Petrobras reports record profit of R$188.3 billion in 2022 and will pay R$215.7 billion in dividends to shareholders – Economy

rio – a Petrobras Closed 2022 with record profits and profits, but under strong pressure from politicians linked to PT Because of the billionaire’s payment to shareholders. The state-owned company will distribute a record lump sum of 215.7 billion Brazilian realsReferring to 2022, more than double what was paid in 2021. In order to have a dimension of the amounts involved, with this amount it is possible to finance three times the current budget Bolsa Familia. The amount of the dividend exceeds the company’s earnings.

This Wednesday, the first, the state-owned company announced a historic profit of 188.3 billion Brazilian reals, 76.6% higher than the previous year. The performance was driven by higher prices of oil and its derivatives in the international market as a result of the war in Ukraine.

In the case of the dividend, the scenario going forward should be more modest. The fourth quarter of 2022 could be the last with such high payments during the president’s administration Luiz Inacio Lula da Silva.

At the first Wednesday meeting, according to the sources, the board of directors agreed not to thwart the financial market expectations created by the previous administration. It has been agreed that R$35.7 billion will be disbursed as dividends for the fourth quarter, with R$6.5 billion of this total constituting a legal reserve that can be used for investments, if the measure is approved at the next shareholder meeting, scheduled for April 27.

Since the union is the majority shareholder in the state-owned company, such approval will not be difficult. In practice, according to sources, the board has given time to the current administration, under the leadership of the president Jean Paul Pratisand finding good investments that justify keeping these amounts in cash.

Petrobras will distribute R$2.74573369 per preferred and common share in the form of a dividend for the fourth quarter of 2022. Since the company has just over 13.044 billion shares, that amounts to approximately R$35.7 billion being paid to shareholders this quarter.

Despite the criticism, the main beneficiary of the strong dividend distribution is the government itself. With a 36.6% stake in the oil company’s share capital, the government will receive R$78.9 billion in dividends indicating the state-owned company’s performance over the past year.

Markets celebrated the strong results, which were heavily criticized by the federal government. The attacks were already happening throughout the government of Jair Bolsonaro (PL) and are now being repeated by members of President Lula’s political group.

The biggest criticism of Petrobras within the Workers’ Party, the party leader, Jelly Hoffmandefined the earnings as “inappropriate” in a post on social media on Tuesday, the 28th. (time to) Review the improper distribution of the company’s profits in order to invest it again and make Brazil grow.”

Jleesi had spoken out last year against the state-owned company’s dividend policy. After the elections, bloodshed returned to Petrobras. We do not agree with this policy that deprives the company of its investment capacity and only enriches the shareholders. She said in November, on the social network, that Petrobras should serve the Brazilian people.

The complaint comes from the fact that record earnings and profits are based on higher prices being charged to consumers, an unpopularity factor that puts pressure on inflation, underscoring the monetary policy tightening that Planalto has been attacking. In addition, the Labor members also advocate reducing the distribution of proceeds so that Petrobras accumulates cash and aligns with intended investments in the coming years.

Although more conservative, another critic of the company’s management is the Minister of Finance himself, Fernando HaddadWhich announced a working group with the aim of providing greater transparency to the company’s pricing policy, which should change from April, when the board of directors will be reformed with the entry of new representatives of the federal government.

President Lula himself spent his campaign promising “Brazilian” prices for petrol, diesel and cooking gas. Pratiss, in turn, has already indicated that he intends to change the producer price index and the dividend policy, but guarantees that he will maintain competitive pricing and note international fluctuations.

“excellent” record

Petrobras Financial and Investor Relations Manager, Rodrigo Araujo, defined the company’s fourth-quarter results as “a record-breaking”. In a letter included in the balance sheet, Araujo highlighted that in 2022, Petrobras collected a record amount of R$279 billion in taxes and government contributions, crossing the R$1 trillion mark in the sum of the past five years.

Araujo should remain in office only until April, when he should be replaced by the main candidate Jean-Paul Pratis for Petrobras Chief Financial Officer, Director Sergio Caetano Light. Caetano Leite’s CV is evaluated by the Company’s internal governance and has yet to be approved by the Personnel Committee of the Board of Directors and the full 11-member university body.

According to Araujo, the company has produced wealth for the community and, in addition, has generated returns for shareholders. “The Board of Directors has approved a dividend of R$2,751 (BRL 2.74573369, on a material fact basis) per common and preferred share, in connection with the fourth quarter 2022 result.”

According to him, the state company “can continue to provide more.” “With prospects for greater volumes of oil and gas production, with greater profitability due to the pre-salt layer, and our company’s ability to meet the challenges posed by the inevitable energy transition, we will be uniquely positioned to continue to generate value over the long term deadline,” he wrote.

Araujo defined 2022 as “difficult”, due to limited international supply due to the conflict in Ukraine. “Our coverage of the global market and the development of new customers has been critical in changing our export flow in search of value generation and taking advantage of new arbitrage. We have been able to diversify our export destinations and exercise competitive pricing while reducing volatility for our customers.

Fourth quarter results

Petrobras closed the last quarter of 2022 with a profit of 43.3 billion Brazilian reals37.6% more than last year, and 6% less than that recorded in the third quarter of 2022, according to the company that informed the Securities Commission (CVM).

The decrease in the margin, that is, when compared directly to the previous quarter, is due to the decrease in the average price per barrel of oil in the period, which fell from $100.85 in the third quarter of the year to the United States. $88.71 in the last three months of 2022.

Ebitda, which measures a company’s ability to generate cash, was R$73 billion in the fourth quarter, up 16.1% compared to the fourth quarter of last year, but down 20.1% sequentially.

Sales revenue for the period increased by 18.2%, to reach R$158.5 billion, compared to the fourth quarter of 2021, and decreased by 6.8% compared to the third quarter of this year.

The company reported that revenue from the sale of derivatives amounted to R$99.2 billion in the fourth quarter, up 21.3% from the same period in 2021. The company’s exports amounted to R$36.1 billion, an increase of 20.1% from the fourth quarter of 2021.