Petrobras Announces R$22bn Extra Dividends

29 Apr, 2024

Petrobras Announces R$22bn Extra Dividends

Petrobras has approved the distribution of R$21.9 billion in extraordinary dividends to shareholders, marking the end of a contentious period regarding compensation. The decision follows a general meeting where it was resolved to pay 50% of the retained dividends from March. The National Treasury and the BNDES system are set to receive R$6.3 billion and R$1.7 billion, respectively, of the total distribution. This move, along with the approval of the new board of directors for 2024-2026, signifies a significant step for the company.

This decision comes after earlier debates where CEO Jean Paul Prates's suggestion to distribute 50% of excess profits was not initially accepted. However, with the government's altered stance, the proposal was approved, leading to a positive market response with Petrobras shares increasing by 2%. Prates's leadership was acknowledged positively by shareholders, particularly Jose João Abdalla Filho, who publicly commended him at the shareholder meeting.

The election of the new board, while largely unsurprising, saw some notable appointments and discussions around potential conflicts of interest. Despite challenges, including tensions over dividend distribution and board composition, Petrobras appears to be navigating these issues, with shareholder confidence reflecting positively in the market.