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Delayed Bolsa de Valores de Sao Paulo  -  04:07 2022-09-28 pm EDT
29.27 BRL   -1.35%
09/28Petrobras : on P-83 construction contract - Form 6-K
09/28Petrobras to release new strategic plan in November, director says
09/28The Fork In The Privatization Road
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Brazil's Petrobras leapfrogs oil majors in dividend payouts

08/02/2022 | 05:57pm EDT

Aug 2 (Reuters) - Brazil's state-controlled oil company Petrobras will distribute at least twice as much as the biggest international oil producers in second quarter dividends, boosting the government's coffers amid a tense presidential campaign.

The five biggest Western oil producers - Exxon Mobil Corp , Chevron Corp., Shell PLC, TotalEnergies and BP - posted record cash distributions to shareholders in recent days of between $4 billion and $7.6 billion. But none came close to Petrobras's $17 billion payout.

Brazil's government, which controls the producer with a majority of its voting shares, last month asked Petrobras and other state-controlled companies to increase dividends to finance extra federal spending.

The cry for help came as the government of President Jair Bolsonaro, which later this year faces a tough reelection battle, last month bypassed a constitutional spending cap to finance a massive cash transfer program popular among low-income voters.

Petrobras will distribute about 60% more to shareholders than its $10.5 billion (54.33 billion reais) profit. Critics said the huge payout will lead to underinvestment in the business.

Petrobras' dividends were less than at Saudi Arabia's state-controlled Saudi Aramco, the world's largest oil company, which produces 13 million barrels of oil equivalent per day (boed), almost five times more than Petrobras.

Aramco has been distributing $18.76 billion to shareholders per quarter. Its next dividend will be disclosed on Aug. 14.

U.S. producer Exxon, which posted the highest quarterly profit of the five majors, spent $7.6 billion on shareholder distributions.

Bolsonaro is trying to boost his re-election chances by ramming through short-term spending measures, critics say. Polls show he is lagging leftist former President Luiz Inacio Lula da Silva.

Dividend payments will be made by Petrobras before the first round of voting, scheduled for Oct. 2.

Petrobras said higher oil prices and assets sales allowed for the extra payment, and did not compromise planned investments. The company is in a comfortable cash situation and is able to retain between $8-10 billion in cash this year, it said. Petrobras reaffirmed its commitment to distribute at least 60% of its free cash flow to investors.

"The extraordinary dividend payment proved to be the best allocation of the company's cash," Petrobras said in a statement.

(Reporting by Sabrina Valle Editing by Nick Zieminski and Marguerita Choy)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BP PLC 1.11% 435.9 Delayed Quote.0.00%
CHEVRON CORPORATION 3.38% 145.78 Delayed Quote.24.23%
EURO / BRAZILIAN REAL (EUR/BRL) -0.40% 5.206 Delayed Quote.-18.54%
EXXON MOBIL CORPORATION 3.64% 88.86 Delayed Quote.45.22%
LONDON BRENT OIL -0.02% 88.82 Delayed Quote.7.68%
PETROBRAS -1.35% 29.27 Delayed Quote.4.29%
SAUDI ARABIAN OIL COMPANY 1.31% 34.9 End-of-day quote.7.23%
SHELL PLC 0.78% 2261 Delayed Quote.39.41%
TOTALENERGIES SE -1.43% 47.16 Real-time Quote.5.67%
WTI 0.10% 81.714 Delayed Quote.4.16%
All news about PETROBRAS
09/28Petrobras : on P-83 construction contract - Form 6-K
09/28Petrobras to release new strategic plan in November, director says
09/28The Fork In The Privatization Road
09/28Petrobras : on P-83 construction contract September 28, 2022
09/28Anti-Corruption 2022
09/27Brazil's inflation extends downtrend in mid-September on lower fuel prices
09/27Factbox-Government measures to ease inflation pain
09/26Petróleo Brasileiro S.A. – Petrobras Terminates Contract with SPE Kerui-Método
09/26Petrobras : on Route 3 Integrated Project - Form 6-K
09/26Bharat Petroleum Eyes to Import Brazilian Crude Oil from Petrobras
More news
Analyst Recommendations on PETROBRAS
More recommendations
Sales 2022 614 B 114 B 114 B
Net income 2022 165 B 30 616 M 30 616 M
Net Debt 2022 228 B 42 511 M 42 511 M
P/E ratio 2022 2,18x
Yield 2022 64,8%
Capitalization 407 B 75 706 M 75 706 M
EV / Sales 2022 1,03x
EV / Sales 2023 1,19x
Nbr of Employees 45 532
Free-Float 64,4%
Duration : Period :
Petrobras Technical Analysis Chart | MarketScreener
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Technical analysis trends PETROBRAS
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 12
Last Close Price 29,27 BRL
Average target price 41,43 BRL
Spread / Average Target 41,5%
EPS Revisions
Managers and Directors
Caio Mario Paes de Andrade Chief Executive Officer & Director
Fernando Assumpção Borges President
Rodrigo Araujo Alves Chief Financial Officer
Gileno Gurjo Barreto Chairman & Executive Director-Exploration
Marcelo da Silva Carreras Head-IT & Telecommunications
Sector and Competitors
1st jan.Capi. (M$)
PETROBRAS4.29%75 706
SHELL PLC39.41%173 064
EQUINOR ASA49.55%104 062