New Zealand markets closed
  • NZX 50

    +35.92 (+0.31%)

    -0.0017 (-0.28%)

    +49.80 (+0.62%)
  • OIL

    -0.07 (-0.09%)
  • GOLD

    +25.90 (+1.07%)

UPDATE 1-Petrobras board not to discuss extra dividends at Friday meeting, sources say

(Adds details, background)

By Rodrigo Viga Gaier and Marta Nogueira

RIO DE JANEIRO, April 17 (Reuters) - The board of directors of Brazilian state-run oil company Petrobras is scheduled to meet on Friday, but a much-awaited discussion on extra dividends will not be on the agenda, four sources familiar with the matter told Reuters.

Market participants have been eagerly awaiting a decision on whether the oil giant will pay out the extraordinary dividends relative to its 2023 results or not, but the final word will likely come next week when shareholders gather for a general assembly, the sources said.


Petrobras' board in March voted to set aside 43.9 billion reais ($8.39 billion) to pay out in extra dividends in the future, with Brazil's government - which controls the company and its board - hoping it would be able to reinvest that cash.

Recent local media reports, however, indicated that members of President Luiz Inacio Lula da Silva's cabinet managed to reach a deal for at least 50% of that amount to be doled out to shareholders - a move that would also help the government as it tries to balance public accounts.

The reports gave a boost to Petrobras shares and markets started to speculate regarding when the decision could come, with many hoping the board of directors itself would resume discussions on the matter this week to sign off on the dividend payout.

But they will need to wait a little longer, according to the sources, who said the matter was not included on the agenda of the next board meeting on April 19.

"The decision about the dividends will come from the shareholders' meeting (scheduled for April 25), not the board," said one of the sources, who asked not to be named in order to discuss sensitive issues.

Petrobras did not immediately respond to a request for comment. ($1 = 5.2333 reais) (Reporting by Rodrigo Viga Gaier and Marta Nogueira; Writing by Gabriel Araujo; Editing by Kylie Madry)