Petrobras’ Financial Performance in 2024
In a recent report unveiled in Brasilia, Petrobras, the State-owned oil company of Brazil, disclosed its financial results for the year 2024. While the company managed to secure profits amounting to R$36.6 billion (US$7.5 billion), it fell short of its previous year’s performance, which boasted a net profit of R$124.6 billion (US$24.9 billion). The disparity in figures can be attributed to the impact of exchange rate variations in debts between Petrobras and its foreign subsidiaries.
Key Points from Petrobras’ 2024 Balance Sheet:
• In the 4th quarter of 2024, the company faced a loss of R$17 billion (US$2.8 billion), though excluding one-off events would have bumped the net profit to R$17.7 billion (US$3.1 billion).
• Despite the setbacks, President Magda Chambriard emphasized the positive results of 2024, highlighting the operational generation of US$38 billion and a reduced financial debt of US$23 billion – the lowest level since 2008.
• The Financial Director, Fernando Melgarej, reiterated that the so-called “exclusive events” impacted the net profit but did not affect the company’s cash flow. Excluding these effects, the net profit for the year would have totaled R$103 billion (US$19.4 billion).
Challenges Faced and Factors Affecting Profitability:
• Four main factors contributed to the decline in profit: exchange rate variation (- US$10.9 billion); devaluation of Brent and diesel crackspread (- US$6.5 billion); federal tax transition (- US$2.7 billion); and oil production volume (- US$0.8 billion).
• Notably, Petrobras resolved significant legal disputes related to chartering vessels or platforms during the year.
• The company experienced market instability due to global factors, including lower international diesel margins and a reduction in refining and marketing EBITDA.
Growth and Investments in 2024:
• Petrobras invested R$91 billion (US$16.6 billion) in various projects throughout the year, focusing on accelerating results without incurring additional costs.
• The company disbursed R$102.6 billion (US$18.72 billion) in dividends, along with R$270 billion (US$49.25 billion) in taxes, demonstrating a commitment to shareholders and financial obligations.
Production and Operational Achievements:
• Petrobras achieved record-breaking oil and natural gas production of 2.7 million barrels of oil equivalent per day (boed) in 2024.
• Notable milestones included a reserves replacement ratio (IRR) of 154%, production reserves ratio (R/P) of 13.2 years, and successful launch of two new production systems.
• Operational efficiency was highlighted by a total utilization factor (FUT) of 93%, marking the highest utilization of the refining park in the last decade.
Conclusion:
In conclusion, Petrobras’ financial journey in 2024 was marked by challenges, investments, and operational accomplishments. Despite facing hurdles, the company remained steadfast in delivering value to society and investors. As Petrobras continues to navigate dynamic market conditions, its strategic investments and operational achievements are pivotal to sustaining growth and success in the future.
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