Petrobras Jumps as Surprise Price Increase Seen Lifting Cash
- First time Petrobras raises fuel prices in almost a year
- Move should help offset impact of weaker exchange rate
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Petroleo Brasileiro SA, the world’s biggest junk-rated borrower, surprised investors with a fuel-price increase, triggering a record bond rally and the biggest stock gain in seven months.
Petrobras, as the state-run company is known, said in a statement it will raise prices charged at its refineries by 6 percent for gasoline and 4 percent for diesel starting Wednesday, its first price increase since November 2014. The move should add 6.9 billion reais ($1.7 billion) to annual earnings before interest, taxes, depreciation and amortization, or Ebitda, Bank of America said in a note to clients.