Reporting by Fabio Teixeira and Andre Romani, Reuters

RIO/SAO PAULO
EnergiesNet.com 11 21 2024

Brazilian state-run oil firm Petrobras (PETR4.SA), opens new tab approved on Thursday a payout of 20 billion reais ($3.4 billion) in extraordinary dividends to shareholders, and it lowered the minimum cash level required for its $111 billion strategic plan.

Petrobras said in a securities filing that around 15.6 billion reais of the payout would come out of a capital reserve that held cash investors had expected would be doled out months ago, as extraordinary dividends for the 2023 period.

The disbursement of the 2023 funds settles a matter that rocked Petrobras earlier this year, when its shares sank a day after its board in March voted to withhold extra dividends expected for 2023, a decision many saw as political interference from Brazil’s government.

In a separate securities filing, Petrobras said its board approved on Thursday a $111 billion investment plan for 2025-2029, in line with what company management had proposed, but with a minimum cash level of $6 billion, down from $8 billion in the previous 2024-2028 plan.

In October, Chief Financial Officer Fernando Melgarejo had said Petrobras was considering a change in its minimum cash level and would distribute excess cash to shareholders.

The remaining 4.4 billion reais announced on Thursday are dividends from profits accumulated this year up to September, the company added. The total payout represents 1.55 real ($0.27) per share, according to Petrobras.

STRATEGIC PLAN

Petrobras said in its new strategic plan that its «robust» free cash flow supports an ordinary dividend forecast of $45 billion-$55 billion for the next five years, and said there is room for up to $10 billion in extra dividends for the period.

Of the $111 billion in investments approved for the five-year period, $77 billion would be disbursed by Petrobras for exploration and production activities, topping the $73 billion earmarked for the segment in the previous plan.

It also outlines about $20 billion for the Refining, Transportation, Marketing, Petrochemicals and Fertilizers segment, while projecting production of about 3.2 million barrels per day of oil equivalent in the period.

Low-carbon initiatives gained a boost in the new plan, with $16.3 billion flagged, about 42% more than under the previous plan, Petrobras said.

($1 = 5.8144 reais)

Reporting by Fabio Teixeira in Rio de Janeiro and Andre Romani in Sao Paulo; Editing by Kylie Madry, David Gregorio and Leslie Adler.

reuters.com 11 21 2024