💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

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
PBR
-

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)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.