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Petrobras Plans to Pay $55bn in Dividends Through 2029
November 22, 2024
Petrobras said that it plans to pay up to $55bn in dividends through 2029 as part of its five-year business strategy, with potential extraordinary dividend payments of up to $10bn. Petrobras will continue paying dividends as long as it maintains financial stability. Its shareholder payouts have been a key attraction for investors and have supported Brazil’s government finances, which holds the largest stake. Petrobras has increased the expenditure expectations under its strategic plan to $111bn, with the majority of spending focused on exploration and production, including ten new offshore production units and additional vessels after 2029. The company raised its debt ceiling to $75bn to support its investments, though it reduced its minimum required cash holdings to $6bn for flexibility. Despite concerns over potential spending on less profitable renewables, Petrobras’ 5Y plan includes $11bn for energy transition projects, focusing on biofuels, wind, solar, and carbon capture, with only 27% of this spending already committed. Additionally, $5.3bn will be allocated to reducing emissions, while refining and related sectors will receive $20bn in investments.
Petrobras’ dollar bonds traded stable with its 5.6% 2031s at 98.57, yielding 5.88%
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