President of Petrobras Affirms that Guidance to Retain Dividends Came from the Government

Prates says he does not consider the episode as intervention but a 'sovereign exercise' by the company's controllers

The president of Petrobras, Jean Paul Prates, stated on Wednesday night (13) that the guidance to retain the company's extraordinary dividends came from the government of Luiz Inácio Lula da Silva (PT).

FILE PHOTO: A logo of Brazil's state-run Petrobras oil company is seen at their headquarters in Rio de Janeiro, Brazil. REUTERS/Sergio Moraes/File Photo - REUTERS

He also mentioned not considering the episode as "intervention in Petrobras" but as a "sovereign exercise" by the company's controllers — in this case, the Brazilian State.

Since Thursday (7), when the company announced that it would not pay extraordinary dividends to shareholders, shares have fallen amid fears that the government of Luiz Inácio Lula da Silva (PT) was intervening in the company.

In a post on the social network X (formerly Twitter), Prates stated that the decision to retain the extraordinary dividends came from President Lula and his ministers.

"It is legitimate for the board of directors to position itself guided by the President of the Republic and his direct aides, who are the ministers. That is exactly what happened regarding the decision on extraordinary dividends."

Since the electoral campaign that led him to his third term, Lula has advocated for Petrobras to reduce dividend distribution, freeing up more resources for investments.

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