LatinNews Daily - 22 November 2024

*The board of Brazilian state-controlled oil company Petrobras has approved the payment of R$20bn (US$3.4bn) in extraordinary dividends, equivalent to R$1.55 per share. Debates over shareholder payouts were a key issue behind factional divisions within the oil giant earlier this year, fuelling tensions which came to a head in May and culminated in the dismissal of Jean Paul Prates, the company’s former CEO who was replaced by Magda Chambriard. Prates was considered to have favoured appeasing markets and investors, whilst Chambriard is known to be more aligned with factions that prioritise re-investing profits into operations rather than boosting shareholder remuneration. However, the company’s dividends policy allows for the release of special shareholder payouts when the company is performing well. Petrobras registered a rise in its net profit in the third quarter of this year. In addition to announcing the release of special dividends yesterday, Petrobras’ board also approved its 2025-2029 business plan, which projects US$111bn in investment to cover its operations and financial obligations. During this period, the plan projects that the company could pay between US$45-55bn in regular dividends and possible payments of between US$5-10bn in extraordinary dividends.