Exclusive: Petrobras eyes steady investments in new five-year business plan, CEO says

(Reuters) – Brazil’s state-run oil company, Petrobras (PETR4.SA), will keep total investments in its upcoming 2024-2028 business plan similar to the $78 billion foreseen in its latest five-year plan, CEO Jean Paul Prates told Reuters on Monday.

Petrobras is preparing to preview updates to its business plan next month, he said, including a greater focus on renewable energy sources, ahead of the final announcement of its next five-year plan at the end of the year.

In an interview from Petrobras offices in Rio de Janeiro, Prates said the value of investments in the new plan “shouldn’t differ much because from one year to the next you can’t make many moves.”

Still, he said investors should not get used to blockbuster dividends as they enjoyed last year, as the company’s dividend policy will be “adjusted” to the reality of a company investing in the future.

Prates said even as the new business plan will highlight plans at Petrobras for an energy transition, the company will continue to focus on its strengths in offshore oil exploration, especially in the vaunted “pre-salt” fields off Brazil’s coast.

“Of course we will have an important investment plan with pre-salt being very important. This is a pre-salt, offshore oil company, but it will gradually transform itself,” he said.

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