(Reuters) – A capital reserve set to be created by Brazilian state-run oil giant Petrobras (PETR4.SA) will be used solely to pay dividends, the firm’s Chief Financial Officer Sergio Caetano told Reuters on Tuesday, easing some of the concerns raised by a planned revision of its internal bylaws.
“This reserve is specific for paying dividends,” Caetano said, brushing off market concerns that the fund could have been later used for capital investments.
On Tuesday, shares in Petrobras fell more than 6% after the firm’s board approved a proposal to revise its internal bylaws, including the creation of the capital reserve fund.
“As such, today’s commentary could be well-received by the market,” Goldman Sachs said in a note to clients.
Shares in the oil company closed up about 1.5% on Tuesday.
Caetano also said the board should decide whether or not extra dividends will be paid out near the end of the year.
“No decision has been taken as to whether or not Petrobras will pay an extra dividend, this will happen at the right time, toward the end of the fiscal year,” he said.
The proposal to revise Petrobras bylaws will be voted on at a shareholders’ meeting, which has yet to be scheduled.
Brazil Energy Insight 
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