Despite Global Oil Crisis, Petrobras Surprises, Reverses Losses, and Closes 2020 With Net Income of R$ 7.1 Billion

Expectation Was That The Low Oil Price Would Cause The Oil Company To Have A Net Loss; State-owned Company Is Experiencing A Moment Of Tension Caused By The Appointment Of A General To Take Over The Company

After 2020 was marked by the global oil crisis, Petrobras surprises and goes against the expected loss forecast by the market, registering a profit of R$ 59.8 billion in the fourth quarter of last year and closed the year 2020 in the black, with a net profit of R$ 7.1 billion.

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In 2020, Petrobras’ revenue was R$ 272 billion, with the last quarter closing at R$ 74.9 billion.

The EBITDA was R$ 112.8 billion in 2020 and had a result in the 4th quarter of R$ 47 billion.

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The net debt over EBITDA fell from 2.4 to 2.2 times. This indicator is important to predict the company’s ability to meet its financial commitments, considering its EBITDA current. As it is still highly indebted, this indicator is closely monitored by the market.

Meanwhile, net debt – another important indicator of Petrobras’ solvency – fell to US$ 63.2 billion, US$ 15.7 billion less compared to the position on December 31, 2019.

In a message to shareholders, along with the results, the still president Roberto Castello Branco said that Petrobras delivered on its promise, despite the challenging year.

“I am very happy to present the Petrobras performance report for 2020, with exceptional performance in a very challenging environment. Amidst the severe global recession and the effects of a major shock in the oil industry, we promised to structure a recovery at J. The goal was to come out of the crisis better than before. We delivered on our promises.”

Petrobras Is Experiencing A Moment Of Tension With The Change Of President

The Petrobras results for 2020 coincided with the week in which the company’s Board of Directors agreed to take the first step to change the state-owned company’s president, Roberto Castello Branco, following a decision by President Jair Bolsonaro.

Jair Bolsonaro announced the change of Castello Branco last Friday, after criticizing the company’s pricing policy.

Last Monday, Petrobras shares plummeted 20%, but slightly recovered in the following days as the government tries to signal to the market that it will not compromise Petrobras’ cash flow with any pricing policies, like those made during the administration of former president Dilma Rousseff.