What makes this first round interesting is that the workers specifically did not interrupt production. What was not said is “yet.” This matters as Petrobras is trying to increase production on the heels of a very rare operating loss in the second quarter. It also matters to long-term investors that Petrobras has never recovered from that massive share offering of 2.9 billion shares at $34.49. The ADRs trade at just over $23.00 as of now against a 52-week range of $17.27 to $32.60.
Brazil’s labor movement has been staging a call for higher wages in many industries and service sectors. Postal workers and bank workers are on strike and a news search showed that the last real Petrobras worker strike took place about four years ago and that lasted for a period of five days.
If Petrobras has a deeper strike than before, its woes in the price of the ADRs may be far from over.
JON C. OGG
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.