State approves distribution of half of the extraordinary earnings, worth almost R$22 billion, in addition to R$14.2 billion ordinary
Petrobras shares rose sharply this Thursday afternoon (April 25, 2024) after the decision on the payment of half of the extraordinary dividends. The distribution of R$22 billion in extra payments was approved in addition to the ordinary and mandatory R$14.2 billion.
At 3:45 pm, common shares (PETR3) rose 1.96% and were being traded at R$44.12. Preferred papers (PETR4) were up 2.08%, at R$42.09.
Petrobras’ general meeting approved the distribution of almost R$22 billion in extraordinary dividends. It is half of the R$43.9 billion that could be paid in relation to the state-owned company’s profit in 2023. The other half will be retained in an account for future distribution. Here’s the complete of the relevant fact (PDF – 104 kB).
The state-owned company’s shareholders also approved the payment of R$14.2 billion in ordinary dividends, which are mandatory payments by the company. In total, R$2.79 will be paid for each share. The distribution will be made in two installments, as follows:
- 1st installmentin the amount of R$1.44 per share, with R$0.56 for ordinary dividends and R$0.87 for extraordinary dividends;
- 2nd installmentin the amount of R$1.44 per share, with R$0.56 for ordinary dividends and R$0.87 for extraordinary dividends.
For holders of shares issued by Petrobras and traded on the B3 (São Paulo Stock Exchange), payment of the 1st installment will be made on May 20th and the 2nd installment on June 20th. Holders of ADRs, shares traded in the United States, will receive them on May 28th and June 27th.
As the oil company’s largest shareholder, the government should end up with around R$6 billion extraordinary payments and R$4 billion for ordinary payments. The latter was already accounted for by the Treasury, but the extra earnings were not. This is fiscal relief given the projected deficit in the budget for 2024.
