Rio de JaneiroThe debate over the distribution of dividends was unexpectedly included in the Petrobras board meeting this Friday (19), with the sole purpose of ratifying a decision that had already been made in Brasília, according to board members interviewed by Folha.
The topic was not on the agenda of the meeting, as stated the day before by the company’s president, Jean Paul Prates.
According to one board member, the issue was discreetly included in the agenda under an item about the evaluation of the company’s strategic planning.This discussion began after the closing of the trading session on B3, to prevent leaks that could impact the shares.
Government representatives on the board already knew that the debate would lead to a revision in the dividend policy, but independent board members were caught off guard.
Pedestrians in front of Petrobras headquarters in Rio de Janeiro – Wang Tiancong/XinhuaFolha learned that there was a lengthy debate over the wording of the statement justifying the change in position less than two months after the government rejected the company’s proposal to distribute 50% of extraordinary dividends.
At that time, government representatives argued that the payment would weaken the company’s finances, contrary to Petrobras management’s view. The decision to retain the dividends came from the Ministries of Mines and Energy and of the Civil House, who convinced President Luiz Inácio Lula da Silva (PT).
In the following weeks, faced with the negative repercussions of this decision and the involvement of Finance Minister Fernando Haddad, who supported the distribution of dividends, there were leaks that they needed new company numbers to better assess the situation.
Petrobras management and independent board members, however, always argued that the proposal to distribute 50% was appropriate for the company’s financial situation.
Haddad convinced Lula that the money was necessary for fiscal balance, and the decision was made.
In the statement about the reversal, released after 11 pm this Friday, Petrobras said that “considering dynamic scenarios, such as the evolution of [Brent oil price], exchange rate, and other factors,” the board now believes that the dividends do not compromise the company’s financial stability.
The decision to distribute had already been made by Lula, as Folha had anticipated earlier in the evening.
The board’s review of its position only endorses the proposal, which will be presented by the government at the shareholders’ meeting on the 25th.
Independent board members believe that the reversal reinforces the idea that the decision to retain in early March was aimed at targeting Prates, who has been in conflict with Mines and Energy Minister Alexandre Silveira since the beginning of the government.
The initial decision to withhold the funds in a profit reserve cost Petrobras a loss of R$ 55 billion in market value the day after the financial statements were published, showing the second-highest profit in the company’s history.
In the following weeks, the company’s shares experienced significant volatility, amid news about the issue and, later, about the possible dismissal of Prates, who has been under pressure in recent weeks.
Earlier this month, the CVM (Securities and Exchange Commission) opened an administrative process to investigate Petrobras’ communication, following leaks about a possible change in the company’s leadership.
This Friday’s meeting was the last with the current board composition. Next Thursday, the company’s shareholders will elect a new board.
However, only two current members of the board are expected to leave: former Minister Sergio Machado Rezende, appointed by the government, and minority representative Marcelo Mesquita.
The latter cannot be reelected, and the former will be replaced by the Deputy Executive Secretary of the Ministry of Finance, Rafael Dubeux.
