With Mega Profit, Petrobras Surpasses Giants ExxonMobil and PetroChina, Repositioning Itself as One of the Most Profitable Oil Companies on the Planet; Experts Dispute

The Brazilian Oil Company Generated Over US$ 9.4 Billion in The First Quarter of This Year, Almost Double The Earnings of The Largest Company in The Sector Worldwide, ExxonMobil, Which Reached “Only” US$ 5.4 Billion

In just the first three months of this year, Petrobras earned US$ 9.405 billion (R$ 44.6 billion). This profit represents a profitability increase of over 3,000% compared to the same period last year when the state-owned company had a profit of R$ 1.3 billion. But the numbers not only reveal a mega revenue, they also show that the Brazilian oil company has raised its level, surpassing the largest companies in the sector worldwide, contradicting President José Mauro Coelho who insists on saying that the profit is “at the same level” as other companies around the world.

Just to give you an idea, the world’s largest oil company, the American ExxonMobil, reached “only” US$ 5.480 billion in the first quarter of this year. Meanwhile, the Asian PetroChina, which has the highest global oil revenue, recorded a profit of US$ 6.161 billion in 2022.

In light of the above, is it correct for the newly appointed president of Petrobras, José Mauro Coelho, to state that Petrobras’ profit this year is on the “same level” as that of other oil companies worldwide? For those who don’t know or don’t remember, the statement was made last Friday (6) in response to criticism from President Jair Bolsonaro, who called the state-owned company’s earnings “rape.”

Other presidential candidates have also criticized Petrobras’ mega profit. This is because there have been constant increases in the prices of oil-derived fuels. The latest occurred this Tuesday (10), when diesel jumped from R$ 4.51 to R$ 4.91. Meanwhile, gasoline has been contributing to rising inflation, weighing on the Brazilian consumer at a price of over R$ 7 per liter at gas stations. Fuel prices had not been adjusted for 60 days.

Petrobras States That Profit is The Result of Operational Efficiency

José Mauro Ferreira Coelho claims that Petrobras’ billion-dollar profit, surpassing the largest oil companies in the world, is not related to increases in fuel prices. The agency’s head claims that 80% of the earnings during this period came from oil exploration and production activities, and 20% from other segments.

In an article published by Agência Brasil, Coelho states that “a good result from Petrobras also reflects back to society as a whole. This generates investments in health, sanitation, transportation, and a number of other important investments.” That is what we expect!

This year more than R$ 70 billion in taxes have been paid to the Union. According to the president of Petrobras, every R$ 1 billion invested by the state-owned company generates about 10 thousand jobs. The last time the price of oil per barrel in the international market exceeded US$ 100 was in the first quarter of 2014 (US$ 108).

At that time, according to Coelho, Petrobras did not achieve results like those of now. “It’s not simply a matter of high oil prices but rather a matter of efficient management committed to achieving results and reducing costs,” he said.

Between the first quarter of 2014 and the first quarter of 2022, Petrobras reduced its debt from US$ 160 billion to less than US$ 60 billion (a 65% reduction).

In the 1st quarter, Petrobras sold 543 thousand barrels per day, generating US$ 4.8 billion. Meanwhile, exports increased by 23%. This increase in sales abroad and the fact that the state-owned company is responsible for supplying the majority of refined oil in the country also contributed to the success in profits.