Lula says that Petrobras decided to ‘grace’ shareholders with dividends, instead of investing – 02/03/2023 – Market

President Luiz Inácio Lula da Silva (PT) said, this Thursday (2), that Petrobras decided to “grace” minority shareholders with the distribution of dividends, instead of investing in the country’s industry.

The PT’s statement, given during the launching ceremony of the new Bolsa Família, takes place the day after the company’s announcement of record profits and the distribution of around R$ 30 billion to its shareholders.

The high distribution of dividends by the company, which became the second largest payer in the world in 2022, was the target of strong criticism from the PT. With the new numbers, the company will have distributed more than R$ 200 billion in dividends for the year’s results.

“We cannot accept today’s news. Petrobras, it delivered dividends of more than R$ 215 billion when it should have invested half in the economic growth of this country, in the Brazilian industry, in the shipbuilding industry, in the oil and gas industry”, he said. Lula, in his speech.

“Petrobras, instead of investing, decided to reward minority shareholders with R$ 215 billion, having a book of R$ 195 billion. And how much was Petrobras’ investment? Almost nothing”, he added.

Petrobras closed 2022 with the highest annual profit in the history of Brazilian companies: R$ 188.3 billion, up 76.6% compared to the 2021 result, which had been the highest ever announced by the state-owned company.

In his speech, Lula also commented on the GDP of 2.9% last year, which he said was “nothing” growth, and again defended public investment to improve the economy and create jobs.

“You [ministro Wellington Dias] there will be much more money to fulfill your program if we make things really happen in this country. And it is important to know that Brazilian companies, Brazilian banks, have to think first about the people of that country and then think about their profits and their shareholders”, said the Chief Executive.

During the campaign, the then PT candidate already promised to review Petrobras’ pricing policy (PPI). Lula’s criticisms at this moment occur in the wake of the discussion on fuel taxation.

On Tuesday, the government announced that it would resume charging gasoline and ethanol from March 1, eight months after the rates were zeroed by former president Jair Bolsonaro (PL) in an attempt to bring down the price at the pumps on the eve of the 2022 election.

The issue generated a clash inside and outside the government, with public divergence between the president of the PT, Gleisi Hoffmann, and the minister of Finance, Fernando Haddad,

The PIS/Cofins rate will rise to R$0.47 per liter of gasoline and R$0.02 per liter of ethanol — that is, a still partial charge in relation to the levels charged before the exemption. The Cide (Contribution for Intervention in the Economic Domain) remains zero.

Shortly before the government’s announcement, Petrobras had already announced a 3.9% cut in the price of gasoline at its refineries, which reduces the price of a liter by R$0.13. According to the state-owned company, the fuel will cost R$ 3.18 per liter from this Wednesday (1st).