Mixed Results for Brazilian Companies Petrobras and JBS in Q1 Earnings

Petrobras reported strong Q1'23 results, beating market expectations despite a slight decline in revenue and gross profit. The company proposed another large dividend distribution for Q1'23 and signaled intentions to add share buybacks to its shareholder return policy. Debt remains manageable, and the market may start reducing the political risk discount as fears of radical changes in the company's governance seem largely exaggerated. Petrobras remains deeply undervalued compared to its peers, presenting an attractive entry point for investors willing to bear the risks.