Petrobras — Brazil’s giant state-controlled oil and gas company — announced that it will pay USD 3 billion to shareholders in Q2, in line with last week’s change in its dividend policy: the company said it will now distribute 45 percent of its free cash flow to shareholders, down from the 60 percent earmarked under the former Jair Bolsonaro administration. Payments will continue to be made every quarter.
There had been fears among shareholders that Petrobras would cut its dividend payout to the minimum allowed by the Brazilian Securities Commission (CVM), which is 25 percent. These concerns increased with signals from officials in the Luiz Inácio Lula da Silva government that the company should use its surpluses to reinvest in itself.
Markets were mostly expecting a 40 percent payout, meaning the new policy was well received. The company’s share price jumped 4.5 percent on Monday, the first trading session after the announcement.
The new policy also allows the company to buy back its shares and pay a minimum annual dividend of USD 4 billion during periods when average Brent prices are above USD 40 per barrel. “This inclusion of repurchases in the policy seeks to align Petrobras with its major international peers, which have been carrying out robust share repurchase programs, in addition to dividend payments,” Petrobras said in a statement to investors.
“The enhanced policy is effective...
Search
