Petrobras had a negative result of R$2.6 billion in the second quarter of 2024 due to events that impacted the accounting result, but with a residual effect on cash.
According to the company, the main item is Petrobras’ adherence, in June 2024, to the tax litigation notice, “which made it possible to end relevant legal disputes involving chartering of vessels or platforms and their respective service provision contracts. The agreement brought predictability to the expenditure of resources by the company and avoided financial costs with the maintenance of legal guarantees and other procedural expenses”.
The president of the state-owned company, Magda Chambriard, said that the results were as expected: “the operating results were solid and occurred as expected. Non-recurring events, such as the tax agreement with the Ministry of Finance, which brought significant advantages to the company and the Union, and the marked exchange rate volatility in the period, without any effect on the company’s cash flow or assets, impacted the company’s internal accounting, also affecting the quarter’s results.”
According to Magda, the level of debt was also within the scope of the Strategic Plan and the company presented significant cash generation, which demonstrates “how much value we can generate with our operations”.
“With good cash flow and low debt, we are investing in our oil, gas and derivatives production, in replenishing reserves and in the energy transition, in order to guarantee Petrobras’ long-term sustainability. Our biggest priority is to pave the way for Petrobras in the coming decades to continue to be as relevant, if not more so, to Brazil than Petrobras is today.”
Petrobras reported strong cash generation in the second quarter of this year, recording Operating Cash Flow (OCF) of R$47.2 billion, higher than that observed in the first quarter of the year. Cash flow is an indicator of the company’s ability to generate resources from its regular operations and is a relevant index for evaluating a company’s performance.
“In the same period, Petrobras’ gross debt fell by approximately US$2.2 billion, equivalent to 3.6%, compared to the previous quarter, reaching US$59.6 billion. Financial debt fell by approximately US$1.4 billion, equivalent to 5.1%, to US$26.3 billion, the lowest level since 2008.”
The company reported that, despite the negative result in the second half of 2024, it will pay dividends to shareholders. The state-owned company’s Dividend Policy is linked to operating cash flow and guarantees remuneration to shareholders. The data are some of the highlights of the Financial Results for the second quarter of 2024, released this Thursday (8).
Investments
Petrobras made significant investments in the second quarter, totaling US$3.4 billion, focusing mainly on large pre-salt projects. In the first six months of the year, investments totaled US$6.4 billion, representing an increase of 12.5% compared to the same period last year.
Petrobras’ net revenue in the second quarter increased 4% compared to the previous quarter, reflecting a 10% increase in oil export revenues, benefiting from the appreciation of Brent, oil extracted from the North Sea and traded on the London Stock Exchange.
Petrobras’ operations continue to make a strong contribution to Brazilian society. In the second quarter of 2024, Petrobras paid R$70 billion in taxes to the various federative entities (federal, state and municipal), 24% more than in the second quarter of 2023.
In addition, R$14 billion in dividends were paid to the controlling group (Union), totaling a significant R$84 billion in direct returns to society, referring to the second half of the year alone.
Click here and check it out in full of the Financial Performance Report for the second quarter of 2024.
