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Petrobras (PETR4) updates the value of extraordinary dividends; watch

A Petrobras (PETR4) has updated the amount to be paid per share of special dividends for the 2023 financial year, taking into account the Selic rate correction until May 2.

According to the state-owned company, the total value per share of extraordinary dividends from Petrobras went from R$1.7571 to R$1.7599. Therefore, considering that this dividend will be paid in two equal installments, the value of each installment has gone from R$ 0.8785 to R$ 0.8799.

Payments for Petrobras dividends will be held on May 20 and June 20, 2024.

“It should also be highlighted that the gross values ​​of dividends per share will continue to be adjusted to the Selic rate from 12/31/2023 until the respective payment dates. Income tax will be levied on the value corresponding to the monetary adjustment of earnings , in accordance with current legislation,” Petrobras wrote.

They will be entitled to extraordinary dividends from Petrobras (PETR4) core shareholders on May 2.

Petrobras dividends

  • Total value: R$1.75997704
  • Value per share of the 1st and 2nd installment: R$ 0.87998852
  • Deadline: May 2, 2024
  • 1st installment payment: 20 May 2024
  • Payment of the 2nd installment: 20 June 2024

Petrobras (PETR4) faces credit risk if government uses it to cover fiscal deficit, Moody’s says

Moody’s warned that Petrobras could face greater credit risks if the government starts using it to cover the fiscal deficit, control fuel prices and contain inflation.

In a report, the agency cites a series of measures implemented by the administration of President Luiz Inácio Lula da Silva, including changes to dividend policy.

The institution believes that the state-owned company has governance mechanisms that partially protect it from interference. According to Moody’s analysis of Petrobras, changes in the board of directors and investment strategies have not had a material impact on credit quality.

“There would be negative credit implications if the quality of Petrobras’ corporate governance declines, increasing its vulnerability to political changes,” he warns.

The risk agency also points out that changes to Petrobras’ business plans or resource allocation that weaken financial metrics would also be negative for the company’s credit.

Moody’s: the state company’s rating is not affected by the change in Brazil’s outlook

Moody’s reported that Petrobras’ corporate rating is not directly affected by the upgrade of Brazil’s sovereign rating outlook to positive. The rating reflects the “inherent risks” of the state-owned company, particularly growing evidence of government interference in the company’s decisions, according to the agency.

The institute currently assigns a Ba1 rating to Petrobras, with a stable outlook. The rating is one step above the country’s Ba2 rating, as a result of the company’s “considerably stronger” credit profile and ability to withstand adverse economic scenarios.

Moody’s sees a low probability that Petrobras will default on its debt, due to “strong” financial metrics, limited exposure to currency risks and lower dependence on domestic financing sources.

The business strategy has allowed Petrobras to reduce debt and improve metrics, the agency says

The implementation of Petrobrase’s asset sale program and business strategy in recent years has enabled the state-owned company to significantly reduce its debt level and improve its credit metrics in recent years, Moody’s says.

In a report, the agency points out that this reality has left the company in a “very comfortable” position to deal with possible volatility. “Petrobras’ strong credit and liquidity metrics support its rating, with leverage falling to 1.2x in 2023, from 4x in 2017, and a good liquidity profile,” it says.

The institute expects the oil company to generate cash of about $35 billion in 2024, enough to cover the annual maturity of about $3 billion in debt and capital expenditures of $19 billion over the period. Therefore, according to the analysis, liabilities will be less than $65 billion.

“Moody’s continues to have a moderate default dependence between Petrobras and the government,” he adds.

*With information provided by Estadão Conteúdo

Source: Terra

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