Petrobras' capital reserve to be used only to pay dividends, says CFO - Reuters
Petrobras' capital reserve to be used only to pay dividends, says CFO | Reuters
Petrobras' capital reserve to be used only to pay dividends, says CFO
A logo of Brazil's state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS/Sergio Moraes Acquire Licensing Rights
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RIO DE JANEIRO, Oct 24 (Reuters) - A capital reserve set to be created by Brazilian state-run oil giant Petrobras (PETR4.SA) will be used solely to pay dividends, the firm's Chief Financial Officer Sergio Caetano told Reuters on Tuesday, easing some of the concerns raised by a planned revision of its internal bylaws.
"This reserve is specific for paying dividends," Caetano said, brushing off market concerns that the fund could have been later used for capital investments.
On Tuesday, shares in Petrobras fell more than 6% after the firm's board approved a proposal to revise its internal bylaws, including the creation of the capital reserve fund.
"As such, today's commentary could be well-received by the market," Goldman Sachs said in a note to clients.
Shares in the oil company closed up about 1.5% on Tuesday.
Caetano also said the board should decide whether or not extra dividends will be paid out near the end of the year.
"No decision has been taken as to whether or not Petrobras will pay an extra dividend, this will happen at the right time, toward the end of the fiscal year," he said.
The proposal to revise Petrobras bylaws will be voted on at a shareholders' meeting, which has yet to be scheduled.
Reporting by Marta Nogueira; Writing by Peter Frontini; Editing by Kylie Madry
Our Standards: The Thomson Reuters Trust Principles.
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