Oil And Natural Gas Industry: Petrobras Reports Profit Of R$ 38.1 Billion In The First Quarter Of 2023

The Net Income in the First Quarter Was 14.4% Lower Than Reported in the Same Period Last Year. Despite This, Petrobras Continues Its Strong Presence in the Oil and Natural Gas Industry.

The state-owned Petrobras announced last Thursday, (05/11), the data regarding the profits of the first quarter of 2023. According to the company’s report, there was more than R$ 38.1 billion in profit in the oil and natural gas industry during this period. However, this number is still below that reported in the same period of 2022, in addition to being 12% lower than the results of the fourth quarter of 2022.

Petrobras’ Net Income Reaches R$ 38.1 Billion in the First Quarter of 2023

The Brazilian oil and natural gas company Petrobras came public to announce the main financial results of the first quarter of 2023.

According to the oil company’s report, there was more than R$ 38.1 billion in net income obtained during the period. Although it is a significant number, this result is still 14.4% lower than the same period last year.

Additionally, the numbers were 12% below the profit obtained during the fourth quarter of 2022.

This is a scenario already expected by the main analysts in the Brazilian oil and natural gas industry. This is because the price of a barrel of oil has been decreasing considerably over the last few months.

According to Petrobras, the first-quarter results were affected not only by the depreciation of Brent but also by the lower financial results, which amounted to R$ 4.7 billion in the negative.

However, operating expenses were reduced by R$ 4.9 billion, which partially contributed to offset these negative factors.

There was also an increase in income tax expenses for the oil and natural gas industry, which rose by R$ 2.9 billion, mainly due to the absence of tax credits that occurred in the fourth quarter due to the distribution of dividends for the fiscal year 2022 in the form of interest on equity.

Despite this, Petrobras recorded the fourth-largest recurring EBITDA in its history, which was US$ 14.3 billion (equivalent to R$ 74.5 billion).

The company highlighted that its leverage remains healthy, with a Net Debt / Adjusted EBITDA ratio of 0.58x, the best mark since 2010.

Petrobras Advances in Dividend Payments in the Oil and Natural Gas Industry

Regarding its debt, Petrobras had a decrease of 0.8% in gross debt compared to the end of last year, reaching the lowest level since 2010, with a total of US$ 53.3 billion as of March 31.

Net debt also recorded a decline of 9.5% compared to December 2022, reaching US$ 37.6 billion.

During the first quarter of 2023, Petrobras made a payment of R$ 8 billion in dividends to the Union, corresponding to the second installment of the dividends approved in the third quarter of 2022.

Petrobras also approved the payment of a new dividend to shareholders in the amount of R$ 1.89 per common and preferred share, following its shareholder remuneration policy, with 36.61% allocated to the Controlling Group. This amount totals R$ 24.7 billion paid in dividends.

The financial results of Petrobras reflect the efficiency of the company’s management, which has been seeking to optimize operational costs, invest in new projects, and improve its financial performance in the Brazilian oil and natural gas industry.