Petrobras Powers Ahead: $111 Billion Investment Plan Targets Green Growth And Big Dividends

Petrobras PBR shares are trading higher premarket on Friday. The Brazilian oil and gas giant disclosed the Business Plan 2025-2029.

During this period, Petrobras plans to focus on replenishing reserves, boosting production with a reduced carbon footprint, and expanding its portfolio with more sustainable, high-quality products in the oil & gas market.

Petrobras plans to invest $111 billion over five years, including $98 billion for projects already in progress and $13 billion for less mature projects still requiring further financial review. This investment is 9% higher than the previous plan for 2024-2028.

For Exploration and Production (E&P), Petrobras plans to invest $77.3 billion over the next five years, a 5% increase from its previous plan.

Approximately 60% of the Exploration and Production (E&P) segment’s budget will focus on pre-salt assets, emphasizing high-quality oil production with lower costs and greenhouse gas emissions.

Concurrently, the company is advancing revitalization projects in mature fields, particularly in the Campos Basin, to enhance recovery rates.

Petrobras aims to achieve total production of 3.2 million barrels of oil and gas equivalent per day (boed), including 2.5 million barrels of oil per day (bpd).

Also, the company has increased exploration investments to $7.9 billion in E&P over the next five years, a 5% increase from the previous plan.

Overall, Petrobras revised its gross debt limit to $75 billion. This adjustment considers robust leverage metrics, even with low Brent prices, while accommodating the growing impact of leases on gross debt.

The company anticipates strong free cash flow with projected ordinary dividends of $45 billion-$55 billion and flexibility for extraordinary payouts.

Investors can gain exposure to the stock via Global X Funds Global X Brazil Active ETF BRAZ and Shares Latin America 40 ETF ILF.

Price Action: PBR shares are up 2.54% at $14.51 premarket at the last check Friday.

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