Petrobras Boosts Lula's Economic Agenda With Refining Investment
The group of investments focus on producing renewable fuels and improving energy efficiency. President Luiz Inacio Lula da Silva will travel to Rio on Friday for an official announcement of the projects that could create more than 38,000 jobs, according to the company.
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Yahoo
2 days ago
- Yahoo
Petrobras favors corn over cane for ethanol, may exclude Raizen, sources say
RIO DE JANEIRO (Reuters) -Brazil's Petrobras is leaning toward corn as the raw material for a renewed foray into ethanol, potentially sidelining sugarcane and beleaguered sugar producer Raizen, three Petrobras sources familiar with the matter said, citing preliminary evaluations. Energy company Petrobras, majority-owned by Brazil's government, has previously said its potential return to ethanol would involve buying minority stakes in other companies, similar to past investments. While sugarcane ethanol has not been definitively ruled out, corn ethanol is gaining favor in Petrobras, the sources told Reuters over the weekend, citing falling production costs driven by corn crop growth and rapid expansion in the industry. Sugarcane ethanol output, however, has stagnated amid competition for the raw material from the sugar industry. Petrobras is also eyeing increased corn output in Brazil's northern regions, where ethanol supplies are low but corn production is rising, the sources said. "We're closer to corn than cane. The outlook is better. We're talking to several corn producers," one of the sources said, without naming any companies that Petrobras was talking to. Petrobras declined to comment when contacted through its press office. Two other Petrobras sources said discussions about re-entering the ethanol sector remain in early stages. "The return to ethanol is certain, but there's nothing concrete with anyone," one of those sources said, warning to expect delays to any eventual deal. The company sources spoke on condition of anonymity because they were not authorized to speak to the media. Raizen, a joint venture between Cosan and Shell that produces sugar and sugarcane ethanol, was hit by bad news last week when it reported a swing to a first-quarter loss and mounting net debt. On Monday, Raizen shares rebounded from a 16% drop last week, fueled by reports over the weekend suggesting that Petrobras may be considering a stake in the company. Raizen said it would not comment on the matter when asked about those reports. "They want to sell to us, but talks haven't even started here," one of the Petrobras sources said, referring to Raizen.
Bloomberg
2 days ago
- Bloomberg
Raízen Jumps Most Ever on Report Petrobras Eyeing Investment
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Fox News
4 days ago
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World leader who took swipe at Trump over tariffs appears to cozy up to China
Brazilian President Luiz Inácio Lula da Silva declared his country open to foreign companies at the inauguration of Chinese automaker GWM's factory in São Paulo. The remarks come as Brazil faces steep U.S. tariffs, which Lula has repeatedly denounced. By making the statement at a Chinese factory opening, Lula signaled a possible pivot further away from Washington and toward Beijing. "Count on the Brazilian government. Whoever wants to leave, leave. Whoever wants to come, we welcome you with open arms," Lula said at the ceremony, according to Reuters. The news agency also reported he criticized President Donald Trump's tariffs as "unnecessary turbulence." Both Brazil and China face tariffs, though at different levels. China's tariffs, once as high as 145%, now stand at 30% but could rise if Beijing and Washington fail to reach a deal. Brazil, meanwhile, is facing a 50% tariff on its goods. Lula and Chinese President Xi Jinping, both BRICS leaders, spoke earlier in the week ahead of the factory's opening. The call followed Lula's comments to Reuters that he planned to raise the issue of responding to U.S. tariffs with fellow BRICS leaders. On Wednesday, the Brazilian government unveiled an aid package for companies hurt by U.S. tariffs. According to Reuters, the package focused on credit lines for exporters and government purchases of products struggling to find new markets. The U.S. tariffs on Brazil are expected to impact the coffee, beef, seafood, textiles, footwear and fruit industries, Reuters reported. Earlier this month, Lula told Reuters he was willing to talk to Trump but would not "humiliate" himself by trying to engage while the U.S. president "doesn't want to talk." However, Trump has said that Lula is free to "talk to me anytime he wants." Tensions between the two leaders extend beyond tariffs into politics. The Trump administration has lambasted Brazil's treatment of former President Jair Bolsonaro, who is under house arrest. Trump commented on the situation in an executive order in which he denounced Brazil's "politically motivated persecution, intimidation, harassment, censorship, and prosecution" of Bolsonaro. Lula told Reuters that Brazil's Supreme Court "does not care what Trump says, and it should not." He also reportedly said that Bolsonaro was a "traitor to the homeland" who should face another trial for provoking Trump's intervention.
