Petrobras shareholders approve distribution of 50% of extraordinary dividends | Valdo Cruz’s blog

With the decision, the National Treasury must receive at least R$6 billion to reinforce the Union’s cash flow.

Dividends are a portion of the company’s profit that is distributed among shareholders. Extraordinary payments are those paid in excess of the mandatory minimum. In other words, the company does not necessarily have to pay them.

Initially, the state-owned company’s advisors appointed by the government were against the distribution of dividends. President Luiz Inácio Lula da Silva (PT) even vetoed the release of the amounts, following the position of the ministers of the Civil House, Rui Costa, and of Mines and Energy, Alexandre Silveira.

At last week’s meeting, the council understood that factors such as the rise in oil prices increased the financing capacity of the state-owned company’s projects.

Among those appointed by the government to the company’s board, he abstained and was the only one who did not take a direct stance in favor of retaining dividends — an attitude that was not very well received at Palácio do Planalto.

Now, the same proposal that he defended, criticized by the Civil House and the Ministry of Mines and Energy, has been finally approved by the shareholders.

He must replace advisor Sérgio Rezende, appointed by Lula. Pietro Mendes should remain president of the council. He is Alexandre Silveira’s choice.

Petrobras: understand the dividend controversy

The Petrobras board of directors even proposed the transfer of half of the extraordinary dividends, but, at the time, government representatives on the Board of Directors, who are the majority, voted against the proposal, which ended up being rejected.

The government’s objective was to strengthen the coffers. This amount cannot be used for investment, but remains in a contingency fund.

In this way, the government understood that it would convey an image of robustness to the market, especially at a time when Petrobras is seeking financing for investments.

On the other hand, the non-payment of extraordinary dividends caused the market to see less attractiveness in the company’s shares, which caused share prices to plummet.

The decision also caused the government to be criticized by the market and analysts, for alleged interference in Petrobras.

Lula and Haddad meet to discuss the crisis at Petrobras and dividends from the state-owned company

The abstention of the company’s president, Jean Paul Prates, in the vote became another chapter in a dispute that also involves the Minister of Mines and Energy, Alexandre Silveira, for influence in the company.

Prates’ situation became delicate and he went through a frying process next to Planalto. His departure from office was considered certain, but it did not happen.

After that, Prates’ situation changed. The Finance Minister was one of the few who defended his continued command of the state-owned company, and Haddad’s opinion usually has weight in Lula’s definitions.

Haddad expressed discomfort with the turmoil in the company, and also provided technical support for the approval of the payment of extraordinary dividends.

The minister realized that he would need more resources to maintain the hope of zero deficit in 2024. And as the government will keep part of the dividend amounts, he saw a possibility of guaranteeing more resources.