NEW YORK (TheStreet) -- Petrobras (PBR.A - Get Report) stock is advancing 4.23% to $5.17 in late morning trading on Friday after Brazil's interim President Michel Temer appointed engineer Pedro Parente as CEO of the state-run oil and gas company, Reuters reports.
The appointment is pending approval of the board of directors, which will hold an extraordinary meeting on Monday to decide on Temer's choice. Parente would replace Aldemir Bendine.
Parente was previously chairman of Bunge (BG) and had served on Petrobras board. He helped the company boost international investments and reduce the government's stake in the oil producer, Reuters added.
"I understand the responsibilities," Parente said during a news conference, according to Reuters. "I have no doubt that the company will have good governance and ...a strictly professional management."
Separately, Petrobras has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing stock performance.
You can view the full analysis from the report here: PBR.A
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