Brazil's Petrobras Boosts Net Income, Oil and Gas Production

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Petrobras reports net income of US$6.21 billion in the first quarter and hydrocarbons production of 3.23 million BOE/d, while refining utilization rate hit 95%.

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Petrobras' Q1 Highlights

Petrobras, the Brazilian state company, reported net income of US$6.21 billion in the first quarter, a 3.7% increase from the same period last year, and 113.3% higher than the previous quarter. The financial results were the outcome of one-off events, gains in foreign exchange and impairment reversal.

Additionally, the company highlighted that the surge in oil prices triggered by the conflict in the Middle East and the closure of the Strait of Hormuz were hardly reflected in first-quarter revenues.

In terms of capital expenditures (capex), the company invested US$5.1 billion during the quarter, with exploration and production accounting for 87.4% of the funds during Q1. Capex was 25.6% higher year-over-year, with investments heading to new production systems at the Buzios and Sepia fields and the ramp-up of the Marlim Revitalization.

According to Industrial Info Resources data, there are 236 Petrobras oil and gas production projects across the world, with a total investment value of US$30.62 billion.

Regarding operations, the company recorded another robust quarter with volumes of 3.23 million barrels of oil equivalent per day (BOE/d), 16.1% higher year-over-year and 3.7% more than in the previous quarter.

The higher volumes are related to Petrobras' efforts to increase pre-salt and post-salt production volumes, driven by ramp-ups of the P-78, Alexandre de Gusmao, Anna Nery, and Anita Garibaldi Floating Production Storage and Offloading (FPSO) vessels.

Pre-salt volumes reached a new record for the company, accounting for 2.66 million BOE/d.

Among the specific achievements supporting this growth, the Buzios field recorded volumes of 1.03 million barrels of oil on March 20 and natural gas exports of 12.4 million cubic meters on March 25. Additionally, the Mero field reached outputs of 700,000 barrels of oil in a single day.

"P-78 reached the 100 thousand barrels of oil per day mark with only two production wells, contributing to the milestone of 1 million barrels of oil per day on the Búzios field. Just 61 days after the first oil, we started gas injection on the platform, a record that surpasses by a good margin the previous mark for owned systems," said Renata Baruzzi, Chief of Engineering, Technology, and Innovation Officer at Petrobras.

Petrobras' operated production, which includes the share of its partners, reached a new record of 4.65 million BOE/d during the quarter.

During the quarter, the company started production at 10 new producing wells, seven in the Campos Basin and another three in the Santos Basin.

Petrobras' hydrocarbons output is likely to increase with more ramp-ups. The company reported that during April, oil production reached 2.733 million barrels of oil per day (bpd), higher than the 2.583 million bpd recorded in Q1. Additionally, the company has announced the deployment of several new platforms over the next few years to boost volumes.

In the downstream sector, Petrobras recorded a utilization factor of 95%, up 6 percentage points from the previous quarter. Total refined production during the quarter was 1.816 million bpd of oil products, with middle distillates and gasoline accounting for 68% of the total.

Additionally, in March, Petrobras recorded a new record of S-10 diesel production of 512,000 bpd.

Including all types of projects, the Industrial Info Resources Global Market Intelligence (GMI) database displays over 520 Petrobras-owned projects worldwide, totaling US$75.26 billion of investment.

Key Takeaways

• Petrobras' net income reached US$6.21 billion in Q1, up 3.7% year-over-year.
• Hydrocarbons production totaled 3.23 million BOE/d, 16.1% more than in Q1 last year.
• Oil products volumes totaled 1.816 million bpd with a 95% utilization rate in Q1.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).