Petrobras Announces $3.4 Billion in Extraordinary Dividends

By Mariana Durao

November 21, 2024 at 6:17PM EST

A Petrobras gas station in Sao Paulo, Brazil, on Thursday, May 16, 2024. Brazil's president shook up the leadership of Petrobras, the nation's state-owned oil company, by firing the chief executive officer and one of his top deputies after months of sparring. Photographer: Jonne Roriz/Bloomberg (Jonne Roriz/Bloomberg)

(Bloomberg) -- Petroleo Brasileiro SA announced 20 billion reais ($3.4 billion) in extraordinary dividends in a sign that Brazil’s state-controlled oil giant will continue returning cash to investors.

The payment is in line with Petrobras’s policy that allows for dividends as long as doesn’t compromise the company’s financial health, Petrobras said Thursday in a filing.

Shareholder payments are one of the major attractions for investors in Petrobras and other international oil majors. Petrobras’s dividends have also helped shore up the finances of the government, its biggest shareholder.

The state-controlled company has also proposed to increase regular dividends for 2025-2029 by $5 billion to at least $45 billion, with the potential for another $10 billion in extraordinary payouts, it said Monday. The company’s board of directors were scheduled to review the proposal on Thursday.