Petrobras Prioritizes Increased Spending Over Dividends in Latest Strategic Plan
With its latest five-year plan, Petrobras meaningfully increased spending levels as it incorporates investments for the energy transition. While the latest plan is by no means a return to the profligate spending of a decade ago that first placed Petrobras in jeopardy, it is—along with a reduction in the payout ratio—a departure from the capital discipline of the last few years that resulted in a healthier balance sheet and large shareholder payouts.