Petrobras Misses Estimates on Low Oil Prices and Higher Costs

Brazil’s state-controlled oil producer Petrobras reported weaker-than-expected results and cut its dividend after lower oil prices offset stronger production figures.

Petroleo Brasileiro SA, as it is formally known, increased investments 30.6% on year and 9% from the previous quarter to $4.4 billion as it develops massive deep-water oil fields. Investors have been hoping to see Petrobras contain capital expenditures to help preserve shareholder payouts.