Petroleo Brasileiro CFO Says Brazil's Petrobras Reserve Fund Approved By Board Can Only Be Used To Pay Dividends; Will Not Be Allowed To Use Funds From Reserve To Make Investments; Should Decide On Potential Payment Of Extra Dividends At End Of Year
Portfolio Pulse from Benzinga Newsdesk
Petroleo Brasileiro's CFO announced that the company's reserve fund, approved by the board, can only be used to pay dividends and not for investments. The decision on potential payment of extra dividends will be made at the end of the year.
October 24, 2023 | 7:04 pm
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Petrobras' reserve fund restrictions may limit its investment capabilities but could potentially lead to higher dividends for shareholders.
The news directly pertains to Petrobras and its financial management. While the restriction on using the reserve fund for investments could limit the company's growth opportunities, it could also mean higher dividends for shareholders if the company decides to distribute extra dividends at the end of the year.
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IMPORTANCE 75
RELEVANCE 100