The Strategist

Petrobras earned maximum net profit in two years


05/12/2017 - 14:27



On Thursday, Brazilian energy company Petrobras published financial reports for the first quarter, and it turned out that the company's financial results were the best in the last two years. Net profit of Petrobras was 4.45 billion Brazilian real ($ 1.42 billion) against a loss of 1.25 billion reais ($ 500 million). The results also significantly exceeded analysts' expectations, who predicted an average profit of 3.77 billion reais.



panoramio.com
panoramio.com
The company's revenue increased 21% over the reporting period, to 21.7 billion dollars. Adjusted EBITDA increased by 48%, to $ 8 billion. Capex decreased by 8%, to 3.7 billion dollars.
Production of hydrocarbons increased by 7.2% - to 2.805 million barrels of oil equivalent per day. In the reporting period, the company remained a net exporter of extracted raw materials, increasing exports by 72% in annual terms and reducing imports by 40%.

In March 2014, Petrobras found itself at the center of a corruption scandal. During the investigation in Petrobras, the police revealed price collusion, bribery, schemes for paying kickbacks to politicians. Last May, the former Brazilian Energy Minister Pedro Parente was appointed the company's CEO. The company has already sold some assets, cut costs and increased oil production in offshore fields. In late December, Petrobras announced sale of two deposits on the Brazilian shelf for $ 2.2 billion to the French company Total. Petrobras was also helped by the growth in oil prices in the first quarter, and many other energy companies also reported better than forecasts for this period. Mr. Parente said that by the end of 2018 the company plans to reduce the debt from the current size of 3.2-year EBITDA (profit before interest, taxes and depreciation) to 2.5-year EBITDA.

Besides, Petrobras earlier announced its intention to expand the asset sale program by including its refineries. 

According to Mr. Parente, the corporation plans to sell 40 more assets worth about 42 billion dollars, trying to pay off its huge debts and find funds for development of giant offshore deposits in the so-called "salt" layer. In 2015-2016, Petrobras received 13.6 billion dollars from the sale of assets, and the plan for 2017-2018 was increased to 21 billion dollars.

A new list of assets includes the company's refineries, Parente said. At the same time, he said, Petrobras sees great interest from international oil companies, which want to increase their presence in Brazil.

The list of assets also includes BR Distribuidora's fuel distribution division and Bauna deposit, where transactions were stopped by the court. Petrobras wants to sell them after solving all legal issues. In addition, the company still hopes to sell petrochemical company Braskemfield, Parente said. 

source: reuters.com