• 5 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 3 hours Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 45 mins America's Frontline Doctors - Safely Start Living Again!
  • 45 mins France Sees 10.6% EV Market Share In September — 4× Growth Year On Year
  • 1 day Something wicked this way comes
  • 1 hour Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 1 day Permian in for Prosperous and Bright Future
  • 9 hours covid. stop the carriers and thus stop the virus.
  • 2 days A sneak peak into the US election
  • 10 mins Vote Biden for Higher Oil Prices
  • 29 mins Tesla Model 3 Is September's Top Selling Car of All Vehicles in Switzerland
  • 1 hour TX NATGAS flaring
  • 2 days California’s Electric Vehicle Dream Has A Major Problem: No
  • 3 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 6 hours GPOR - Gulfport Oil - Why?
  • 2 days Ethanol present in gasoline

Asset Sales Drive Petrobras To Highest Ever Quarterly Profit

Brazil’s state oil and gas major Petrobras, once the company with the biggest debt pile in the global oil and gas industry, booked the highest quarterly profit on record for the second quarter of 2019 on the back of asset sales, Reuters reports citing a regulatory filing by the Brazilian company.

At almost US$5 billion (18.87 billion reias), the net result was substantially higher than the analyst consensus, which stood at US$2.1 billion (8.06 billion reias). However, were it not for the one-off income from asset sales, the net profit of Petrobras would have come in lower than the analyst estimate, at US$1.35 billion (5.2 billion reias).

One potential red flag in the filing was a downward revision of capex for this year, from US$16 billion to US$10-11 billion.

Related: Alberta Picks Columnist To Fight Back Against Oil Misinformation

Since the start of this year, Petrobras has generated almost US$12.8 billion from asset sales as its new management made divestments a top priority in a bid to shrink the debt load further and streamline the business. The largest deal so far in 2019 has been the sale of a gas pipeline network to France’s Engie, which wrapped up in the second quarter, positively affecting results.

High oil prices also helped, as chief executive Roberto Castello Branco said, as quoted by Reuters. The executive, who took the helm at Petrobras this January after the change in government in Brazil, added that most of the strong performance was the result of factors beyond the control of the company.

Even so, the result will no doubt help Petrobras’ spending plans: in June, Castello Branco announced the major would increase its investment plan for the next five years to US$105 billion from US$84.1 billion. Divestment plans for the period to 2023 were revised upwards to US$35 billion from US$27 billion.

Petrobras’ net debt stood at US$72.888 billion as of the end of the third quarter of 2018.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News