Petrobras reached a net profit in the first quarter of this year of R$ 44.5 billion. The number is part of the Financial Performance Report for the 1st Quarter of 2022, released this Thursday (5). In the previous quarter, net income had been R$ 31.5 billion, which represented a growth of 41.4%.
The state-owned company highlighted that the net profit was mainly a reflection of better operational efficiency, greater production and export of oil, lower costs with imports of Liquefied Natural Gas (LNG), exchange gains due to the appreciation of the real against the dollar and the prices of oil in the period.
“Petrobras presented positive results in the first quarter of 2022 thanks to its strategy of greater efficiency, cost reduction and focus on more profitable businesses, such as the production of oil and natural gas in the pre-salt. About 80% of the gains in the period came from Exploration and Production (E&P) activities and 20% derive from gains from other segments, such as refining”, informed the state-owned company.
Operating cash generation in the first quarter of 2022 as measured by EBITDA [Lucros Antes de Juros, Impostos, Depreciação e Amortização, na sigla em inglês] recurring adjusted cash flow was R$78.2 billion and free cash flow was R$40.5 billion. These indicators are in line with the average result for the oil and natural gas industry peers.
“This financial result is due to the fact that we now have a sanitized Petrobras, which has reduced debt payment charges, invests responsibly and operates efficiently. Therefore, it is possible to generate this important return for the shareholder, especially the Brazilian society, represented by the Union”, highlighted the president of Petrobras, José Mauro Coelho.
According to Coelho, all this generates economic development in the production chain, generating employment, income and tax collection for the country: “This quarter, we paid taxes to the Union, states and municipalities one and a half times the value of our net income. Petrobras is distributing the fruits of its value creation to the Brazilian population”.
Petrobras oil platform- Reuters/Sergio Moraes/Reserved Rights
Brent
In the first quarter, according to the state-owned company, the average price of a barrel of oil (Brent) was US$ 101, a level that had not occurred since the first quarter of 2014, when the average price of a barrel of oil was US$ 108. .
“Despite the same price level, Petrobras’ performance is much better this quarter compared to the previous period of Brent’s equivalent price. Petrobras currently has a healthy level of gross debt, which reached US$ 58.6 billion in the first quarter of 2022, 74% lower than the debt in the same period of 2014. In addition, interest paid on financing fell 65 % in this period”, highlighted the company.
According to the company, production grew at the same time as there was a significant reduction in general and administrative expenses, with a drop of more than 60% since the beginning of 2014 (values adjusted for inflation). In this period, there was also a drop of more than half of the oil extraction costs and of almost 30% in the refining costs.
“Petrobras emphasizes that it does not control, but only seeks to follow the market prices of oil and derivatives, which have recently increased worldwide, being sensitive to the effects of this volatility. However, it cannot practice artificially low prices that are out of line with the market, in compliance with current legislation. This practice allows the Brazilian market to be adequately supplied by dozens of fuel suppliers”, stressed the state-owned company.
Return
Petrobras highlighted that, in the first quarter, almost R$ 70 billion were collected in taxes, royalties and government participation for the Union, states and municipalities. The resources can be invested in public policies such as education, health and sanitation. The collection of this quarter represents a growth of 30% in relation to the first quarter of 2014, with the values adjusted for inflation.
“Our objective is to produce better and better results and for that we will continue to execute the strategies defined in our strategic plan. With our portfolio, which is resilient to low oil prices, the prospects for production growth and the continuity of asset management, we are convinced that we will deliver more and more results for society, whether from the perspective of dividends and taxes for the public coffers. , whether from the perspective of generating jobs and income via our investments”, reinforced Coelho.
The full report can be accessed at state page on the Internet.
