Good morning! This week, we talk about an about-face from the Petrobras board. The results of Web Summit Rio. And the lingering image issues facing the government.
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Petrobras rethinks extraordinary dividends
The board of Brazil’s state-controlled oil and gas giant Petrobras informed the markets on Friday night that a majority of its members had voted to partially reverse a previous decision on the distribution of so-called “extraordinary dividends,” which are paid out after allocations to legally mandated reserves and the payment of regular dividends.
- Earlier this year, Petrobras frustrated investors by deciding not to pay extraordinary dividends. Now, its board wants to distribute 50 percent of its remaining net income (BRL 43.9 billion, or USD 8.43 billion).
- The course correction needs to be validated at the company’s annual shareholders’ meeting, scheduled for April 25.
What they are saying. The board told the market that the proposal does not compromise the financial sustainability of Petrobras in any way.
State of play. The payment of dividends is an issue that lays bare the...
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