Vibra maintains import activities despite high oil prices

Vibra Energia, formerly known as BR Distribuidora, has maintained fuel imports despite high oil prices and the war-constrained international market. “We have not had any import problems,” said on March 23, the company’s president Wilson Ferreira Jr., in a conference with analysts.

According to Vibra’s financial and investor relations director, André Natal, no cargo delivery has been called off due to the crisis. The executive also stated that, since the fourth quarter of last year, Vibra has been able to keep fuel imports coming and pass on costs despite increases in oil price caused by the economic recovery that followed the most acute phases of the pandemic.

Natal also stated that the practice of passing on costs to consumers has been thoroughly examined. “In certain markets, especially during times of high prices, it is necessary to make careful adjustments to ensure that passing on costs does not become disconnected from market reality. There is the cost that needs to be passed on and there is the price. This must be very well balanced to avoid asymmetries,” Natal stated.

Vibra, added the executive, has seen market share gains. The company ended 2021 with a share of 28.4% in the Brazilian fuel market, an increase of almost two percentage points compared to the 26.5% it had at the end of 2020. Moreover, the company brought 2021 to a close with a net profit of R$ 2.5 billion, up 36% year-on-year. Annual net revenues totaled R$ 130.1 billion, an increase of 59.7%.

Smaller companies find it challenging to maintain fuel imports in the current scenario with high prices and greater competition in the European market, which is being affected by lower exports from Russia. Moreover, private importers have accused Petrobras of practicing prices below parity with the international market in recent months, making imports by smaller companies unfeasible.

According to Natal, Vibra has received requests to supply customers outside its own flag station network due to a lack of fuel supply in some areas. However, he reiterated that the company’s priority will remain serving its network of service stations. “The diesel market will remain constrained in April,” he predicted.

The company also sought to diversify the locations from which it imports, such as the Gulf of Mexico and India, to face rising prices. “Given that we do not have refineries in Brazil, we need to strengthen our ability to import,” said Ferreira Jr.

In December, Vibra created an oil derivatives trading to have greater flexibility and mitigate the effects of fluctuating purchases of products. “We are the country’s largest importer of derivatives, and the new trading strengthens us in this situation,” said the president.

Source: Valor Econômico

To read the full original article, please go to:

https://valor.globo.com/empresas/noticia/2022/03/24/vibra-mantem-a-importacao-apesar-de-alta-do-petroleo.ghtml

Sharing is caring!