Dividends from Petrobras (PETR4) are expected to total US$ 70 billion by 2026

Dividends from Petrobras (PETR4) are expected to add up to US$ 70 billion between 2022 and 2026
Petrobras – Photo: Petrobras Agency/Geraldo Falcão

THE Petrobras (PETR4) expects to pay an amount of US$ 60 billion to US$ 70 billion to its shareholders between 2022 and 2026, according to the new strategic plan.

From this figure of Petrobras dividends, around R$ 25 billion will be paid to the Union, the company’s largest shareholder.

The figure is close to the US$50 billion to US$60 billion estimated for the investment cash flow, and above the US$5 or 10 billion expected for the oil company’s amortizations and expenses.

It is worth remembering that, in the document, the company established a new dividend policy for shareholders, establishing a ‘floor’ of US$ 4 billion annually in dividends when the quotation of the Brent is above $40.

In addition, when gross debt is at most US$ 65 billion with the last line of the balance in blue, the company will pay earnings equivalent to 60% of the difference between operating cash flow and investments, provided that ‘ do not compromise the company’s financial sustainability.’

At dividend policy Previously, this formula would only be practiced if the debt was kept below US$ 60 billion.

In the document, the company explains that the new Petrobras shareholder remuneration policy it occurs due to the anticipation of reaching the gross debt target below U$ 60 billion in the third quarter of this year. The target was scheduled for 2022.

“Regardless of its level of indebtedness, the company may, in exceptional cases, pay extraordinary dividends, exceeding the minimum mandatory dividend”.

According to Petrobras, the dividend policy review it must not compromise financial sustainability in the short, medium and long term.

There is an improvement in expectations with the Petrobras plan, says Ativa

Like Strategic plan and dividends, Ativa Investimentos emphasizes a neutral recommendation, seeing a price of R$32.50 against the current R$28.37.

According to the company, the oil company, before, expected a total oil production of 2.3 MM barrels/day during the years 22 to 25, numbers now adjusted for an advance of 0.1 MM/day compared to the previous target, reaching 2 .8 MM in 2026.

In addition, the planned investments were increased to U$D 68 billion against U$D 55 billion in the previous plan, with 84% of which will continue to be allocated to Exploration & Production

Despite this, the plan brought, for the first time, the company’s intention to diversify the portfolio to reduce its dependence on fossil sources, prioritizing energy businesses and new products.

“Petrobras released a plan with no major surprises, increasing its production expectations over the next few years, maintaining the proportion of investments in the pre-salt and updating its shareholder remuneration policy. The company announced the creation of a governance to decide on possible new projects linked to the green agenda and will continue acting organically to improve the profitability of projects where it already has proven expertise”, says the company.

PETR4 shareholders will receive R$2.1 in dividends per share

Petrobras will make the anticipated distribution of dividends and interest on equity (JCP) on December 15th. The earnings were approved in August and October and correspond to R$2.195126 per share in dividends and R$1.055361 in JCP per share.

It is worth noting that the value of the JCP is subject to withholding income tax at the rate of 15%.

The owners of ADRs of the state-owned oil company will receive remuneration from December 22nd.

The cut-off date is December 1st for owners of shares of Petrobras are traded on the São Paulo Stock Exchange (B3), while the record date for owners of ADRs traded on the New York Stock Exchange (NYSE) is December 3rd.