher than the Refinitiv consensus estimate at 43.5 billion and more than 40 times the amount for the same period last year.

EBITDA or earnings before interest, taxes and depreciation was at 77.71 Billion reais. It is slightly lower than the estimated 76.3 Billion reais by Refinitiv.

Petrobras explained that Petrobras’ profit increase was due to high diesel prices and higher margins. It also noted the impact of reduced liquefied importeds. Petrobras noted that the pace of its divestment programs had decreased from quarter before.

However, the first quarter results were overshadowed by Bolsonaro’s comments during a weekly social media broadcast, minutes before they were published.

Petrobras, in an especially freewheeling address, said Petrobras was guilty of a “crime and a sexual rape” towards Brazil, posting huge profits while sucking Brazilian consumers out at the petrol pump.

Bolsonaro, a far-right politician said that he wouldn’t interfere in Petrobras operations but urged Petrobras to not raise fuel prices.

Bolsonaro is up against a formidable challenge in his second term as President in the October elections. In opinion surveys, Bolsonaro has trailed the left-leaning former President LuizInacio Lula da Silva.

Petrobras follows a policy that links domestic fuel prices to international prices. This policy has been in question as the prices of oil have soared during the conflict in Ukraine.

In a statement accompanying Petrobras’ results, Chief Executive José Mauro Coelho, who took the reins in April after his predecessor was fired amid a spat over domestic fuel prices, said the company was contributing to society though taxation and dividends.

Coelho said, “All this creates economic development along the entire chain, creating wealth, employment and tax income to the nation.”

“We will pay the Federal, State, and Municipal Governments an amount equivalent to one-and-a-half times our Net Income in Taxes this Quarter.”

On Thursday, the company declared ordinary dividend payments at 3.715 Brazilian Reals per Share. Its largest shareholder is the government.

($1 = 5.03 reais)