Petrobras CEO Stuck Between Dividend-Hungry Investors and Lula
- Company will be profitable and continue with robust dividends
- CEO has doubts on need for strict dividend distribution rules
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Petrobras’s new chief executive officer is navigating between Brazil’s ambitions for industrial development and investors who expect to be compensated with profits and dividends.
During his first earnings call with analysts and investors, Jean Paul Prates said Petroleo Brasileiro SA, as the company is formally known, will continue paying robust dividends, while also saying it needs enough money to invest in traditional oil operations and the energy transition. The company may return to petrochemicals and fertilizer production, he added.