Business Context and Reporting Period
Petróleo Brasileiro S.A. – Petrobras (Petrobras) filed Form 6-K on May 13, 2024, regarding a Board of Directors meeting held on the same date. The filing announces the approval of interim dividends and interest on own capital for the year 2024, declared based on the balance sheet as of March 31, 2024.
Key Financial Metrics
- Total Remuneration Approved: R$ 13.45 billion.
- Per Share Amount: R$ 1.04161205 per outstanding common and preferred share.
- Share Buybacks (Q1 2024): R$ 1.1 billion (deducted from total remuneration calculation).
- Gross Debt Threshold: The distribution aligns with the policy allowing 45% of free cash flow distribution when gross debt is at or below US$ 65 billion.
- Cash Flow: The filing does not provide a specific value for total free cash flow, only the percentage distributed.
Material Changes and Payment Schedule
The approved distribution is to be paid in two installments in August and September 2024. The filing does not provide comparative financial data for the prior period to assess material changes in revenue or profit.
- First Installment (August 20, 2024): R$ 0.52080603 per share (Interest on own capital).
- Second Installment (September 20, 2024): R$ 0.52080602 per share (R$ 0.44736651 as dividends; R$ 0.07343951 as interest on own capital).
- Record Dates: June 11, 2024 (B3) and June 13, 2024 (NYSE ADRs).
- Ex-Rights Date: June 12, 2024 (B3).
Guidance, Outlook, and Risks
Management commentary indicates the distribution is compatible with the company's financial sustainability and adheres to the Shareholder Remuneration Policy. The filing includes a standard forward-looking statement warning that future results may differ from expectations due to risks and uncertainties.
- Contingencies: Per share amounts are preliminary and may change until the cut-off date due to the ongoing share buyback program.
- Future Adjustments: These payments will be deducted from the total remuneration to be approved at the 2025 Annual General Meeting for the 2024 fiscal year. Deductions will be adjusted by the Selic rate from the payment date until the end of the fiscal year.
Investor Verification Checklist
- Verify the final per-share amounts after the cut-off date, as they may change due to share buybacks.
- Confirm the company's gross debt level remains at or below the US$ 65 billion threshold to validate the 45% free cash flow distribution policy.
- Monitor the 2025 Annual General Meeting for the final calculation of 2024 total remuneration, which will account for these interim payments and Selic rate adjustments.
- Check for any updates regarding the share buyback program that could impact the total number of outstanding shares.