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Petrobras surprises with debt above R$330 billion and a drop in cash flow, alarming investors. Check out how these numbers affect the future of the state-owned company.
Petrobras, the Brazilian Oil giant, saw its net debt rise to US$46,1 billion in the second quarter of 2024, an increase of 9,4% compared to the previous year. This data was disclosed in a report sent to the Securities and Exchange Commission (CVM) on Thursday night (8).
This growth reflects the economic pressure that the state-owned company faces, impacted by variables in the global oil market and government action, which started 2024 with a historic loss of R$2,9 billion in federal state-owned companies, in addition to a surprising debt of R$9,4 billion compared to the same period under the previous government.
Petrobras' gross debt reached US$59,6 billion on June 30
Furthermore, Petrobras' gross debt reached US$59,6 billion on June 30, registering an increase of 2,9% compared to the same period in 2023. However, it is interesting to note that, despite this increase, there was a reduction in 3,6% compared to the end of March. This is partly due to the increase in the average debt term, which went from 11,3 years in the first quarter to 11,76 years in the second.
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The average cost of debt also varied slightly, rising from 6,5% to 6,6% per year, an indication of how the market is pricing the state-owned company's risk in a challenging economic scenario.
In addition to the debt, Petrobras also increased its investments, which totaled US$3,4 billion in the second quarter of 2024, representing an increase of 4,7% compared to the same period of the previous year. This movement reflects the state-owned company's continued quest to strengthen its position in the market, despite the challenges imposed by economic and political conditions. This investment is crucial for Petrobras to maintain its operational capacity and competitiveness in a globalized market.
4,7% drop in Petrobras' free cash flow: the key indicator for calculating dividends, was R$31,8 billion between April and June 2024.
On the other hand, Petrobras' free cash flow, a key indicator for calculating dividends, was R$31,8 billion between April and June 2024. This value represents a drop of 4,3% in relation to second quarter of 2023 and a reduction of 1,7% compared to the first quarter of this year.
This decline in free cash flow highlights the challenges that the state-owned company faces in maximizing cash generation in a scenario of volatile oil prices. The average price of a barrel of Brent oil, used as a reference, was US$84,94 in the second quarter, an increase of 8,4% in one year.
In relation to sales of derivatives, Petrobras recorded a drop of 1,5% in the second quarter of 2024 compared to the same period in 2023, totaling R$71,8 billion. Despite this annual drop, there was an increase of 3,5% compared to the first quarter of 2024. This quarterly growth was driven by higher prices, especially in the sale of naphtha and aviation kerosene (QAV), in addition to an increase in volumes diesel sold, a reflection of the increase in economic activity and the seasonality of consumption.
Revenue from the sale of diesel and gasoline
Revenue from the sale of diesel totaled R$36,4 billion in the second quarter, an increase of 3,7% compared to the same period last year and 3,8% above that recorded in the first quarter of 2024. Revenue with gasoline was R$16 billion between April and June, a drop of 14,4% compared to the second quarter of 2023, but a slight increase of 0,9% compared to the first three months of this year.
The total utilization factor (FUT) of Petrobras refineries was 91% from April to June, below the 93% recorded in the same period in 2023. However, in the semester, the FUT remained at 91%, two percentage points above the average for the first half of last year, demonstrating operational resilience amid the challenges faced by the state-owned company.
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Tell us in the comments section, in a constructive and respectful way, your opinion about Petrobras' management. Don't forget to turn on CPG notifications to keep up to date with all the news. Until next time!
Funny. The stocks haven't gone down... So, is this just your view or is the market just really ****...
Japan leak??
There is the result of the super remuneration of shareholders, profit manufactured by the previous board, but in the end nothing will happen to the ****, the people pay the bill
Super profits have justification. Fuel prices hit record highs and privatizations also strengthened the balance sheet
Results that took zero people by surprise. What can you expect from economic management carried out by a non-manager, non-economist and non-expense saver? It was a foregone conclusion, nothing more than expected.
Because of certain economists, banks prefer engineers…
But engineers don't understand accounting at all.
Everything the left puts its 🫱✋ on is authoritarianism, theft, backwardness, incompetence and anywhere in the world!*
Lava Japan????