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    Brazil’s Petrobras records Q1 profit

Summary

The Brazilian company improved year-on-year, though profit dropped sequentially.

by: Daniel Graeber

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Exploration & Production, Financials, News By Country, Brazil

Brazil’s Petrobras records Q1 profit

Brazilian energy company Petrobras reported May 13 that it returned to profit during the first quarter after a hefty loss during the same period last year.

The company, known formally as Petroleo Brasileiro, reported net income attributable to shareholders of $231mn in Q1 2021, a marked improvement from a $732mn loss recorded during the same period last year, but well below the $5.4bn in Q4 2020 profits.

“The figures show the capacity of our team to deliver sustainable results to our investors and to society, even in a challenging environment,” CEO Joaquim Silva e Luna said. “Petrobras will continue down the path of value generation, with its management based on transparency, dialogue and rationality and with investments concentrated in assets in which we are recognized as global leaders.”

Positive cash flow came in at $5.6bn, while debt reduction of $18.3bn brought its burden down to $71bn.

The company reported net Q1 revenue of $15.7bn, nearly 13% higher than Q4 and attributable mainly to an increase in crude oil prices. Revenue in Q1 2020, however, was $17.1bn.

Petrobras said last month that its combined production of oil, natural gas liquids and natural gas during the first quarter this year was 3.1% higher quarter-on-quarter, but 5% lower year-on-year.

Production averaged 2.77mn barrels of oil equivalent/day in the three-month period. Petrobras blamed the y/y fall on divestments and natural decline. It estimates that 11% of its upstream portfolio has reached peak production and entered the decline phase.

From its pre-salt basins offshore, the company said production was 7% higher than during Q4 2020, in part due to the start of operations at the Atapu field.

Production of liquid petroleum gas was 2.7% lower than in Q4 2020 because of a scheduled refinery shutdown. Natural gas sales and production were stable.