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Brazil oil producer Petrobras open to extra dividends this year

Published 08/09/2024, 12:15 PM
Updated 08/09/2024, 02:07 PM
© Reuters. People walk in front of the Brazil's state-run Petrobras oil company headquarters in Rio de Janeiro, Brazil, October 16, 2019. Picture taken October 16, 2019. REUTERS/Sergio Moraes/File Photo
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By Fabio Teixeira and Marta Nogueira

RIO DE JANEIRO (Reuters) - Brazilian state-run oil company Petrobras will pay extraordinary dividends if there is an "opportunity" for it, Chief Financial Officer Fernando Melgarejo told investors during an earnings call on Friday.

Any decision on an extraordinary payout would depend on cash conditions and future cash-generation capacity, said Melgarejo, adding that "an extraordinary dividend payment is not ruled out in 2024."

The remarks came after Petrobras posted on Thursday worse-than-expected results for the second quarter with a net loss of 2.6 billion reais ($472.22 million), and reduced investment estimates.

Even so, the company paid dividends totaling 13.57 billion reais, for which it used 6.4 billion reais from a capital reserve.

The investors call provided a "reassuring message", said Jefferies analysts in a note, adding that production remains within guidance despite stoppages at platforms and difficulty in obtaining environmental licenses.

The reduction in 2024 capital-expenditure estimates was due to changes in strategy for exploration and production, and a delay in refining investments. Next year, the firm is set to invest more than in 2024, said Melgarejo.

Lowering 2024 investment estimates could pave the way for extraordinary dividends, BTG bank analysts said.

© Reuters. People walk in front of the Brazil's state-run Petrobras oil company headquarters in Rio de Janeiro, Brazil, October 16, 2019. Picture taken October 16, 2019. REUTERS/Sergio Moraes/File Photo

Sao Paulo-traded preferred shares of Petrobras fell as much as 3.4% in morning trading before paring losses to trade down 0.5% by early afternoon.

($1 = 5.5059 reais)

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