The preferred shares of Petróleo Brasileiro, commonly known as Petrobras, experienced a significant increase of 3.9% following the issuance of a favorable opinion by the office of Brazil's Solicitor General. This opinion is expected to facilitate the expansion of Petrobras' exploration activities in specific offshore waters.
At the end of Tuesday's trading session, the preferred shares of Petrobras reached 31.80 reais, equivalent to $6.49, reflecting a 25% surge since the end of last year. Meanwhile, the Ibovespa benchmark stocks index of Brazil registered a 1% rise during the morning trading.
The Solicitor General's office stated that the absence of certain environmental studies should not hinder the issuance of environmental licenses for oil and natural gas exploration and production. This announcement has had a positive impact on Petrobras shares, as noted by Luan Alves, the head of equity research at VG Research.
Furthermore, the recent statements made by a Petrobras official about the company's focus on investing in profitable assets have contributed to the rise in share price. Additionally, the oil company has recently received upgrades to its ratings, further supporting its stock performance.
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