• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 6 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 22 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 8 hours Why is permian oil "locked in" when refineries abound?
  • 1 hour Saudi Arabia turns to solar
  • 10 mins Could Venezuela become a net oil importer?
  • 15 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 10 hours Teapots Cut U.S. Oil Shipments
  • 10 hours Oil prices going down
  • 11 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 1 day What If Canada Had Wind and Not Oilsands?
  • 24 hours U.S. Withdraws From U.N. Human Rights Council
  • 1 day "The Gasoline Car Is a Car With a Future"
  • 21 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 11 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 22 mins EVs Could Help Coal Demand
Can Oil Pull Greece Out Of Poverty?

Can Oil Pull Greece Out Of Poverty?

Greece’s withering economy could use…

U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves

U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves

The United States has overtaken…

Q1 Profit Helps Petrobras Slim Down Debt Ahead of Schedule

Petrobras

The first quarter of the year turned out good for Brazil’s embattled state energy major Petrobras. The company reported a net profit of US$1.417 billion, up from a net loss of US$318 million for the year-earlier period.

Adjusted EBITDA came in at US$8.03 billion, up 48 percent on the year, and free cash flow jumped to US$4.25 billion at end-March 2017, seven times higher than the figure for end-March 2017. Operating profit surged by 118 percent to US$4.538 billion.

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.

As a result, Petrobras managed to slim down its debt—still the highest in the global oil industry—by 3 percent on a gross basis, to US$115.124 billion, from US$118.37 billion at the end of 2016. Net debt went down by 1 percent to US$94.99 billion.

Related: Can Tesla’s Solar Roof Smash The Competition?

CEO Pedro Parente said the first-quarter results allowed the company to continue with its cost-cutting activities and reduce its debt burden to 2.5 times its annual EBITDA, from 3.2 times at the end of the first quarter ahead of schedule. Originally, the company aimed to achieve the 2.5x ratio by the end of 2018.

On the news of the best financial performance in two years, Petrobras’ stock added 3 percent in after-hours trading, recouping some of the losses incurred since the start of the year.

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