By Fabio Teixeira and Marta Nogueira
RIO DE JANEIRO (Reuters) – Brazilian state oil company Petrobras will pay extraordinary dividends if there is an “opportunity” to do so, Chief Financial Officer Fernando Melgarejo told investors on an earnings call on Friday.
Any decision on an extraordinary payout would depend on cash conditions and future cash generation ability, Melgarejo said, adding that “an extraordinary dividend payment in 2024 is not excluded.”
The comments came after Petrobras on Thursday announced worse-than-expected second-quarter results, with a net loss of 2.6 billion reais ($472.22 million), and cut investment estimates.
Still, the company paid dividends totaling 13.57 billion reais, using 6.4 billion reais from a capital reserve.
The investors’ call delivered a “reassuring message,” Jefferies analysts said in a note, adding that production remains within guidance despite platform shutdowns and difficulties in obtaining environmental permits.
The reduction in 2024 capital expenditure estimates reflected changes in exploration and production strategy, and a slowdown in refining investments. Next year the company will invest more than in 2024, Melgarejo said.
Cutting investment estimates for 2024 could pave the way for extraordinary dividends, BTG banking analysts said.
Sao Paulo-traded Petrobras preferred shares fell as much as 3.4% in morning trading before paring losses of 0.5% by early afternoon.
($1 = 5.5059 reais)
