Petrobras Investors Express Frustration Over Dividend Decision
Friday, 8 March 2024, 17:00
Petrobras Market Cap Plunges
Investor frustration with a meager dividend from Brazil's state-run oil firm Petrobras wiped out over 50 billion reais ($14 billion) of its market value on Friday after government-appointed board members voted down a more generous payout.
Facing Investor Backlash
The nearly 10% drop in shares reflects investors' biggest frustration yet with Chief Executive Jean Paul Prates, who has tried to balance the interests of minority shareholders with a leftist government eager to see more capital spending.
Impacts and Influence
- Petrobras has been a major cash cow for its shareholders in recent years, including the Brazilian government, with the prior management paying out far more than Western oil major peers.
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