Petrobras cuts dividends to keep five-year plan on track

A difficult year: Petrobras chief executive Maria das Gracas Foster

REUTERS/SCANPIX

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News Wires

 06 February 2013 02:07 GMT

The worst annual result in eight years has prompted Petrobras to cut its common-share dividend as it sought to preserve cash to maintain investments as fuel and refining losses mount, executives said on Tuesday.

Common shares of the Brazilian state-led oil company fell 8.2% on Tuesday in Sao Paulo, reaching their lowest level since late 2005, according to Reuters.

Petrobras chief financial officer Almir Barbassa said the company would save about 3.5 billion reais ($1.77 billion) with the common share dividend cut, which would help keep its planned $237 billion five-year investment plan on track.

"The amount saved is about what it costs for an oil platform that can produce about 150,000 barrels of oil a day," Reuters quoted chief executive Maria das Graças Foster telling investors…

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