Petrobras posts 22% profit rise for third quarter

Brazilian company Petrobras reported Third-quarter net income rose 22% to about $5.7 billion. Thanks to the strong earnings, Petrobras said it would pay a total dividend of $3 billion.

Petrobras also reported a 3.8% fall in earnings before interest, taxes, depreciation and amortization, in line with analysts’ expectations, and a 3.8% increase in net sales.

Additionally, Petrobras said in a statement that it increased investment by 31% more in the third quarter than a year earlier, spending $4.5 billion, much of it on oil and gas exploration and production, Reuters said in the third quarter news report.

Petrobras planned to spend a total of $13.5 billion to $14.5 billion this year, less than its original $18.5 billion investment plan, Reuters said in a report. The company has spent $10.9 billion so far.

Petrobras also revised its planned spending for 2025. Last month she cut that plan to $17 billion, down from a previous annual spending estimate of $21 billion. Petrobras said $17 billion is a more realistic figure that more closely matches its resources.

At the same time, Petrobras is revising its medium-term spending plans upward. Earlier this year, the company said it planned to spend about $102 billion between 2024 and 2028, but that was revised later this year to nearly $107 billion. Then, in October, unnamed sources told Reuters that Petrobras was making adjustments to overall spending that could push it closer to $110 billion.

The bulk of that sum, regardless of its final size, will go towards Petrobras’ core business of oil and gas production, counteracting the natural depletion of mature fields, something management has been “concerned about,” according to Petrobras’ newly appointed CEO. Mgda Chambriard company.

Charles Kennedy for Oilprice.com

Even more useful reading at Oilprice.com