Brazil’s state-controlled oil giant Petrobras may distribute extraordinary dividends this year if higher crude prices continue to boost its cash flow, company executives told analysts on Friday. The remarks were first reported by Reuters.
Chief Executive Magda Chambriard said the company is navigating a period of heightened geopolitical uncertainty following the escalation of tensions between the United States, Israel and Iran. While global energy markets have reacted strongly, Petrobras’ operations have so far remained unaffected.
“We’re living in a time of high geopolitical instability,” Chambriard said, adding that the company’s priority is to ensure it is prepared for different oil price scenarios.
She also indicated that Petrobras will not immediately transfer the volatility of global oil markets to Brazilian consumers, despite the recent surge in crude prices.
Stronger oil prices improve cash flow outlook
Chief Financial Officer Fernando Melgarejo said extraordinary dividends could become feasible if the current rally in oil prices continues and generates excess cash for the company.
“I would love to submit an extraordinary dividend offering, provided we are certain that it will not impact the financing of our projects,” Melgarejo said.
Petrobras refrained from distributing additional dividends in 2025 because lower Brent prices reduced the company’s surplus cash flow. However, the recent jump in global oil prices could change that outlook if the trend persists.
According to Claudio Schlosser, Petrobras’ head of logistics, commercialization and markets, the company has also benefited in the short term from the market conditions created by the conflict.
Petrobras ships most of its crude to China, India and Europe, regions that are geographically distant from the Middle East crisis. As a result, the company has seen stronger margins in recent weeks.
“We’ve seen better margins,” Schlosser said. “In a way, there is an increase in value and an interesting positioning for the company.”
Oil prices have surged amid the conflict in the Middle East, with Brent crude reaching about $90 per barrel — its highest level since April 2024. The market is also on track for its strongest weekly gain since the extreme volatility seen during the early months of the COVID-19 pandemic.
Earlier this week Petrobras reported its results for 2025, highlighting record export volumes that helped offset the impact of weaker Brent prices during the year. If the current price rally continues, analysts say the company could find itself with additional room to reward shareholders while maintaining its investment plans.