February 27, 2024

Will Petrobras (PETR4) announce a dividend today? JPMorgan estimates $4.1 billion – Money Times

JP Morgan estimates that Petrobras will maintain its current dividend policy in the first quarter of 2020 (Photo: REUTERS/Palo Whitaker)

a JPMorgan estimated that Petrobras (PETR4) should announce 4.1 billion US dollars in earnings Referring to the first quarter of 2023 (1Q23). The announcement follows the release of the state-owned company’s balance sheet for the first three months of the year, which takes place on Thursday (11), after the market is closed.

The amount of profit estimated by the bank is equal to the income (fruit) 6%, according to analysts.

They believe Petrobras’ current dividend policy will be maintained by new management this quarter.

“The dividend has been one of the most important factors for investors when it comes to Petrobras,” says the bank team.

However, for the rest of the year, JPMorgan will assume a “more conservative” policy. Analysts expect the oil company to distribute only the minimum required by law, with distribute profits 25%.

In the case of Petrobras, the change will result in a total distribution of US$8.5 billion in dividends in 2023 – with fruit from 12.5%.

Why the change in Petrobras profits?

Since the election of the president Luiz Inacio Lula da Silva (PT), Petrobras’ dividend policy has been the target of criticism.

The government says the company should prioritize a capital allocation strategy that focuses on new projects and investments, particularly expanding refining capacity and renewables, rather than returning excess cash to shareholders.

Market analysts believe that a possible rule change has become part of the agenda for the state-owned company. This happened after the election of a new board of directors and the replacement of members of the executive committee of the state-owned company.