Shares: Petrobras loses R$30 billion in market value – 02/29/2024 – Market

Petrobras lost almost R$30 billion in market value this Wednesday (28), with its shares falling after a statement by the president of the state-owned company, Jean Paul Prates, caused doubts among investors.

In an interview with Bloomberg, Prates said Petrobras will be more cautious about paying extraordinary dividends as it moves to become a renewable energy powerhouse.

“We have to be more cautious. Shareholders will understand. We are in the middle of this big decision to become an oil company in transition,” he said.

The statement led investors to place Petrobras shares among the most traded in this Wednesday’s session. Preferred shares (without voting rights) closed down 5.16%, at R$40.43, while common shares (with voting rights) dropped 5.39%, at R$41.60.

At the worst moment, PNs were traded at R$ 39.83 (-6.57%) and ONs were quoted at R$ 41.25 (-6.19%), among the worst performances of the Ibovespa, which lost 1 .16%.

Petrobras reported early this Wednesday evening that there has been no decision taken regarding the distribution of dividends that have not yet been declared.

The company added that senior management’s decisions on dividends, which include the proposed allocation of the result, to be submitted for approval at the annual general meeting on April 25, will be taken based on its new remuneration policy.

According to Tiago Cunha, variable income manager at Ace Capital, market expectations regarding the payment of dividends were closer to a maximum value for the potential to be distributed.

“The president’s speech, in this sense, raises doubts about what the percentage paid will be. Depending on the percentage, Petrobras will have a ‘dividend yield’ close to other major oil companies in the world, which would not justify a preference for the Brazilian company “, he assessed.

Petrobras will release its results for the last quarter and 2023 on March 7, when it will also announce its decision on shareholder remuneration.

In a report to clients this Wednesday, commenting on Prates’ statements, Goldman Sachs analysts assessed that the comments could be negatively received by investors as the majority they have spoken to in recent weeks are focused on the potential announcement of extraordinary dividends.

Even so, Bruno Amorim and his team maintained a “buy” rating for Petrobras shares, as they calculate that the company will offer an average free cash flow yield (FCFy) of around 14% over the next four years, between 2024 and 2027. , which is above leading global companies by around 10% on average.

“We recognize that at this level of earnings, the premium for global top companies has declined compared to recent history — we currently see global top companies with a shareholder return of approximately 10%, div+repurchase, in 2024E, in average—, which, in our opinion, limits the room for further significant revaluation of the stock,” the analysts said.