PBR - Petrobras: Reduced Payouts Remain Rich - Maintain Buy
2024-03-18 09:00:00 ET
Summary
- The market has over-reacted to Petrobras's supposedly lower FQ4'23 dividend payouts, since it is mostly attributed to one-time impairment and contractual charges.
- At the same time, readers must remember that its shareholder payout ratio has been revised down to 45%, inclusive of share repurchases and dividend payouts.
- PBR's payouts may remain rich, as it continues to record excellent spreads between the low break even point of $25 and the estimated Brent prices of $84.80 in 2025.
- Combined with its inherent undervaluation, PBR stock continues to offer an excellent dividend investment thesis for those comfortable with moderate volatility.
We previously covered Petrobras ( PBR ) in November 2023, discussing its mixed FQ3'23 earnings call, as the volatile spot prices and elevated expenses triggered its impacted profitability and dividend payouts....
Petrobras: Reduced Payouts Remain Rich - Maintain Buy