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The second quarter of 2024 revealed an unexpected situation for Petrobras, one of the giants in the oil and gas sector, which surprised the market with a disappointing financial performance.
The company, known for its global relevance, was the only one, alongside the British BP, to record losses among the largest companies in the sector. But what really happened behind these dismal numbers? Why is one of the largest oil companies in the world, which should be in a prominent position, facing financial difficulties?
Petrobras' worrying performance
In the period from April to June 2024, Petrobras recorded a net loss of R$2,6 billion, which is equivalent to approximately US$344 million, according to the exchange rate at the end of the quarter.
This result placed the Brazilian state-owned company in a delicate position on the international stage. Of the ten largest oil and gas companies in the world, Petrobras stood out negatively as the only one, besides BP, not to report profits.
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BP, although it performed poorly, still posted a smaller loss of US$129 million, further highlighting Petrobras' critical situation. On the other hand, giants like Saudi Aramco and ExxonMobil fared much better, with the former recording an impressive net profit of US$29 billion and the latter achieving US$9,2 billion.
Comparisons that worry
Among other companies, the British Shell and the French TotalEnergies also reported profits, although lower compared to the previous quarter. Shell made a profit of US$6,3 billion, while TotalEnergies saw its earnings fall from US$5,4 billion to US$3,8 billion.
Norwegian Equinor was also not immune to the drop in revenue, with its profit falling from US$2,7 billion to US$1,9 billion. These comparisons further accentuate Petrobras' challenging situation, which in addition to facing an adverse global scenario, is dealing with internal issues that worsen its performance.
Internal challenges and increased expenses
In addition to global challenges, the Petrobras faced internal problems which directly impacted its performance in the second quarter of 2024. The loss of US$344 million marked the company's worst quarterly result in almost four years, since the third quarter of 2020. Despite revenue of R$122 billion (US$23,4 .7,4 billion), an increase of 2023% compared to the same period in XNUMX, the company was unable to avoid losses.
The increase in operating expenses was one of the main factors that contributed to this negative result. Expenses grew 69,9% in one year, reaching R$26,5 billion. This substantial increase in operating expenses pressured the company's margins and compromised its financial performance.
Another significant factor was the agreement made by Petrobras in June 2024 to close administrative and judicial proceedings at the Tax Appeals Administration Council (Carf). The agreement included the payment of R$19,8 billion, of which R$3,57 billion was disbursed immediately in June. The remainder will be paid in six successive monthly installments of R$1,38 billion until December 2024.
Financial impacts and exchange rate volatility
According to Petrobras' Financial and Investor Relations Director, Fernando Melgarejo, two events had a considerable impact on the company's accounting results, although they did not significantly affect cash: the exchange rate variation and the impacts of adhering to the tax transaction. During the second quarter, the dollar rose from R$5,00 to R$5,56, which contributed to the company's negative result.
Melgarejo stated that, without these events, Petrobras would have recorded a net profit of US$5,4 billion, equivalent to R$30 billion. The president of Petrobras, Magda Chambriard, highlighted that, despite the negative numbers, the company's cash generation increased and the debt level remained under control.
The future of Petrobras at stake
Petrobras is facing a challenging phase, with internal and external pressures that put its future performance at risk. Will the company be able to reverse this situation and get back on the path to profit? Time will tell, but the challenges are great and require strategic management to overcome obstacles.
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