Assuring its status as the second largest profit distributor in the Brazilian market, Petrobras (PETR4) confirmed this Friday (19th) the values per share of dividends and interest on equity (JCP) which will be distributed on December 15th.
The total amount of BRL 63.4 billion, which had already been announced in August and October, corresponds to BRL 3.250487 gross per preferred and common share and will be divided as follows:
- Dividends: BRL 2.195126 net;
- JCP: R$1.055361 gross.
It is worth noting that JCP suffers a 15% withholding of income tax before reaching the investor’s pocket.
And best of all, we save it for last: there’s still time to guarantee a slice of the hefty pay. To do this, you just need to own the company’s common or preferred shares on December 1st. The assets will be traded “ex-rights” from the following day.
Commodity cycle drives earnings
The billion-dollar dividend distribution reflects a sky-high commodity price phase, which has resulted in strong cash generation for Petrobras. A barrel of Brent oil, for example, is at around US$ 80, the highest level in eight years.
The high cash flow is also a reflection of the fuel price policy, which drew criticism from President Jair Bolsonaro, who sees distributed profits as “absurd”. Despite this, the big “winner” with the dividends is the government itself. Among amounts already paid by the company and planned until December, of BRL 63.4 billion, BRL 23.3 billion must be paid to the Federal Government (including the BNDES share)
The company’s decision to focus on dividends for investors took place in 2016 and has been gaining momentum. The oil company defined that, after reducing its gross debt to US$ 60 billion, it would return 60% of its free cash flow to shareholders. That goal was met in the third quarter.