The Brazilian oil giant's profits are booming and Petrobras could pay up to $12 billion in dividends!

According to the financial group report, Goldman Sachs, Petrobras must pay US$ 12 billion in dividends together with its disclosure of results, which will take place on November 3rd. Goldman Sachs' expectations are based on studies on the oil company's third quarter 2022 figures.

According to Goldman, this value implies a return of dividends (dividend yield) of 14%, which Petrobras would pay for the rest of 2022, maintaining a cash position of 9%.

For the Financial Group, the minimum Petrobras could pay would be US$ 6,7 billion, considering the distribution of 60% of the profit. It is worth mentioning that the oil company has paid more than the total implicit in the formula.

Brent oil price fell about 12% but will not prevent the state-owned company from paying billionaire dividends

Despite the fall in the price of Brent oil, which dropped about 12% between July and September, analysts at BTG, a Brazilian investment bank, Petrobras will generate good cash and calculates that the state-owned company will announce dividends of US$ 6,5 billion.

“Lower oil prices should affect the Ebitda, but investors should still expect a solid showing from what has become a cash-generating machine,” analysts said.

The Credit Suisse analysts, a Swiss investment bank, say that after a “marginally negative” reading of the numbers for the third quarter, the results should still be “solid”.

“Results will likely not be as exciting as in the second quarter, when Petrobras paid extraordinary dividends, but we still see solid free cash flow generation of around $9 billion in the quarter. This should lead to dividends of $6-9 billion in the third quarter, in our opinion”, said.