02:35 PM EDT, 03/11/2024 (MT Newswires) -- Petrobras (PBR) Chief Executive Officer Jean Prates is scheduled for a meeting on Monday with Brazil's President Luiz Inacio Lula da Silva on a dividend debate roiling the company, Bloomberg News reported, citing government officials.

Lula wants to know why Petrobras shareholders were expecting extraordinary dividend payments after he decided to direct oil profit toward job-creating projects, Bloomberg said, citing an official.

The company's board approved a lower-than-expected Q4 dividend of 14.2 billion Brazilian reais ($2.85 billion), or 1.1 reais per share, on Friday. Petrobras shares dropped 11% that day.

Prates abstained from the vote on the dividend and failed to initiate talks on fuel prices with the board, disappointing Lula, Bloomberg reported, citing the officials.

Petrobras did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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