Petrobras BOD Approves New Shareholder Compensation Policy

(Petrobras, 28.Aug.2019) — Petrobras says its Board of Directors, in a meeting held today, approved the new Shareholder Compensation Policy.

The new policy aims to establish an objective parameter for the payment of earnings, providing investors with more transparency on their compensation, considering the company’s indebtedness and cash flow. The chosen criteria allows for a balance between shareholders’ compensation and Petrobras’ financial sustainability and the maintenance of its investment capacity. 

The main change brought about by the new policy is the definition that in the event of gross indebtedness (1) of less than US$ 60 billion, the company may distribute to its shareholders 60% of the difference between the operating cash flow and investments, as defined below:

Compensation = 60% x [Operating Cash Flow – CAPEX (2)]

In the event of gross indebtedness (1) in excess of US$ 60 billion, the company may distribute to its shareholders the minimum mandatory dividends provided for by law and the Bylaws.

The new policy is in line with the company’s debt reduction strategy and the pursuit of greater value creation for our shareholders.


1) — Including lease commitments (IFRS).

2) — In this formula, the following are not considered as CAPEX: (a) proceeds from the sale of assets; (b)payments in oil and natural gas E&P bidding rounds; and (c) payments relating to the acquisition of companies or equity interests


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