2023-08-04 02:40:45
© Reuters. Petrobras headquarters in Rio de Janeiro 10/16/2019 REUTERS/Sergio Moraes
By Marta Nogueira
RIO DE JANEIRO (Reuters) – Petrobras (BVMF:) net profit fell 47% in the second quarter compared to the same period last year, to 28.8 billion reais, amid a drop in oil prices on the international market and of fuels in Brazil, the company informed this Thursday.
The company’s sales revenue totaled 113.8 billion reais, down 33.4% compared to a year earlier.
The average oil price stood at US$78.39 per barrel between April and June, down 31.1% versus a year earlier, according to the company’s balance sheet, which noted that fuel prices in the country followed the commodity market in outside.
The result was also impacted by an accounting write-off of 1.9 billion reais, in the face of higher expenses related to Rnest’s second refining unit, with an increase in the scope of the project, said the oil company, considering that the venture is still resilient and with positive net present value (NPV).
The company was also affected by higher tax expenses, in view of the temporary tax on oil exports from Brazil, which was in effect for four months starting in March and brought an impact of 1 billion reais to the company in the second quarter.
Despite the decline in profit, there was room for Petrobras’ board of directors to approve shareholder remuneration in the amount of 1.149304 reais per common and preferred share, the equivalent of 15 billion reais.
In a note, the CEO of Petrobras, Jean Paul Prates, declared that the company “presented a consistent financial and operational performance in the second quarter, maintaining its profitability in a sustainable manner and with full attention to people.
“We will continue working, focused on the present, but also with an eye on the future, prepared for a fair energy transition and investing in the future of the company and Brazil.”
The company also informed that the quarterly result had a positive impact of gains from the sale of the Potiguar and Norte Capixaba Poles, with 3.4 billion reais.
Adjusted earnings before interest, taxes, amortization and depreciation (Ebitda) totaled 56.7 billion reais in the second quarter, down 42.3% from the same period in 2022.
The company’s oil production in Brazil dropped 0.6% between April and June compared to the same period last year, to 2.1 million barrels per day, with divestments, maintenance and natural decline of old fields, as previously reported.
The oil company also highlighted that its operations continue to contribute to strong tax collection in the country. In the second quarter, 56.1 billion reais were paid in taxes to the Union and state and municipal entities.
(By Marta Nogueira, with additional reporting by Peter Frontini and Roberto Samora)
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