Petrobras director says distribution of BRL 87.8 billion in dividends is ‘indefensible’

RIO – The distribution of record dividends by Petrobras for the second quarter, well above the profit for the period, was voted against by the representative of state-owned employees on the board of directors, Rosangela Buzanelli.

In his blog, Buzanelli states that he is not against the payment of dividends, but considered “the volume paid indefensible”.

“An amount that far exceeded the company’s net income, while the investment levels foreseen in Petrobras’ five-year plans are at the lowest levels since 2007, when compared in reais. If we convert to dollars, they are the lowest since 2004″, said the counselor.

For Buzanelli, the fairest and most sensible thing would be the regular minimum payment of dividends (25% of profit), increasing the profit reserve to significantly expand investments and buy back company shares.

In ten years, the Company’s Strategic Plan fell from US$236.5 billion (2012-2016) to US$68 billion (2022-2026).

Petrobras announced on Thursday, 28, the distribution of BRL 87.8 billion in dividends referring to the second quarter of the year, when profited BRL 54.3 billion. The announcement of the payment came three days after the Ministry of Economy asked the main state-owned companies – Petrobras, Caixa, BNDES and Banco do Brasil – to advance dividends, with the aim of helping the government close the accounts.

From Petrobras alone, the Union, which holds 28.67% of the state-owned company’s total capital, will receive R$ 50 billion for the first half of the year.

according to Petrobras Chief Financial and Investor Relations Officer, Rodrigo Araújothe announced dividends – which, added to the first semester, reach R$ 136 billion for all shareholders – are compatible with the company’s financial sustainability and do not affect investments.

“Every quarter, we look at 60% of cash and indebtedness and make all possible scenarios and evaluate the possibility of paying extraordinary dividends,” Araújo said at an online press conference to comment on the results for the second quarter of the year on Friday. Friday, 29. “All investments are assured”, added the executive.