Oil Drop – Petrobras Reports Loss of R$ 48.5 Billion in the First Quarter

With The Drop In Oil Prices And Reassessment Of Asset Prices, Petrobras Reports Loss After Almost 3 Years

Petrobras announced yesterday (14) the amount of its loss in the first quarter of this year, totaling R$ 48.523 billion. The result was due to a review of the company’s asset prices, affected by the impact of the coronavirus crisis. In the same period last year, the company had a profit of R$ 4 billion.

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The last time Petrobras reported a loss was in the third quarter of 2017. Nearly 3 years later, the company is back to operating in the red. In 2019, the company’s profit was R$ 40.1 billion, the highest in history.

The corrected assets were shallow and deep-water oil fields. Due to the crisis, the state-owned company changed the long-term price projection for Brent crude from US$ 65 to 50 dollars.

• R$ 57.619 billion in producing fields;
• R$ 6.625 billion in shallow water fields;
• R$ 1.057 billion in other assets;

In a message to shareholders, Roberto Castello Branco, president of Petrobras, stated:
“The behavioral changes generated during the stage of social distancing and the continuation of government incentives for the replacement of fossil fuels are other factors that lead us to have a more cautious view of the evolution of oil prices over the coming years”.