What is at stake at Petrobras?
The main proposal aims to revoke the restrictions on the appointment of administrators established by the State Law.
Petrobras
Until then, it had announced on 07/28/2023 the adoption of a new shareholder remuneration policy, focusing on ensuring its continuity and financial sustainability in the short, medium and long term. The statement highlights that the company intends to provide predictability to the flow of payments to shareholders, ensuring that this does not compromise its financial health.
The policy establishes a minimum annual remuneration of US$4 billion, regardless of the level of debt, as long as the defined principles are observed . Furthermore, Petrobras plans to distribute 45% of the free cash flow , ensuring that the gross debt is within the limits of the strategic plan and that there is an accumulated positive result, without harming its financial sustainability.
What do Petrobras' dividends look like?
It is important to highlight that this policy may allow Petrobras to exceed the minimum mandatory dividend , which is 25% of profit, as provided for in the Corporation Law. If we consider the company's degree of maturity and its cash flow , we can expect this change to maintain a high yield , especially given the high level at which the price of oil is.
Table 1 - Petrobras cash flow and earnings per share study.
The company also plans to make distributions quarterly and, in exceptional cases, extraordinary distributions, as long as financial sustainability is preserved . The new policy aims to improve Petrobras' relationship with its shareholders and ensure balanced remuneration.