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Petrobras reported net profit of 38.16 billion reais ($7.63 billion) during the January to March, while analysts polled by Refinitiv had estimated 31.96 billion reais.
The firm attributed the lower profit to the decline of Brent prices, though partly offset by smaller operating expenses.
The quarterly results mark the first under the command of a management and board of directors more aligned with the government of leftist President Luiz Inacio Lula da Silva.
Although Lula’s pick for CEO, Jean Paul Prates, took office earlier this year, the company only approved its new board members in late April. Until then, the board was mostly comprised of directors chosen by the administration of right-wing former President Jair Bolsonaro.
Under its new board, Petrobras has continued paying its shareholders large amounts, announcing dividends of 24.7 billion reais ($4.94 billion) in the quarter.
However, Petrobras added that its board determined that the company’s management should prepare a proposal to “improve” its dividend policy, including possibly re-purchasing shares.
The proposal will be submitted for the board’s consideration by the end of July, Petrobras added.
Last year, Petrobras paid out nearly 216 billion reais, making it a cash cow for investors, but prompting criticism from Lula, who argued for bigger investments instead.
Revenue fell 1.8% to 139.07 billion reais. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) shrank 6.7% to 72.5 billion reais, beating analysts’ estimate of 67.36 billion reais.
The average price of Brent crude over January to March was $81.27, Petrobras said, compared to $101.40 a year earlier.
($1 = 5.0033 reais)
