Brazilian state-run oil company Petrobras will pay $2.1 billion in dividends for the first quarter of 2025 after reporting a sharp rise in net income, driven by one-off gains and favorable currency movements.
The company posted net income of $6.2 billion (35.2 billion reais), up 48.6% from the same period last year. However, excluding one-time items, net income actually fell 12.1% year-over-year.
Petrobras’ board approved the interim dividend in line with its Shareholder Compensation Policy. The policy mandates that if gross debt remains at or below $75 billion—the cap set in the company’s Strategic Plan—then 45% of free cash flow must be returned to shareholders.
“This distribution is consistent with the financial sustainability of the company,” Petrobras said in a statement.
Investor concerns had grown over the company’s rising capital expenditures, fearing they could limit shareholder payouts. However, Petrobras boosted its cash flow thanks to a 5% increase in oil production compared to the previous quarter, according to chief financial officer Fernando Melgarejo.
The production increase helped lift adjusted EBITDA by 46% from Q4 2024.
Despite recent declines in oil prices early in the second quarter, Petrobras said it remains committed to its current Business Plan.
The company invested $4 billion in the first quarter—22% of its full-year budget. Most of the spending focused on Brazil’s offshore pre-salt fields, especially Búzios and Atapu. Petrobras is drilling more wells and building new production units to support future output.
“These projects add value for our shareholders and will generate revenue in the coming years,” Melgarejo said.
Just last week, Petrobras announced a new oil discovery in the pre-salt Santos Basin. The find, located in the Aram block, contains high-quality oil with no contaminants, the company reported.
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