Major Oil companies are profiting from the sky-high crude oil prices this year. Recent quarterly reports from these firms showed the astonishing profits they earned. Brazilian oil giant Petrobras(PBR) is no exception. On July 28, 2022 Petrobras reported excellent results for 2Q, 2022. Net Income soared to US $10.5 billion, a 26.8% rise from the same quarter of 2021 per Reuters. As a result, Petrobras has announced its plan to send more cash as dividends to its shareholders.

So far this year, Petrobras has already paid out dividends 4 times in May, June and July. The coming dividend payments is in addition to those. Following are the details of this dividend announcement from Google Translate:

Of the amount approved, (i) R$ 3.909190 per share refers to the anticipation of remuneration to shareholders for the year 2022 and will be declared based on the balance sheet as of 30 June 2022; and (ii) BRL 2.822813 per share will be paid to the retained earnings reserve account on the balance sheet of the fiscal year 2021.

Dividends will be paid in two equal installments in August and September, as follows:

Amount to be paid: R$6.732003 per outstanding preferred and common share, as follows:

• the first installment, in the amount of R$3.366002 per outstanding preferred and common share, will be paid on August 31, 2022.
• (ii) second installment, in the amount of R$3.366001 per preferred and common share, will be paid in 20 September 2022.

Source: Petrobras Notice (in Portuguese)

Below are some answers to questions US investors may have:

What is the dividend amount that was announced?

R$6.732003 per preferred share and outstanding common stock.

When will this amount be paid?

Half amount in August 31 and September 20, 2022

So what will be the rate for PBR ADR in US dollars?

The ADR to underlying ordinary share is 1:2. Hence one ADR is entitled to R$13.46. Or to put it another each ADR is entitled to 13.46 Brazilian Reals.

R$13.46 is approximately equal to $2.60 based on current exchange rate.

So each ADR will pay $1.30 on Aug 31st and $1.30 on September 20th.These are Gross Amounts. The final net amount that will be received will be less after exchange rate adjustments, dividend withholding taxes, fees, etc.

As a result of great earnings, PBR stock shot up by over 6% on Friday to close at $14.28 on the NYSE. The stock has increased by 30% year-to-date.

For more info checkout:

Petrobras Investor Relations Site

Disclosure: Long PBR