By Brazil Stock Guide – Petrobras (B3: PETR3, PETR4; NYSE: PBR) approved the payment of R$12.16 billion in interim dividends, equivalent to R$0.9432 per share, as an advance on 2025 shareholder remuneration based on its September 30 balance sheet.
The announcement reflects the company’s adherence to its 45% free-cash-flow distribution policy, which authorizes dividend payments whenever gross debt remains below the US$75 billion threshold set in its strategic plan. The two tranches, scheduled for February and March 2026, consolidate Petrobras’s position among Brazil’s top dividend payers.
A clear dividend policy
The shareholder-remuneration framework remains one of the most transparent in the Brazilian market. Under the rule, Petrobras automatically returns nearly half of its free cash flow once debt and liquidity parameters are met. As of September, gross debt stood at US$70.7 billion, while net debt/EBITDA remained at 1.53x, signaling that the company continues operating comfortably below its leverage ceiling.
Payment calendar and yield
The first installment of R$0.4716 per share will be paid on February 20, 2026, followed by another R$0.4716 on March 20, 2026. Investors holding American Depositary Receipts (ADRs) will receive their payments on February 27 and March 27, respectively. The shares will trade ex-dividend starting December 23, 2025, with record dates of December 22 for local shareholders and December 26 for ADR holders. Based on Petrobras’s recent share price, the declared payout implies a dividend yield close to 6%, reinforcing its reputation as one of the most profitable state-controlled companies in the world.
Selic adjustment and taxation
Each tranche will be updated by the Selic rate from December 31, 2025, until the respective payment date. Petrobras will confirm by December 11, 2025, whether the remuneration will be paid as dividends or interest on equity (JCP) — the latter subject to income tax withholding. Regardless of the structure chosen, the distribution will be deducted from the total remuneration to be approved at the 2026 Annual Shareholders’ Meeting.
Solid quarterly performance backs the payout
The generous dividend stems from a strong financial quarter. Petrobras reported an adjusted EBITDA of US$12 billion, up 16.8% from the previous quarter, and net income of US$5.2 billion excluding one-off items. Including extraordinary effects such as asset revaluations and exchange-rate adjustments, net profit reached US$6.0 billion, marking a 27% sequential increase. The improvement was driven by higher oil and fuel sales, efficiency gains, and a 2% rise in average Brent prices.
Cash generation and liquidity
Operational cash flow totaled US$9.9 billion in the third quarter, with free cash flow of US$5.0 billion, ensuring sufficient resources for both investment and shareholder returns. By the end of September, Petrobras held US$11.7 billion in available liquidity, including cash and short-term investments. The company also issued US$2.2 billion in global notes maturing in 2030 and 2036, maintaining its long-term funding capacity while amortizing US$0.9 billion in debt and paying US$2.0 billion in dividends during the period.
Leverage remains under control
Despite increased capital expenditures, Petrobras’s balance sheet remains solid. Gross debt rose slightly from US$68.1 billion to US$70.7 billion, mainly due to new funding aimed at lengthening maturities, while the average cost of debt declined to 6.7% per year. The average maturity remained long, at 11.4 years, giving the company ample flexibility to fund both investments and shareholder payouts without pressure on its ratings or liquidity ratios.
Record output supports margins
On the operational side, Petrobras achieved new production records. Total output of oil, NGL, and natural gas reached 3.14 million barrels of oil equivalent per day (boed), an 8% increase over the previous quarter. The FPSO Almirante Tamandaré, operating in the Búzios field, became Brazil’s largest oil-producing platform, surpassing its nominal capacity by reaching 270,000 barrels per day. The Búzios field alone exceeded 1 million barrels per day in operated production in October, a historic milestone for the company.
Efficiency offsets lower oil prices
Even though the average Brent price was US$69 per barrel, down nearly 14% year-on-year, Petrobras preserved high profitability. Refining utilization reached 94%, with 69% of volumes dedicated to high-value fuels like diesel, gasoline, and jet fuel. Domestic diesel sales jumped 12%, and crude exports set a record of 814,000 barrels per day, supported by growing demand from Asia.
Refining expansion and modernization
In downstream operations, Petrobras advanced the Boaventura Refining Project, which will integrate the Duque de Caxias refinery (REDUC) with the Boaventura Energy Complex. The initiative aims to expand production of high-margin fuels such as S10 diesel, jet fuel, and Group II lubricants, enhancing the company’s product mix and competitiveness. The quarter also benefited from the reversal of impairment losses associated with the Boaventura project, improving profitability.
Power and low-carbon initiatives
The company continues to diversify its energy portfolio. Petrobras brought forward the delivery of 1.12 GW from its Ibirité and TermoRio thermal plants, initially expected only in 2026, strengthening Brazil’s energy security. The move demonstrates its growing integration into the gas and power markets and supports flexibility as renewable generation expands.
Investment momentum
Total investments reached US$5.5 billion in 3Q25, a 24% increase compared with the previous quarter. Of this, US$4.7 billion was directed to exploration and production, focusing on major pre-salt developments in Búzios, Atapu, and Sépia. Capital expenditures are expected to remain high as Petrobras builds new FPSOs, including P-78, P-79, and P-80, all slated to begin operations by 2027.
Segment results
Exploration and Production contributed US$8.6 billion in gross profit, driven by higher output and efficiency. The Refining, Transport, and Commercialization segment reported US$1.6 billion, benefiting from stronger diesel margins and lower costs. The Gas and Low-Carbon Energy division posted stable revenue growth, although profits declined due to weaker gas prices tied to Brent and foreign-exchange movements.
Tax contribution and social impact
Petrobras’s operations remain a key source of revenue for the public sector. The company paid R$68 billion in taxes to federal, state, and municipal governments in the third quarter alone, reinforcing its strategic role in Brazil’s economy. It also continues to invest in local suppliers, workforce training, and technological development linked to the energy transition.
Policy continuity and investor trust
The latest payout confirms Petrobras’s ability to sustain predictable, high-yield distributions without undermining financial discipline. The 45% free-cash-flow rule provides a clear, automatic mechanism for shareholder returns, balancing short-term rewards with long-term reinvestment capacity.
Market perception
Analysts view Petrobras as one of the most resilient dividend names in the global oil sector. The combination of strong operating cash flow, low leverage, and prudent investment spending supports continued payouts even under lower oil-price scenarios. The 6% yield announced for early 2026 reinforces this narrative and could help maintain investor confidence through political and market cycles.
Management commentary
Chief Financial Officer Fernando Melgarejo emphasized that the company’s ability to generate cash and returns remains robust despite external volatility. “Over the past 12 months, Brent fell by US$11 per barrel, yet we offset the impact through efficiency and record output,” he said. “These results translate into tangible value for shareholders and Brazilian society.”
Outlook for 2026
Heading into 2026, Petrobras plans to preserve its balance between growth and return. The focus will be on cash-flow stability, ongoing refinery upgrades, and measured expansion into low-carbon energy, all while maintaining one of the most generous payout policies in the oil industry. The company’s strong financial foundation suggests that the dividend stream will remain a cornerstone of its investment case for global and domestic shareholders alike.
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