Lula government changed the understanding about payment of extraordinary benefits due to fiscal pressure; Final decision will be taken at a meeting on Thursday (April 25, 2024)
The Petrobras Board of Directors informed this Friday (April 19, 2024) that the possible distribution of 50% of extraordinary dividends “it would not compromise the company’s financial sustainability”. This is a green light for the new understanding of the president's government Luiz Inácio Lula da Silva (PT) – the initial idea of the PT administration was not to pay anything. Read the relevant fact released by the state-owned company (PDF – 464 kB).
The idea will now be taken for analysis at the Ordinary General Meeting, scheduled for Thursday (April 25), together with the previous proposal to hold the entire extraordinary dividend in a statutory reserve account. It will be up to shareholders to decide on payment.
The extraordinary dividends referring to the state-owned company’s profit in 2023 total R$43.9 billion. If half of this is paid, it means releasing almost R$22 billion. The government, as the largest shareholder, should keep around R$9 billion. This is fiscal relief given the projected deficit for 2024.
The Petrobras assembly will also elect new members to the Board of Directors, made up of 11 members. There are 14 candidates so far. The government nominated 8, but is only expected to maintain its current 6 seats. Minorities tend to follow with 4 vacancies. The 11th represents employees of the state-owned company.
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