Petrobras Reveals Shareholder Distribution Driven by Debt Reduction

Brazil’s state-owned Petrobras announced further reduction in its gross debt to $53.6 billion and a shareholder remuneration of $16.8 billion to holders of common and preferred shares.

Petrobras Reveals Shareholder Distribution Driven by Debt Reduction

Debt reduction coupled with “the high level of cash generation and solid liquidity” allowed the board to okay the remuneration on July 28, Petrobras announced during its second-quarter webcast. (Source: Hart Energy collage; Petrobras logo by rafapress / Shutterstock.com)

The board of directors of Brazil’s state-owned Petrobras approved a shareholder remuneration of $16.8 billion. Dividend-seeking shareholders couldn’t be happier, including the government which is the majority shareholder.

Debt reduction coupled with “the high level of cash generation and solid liquidity” allowed the board to okay the remuneration on July 28, which is equivalent to $1.2909 per outstanding preferred and common shares (R$6.732003 Brazilian reais), Petrobras announced the same day during its second-quarter webcast. 

Petrobras’ debt reduction efforts in recent years have been aided by proceeds from ongoing asset divestments as well as strong cash flow. The company’s gross debt reduction plan aims to reduce indebtedness and related financing costs and appease shareholders with a more attractive remuneration policy. 

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