• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 5 hours Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 16 hours EU to Splash Billions on Battery Factories
  • 20 hours U.S. Shale Oil Debt: Deep the Denial
  • 1 day The Balkans Are Coming Apart at the Seams Again
  • 12 hours Owning stocks long-term low risk?
  • 16 hours The Dirt on Clean Electric Cars
  • 3 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 11 hours The end of "King Coal" in the Wales
Why Crypto Miners Are Paying Attention To The Permian

Why Crypto Miners Are Paying Attention To The Permian

The Permian is literally burning…

South Korea Cuts Iran Oil Imports To Zero

South Korea Cuts Iran Oil Imports To Zero

U.S. ally South Korea has…

Petrobras May Pay First Dividend In 3 Years

Petrobras

Brazil’s state energy major Petrobras last distributed a dividend in April 2014. This year could mark the return of the payouts as the company eyes to end 2017 in the black. Chief executive Pedro Parente said, as quoted by Reuters, that “We really are keen to start paying dividends as fast as we can.”

Troubled Petrobras reported a net profit of US$1.417 billion for the first quarter of this year, up from a net loss of US$318 million for the year-earlier period. The company attributed the positive performance to 72-percent higher exports, at 782,000 bpd, at higher prices, as well as to lower oil and gas import costs. The latter were a result of higher production of oil and gas at home, which led to a 40-percent decline in imports.

Domestic oil production rose 10 percent on the year to 2.182 million bpd, and overall output went up 9 percent to 2.248 million bpd. Asset sales also contributed to the results but they also accounted for a reduction in income from international operations, notably the sale of Petrobras’ Argentine and Chilean operations.

A resuming of the dividend payout will go a long way towards instilling some semblance of confidence in Petrobras’ shareholders after two years of low oil prices, subsidies eating into the company’s revenues, and a graft investigation that toppled Brazil’s previous government.

Over that period, Petrobras’ debt swelled to around US$130 billion, becoming the largest in the global oil industry. Now, Parente’s top priority is to reduce this huge burden on the company and thanks to the positive Q1 performance, there is a chance that the company will be able to do it ahead of schedule, cutting its debt to EBITDA ration to 2.5x from 5.1x attend-2015. At the end of March 2017, debt was 3.24 times the company’s EBITDA.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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