Market experts are skeptical about Petrobras’s latest plan to modify its corporate rules.
On Monday, Petrobras revealed a plan to create a capital return reserve. Yet, it left investors guessing by not providing details.
Meanwhile, it stated that the existing policy for shareholder payments stays the same.
Consequently, the firm’s preferred shares tumbled, losing 6.16% of their value to settle at R$35.51 by the afternoon.
XP Investimentos, a financial firm, says the move is somewhat bad for Petrobras’s investment outlook.
They say it’s not a complete surprise, though. They believe more investors will now question Petrobras’s long-term value.
They also think there’s a higher chance the company won’t give out special dividends for the year 2023.
Two analysts, André Vidal, and Helena Kelm, express additional concerns. They highlight that Petrobras could now avoid giving extra dividends.
Still, they note that this doesn’t guarantee the company won’t pay them next year.
Another financial firm, Ativa Investimentos, agrees with these concerns. They warn that the amount paid to shareholders could be less or even disappear.
This depends on the size of the new financial reserve that Petrobras is planning.
Adding to this, there may be more changes on the way. The company is also considering changes to how it picks its top managers.
Experts warn this could result in more questions about the company’s governance, leading to reduced transparency.
In summary, Ativa Investimentos states that today’s news is mainly why Petrobras’s stock is performing poorly.
They maintain a cautious outlook for the company, despite its recent positive track record.
Background
Petrobras has been through tough times, marred by corruption scandals. It has worked hard to rebuild its image and regain investor trust.
As part of this, it has made several changes to its corporate rules. But these new tweaks have people wondering if the company is moving away from transparency.
Market watchers are closely monitoring Petrobras as these changes could affect not just the company but the entire Brazilian energy market.
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