Petroleo Brasileiro SA Petrobras ADR
PBR: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$44.10 | Rycxq | Hzznxhzh |
Petrobras Veers From Investor-Friendly Plans as Spending Rises and Dividends Fall
Business Strategy and Outlook
With its latest 5-year plan, Petrobras meaningfully increased spending levels as it incorporates investments for the energy transition. While the latest plan is by no means a return to the profligate spending of a decade ago that first placed Petrobras in jeopardy, it is—along with a reduction in the payout ratio—a departure from the capital discipline of the last few years that resulted in a healthier balance sheet and large shareholder payouts.