Petrobras Loses Top Spot in Oil Sector Profitability: Small Cap Outperforms in 2024

Petrobras, Brazil’s oil giant, has long been known for its impressive dividend payouts. However, its stock performance hasn’t always matched this reputation.

In 2024, Petrobras shares have shown positive growth, but they lag behind the sector’s standout performer. The Brazilian oil and gas stock that has seen the highest appreciation in 2024 is Refinaria de Petróleos Manguinhos (RPMG3).

This small-cap company, known for its volatility, has outpaced its larger counterpart by a significant margin. According to data from Quantum Finance, Manguinhos’ stock has surged by 40.09% this year.

In contrast, Petrobras’ common shares (PETR3) have risen by 13.54%, while its preferred shares (PETR4) have gained 9.69%. This performance marks a stark contrast to the previous year.

In 2023, Manguinhos saw a 24.7% increase, while Petrobras shares nearly doubled in value. The oil sector’s stock performance in 2024 has been mixed.

Market Performance Overview

Some companies have seen modest gains, while others have experienced significant losses. Vibra and OceanPact have shown positive growth, while PetroRio, PetroRecôncavo, and Ultrapar have faced declines.

Despite lagging in stock appreciation, Petrobras maintains its dominance in dividend payouts. The company’s dividend yield for 2024 stands at an impressive 17.73% for preferred shares and 16.14% for common shares.

Petrobras has distributed R$23 billion ($4.6 billion) in dividends up to the second quarter of 2024, according to British asset manager Janus Henderson. This figure dwarfs the payouts of its sector peers.

PetroRecôncavo holds the second-highest dividend yield in the sector at 11.30%, but it still falls short of Petrobras’ generous payouts.

While Petrobras may have lost its top spot in stock appreciation, it continues to reign supreme in dividend distribution. This balance of growth and income makes it a unique player in Brazil’s oil and gas sector.

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