Petrobras plans $55bn dividend payout by 2029

Petrobras plans to pay ordinary dividends totaling $45 billion-$55 billion by 2029, with room for additional extraordinary distributions to shareholders in the period, the Brazilian state oil and gas giant said in the presentation of its five-year business plan.

“Robust free cash flow allows for solid dividend estimates, projecting US$ 45-55 billion in ordinary dividends in the base case, with flexibility for extraordinary payments,” the company said.

In its new 2025-2029 business plan, Petrobras plans total investments of $111 billion through 2029, up by 9 percent compared to the previous 2024-2028 plan.

The $111-billion investments consist of a portfolio of $98 billion worth of projects under development and another $13 billion in the portfolio of projects currently under evaluation. The projects under evaluation consist of opportunities with a lower degree of maturity and subject to additional financing studies before execution could begin, Petrobras said.

Read also: PetroChina set to close biggest refinery in 2025

Separately, the Brazilian state oil giant said that its board of directors approved on Thursday the payment of extraordinary dividends in the amount of $3.4 billion (20 billion Brazilian reals) in December. The proposed distribution is aligned with the company’s current Shareholder Remuneration Policy, which stipulates that Petrobras may distribute extraordinary remuneration to shareholders, provided that the financial sustainability of the company is preserved.

Going forward, Petrobras will keep its commitment to ordinary dividends and exercise prudence when assessing extraordinary dividends, according to its shareholder remuneration policy, the oil giant said in its 2025-2029 business plan.

In its financial and shareholder distribution strategy through 2029, Petrobras will focus on not exceeding its self-imposed limits of having a maximum of $75 billion of gross debt and a $6 billion minimum cash balance.

In exploration and production, Petrobras will aim to maximize value by focusing on profitable assets, replacing oil and gas reserves, including new frontier exploration, and boosting natural gas supply.