Brazil's state-run oil company Petrobras could distribute extra dividends this year if cash flow is high, as oil prices surge while its operations have so far been unaffected by the Middle-East US-Iran conflict, executives told analysts on Friday.
Petrobras will need to be ready for variations in oil prices, CEO Magda Chambriard said, adding that the company will not pass the sudden swings onto Brazilian consumers after attacks by the US and Israel in Iran disrupted global energy flows earlier this week.
"We're living in a time of high geopolitical instability, where our concern is to leave the company prepared for any scenario that may occur regarding the price of oil," Chambriard said.
In 2025, Petrobras did not distribute extraordinary dividends, as lower Brent oil prices made it difficult for the firm to generate surplus cash flow. But Petrobras could do so this year, if the sharp upturn in prices remains, said CFO Fernando Melgarejo.
"I would love to submit an extraordinary dividend offering, provided we are certain that it will not impact the financing of our projects," said Melgarejo, adding that Petrobras will remain cautious in its decision-making due to the unstable scenario.
In the short-term Petrobras has benefited from the conflict, said Petrobras' Head of Logistics, Commercialisation and Markets, Claudio Schlosser, as it ships mainly to China, India and Europe, regions far from the conflict zone.
"We've seen better margins," he said. "In a way, there is an increase in value and an interesting positioning for the company."
Oil prices have hit highs in the wake of the conflict, with Brent hitting $90 per barrel for the first time since April 2024 and on track for its strongest weekly gain since the volatility seen during the Covid-19 pandemic in the spring of 2020. On Thursday Petrobras posted results for 2025 with record exports offsetting a drop in Brent oil prices for the year.
(Reporting by Fabio Teixeira and Marta Nogueira; Writing by Oliver Griffin; Editing by Mark Porter)