Shares of the Brazilian state-run oil giant Petrobras plummeted more than 10% on Friday, erasing more than 70 billion reais ($14 billion) from its market cap, after the company announced a lower-than-expected dividend. The decision, influenced by Brazil's government under President Luiz Inacio Lula da Silva and leading to discontent among investors, has soured investors on Brazilian assets and sent shockwaves through the country's markets. This strategy, which resulted in a significant loss in Petrobras' market capitalization, aims to prioritize investments over payouts to shareholders, a stance that has led to the Brazilian real lagging behind major currencies despite its attractive carry. CEO Prates, under pressure, abstained from the board vote on the dividend proposal.
#Brazil: Lula’s Petrobras Directors Shot Down Special Dividend Proposal Brazilian markets sell off on president’s growing influence CEO Prates, under pressure, abstains from board vote #oott https://t.co/U47I5h9bn2
#Brazil's government will push state-run oil company Petrobras, opens new tab to reinvest cash set aside for dividends, two sources told Reuters, after its board spiked an extra dividend, blindsiding investors that sent shares plunging 10% on Friday. #oott https://t.co/iKjdrMyAX5
Petrobras board members aligned with the government of Luiz Inacio Lula da Silva shot down a proposal Thursday to pay special dividends the market was expecting https://t.co/84gLerqvzK
#Brazil: Lula made decision on Petrobras dividends and wants investments, sources say #oott https://t.co/1XANJklMm9
Petrobras loses $14 billion in market cap after stiffing dividend hopes https://t.co/hkmtTWgBPV https://t.co/WVH3IOTeI0
#Brazil Markets Are World’s Worst After Petrobras Dividend Sends Shockwaves Oil giant’s stock sinks after lower-than-expected dividend Brazilian real lags major currencies despite attractive carry #oott https://t.co/aYClWiymFV
Petrobras loses $14 billion in market cap after stiffing dividend hopes #oott https://t.co/iKjdrMyAX5
⚠️ PETROBRAS LOSES $14 BILLION IN MARKET CAP AFTER STIFFING DIVIDEND HOPES Full Story → https://t.co/1GXbhTMn9d A meager dividend from Brazil's state-run oil company Petrobras sent its shares plunging on Friday, erasing more than 70 billion reais ($14 billion) from its market… https://t.co/44FJASurTk
Investors soured on Brazilian assets after state-controlled oil producer Petrobras paid a lower-than-expected dividend https://t.co/1KGetegHnD
#Brazil: Sao Paulo-traded shares of Brazilian state-run oil giant Petrobras plunged more than 10% in the opening auction on Friday, after the firm's dividend frustrated investors. #OOTT https://t.co/nUhXpsRJK3