State Enterprise profits up 19.6% after improved management

State Enterprise profits up 19.6% after improved management

Chamber Articles Category: Economic News Post Date: 10/06/17 Source: BrazilGovNews By: Marcos Santos
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In the wake of changes in the rules governing the management of State-owned Enterprises, the profits of these companies have skyrocketed. Data from the Ministry of Planning, Development and Management shows that total profits went from R$ 14.5 billion in the first half of 2016 to R$ 17.3 billion this year - a 19.6% overall increase.

“It's a very significant result. The companies are making a big effort and adopting a series of actions to restructure and rebalance their management, which has led to these positive results," explained Fernando Ribeiro Soares, Secretary of Coordination and Governance of State-Owned Enterprises at the ministry.

For the secretary, changes in management have been decisive for the good performance of these companies. "Reducing costs and increasing revenues is a constant practice in State-owned Enterprises. Voluntary Termination Programmes are also being extremely successful," he argued.

Soaring profits

The highest growth in profits was in the Petrobras Group, which went from earning R$ 518 million in profits in H1 2016 to R$ 5.09 billion in the same period of 2017.

The company's market cap also skyrocketed, surging from R$ 138.4 billion in the first half of last year to R$ 167.5 billion in H1 2017, a 21% increase in the period. Read Full Article