Petrobras (NYSE:PBR) shares are trading higher premarket on Friday. The Brazilian oil and gas giant announced this Company Plan 2025-2029.
During this period, Petrobras plans to focus on replenishing reserves, boosting production with a smaller environmental footprint and expanding its portfolio with more sustainable, high-quality products in the oil and gas market.
Petrobras plans to invest $111 billion over five years, including $98 billion for projects already underway and $13 billion for less mature projects that require further financial evaluation. This investment is 9% higher than the previous plan for 2024-2028.
For Exploration and Production (E&P), Petrobras plans to invest $77.3 billion over the next five years, an increase of 5% compared to the previous plan.
Approximately 60% of the Exploration and Production (E&P) segment budget will focus on pre-salt assets, with an emphasis on high quality oil production with lower costs and greenhouse gas emissions.
At the same time, the company is promoting revitalization projects in mature fields, particularly in the Campos Basin, to improve recovery rates.
Petrobras targets total production of 3.2 million barrels of oil and gas equivalent per day (boed), including 2.5 million barrels of oil per day (bpd).
The company has also increased exploration investments in E&P over the next five years to $7.9 billion, an increase of 5% from the previous plan.
In total, Petrobras revised its gross debt limit to $75 billion. This adjustment takes into account robust leverage data even at low Brent prices, while taking into account the growing impact of leases on gross debt.
The company expects strong free cash flow with expected regular dividends of $45 billion-$55 billion flexibility for extraordinary payouts.
Investors can gain exposure to the shares through Global X Funds Global X Brazil Active ETF (NYSE:BRAZ) and Latin America Equities 40 ETF (NYSE: ILF).
Price promotion: PBR shares are up 2.54% to $14.51 premarket at last check Friday.
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This article Petrobras moves forward: $111 billion investment plan focuses on green growth and big dividends originally appeared on Benzinga.com
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