Analysts are growing increasingly bearish on the prospects of the energy sector ahead of the Trump Administration’s leadership next year. Markets expect that economic and energy policies will hurt oil prices.
Since Trump’s presidential election win, the U.S. dollar strengthened as oil prices fell. To continue energy investment, investors should look at Petrobras (PBR). The firm continued to provide maximum returns for shareholders on November 22, 2024.
Petrobras board members approved 20 billion reais in extraordinary dividends to shareholders. The Brazilian state-controlled firm will fund the payout from its capital reserve. In addition, the firm plans to invest $111 billion in the 2025-2029 years. In its business plan, the firm said that its healthy free cash flow would support its dividend of $45 billion to $55 billion over the next five years. FCF is so strong that Petrobras has up to another $10 billion to fund extra dividends.
Income and energy investors should accumulate PBR stock. Management continues to seek ways to maximize its portfolio value through profitable assets. It has exploration activities that would replace oil and gas reserves.
The firm is embracing natural gas by increasing its supply. Furthermore, the firm is seeking cleaner ways to run the company by promoting the decarbonization of operations.
Readers may find Petrobras’s business plan here: https://api.mziq.com/mzfilemanager/v2/d/25fdf098-34f5-4608-b7fa-17d60b2de47d/636e93d5-0ecc-5244-1806-eda80d311500