Petrobras Set for Political Uproar as Board Approves $8.5 Billion Dividend

  • Petrobras’s robust dividends have been politically contentious
  • Brazil’s oil giant reported 46.1 billion reais in net income

A worker organizes cooking gas canisters near a Petrobras refinery in Duque de Caxias, Brazil. 

Photographer: Dado Galdieri/Bloomberg
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Petrobras announced another blockbuster dividend payment, rewarding shareholders at a moment of growing concern that Luiz Inacio Lula da Silva’s return to power in Brazil will bring the bonanza to a halt.

The state-run oil company’s board approved dividends of 3.3489 reais per share, totaling 43.7 billion reais ($8.5 billion), according to a regulatory filing Thursday. It also reported 46.1 billion reais in net income for the third quarterBloomberg Terminal, down from the previous quarter but higher than a year ago, it said in a separate filing.