Petrobras Contemplates Dividend Reduction in Shift Towards Refining and Renewable Investments

Investors in Brazil’s state-controlled oil giant, Petroleo Brasileiro SA (Petrobras), face the prospect of reduced dividends as the company proposes changes to prioritize investments in refining and renewable energy. The Rio de Janeiro-based company revealed plans that may curtail dividend payouts, with President Luiz Inacio Lula da Silva advocating a shift toward strategic investments.

read also James Maddison: Tottenham star is the Premier League’s most influential player this season, says Jamie Carragher | Football News


The proposed bylaw changes include the creation of a capital-remuneration reserve, potentially limiting future extraordinary dividends, and have met resistance from minority shareholder representatives on the board. The move caused Petrobras shares to decline by 6.6%, erasing approximately $6.38 billion in market capitalization. The company is set to unveil a new five-year strategic plan, expected to feature increased investments in renewable energy and low-carbon projects