Brazilian state-controlled oil company Petrobras has unveiled a plan to distribute as much as $55bn in dividends as much as 2029 as a part of its five-year business strategy, aiming to take care of its commitment to returning money to investors, as reported by Bloomberg.
The corporate stated in a recent securities filing that it might also disburse as much as $10bn in extraordinary dividends during this era.
Payment of a further 20bn reais ($3.4bn) in extraordinary dividends to shareholders has also been approved by the corporate.
Analysts have responded positively to the continued shareholder payouts, with 83% rating the stock as a buy, based on Bloomberg data.
Petrobras has confirmed a 9% increase in its strategic plan to $111bn, though it has reduced estimated capital spending for 2025 to $18.5bn from $21bn.
A significant slice of the expenditure, $77.3bn, is allocated to exploration and production projects each inside and outdoors the country. The marketing strategy includes ten recent offshore production units, with a further five vessels planned post-2029.
Petrobras can be considering six more production vessels, including a twelfth platform for the Buzios field within the pre-salt region of the Atlantic.
The corporate has raised its debt ceiling from $65bn to $75bn while increasing investments for the expansion of oil and gas production. Its minimum money holding is lowered to $6bn.
Petrobras CFO Fernando Melgarejo stated in an interview in September 2024 that the increased debt ceiling doesn’t necessarily imply more debt but offers increased flexibility in debt management.
Petrobras is under pressure to balance rewarding shareholders with dividends and investing sufficiently to assist the federal government achieve its economic growth targets.
The corporate’s next five-year plan of renewable spending allocates $11bn to gas, energy and low-carbon projects, with only 27% of this spending directed at projects currently underway. The rest continues to be under evaluation.
The renewables strategy includes solar, onshore wind and biofuels, with a return to ethanol production.
“Petrobras to distribute as much as $55bn in dividends by 2029” was originally created and published by Offshore Technology, a GlobalData owned brand.
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