RIO DE JANEIRO, March 6 (Reuters) – Brazil’s state-run oil company Petrobras (PETR3.SA), opens new tab could distribute extra dividends this year if surging oil prices boost cash flow, but it is too soon to decide, Chief Financial Officer Fernando Melgarejo told analysts in a call on Friday.
But later, he told journalists: “We don’t see any possibility at this time of an extraordinary dividend distribution this year.”
In the call with analysts, Melgarejo said Petrobras would “love” to distribute extra dividends if the U.S.-Israel conflict with Iran boosts oil prices long enough to provide the Brazilian company with surplus cash, but that the scenario is unstable and Petrobras will remain cautious.
The current spike in crude prices could boost Petrobras’ earnings, as operations have so far remained unaffected by the Middle East conflict.
Oil prices have jumped since the weekend attacks by the U.S. and Israel in Iran disrupted global energy flows. This week, Brent hit $90 per barrel for the first time since April 2024, on track for its strongest weekly gain since the volatility seen during the COVID-19 pandemic in the spring of 2020.
Petrobras must be ready for variations in oil prices, CEO Magda Chambriard said, adding the company will not pass sudden swings onto Brazilian consumers.
“We’re living in a time of high geopolitical instability, where our concern is to leave the company prepared for any scenario that may occur regarding the price of oil,” Chambriard said.
In the short-term, Petrobras has benefited from the conflict, said Petrobras’ head of logistics, commercialization and markets, Claudio Schlosser, as it ships mainly to China, India and Europe, regions far from the conflict zone.
“We’ve seen better margins” this week, he said. “In a way, there is an increase in value and an interesting positioning for the company.”
On Thursday, Petrobras posted results for 2025 with record exports offsetting a drop in Brent oil prices for the year.
($1 = 5.2581 reais)
Read More: Brazil to decide by mid-year whether to complete Angra 3 nuclear project
