Brazilian state-run oil company Petrobras announced a new five-year strategic plan. The new plan includes a payout of 60% of the difference between its operating cash flow and investment every quarter provided gross debt remains under $65bn and the company makes a profit. Petrobras would also offer an annual dividend of $4bn as long as Brent crude averages more than $40 a barrel. This announcement ends the previous dividend policy, which banned extraordinary dividend payments. Petrobras expects to pay $60bn to $70bn in total dividends throughout the 5Y plan. The company is also increasing its investments to $68bn from $55bn, to boost oil production.
Petrobras’ dollar bonds were up with its 7.375% 2027s up 0.95 to 116.948, yielding 3.72% and its 6.9% 2049s up 2.14 to 106.889, yielding 6.36%
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