Petrobras plans $20B yearly investment to boost production with strong dividends despite oil price risks

Petrobras is investing $20 billion annually to increase production capacity by 675,000 barrels per day using FPSOs, without raising debt. The company supports a sustainable 7% dividend backed by double-digit free cash flow yield, prioritizing dividends over share buybacks while reducing leverage. Although Petrobras has underperformed recently due to falling oil prices after geopolitical tensions eased, its profitability remains solid at $70 per barrel. The main risk is oil price volatility, which could impact future returns if prices drop further.