This excerpt taken from the PBR 6-K filed Mar 12, 2007.
6. Parent Company Net Income for Dividend purposes
Proposed dividends for 2006 amounted to R$ 7,897 million (R$ 1.80 per share), and are structured the following way:
Dividends and interests on own capital will be available in its current monetary equivalent as of December 31, 2006 through the payment date agreed and using the variable SELIC rate.
PETROBRAS administration is proposing that both Extraordinary General Assembly and General Shareholders Meeting take place on the same date on April 2, 2007. In addition, they are proposing a capital increase of the Company, currently at R$ 48,264 million to R$ 52,644 million, through the capitalization of income reserves from prior fiscal years amounting to R$ 4,380 million, of which R$ 1,008 million is statutory reserve and R$ 3,372 million are retained earnings, without the issuance of new shares as stated in the agreement under Article Nº. 169, paragraph 1º, of the Law Nº 6.404/76.