Petrobras Reports Profits of US$4.8 Billion in Q1

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil) closed first-quarter 2024 with a solid financial position, higher oil output, and new sustainability achievements.

Petrobras, the Brazilian state company, closed Q1 with a net profit of US$4.8 billion, compared with US$7.3 billion during the same period last year. The lower net income was the result of a drop in oil prices, diesel margins and the depreciation of the Brazilian real.

By the end of the first quarter, the company's gross and net debt stood at US$61.8 billion and US$27.7 billion, respectively.

On the upstream front, in the first quarter, Petrobras had an oil and gas output in Brazil of 2.74 million barrels of oil equivalent per day (BOE/d), about 3.9% more than during Q1 in 2023. Out of those, 2.23 million barrels per day (BBL/d) accounted for oil and natural gas liquids, with pre-salt production representing 83% of the total volumes.

These results, however, are below the hydrocarbon production registered in Q4 due to stoppages and maintenance, but that was partially offset from stronger production from the floating production storage offloading vessels (FPSOs) Almirante Barroso and P-71, as well as the ramp-up of FPSO Sepetiba and the start of two wells in the Tupi field. This last oil field, Tupi, reached an accumulated production of 2.6 billion barrels oil equivalent after remaining in operation for 15 years.

Meanwhile, Petrobras reported that there are four FPSOs expected to start operating in 2025 that will add an extra capacity of 685,000 BBL/d, helping it further boost its current output. Also, the company reported two new discoveries in the Potiguar Basin in the Equatorial Margin at the Pito Oeste and Anhanga wells.

On the downstream front, the company reached a refining utilization rate of 92%, above the 85% registered during Q1 last year but below the 94% mark during Q4. Overall, the refinery output for Q1 stood at 1.75 million BBL/d across all products. Due to seasonality, diesel and gasoline sales domestically were lower during the first quarter.

Petrobras also achieved significant milestones in its sustainability policies in Q1. During that quarter, the company received approval to implement three solar plants at three of its refineries. It also started selling renewable diesel from one of its refineries, and for the second consecutive year, all the electricity used in its industrial and administrative operations in Brazil was generated from renewable sources.

Finally, following the announcements of Q1, Petrobras said that the company's President Jean Paul Prates called on the board to accept the end of his mandate at the helm of the company. Different media outlets have reported that his resignation is related to discrepancies with Brazilian President Luiz Inacio Lula da Silva. Petrobras has yet to announce a new appointment.

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