Fabrib
Forumer storico
Petrobras reported Q1 results after the close Thursday, beating estimates, gushing cash and showering shareholders with dividends. The controversial oil company committed to very significant shareholder returns in 2021, and appears to be following through on those commitments:
- Earnings - the company generated $1.32 in earnings per share (ADR adjusted), against Street expectations for $1.04.
- Cash flow - after adjusting for net working capital headwinds, free cash flow for the quarter came in at ~$8.8b, or ~10.2% of the current market cap; free cash flow was reduced by a one-time pension liability payment of $1.3b.
- Capital allocation - pursuant to the company's 60% free cash flow payout policy, which now includes an option for "special" dividends, the board authorized an $8.2b dividend for Q2 (9.5% yield) and a $1.5b dividend (1.7% yield) to be paid out of profit reserves -- the total dividend payment announced Thursday equates to ~11.2% of the market cap.
- Guide - guidance was unchanged.