Petrobras Unveils New Footing With Record Dividend

Building Benjamins
2.19K Followers

Summary

  • Record dividend payout, bringing yield to 21.3%.
  • Sweeping strategic plan to streamline and expand the best assets while divesting from domestic energy production and for-domestic oil refining in favor of natural gas capacity.
  • Innovative floating production storage and offloading facilities (FPSOs) blend the higher throughput of onshore production with the relatively low cost of offshore production.
  • Dividends are guaranteed at above $40 per barrel (bbl), paying out at a minimum 25% of net income as a base.

Bolsonaro Considers Privatization of Oil State Company Petrobras

Wagner Meier

Investment Thesis

Petróleo Brasileiro, commonly called Petrobras (NYSE:PBR), is a Brazilian state-controlled oil company and is one of the largest publicly traded companies in Latin America. Since it began developing the large pre-salt fields off the coast of

This article was written by

2.19K Followers
BuildingBenjamins is a free stock picking and market commentary investment newsletter. Building Benjamins is the DBA (doing businesses as) publishing entity for Tradition Investment Management, LLC, a registered investment adviser. Benjamin Halliburton, our founder, also founded Tradition Capital Management in 2000 and was named “PSN Manager of the Decade” for All-Cap in the 2000s and “PSN Manager of the Decade” for Dividend Value in the 2010s. Since starting his investment career at Merrill Lynch in 1986, Ben has been continuously involved in investing. He managed money while earning a Master of Business Administration (MBA) with a focus on finance from Duke’s Fuqua School of Business in 1990, where he was distinguished as a Fuqua Scholar. In 1994, he earned the Chartered Financial Analyst designation. He was the top-performing portfolio manager at his firm, Brundage, Story and Rose, where his “Disciplined Growth Strategy” outperformed the S&P500 in the 1990’s bull market. Ben was the youngest partner at his firm and was called “the best investor I have ever met” by one of the senior managing partners.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PBR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About PBR Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PBR

Related Stocks

SymbolLast Price% Chg
PBR
--