This excerpt taken from the PBR 6-K filed Dec 18, 2009.
Payment of Interest on Own Capital
Rio de Janeiro, December 17, 2009 Petróleo Brasileiro S/A - Petrobras announces that the Board of Directors approved today the third installment of advance dividend payment related to the 2009 Results, in the form of interest on own capital (IOC).
The amount of R$ 1,755 million to be distributed, corresponding to a gross value of R$ 0.20 per common and preferred shares, is being accrued in our Financial Statements on December 31, 2009 and will be disbursed until March 31, 2010, based on the shareholding position of December 18, 2009. As of December 21, 2009 (ex-interest), the investors who acquire Petrobras shares will not have the right to receive this payment anymore.
If the payment occurs until December 31, 2009, it will be restated by SELIC rate from the effective payment date to December 31, 2009 and will be offset against any remuneration payable at the close of the 2009 fiscal year. If the payment occurs after December 31, 2009, the shareholders will be entitled to receive the payment restated by SELIC rate from December 31, 2009 to the effective payment date.
On June 24, 2009, the Board approved the first installment of advance dividend payment of 2009 Results, in the form of IOC and in the amount of R$ 2,632 million (a gross value of R$ 0.30 per share). This first payment was disbursed on November 30, 2009.
On September 21, 2009, the Board approved the second installment of advance dividend payment of 2009 Results, in the form of IOC and in the amount of R$ 1,755 million (a gross value of R$ 0.20 per share). This second payment will be disbursed on December 21, 2009.
All of the three IOC payments will be offset against the dividends and IOC payable at the close of the 2009 fiscal year and will be subject to income tax of 15% (fifteen per cent) withhold at source, except in the case of shareholders who are exempt.
This document may contain forecasts that merely reflect the expectations of the Companys management. Such terms as anticipate, believe, expect, forecast, intend, plan, project, seek, should, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: December 17, 2009
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that are not based on historical facts and are not assurances of future results. These forward-looking statements are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results o
f operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.