Brazil’s Petrobras opens profit gusher, as government looks for reserves

Announcing by Peter Frontini in Sao Paulo and Gram Slattery in Rio de Janeiro

SAO PAULO, July 28 (Reuters) – Petrobras PETR4.SA has endorsed a record profit payout of 87.8 billion reais ($17 billion), Brazil’s state-run oil organization said on Thursday, a move that will support the public authority’s cash safes heading into a strained political decision.

In a protections documenting, Petroleo Brasileiro SA, as the firm is officially known, said its board supported a profit payout of 6.732 reais per normal and special offer.

A first portion of 3.366 reais will be paid on Aug. 1 and the rest of timetable to be paid on Sept. 20, the organization said.

The move comes soon after the Brazilian government, which is by a long shot Petrobras’ biggest investor, sent a letter to the organization and other state-run endeavors requesting that they increment profits to back additional bureaucratic spending.

The public authority’s rivals have claimed President Jair Bolsonaro is attempting to support his re-appointment changes by slamming through various transient spending measures. He is as of now down against liberal previous President Luiz Inacio Lula da Silva by right around 20 rate focuses in certain surveys, yet other overviews show the race is a lot nearer.

The two installments will be made before the main round vote, booked for Oct. 2.