Petrobras shares ended the session among the main falls on the Ibovespa today (28) , following statements by the executive president who indicated a more cautious approach in relation to the distribution of profits to the oil company's shareholders .
In an interview with Bloomberg, the company's CEO, Jean Paul Prates , stated that Petrobras will take a more careful approach to paying extraordinary dividends as it seeks to establish itself as a powerhouse in the renewable energy sector.
"The management's planning in relation to dividends , including the profit distribution proposal to be submitted for approval at the Ordinary General Meeting scheduled for April 25, 2024", he highlighted.
These statements caused turmoil in the stock market , with shares plunging almost 6% . Analysts interpreted the comment as negative, given that the dividend policy is one of the company's main attractions.
What is the Wagner Geremia Analysis?
We understand that Petrobras is exploring alternative energies, which implies new investments and a greater level of uncertainty. When Prates mentions the need for caution when paying dividends , he is anticipating possible challenges arising from these new investments. Having a robust cash flow provides smoother management for the company. However, shareholders have a strong preference for receiving dividends , since, as owners of the company , even on a smaller scale, they have rights to profit . For me, the idea that the company owner dictates the rules prevails.
In short, as we can see, shareholders clearly prefer to receive dividends now and, if necessary, reinvest later as the company demonstrates the results of this energy transition. The company, on the other hand, prefers to anticipate and keep its capital in cash , highlighting what we can call a conflict of interests between management and its shareholders, especially minority shareholders.
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