Petrobras is not just about making profits for shareholders, says minister

Petrobras is not just about making profits for shareholders, says minister
Petrobras is not just about making profits for shareholders, says minister
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Alexandre Silveira (Minas e Energia) said that the government does not allow the state-owned company to act with the “sole and exclusive objective of making exorbitant profits to be able to distribute” to those who have shares in the company

Minister Alexandre Silveira (Mines and Energy) spoke this Monday (April 1, 2024) about the differences between the presidents of the Republic, Luiz Inácio Lula da Silva (PT), and Petrobras, Jean Paul Prates, regarding the division of extraordinary dividends – extra payments that companies make to their investors – from the state-owned company.

In an interview with GloboNewsSilveira stated that it is necessary to recognize that private and mixed-capital companies are important for creating income, but they have “social duties” with Brazil.

We cannot admit that Petrobras has the sole objective of making exorbitant profits to be able to distribute to its shareholders. We want it to make a lot of profit, we want it to be highly competitive”, he declared. “We will work for it“, continued.

On March 7, the Petrobras Board approved the proposal to forward to the AGO (Ordinary General Assembly), scheduled for April 25, a distribution of dividends equivalent to R$14.2 billion, that is, the minimum foreseen in its policy . Another R$43 billion will be retained in a statutory reserve, a mechanism created in 2023 with the approval of a new statute for the state-owned company.

The minister said he was “extremely worried and even indignant” with the fact that the market calls the government interventionist, since the Executive is “Petrobras controller”.

He stated: “We did nothing more than exercise our right to discuss with our advisors – appointed by the government, within the law, respecting Petrobras’ governance, respecting this legal nature – the correct allocation of extraordinary dividends”. Planalto instructed government councilors to vote against the distribution of the extra earnings.

Silveira said that the distribution of ordinary dividends, “which are those that must be distributed to shareholders”, was done rigorously.

Extraordinary funds were sent to a contingency account that serves exclusively to pay dividends”, said the minister. According to him, “there is a clear demonstration of market resistance as a result of the crooked mouth” what businesspeople “acquired in recent years and, in particular, in the last 4 years” of the government of Jair Bolsonaro (PL). During this period, “They did what they wanted with Brazil”.

Now, what we cannot do is stop monitoring, for example, what the Petrobras board of directors is doing from the point of view of fulfilling its investment plan approved by the board of directors”, he added.


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The article is in Portuguese

Tags: Petrobras making profits shareholders minister

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