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Petrobras stalls fuel price hikes

Meanwhile, changes in management team of oil behemoth are also in standstill

06/10/2022

Fuel prices prompted change in the command of Petrobras — Foto: Leo Pinheiro/Valor

Fuel prices prompted change in the command of Petrobras — Foto: Leo Pinheiro/Valor

The double-digit gap between diesel prices in Brazil and abroad means that Petrobras could immediately raise costs to refineries, sources told Valor. The company, however, continues to analyze the market situation before deciding.

Consultants’ calculations indicate that the price of diesel that Petrobras charges from distributors is between 15% and 17.5% below international parity. In the case of gasoline, there are estimates that the price the state-owned charges from distributors in Brazil is 45% below the price negotiated in the Gulf of Mexico, one of the world’s main refining centers.

Meanwhile, the management changes intended by the government in the state-owned company, as part of President Jair Bolsonaro’s strategy to try and control fuel prices, continue to face difficulties.

On Wednesday, there was a meeting of the board of Petrobras. The company’s strategic planning was on the agenda, but the discussion turned to the state-owned company’s Eligibility Committee (Celeg), linked to the Personnel Committee (COPE). Celeg/COPE verifies if candidates for the board meet the necessary requirements and have no restrictions to run for the position, according to the internal rules of the company and the State-Owned Companies Law.

In a statement released on Thursday, Petrobras confirmed that the collegiate debated the day before a request made by the federal government, the company’s controlling shareholder, to replace the current CEO, José Mauro Coelho, by Caio Paes de Andrade, who is associated with Economy Minister Paulo Guedes. But there was no decision concerning this issue. A person familiar with the company said that “the analysis [of Mr. Paes de Andrade by Celeg] has not been made yet because the information is not ready.”

Mr. Paes de Andrade was nominated on May 23, through a letter from the Ministry of Mines and Energy (MME), which requested a shareholders’ meeting to elect him as a board member — the first step for him to become the company’s CEO to replace José Mauro Coelho. On May 25, the Petrobras collegiate met and concluded that it needed to wait until the federal government sent the list of eight candidates (including Mr. Paes de Andrade) to the Petrobras board, which has not yet happened.

Mr. Coelho, the current CEO of Petrobras, was elected in the shareholders’ meeting in April by an unbundled vote, and once he is removed all other members of the collegiate elected by the same system must go through a new election. Eight of the 11 members of the Petrobras board were elected by this method, which allows votes to be concentrated on certain candidates. These are the eight positions expected to be disputed once again in the meeting, which has not set a date so far.

This list seems to have become a point of conflict between independent advisors and the government. Celeg/COPE, after having received Mr. Paes de Andrade’s documents, is still waiting for the list of the other government candidates. The government, in turn, is trying to bring forward the result of the Eligibility Committee’s analysis to know if Mr. Paes de Andrade will be approved by the company’s governance bodies. The situation has become a kind of chess game, in which each party waits for the opponent’s move to define its own move. Meanwhile, almost nothing is happening.

*Gabriela Ruddy, Francisco Góes — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/
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Change at Petrobras increases uncertainty

One day after the government’s decision to change Petrobras CEO – the third in little more than a year – the market’s perception of risk regarding the company’s pricing policy has increased even more. The oil company’s board of directors meets on Wednesday, and the meeting may be decisive to define how long its pricing policy will remain shielded from the pressures by President Jair Bolsonaro. Through the federal government, Petrobras’s controlling shareholder, Mr. Bolsonaro is trying to make changes in the company to hold back diesel and gasoline prices in a scenario of rising inflation and proximity to the presidential elections, in October.

Although Petrobras’s governance guarantees a certain protection, the successive attempts of government interference create uncertainty and instability around the company, in the view of sector specialists and financial market operators. On Tuesday, Petrobras’s common shares closed at R$34.40, down 2.85%, while the preferred stock stood at R$31.60, down 2.92%. The government’s measures to control prices at the state-owned company are expected to be the target of discussion in Petrobras’s board.

Caio Mario Paes de Andrade — Foto: Denio Simões/Valor

Caio Mario Paes de Andrade — Foto: Denio Simões/Valor

Valor has learned that, at Wednesday’s meeting, the oil company’s independent board members will try to postpone the extraordinary general meeting that will be called, at the request of the federal government, to replace the current CEO José Mauro Coelho, with the nominee by the controlling shareholder, Caio Paes de Andrade.

If successful, the effort will allow the company to gain up to 45 days of protection for its pricing policy. This is because, by not putting the extraordinary general meeting on the agenda at the board meeting, the burden of calling it would be shifted to the federal government, which would have to do it in the next few days.

The call for the extraordinary general meeting is one topic of the board meeting, which was scheduled even before Mr. Coelho’s dismissal. Sources linked to Petrobras acknowledge that postponing the call is not simple, especially because there is a perception that most directors are aligned with the federal government. Of the 11 seats on the board, six are nominated by the federal government, four are representatives of minority shareholders and one represents the employees.

In the ongoing changes within Petrobras, it is not yet clear whether the federal government may also change other names on the board at the extraordinary general meeting, in addition to Mr. Coelho. The government would also be interested in replacing Petrobras’s executives.

On Monday, it became clear that Mr. Coelho, the current CEO, will remain in office until the meeting is held, the date of which will only be known after it is called. There is a minimum period for holding the meeting, which is 30 days from the call. But this time can be even longer, which means that the extraordinary general meeting can take place between the end of June and mid-July, two and a half months before the first round of vote in the presidential elections. It is a shorter period than the 100 days-freeze in price hikes intended by the government.

Until the extraordinary general meeting, Mr. Coelho will remain at the head of the company, since he did not resign, but was the target of a dismissal request by the federal government. The 8.87% increase in the price of diesel on May 10 led to his dismissal. A day later, Mr. Bolsonaro fired the former minister of Mines and Energy Bento Albuquerque, to whom Mr. Coelho was linked. Without a close interlocutor in the ministry, Mr. Coelho was isolated in the government and distant from the new Mines and Energy minister, Adolfo Sachsida, who is linked to Economy Minister Paulo Guedes, as well as Mr. Paes.

Mr. Coelho couldn’t hold on to his job even in a scenario of less pressure for hikes in oil product prices. The difference between fuel prices in the domestic market and abroad has been near zero, reducing the gap, that has exceeded 20% about three weeks ago. Diesel prices at the state-run company’s refineries were negotiated Tuesday, on average, 0.4% below import parity price, according to Stonex calculations.

The Brazilian Association of Fuel Importers (Abicom) indicated an average gap of 1% in diesel oil prices. According to XP Investimentos, diesel prices are 6.7% above those seen abroad. As for gasoline, prices are, on average, 2.1% below parity, according to StoneX calculations. XP Investimentos sees, however, a discount of 11.4% in domestic prices compared to the import parity price. The last hike of gasoline prices occurred on March 11, when the state-owned company raised prices in refineries by 18.8%.

Despite Mr. Paes de Andrade’s nomination, there are doubts about whether he can fulfill the legal requirements for the position. It will be up to the People Committee, linked to the Petrobras board, to analyze his résumé. Mr. Paes de Andrade is secretary for Debureaucratization at the Economy Ministry. With a degree in Social Communication by Universidade Paulista, Mr. Paes de Andrade reports two post-graduate degrees from U.S. universities, Duke and Harvard. Before joining the government, he ran internet providers (PSTNET, Web Force Ventures and HPG) and a digital platform for the real estate market (Maber), as well as agribusiness investments. In the government, he was the CEO of Serpro, a state-owned IT company that manages government data, and secretary of privatization. Like Mr. Sachsida, who was secretary of strategic affairs at the Economy Ministry, Mr. Paes de Andrade also reported to Paulo Guedes, but was a Bolsonarist before joining the minister’s team.

The head of the Brazilian Petroleum and Gas Institute (IBP), Eberaldo de Almeida Neto, said that maintaining the fuel price policy is key to keep the market supplied and draw investments in the sector.

The executive-president of Abicom, Sérgio Araújo, said he expects Mr. Andrade, once approved, to keep the commitment with the company’s shareholders and with the market, following international prices. For consultancy Control Risks, the new change in the head of the company represents an escalation in the government’s strategy of interfering in Petrobras. Ettore Marchetti, head of investments at EQI Asset, says, however, that it is necessary to consider that many countries in the world have also made or are considering policies to cushion fuel price shocks, which is a global phenomenon. The chief economist at BV Bank, Roberto Padovani, says that the behavior of the markets suggests that they are not moving in tandem with the news. “Of course it has an impact on the stock market, but the reading is that this is another noise created in an environment of many uncertainties.”

Source: Valor International

https://valorinternational.globo.com

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Petrobras mulls investing in offshore wind power

Petrobras CEO said company joined forces with Equinor to develop the 4-gigawatt offshore wind project Aracatu, in the Campos Basin — Foto: Brennan Linsley/AP
Petrobras CEO said company joined forces with Equinor to develop the 4-gigawatt offshore wind project Aracatu, in the Campos Basin — Foto: Brennan Linsley/AP

Offshore wind power generation is one alternative studied by Petrobras in the long run, considering the energy transition context, CEO José Mauro Coelho said.

“Offshore wind power has great potential in Brazil and synergies with Petrobras’s operations. This is one alternative under study. There are others,” he said.

In an event about the global carbon market in Rio de Janeiro, Mr. Coelho said that the Brazilian state-owned oil company joined forces with Norway’s oil company Equinor to develop the 4-gigawatt offshore wind project Aracatu, in the Campos Basin.

Energy transition will require cooperation, he said. “Challenges of this magnitude require broad dialogue and cooperation to seek a fair transition that protects the most vulnerable ones and safeguards energy security. The achievement of climate goals is key for social welfare, economic development, and for our own competitiveness,” he said.

The executive pointed out, however, that even in the most accelerated energy transition scenarios, there will be demand for oil around the world “for decades.” “We believe that the transition will be slow and that the world will demand oil for many years.”

In this sense, Mr. Coelho pointed out that pre-salt production, in ultradeep waters, is among those with the lowest emissions and highlighted the importance of Petrobras continuing to reduce carbon emissions in oil production to be competitive.

“Our oil is produced with 40% lower emissions per barrel than the world average. Producing oil with greater efficiency and lower carbon intensity is an immediate, relevant contribution to the reduction of global emissions,” he said.

Mr. Coelho pointed out that the company also has initiatives to reduce emissions in refining. “Petrobras will have one of the most modern and sustainable refining complexes in the world,” he added.

Source: Valor International

https://valorinternational.globo.com

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Petrobras to increase diesel prices

The hike in diesel prices by Petrobras in refineries is imminent, Valor has learned. The product had, on Friday, a difference of about 20% in relation to prices on the global market. A partial recomposition of prices, in relation to the international parity, is important, at this moment, not only for Petrobras but also for other market players, such as private refineries and importers. The measure, if confirmed, will relieve the pressure on the state-owned company, and may facilitate the purchase of the product abroad by smaller companies, reducing the risk of shortages, a hypothesis that has been denied both by the company and the government.

The situation is complex, which has required discussions at Petrobras’s top management. On Friday, at the end of the day, the board of directors of the oil giant met to analyze a possible position facing the continued attacks of President Jair Bolsonaro on the company, as anticipated on Friday, Valor PRO, the real-time news service of Valor.

A response would be necessary in the face of president Bolsonaro’s virulence. On Thursday, moments before the release of Petrobras’s first quarter results, he compared the company’s profit to a “rape”. On Saturday, in Santa Rosa (state of Rio Grande do Sul), Mr. Bolsonaro criticized Petrobras again, saying that “no one can stand” the fuel increases. Informed about everything that happens in Petrobras, he speaks to his supporters knowing the limitations to intervene in the state-owned company.

Valor has found that there was no consensus in the board to produce a statement. The answer should come, therefore, in the form of a diesel hike by the company in a percentage that would cover most of the current gap. Petrobras did not immediately reply to a request for comment.

The market scenario for diesel is worrisome. On the external front, the price continues to rise as a result of the post-pandemic recovery and supply cuts resulting from the war in Ukraine. Russia accounts for about 25% of global diesel exports. The past few weeks have seen record diesel price increases in the United States.

The refining margins on diesel are twice as high as on gasoline. The increase in the price of the product in the Northern Hemisphere has effects for imports in Brazil. The diesel that will arrive in the country in July is being purchased now. But the extent to which Petrobras holds back the rise inhibits imports, since the price of the imported product arrives in Brazil at a higher price than that sold at the Petrobras refineries.

In the domestic market, the demand for diesel is still on the rise and there are concerns that the growth in consumption, driven by agribusiness, may lead to shortages in the second half of the year in some regions. The government and Petrobras have denied there is a risk of shortage of the product, which is fundamental to the farming and livestock sector and is essential in cargo transportation.

In an interview to Valor, Décio Oddone, former director of the National Petroleum Agency (ANP), also said he doesn’t believe in a shortage as long as the country follows the external price “fluctuations”.

On Friday, commenting on Petrobras’s results in the first quarter, Chief Trading & Logistics Officer Claudio Mastella ruled out the risk of shortage in the country. He said that the market is supplied by the national refining park and imports. Petrobras monitors the international markets and evaluates fuel prices daily, said Mr. Mastella.

Jose Mauro Coelho — Foto: Bruno Spada/MME
Jose Mauro Coelho — Foto: Bruno Spada/MME

Still on Friday, the CEO of Petrobras, José Mauro Coelho, said that the state-owned company is one of the companies that most collects taxes and government participation for the different spheres of government, with more than R$70 billion collected between January and March. Mr. Coelho said that the company is not insensitive to society, and cited the company’s program to help low-income families to have access to liquefied petroleum gas (LPG).

(Nelson Niero, in São Paulo, contributed to this story)

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Petrobras exceeds expectations with profit of R$44bn

CEO José Mauro Coelho said results between January and March reflect a “healthy company” — Foto: Leo Pinheiro/Valor
CEO José Mauro Coelho said results between January and March reflect a “healthy company” — Foto: Leo Pinheiro/Valor

Oil prices, higher export volumes, lower costs in liquefied natural gas (LNG) imports and higher margins in diesel oil sales made Petrobras’s profit grow 38 times – or 3,718% – in the first quarter, to R$44.56 billion, compared with R$1.17 billion in the same period of 2021.

In a message delivered with the results, CEO José Mauro Coelho said the results between January and March reflect a “healthy company.” He also recalled that the company paid taxes to the federal government, states and municipalities equivalent to one and a half times the value of its net profit.

The company also highlighted, in a statement about the quarter’s results, that it disbursed almost R$70 billion in taxes, royalties and other payments to the federal government, states and municipalities in the first three months of the year.

The board of Petrobras approved, in a meeting held Thursday, the distribution of dividends in the amount of R$3.7155 per preferred and common share in circulation. According to the company, the total value is around R$48.5 billion.

Of the total, R$3.1387 are interim dividends referring to the remuneration paid in advance to the shareholders relative to the fiscal year 2022.

In addition, R$0.5767 per share will be paid as retained earnings included in the 2021 earnings report.

The dividends will be paid in two installments of R$1.8577, on June 20 and July 20. Shareholders who were listed on May 23 at B3 will be entitled to the dividend.

In the case of holders of depositary receipts (ADRs) on the New York Stock Exchange, the installments will be paid on June 27 and July 27. As of May 24, the shares in both markets will be negotiated without the right to the dividend.

Petrobras says that the dividend is in line with its remuneration policy, which establishes that the company can distribute 60% of the difference between operating cash flow and investments if gross debt is less than $65 billion.

Source: Valor International

https://valorinternational.globo.com

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Petrobras invites Eneva, PetroRecôncavo for Bahia-Terra cluster

Negotiation phase will now begin on the terms and conditions for the potential acquisition of Petrobras’s stakes — Foto: Leo Pinheiro/Valor
Negotiation phase will now begin on the terms and conditions for the potential acquisition of Petrobras’s stakes — Foto: Leo Pinheiro/Valor

Oil operator PetroRecôncavo and power generation company Eneva announced Wednesday they have been invited by Petrobras to continue negotiations for the acquisition of the state-run company’s stake in the Bahia-Terra cluster. The consortium formed by the two companies now enters the negotiations as “selected binding offeror.”

In March, the duo had submitted a binding offer for the set of assets.

The negotiation phase will now begin on the terms and conditions for the potential acquisition of Petrobras’s stakes in a set of concessions for onshore E&P fields and associated facilities in the Recôncavo and Tucano basins, in Bahia, the consortium said in a note.

In Wednesday’s note, the companies made it clear, without revealing values, that they have submitted a joint offer — with 40% participation by Eneva and 60% by PetroRecôncavo, the latter being the operator of the assets.

The statement confirms previous report by Brazil Journal citing sources close to the negotiations. The consortium offered $1.35 billion for the asset, according to the news outlet.

The conclusion of the deal, as well as its terms and conditions and the amount involved are still subject to the acceptance of the offer by Petrobras, the negotiation and execution of the contract, the competent legal and regulatory approvals, as well as the fulfillment of certain conditions precedent, in particular the approval of the antitrust watchdog Cade and the National Petroleum Agency (ANP).

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PetroRio agrees to buy Albacora Leste field from Petrobras

PetroRio (PRIO3) faz "compra transformacional" e ação fecha em alta, enquanto analistas esperam por próxima aquisição - InfoMoney

PetroRio agreed to buy a 90% stake in the Albacora Leste field, in the Campos Basin (Rio de Janeiro), from Petrobras. The company will dirburse $1.91 billion, of which $293 million have been already paid upon signing, and up to $250 million more depending on Brent prices in 2023 and 2024.

The company estimates a proven economically recoverable reserve close to 280 million barrels for the field, with a net reserve of over 240 million barrels, expected to be abandoned after 2050.

In the first 18 months of operation, PetroRio plans to invest about $150 million to increase the operational efficiency of the FPSO P-50 rig, and reap $90 million a year in synergies.

Subsequently, the field redevelopment will begin, involving the drilling or connection of 17 producing wells and five injection wells over five years, with estimated investments from $70 million to $75 million per year.

The development will be carried out in two stages. The first is the connection of three producing wells already drilled, eight new producing wells, and one injection well, increasing the field’s production to above 50,000 barrels per day.

After that, six new producing wells and four injection wells will be drilled. The company is also expected to carry out the anticipated decommissioning, until 2027, of five producing wells and one injector, with an investment of $15 million per well.

Besides the Albacoa Leste field, PetroRio is still in negotiations with Petrobras for the purchase of the Albacora field, also in the Campos Basin.

PetroRio CEO Roberto Monteiro said the sale is taking longer because of the discovery of the Forno reservoir, located in the pre-salt within the field. The area is currently undergoing a long-term test for estimates of production potential, which showed better-than-expected results, according to the executive.

“We still have a while to reach an agreement, especially regarding the amount. It is taking a little more time because this reservoir is larger than expected,” he said.

The sale of the asset is part of Petrobras’s divestment plan and began in September 2020. According to Mr. Monteiro, a binding proposal was delivered around September 2021, but in November Petrobras asked the bidders to revisit the estimates for the size of the reservoir. In addition to PetroRio, there are other companies competing for the area.

Source: Valor International

https://valorinternational.globo.com

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Government picks Ferreira Coelho to run Petrobras

José Mauro Ferreira Coelho — Foto: Leo Pinheiro/Valor
José Mauro Ferreira Coelho — Foto: Leo Pinheiro/Valor

After setbacks in the last few days, the government managed to appoint José Mauro Ferreira Coelho as Petrobras’s CEO and Márcio Andrade Weber as chair of the state-owned oil company.

The two positions were open after Adriano Pires and Rodolfo Landim gave up, this week, to run for these positions, respectively. The new names were seen by sources familiar with Petrobras as a victory for Mines and Energy Minister Bento Albuquerque, to whom the company is subordinated. “Bento has succeeded,” a source said.

Mr. Coelho is supported by his technical background in the industry – he chairs the state-owned company PPSA –, while Márcio Weber, the new candidate to be Petrobras’s chair, was an “internal solution” since he is a member of the current board of the oil company. He has experience in the oil market and enjoys the respect of the board members.

Coelho has a military background, having been an officer in the Army between 1983 and 1991, and a researcher at the Military Institute of Engineering. He also held the board of the Energy Research Company (EPE) and was secretary of oil and gas at the MME before joining the PPSA board. He has defended the practice of parity to international prices, a policy that Petrobras has followed since the Temer administration and that has been a frequent reason for the company’s wear and tear with President Jair Bolsonaro. The last two presidents: Roberto Castello Branco and Joaquim Silva e Luna were fired for readjusting fuel prices in the domestic market following oil variations in the international market. Silva e Luna remains in the presidency of the company until next week.

After the frictions caused by the nomination of Adriano Pires, Mr. Coelho’s announcement was seen as a new demonstration of strength by Mr. Albuquerque. Mr. Coelho was seen as his right-hand man in the ministry and, with this appointment, the minister will have two names of his trust in strategic state-owned companies in the sector: Itaipu and, now, Petrobras.

The two nominations pave the way for Petrobras shareholders to elect the company’s new board of directors at the Annual and Extraordinary General Meeting (AGOE) scheduled for next Wednesday. Since the retreat of Messrs. Pires and Landim, the federal government’s ticket was incomplete. From the original eight names, six were left. On Tuesday night, the ministry said that it had filled out the list of the federal government, the company’s controlling shareholder, for the board.

The ticket is now composed by Márcio Weber, José Mauro Ferreira Coelho, Sônia Villalobos, Ruy Schneider, Luiz Henrique Caroli, Murilo Marroquim, Carlos Eduardo Lessa Brandão and Eduardo Karrer. There are also seven candidates of suggested by minority shareholders for the board.

There are, therefore, 15 candidates for ten seats. The federal government’s candidates must face two minority shareholders’ candidates in a multiple-choice system in which the individual candidates with the most votes win. The remaining minority shareholders’ candidates will face each other in two elections in which the federal government does not vote.

One is in the separate election of the controlling shareholder related to the common shares (three names for one seat) and the other related to the preferred shares (two candidates for one seat). Petrobras’s board has 11 members, but the 11th person is elected by the employees. The name is Rosangela Buzanelli Torres, who is also already on the board. The mandate is for two years, until the 2024 general meeting, but with presidential elections ahead, chances are the board will be changed again next year.

It is not clear yet if there will be enough time until next week’s meeting for the names of Messrs. Coelho and Weber to be evaluated by Petrobras’s corporate governance bodies, responsible for analyzing if the names fit the company’s rules and the Law of State-Owned Companies. The eligibility committee (Celeg), linked to the people committee (COPE), can make this analysis in time for the meeting. “I believe they will try to do it,” a source said. If it is not possible, this check can be left for after the meeting. Mr. Weber’s name has already been checked, since he was on the first federal government list and is a candidate for reelection.

On Wednesday, Celeg concluded that Mr. Weber meets the necessary requirements and has no restrictions to run for the board. The committee said, however, that Mr. Weber will need to “adopt the necessary measures so that the company in which he has a stake formally abstains from providing services to Petrobras and its equity stakes, as well as relevant suppliers and competitors in the oil and gas sector”. Mr. Weber advises the PMI group that operates four deepwater drilling rigs that have Shell and ENI as clients.

Source: Valor International

https://valorinternational.globo.com

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Petrobras to keep prices in line with international market

Oil giant states it will avoid passing on “external volatilities”

05/03/2022

Petrobras confirmed that it will maintain its commitment to keep fuel prices in Brazil in line with the international market — Foto: Divulgação

Petrobras confirmed that it will maintain its commitment to keep fuel prices in Brazil in line with the international market — Foto: Divulgação

Petrobras confirmed that it will maintain its commitment to keep fuel prices in Brazil in line with the international market. In a statement after being asked about possible readjustments with the rise in the barrel prices due to the crisis in Eastern Europe in recent days, the oil company, however, noted that it will avoid passing on external volatility and the exchange rate caused by broader events.

“The international market was already experiencing high volatility, and the latest events have caused even more volatility. Petrobras continues to monitor and evaluate the impacts on fuel prices and cannot anticipate any decision on adjusting or maintaining current prices,” stated the company.

The company pointed out that the national fuel market is also supplied by other companies, such as importers, distributors that are authorized to import, in addition to other producers and importers of biofuels and other refiners. As a comparison, Petrobras points out that in 2021 the company met about 44% of the demand for type A gasoline from distributors, with the rest being produced or imported by other players.

The state-owned company has not updated fuel prices at refineries for 49 days, despite the recent rise in barrel prices on the international market after the Russian invasion of Ukraine.

Source: Valor International

https://valorinternational.globo.com
https://valorinternational.globo.com
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Petrobras reports record net income

Oil company proposed another dividend distribution, amounting to R$37.3 billion — Foto: Geraldo Falcão/Agência Petrobras
Oil company proposed another dividend distribution, amounting to R$37.3 billion — Foto: Geraldo Falcão/Agência Petrobras

Petrobras reported record annual net income of R$106.7 billion relative to 2021. The result, 15 times higher than the 2020 earnings, came above the R$100 billion projected by analysts.

After a new solid earnings report, that of the fourth quarter, the company proposed another dividend distribution, amounting to R$37.3 billion, to be paid in May. In the end, the remuneration to shareholders for the results achieved last year will total R$101.4 billion, the oil company’s highest ever. The federal government, which controls the company, will receive about a third of this.

Benefiting from the appreciation of oil, the company earned R$31.5 billion in profits in the fourth quarter, down 47.4% year over year. At the time, the state-owned company’s results were strongly inflated by the reversal of impairments. When compared to the third quarter of 2021, there was an increase of 1.2% in the result.

In the year of 2021, the record profit was linked to the 77% increase in the price of Brent oil, in reais, in the period. Two other factors boosted the result: the higher sales volumes in the domestic market and better diesel and gasoline margins – which offset the drop in oil exports, the increase in liquefied natural gas (LNG) acquisition costs due to the water crisis and a revision in health insurance plans.

Petrobras’s net revenues totaled R$134.19 billion in the fourth quarter, up 79% year over year. In 2021, revenues totaled R$452.7 billion, 66.4% more than the previous year. The EBITDA, on the other hand, grew 33.8% in the fourth quarter, to R$62.9 billion, in comparison with the months from October to December 2020; and 64.1% in the year, to R$234.6 billion.

Source: Valor International

https://valorinternational.globo.com

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