Petrobras reported net income of R$32.6 billion in the 3rd quarter of 2024 (3Q24). The company presented other consistent financial indicators in the quarter, such as Recurring EBITDA of R$64.4 billion, free cash flow of R$38 billion and strong operating cash generation (OCF) of R$62.7 billion, one of the six best quarterly operating cash flows in its history. The data are detailed in the Financial Results for the 3rd quarter of 2024 , released on the evening of this Thursday (11/07).
“We reported significant net income in the quarter, with strong cash generation and a reduction in both financial and gross debt. All this in a challenging scenario, with falling Brent oil prices. In addition, in the 3rd quarter we invested US$4.5 billion in projects that will guarantee the company’s future. Our results show that we are on the right track,” highlighted Petrobras CEO Magda Chambriard.
The FCO is an indicator of the company's ability to generate resources from its regular operations and is a relevant index for evaluating a company's performance.
Recurring Adjusted EBITDA in 3Q24 was R$64.4 billion, 3% higher than the previous quarter. The increase in the average exchange rate of the real against the dollar, the higher volume of oil produced by the company in the oil product mix and the growth in sales contributed to the result. These positive factors were partially offset by the 6% drop in the price of Brent and the lower margin on oil products, especially by the 16% reduction in the difference between the price of diesel and oil ( crackspread ). Recurring Adjusted EBITDA represents recurring profit obtained before the payment of interest, taxes and the calculation of depreciation and amortization.
The company's financial debt was reduced by 2.1% in the last quarter, to around US$ 25.8 billion, the lowest level since 2008. Gross debt was also reduced by 0.8%, to US$ 59.1 billion (an amount that includes US$ 33.4 billion in leases), remaining within the range established in Petrobras' 2024-2028 Strategic Plan.
Investments and returns for shareholders and society
Petrobras invested heavily in the 3rd quarter, totaling US$4.5 billion, approximately 30% more than in the previous quarter. The focus of investments remains mainly on large pre-salt projects. In the first nine months of the year, investments totaled US$10.9 billion, representing an increase of 19.5% compared to the same period of the previous year (9M23). Petrobras' total CAPEX projection for 2024 is maintained at between US$13.5 billion and US$14.5 billion, as announced in August.
Petrobras' good performance allowed the Board of Directors to approve the payment of dividends in the amount of R$17.12 billion, to be paid in two installments (February and March), in accordance with Petrobras' Shareholder Remuneration Policy.
In the third quarter of 2024, the company collected R$64.4 billion in taxes, paid to the various federative entities (federal, state and municipal) and which represent Petrobras' relevant contribution to Brazilian society.
New platforms
The 3Q24 financial results are in addition to significant operational milestones that will contribute to the company's future oil and gas production. On October 30, the Marechal Duque de Caxias (Mero 3) platform vessel began producing oil and gas in the Mero field, Libra block, in the Santos Basin pre-salt layer. The unit has the capacity to produce up to 180,000 barrels of oil and compress up to 12 million cubic meters of gas, all daily.
The FPSO Maria Quitéria, which was initially scheduled to begin operations in 2025, began operating early and produced its first oil on October 15. The unit has the capacity to produce up to 100,000 barrels of oil per day and process up to 5 million cubic meters of gas. Installed in the Jubarte field, in the pre-salt layer of the Campos Basin, the platform is equipped with technologies to reduce emissions, including combined cycle power generation, which allows for greater operational efficiency associated with a reduction of approximately 24% in operational greenhouse gas emissions.
Another important milestone in October was the arrival in Brazil of the platform ship Almirante Tamandaré, from China. The unit will be installed in the Búzios Field, in the pre-salt layer of the Santos Basin, off the coast of Rio de Janeiro. FPSO (floating production, storage and offloading) platform, Almirante Tamandaré is the first high-capacity unit to be installed in the field, with the potential to produce up to 225 thousand barrels of oil (bpd) and process 12 million cubic meters of gas per day.
