Shares of Brazil’s oil producer Petrobras (NYSE:PBR) are trending upwards today after the company announced a fourth-quarter dividend of $6.9 billion.
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The company would be setting aside some of this amount in a reserve which would require investor approval. This would lower the payout to 29.3 billion reais from 35.8 billion reais. The bumper payout comes as energy producers reap the rewards of higher oil prices. The development, in turn, is putting the industry in the crosshairs of a tax on windfall profits.
Separately, the country’s government has asked the company to pause its asset sales for a period of 90 days as it takes a relook at its energy policy.
Overall, Wall Street has a consensus price target of $10.83 on PBR, implying the stock may be fairly priced at the current level. That’s after a 23.2% drop in the share price over the past six months.
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