Oil royalties: in addition to Macaé, other cities in RJ such as Campos and São João da Barra benefited greatly from Petrobras' profits

Petrobras' new strategic positioning guarantees millions in oil royalties to the coffers of Macaé, Campos and São João da Barra, all located in the state of Rio de Janeiro. Last Thursday, the Brazilian state-owned oil company announced the unprecedented mark of surpassing, for the second consecutive month in oil production, the United Arab Emirates (OPEC's third largest oil producer).

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With the demobilization of assets in the international auction bank, such as the sale of BR Distribuidora, Petrobras assured a net profit of R$ 40,1 billion in 2019, or an increase of 55,7% over 2018. It is the second relative record news to Petrobras' revised business model.

The formula of the current management went through the expansion of offers in auctions of new oil exploration areas, sale of subsidiary such as TAG and BR Distribuidora, and a frank investment in production in new fields.

Petrobras went to prospect this 2019 net profit, breaking consecutive cycles of losses, betting on an area that is of great interest to the State of Rio: production. The state-owned company's performance gained momentum with a 13,7% increase in oil and natural gas production in the fourth quarter of 2019, compared to the same period in 2018: more than 3,025 million barrels of oil equivalent per day (BOE/day).

This 2019 performance is superior to that of 2010, when profit was R$ 35,19 billion, Petrobras' most expressive mark so far. The state-owned company registered losses from 2014 to 2017, registering a profit in 2018 of R$ 27,779 billion in 2018.

The report also informs a record of BRL 129,2 billion of Ebitda, which is the operating profit excluding interest, taxes, depreciation and amortization. This is a growth of 12,5% ​​compared to 2018. This performance, according to the state-owned company, was achieved thanks to lower production costs and lower contingencies.

oil royalties

The oil-producing municipalities located in the north of Rio de Janeiro, such as Macaé, Campos and São João da Barra, recorded a rise in the collection of royalties this February.

The municipalities filled their coffers last Friday (20). According to Superintendent Wellington, all this contribution was due to the favorable situation of increased production, added to the price of a barrel of oil and the dollar exchange rate.

“It happened in view of the high variation of the dollar between U$ 62 to U$ 70 in December, even with an exchange rate falling from R$ 4,22 to R$ 4,00 in the same period. Allied to a more expressive improvement in production in the Pre-Salt with the Lula and Buzios fields. A stable value is expected for March and a drop in April due to February production and due to the drop in demand due to the coronavirus”, said Wellington.

Among those contemplated below, Macaé was the municipality that most benefited, with R$ 62,30 million against the previous deposit of R$ 55,51 million, an increase of +12,2%, referring to last month.

Campos received R$ 27,320 million against R$ 24,45 million in the January transfer (+11,8%), Cabo Frio will receive R$ 12,638 million against R$ 11,50 million (+9,9%).

Rio das Ostras raises BRL 11,29 million against BRL 9,83 million (+14,8%), and São João da Barra raises BRL 8,410 million against BRL 7,88 million (+6,6%).