The logo of Brazil's state-run Petrobras oil company is seen on a tank in at Petrobras Paulinia refinery in Paulinia, Brazil July 1, 2017. REUTERS/Paulo WhitakerRegister now for FREE unlimited access to Reuters.comAug 2 (Reuters) - Brazil's state-controlled oil company Petrobras (PETR4.SA) will distribute at least twice as much as the biggest international oil producers in second quarter dividends, boosting the government's coffers amid a tense presidential campaign.The five biggest Western oil producers - Exxon Mobil Corp (XOM.N), Chevron Corp. (CVX.N), Shell PLC (SHEL.L), TotalEnergies (TTEF.PA) and BP (BP.L) - posted record cash distributions to shareholders in recent days between $4-7.6 billion. But none came close to Petrobras's $17 billion payout.Brazil's government, which controls the producer with a majority of its voting shares, last month asked Petrobras and other state-controlled companies to increase dividends to finance extra federal spending.Register now for FREE unlimited access to Reuters.comThe cry for help came as the government of President Jair Bolsonaro, who later this year faces a tough reelection battle, last month bypassed a constitutional spending cap to finance a massive cash transfer program popular among low-income voters. read more Petrobras will distribute about 60% more to shareholders than its $10.5 billion (54.33 billion reais) profit. Critics said the huge payout will lead to underinvestment in the business. read more Petrobras' dividends were less than at Saudi Arabia's state-controlled Saudi Aramco, the world's largest oil company, which produces 13 million barrels of oil equivalent per day (boed), almost five times more than Petrobras.Saudi Aramco has been distributing $18.76 billion to shareholders per quarter. Its next dividend will be disclosed on Aug. 14.U.S. producer Exxon, which posted the highest quarterly profit of the five, spent $7.6 billion on shareholder distributions. read more Bolsonaro is trying to boost his re-election chances by ramming through short-term spending measures, critics say. Polls show he is lagging leftist former President Luiz Inacio Lula da Silva. read more Dividend payments will be made by Petrobras before the first round of voting, scheduled for Oct. 2. read more On a webcast last week, Petrobras executives said the extraordinary dividend payment does not affect the company's investment plans. Petrobras expects to retain between $8-10 billion in cash this year and reaffirmed a commitment to distribute at least 60% of its free cash flow to investors."It is our understanding that this is the best cash allocation for the company's cash," Chief Financial Officer Rodrigo Araujo told reporters.Register now for FREE unlimited access to Reuters.comReporting by Sabrina Valle
Editing by Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.
Petrobras leapfrogs oil majors in dividend payouts by more than 50%.