Petrobras Cuts Dividend Policy to 45% of Free Cash Flow
- Petrobras keeps minimum $4 billion yearly dividend payments
- Brazil’s state-controlled oil major may also do share buybacks
Petrobras plans to use the revised policy to calculate payments from second-quarter earnings.
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Brazil’s state-controlled oil producer Petrobras approved a new dividend policy on Friday that curbs payments to 45% of free cash flow, it said in a filing.
While it reduced the dividend level, it included share buybacks as an option to reward shareholders. The Brazilian state-controlled oil producer previously distributed as much as 60% of operational cash flow minus investments, when total debt was below $65 billion.