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By Fabio Teixeira and Marta Nogueira

RIO DE JANEIRO, April 25 (Reuters) – Shareholders of Petrobras voted on Thursday for the Brazilian state-run oil firm to pay out 50% of the extraordinary dividends it withheld in March, easing investor concerns about the destination of those funds.

Petrobras is set to dole out about 22 billion reais ($4.26 billion) relative to its 2023 results, while the remaining 50% will be kept in a fund for future disbursement, which the government signaled could happen by the end of this year.

The vote settles a matter that rocked the oil giant since its government-controlled board decided to withhold the extra dividends on March 7, which surprised markets and sent Petrobras’ shares tumbling the following day.

The decision ignited concerns that the government would order Petrobras to use that money for investments, as President Luiz Inacio Lula da Silva has expressed his wish to use the state-run firm to boost Brazil’s economy and create jobs.

Preferred shares of Petrobras hit their session high after Thursday’s vote, jumping more than 2% to make the firm one of the top gainers on Brazil’s benchmark stock index Bovespa , which slipped 0.2%.

According to a Petrobras filing last week, the government’s green light for it to distribute part of the withheld dividends came after its management made it clear to the board that doing so would not compromise the firm financially.

“We see today’s event as expected, but believe that a future decision on the payment of the remaining 50% of withheld dividends is one of the triggers that can move Petrobras’ shares,” Ativa Investimentos analysts said in a note to clients.

The oil giant’s total dividends for 2023 have now reached 94.35 billion reais, including amounts already paid and ordinary dividends, also boosting the government’s coffers as Lula’s economic team tries to balance public accounts.

Petrobras logged a net profit of 124.6 billion reais in 2023, its second-largest ever for a single year. ($1 = 5.1666 reais) (Reporting by Fabio Teixeira and Marta Nogueira; editing by Gabriel Araujo, Leslie Adler and Diane Craft)