Petrobras director attributes stock market decline to dividend amount

Dissatisfaction with the amount of dividends to be paid to shareholders explains the sharp drop in Petrobras shares on Friday, the 8th, on the B3, the São Paulo stock exchange. This is the assessment of Fernando Melgarejo , Chief Financial and Investor Relations Officer.

"Perhaps the dividend distribution expectations generated this quarter were somewhat disappointed. It was impacted by non-recurring events that won't occur in the coming periods. So, circumstantially, the market is behaving in a way that we believe will likely be temporary," Melgarejo assessed.

At the time of the interview, the company's common shares were down about 7%, a trend that continued until the conclusion of this report. A similar trend was occurring on the New York Stock Exchange (NYSE).

Despite being state-owned, Petrobras is a publicly traded company, meaning its shares are traded on the stock exchange. The government controls 50.26% of the voting shares. This controlling group includes the National Bank for Economic and Social Development (BNDES), the federal government's public development bank.

On Thursday evening, the 7th, shortly after releasing its second-quarter earnings, Petrobras announced the payment of R$8.66 billion in dividends and Interest on Equity (JCP) to shareholders. Both dividends and JCP are ways for a company to share part of its profits with shareholders. The amount is equivalent to R$0.67192409 per share.

The federal government is expected to receive approximately 29% of the amount (proportional to its holdings of common and preferred shares). Another 8% goes to the BNDES (National Bank for Economic and Social Development). Common shares grant voting rights, while preferred shares grant priority when receiving dividends.

In the second quarter of 2025, Petrobras reported a net profit of R$26.7 billion. This is 24.3% lower than the previous quarter, but higher than the same period in 2024, when the company reported a loss of R$2.6 billion.

Fundamentals

Despite the stock's decline, Melgarejo stated that the market recognizes the company's operating results as "quite positive." According to him, of the 16 market analysts who recommend buying or selling the stock, 75% recommend buying.

In the stock market, the more people are interested in buying a share, the higher the price of the stock and, consequently, of the company being traded.

"The company strongly believes in our value creation thesis for this year. We're working on replenishing reserves and increasing production. So, all of this is a positive for the company."

Oil down

When asked about the possibility of Petrobras paying extraordinary dividends ─ beyond what was planned ─ in the future, the CFO responded that he "would love to," but noted that, for this to happen, it would be necessary to have excess cash in excess of the company's needs.

“It is only possible if there is sufficient operational cash flow to cover all the capex [acronym for capital expenditure – investment resources] that we have, all the opex [ operational expenditure, day-to-day operating expenses] that we have and still have funds left over.”

The director stated that a potential impediment to achieving these figures is the price of oil, which has been trending downward in the international market. In the second quarter of 2025, a barrel of Brent crude (the international benchmark) traded on average at $67.82 , 10% below the price in the first quarter.

Melgarejo emphasized that the ability to pay extraordinary dividends depends on two variables: oil price and quantity sold.

"We've been improving in terms of quantity, but the price has really dropped, and if it continues at this level, we see less chance of being able to pay an extraordinary dividend this year," he admitted.

Oil tankers

In contrast to the financial market, the Unified Federation of Oil Workers (FUP), which represents workers in the sector, considers it a step forward not to have extraordinary dividends this quarter, meaning the category advocates that this portion of the profits remain within the company to increase investments.

"There has been a reduction in the rate of wealth expropriation from the country's largest company. We are alert to the possibility that this is a trend in the company's policies," FUP general coordinator Deyvid Bacelar said in a statement.

Petrobras' dividend policy determines that, in the event of gross debt equal to or lower than the maximum level defined in the current Business Plan (currently US$75 billion), and in compliance with the other conditions of the policy, Petrobras must distribute 45% of its free cash flow to its shareholders.