Petrobras Closes the Fourth Quarter with Positive Results

Source: www.gulfoilandgas.com 2/23/2022, Location: South America

After seven years of hard internal work to recover its finances and credibility, Petrobras achieved solid operational and financial results in 2021, with the highlights being the debt equaled and all of its oil and gas production goals met. The net result for the fourth quarter remained at a level similar to the previous quarter’s.

"The operating and financial results show that Petrobras has become a strong, healthy company. This is the best way for the company to play its social role, being able to grow, invest, generate jobs, pay taxes, generate dividends to its shareholders, including the Union, and effectively contribute to the development of the country," said Joaquim Silva e Luna, CEO of Petrobras.

In 2021, the company provided Brazilian society with approximately R$ 230 billion in dividends to the Union* and federal, state, and municipal taxes. The more resources the company generates, the more society receives in return.

Financial Recovery

The year 2021 consolidated the company's trajectory of financial recovery, after having incurred the world's biggest corporate debt. In the fourth quarter, Petrobras reached a gross debt of US$ 58.7 billion, resulting in a net debt/Ebitda ratio of 1.1x.

"With the reduction in debt, it was possible to redirect resources paid as interest to investments. In 2021, we invested US$ 8.8 billion, a 9% increase over 2020. In the next five years, we plan to invest another $68 billion, 24% more than projected for 2021-2025. This shows we are working for Petrobras to grow sustainably and profitably. And, in this way, deliver the maximum return to our shareholders and to society," concludes Rodrigo Araujo, Petrobras' Chief Financial and Investor Relations Officer.

Main achievements:

- Net income of US$ 5.6 billion and Ebitda of US$ 11.2 billion, in the fourth quarter of 2021.
- Achievement of all top metrics established in the Strategic Plan 2021-2025 and of all production targets for the year, with pre-salt accounting for about 70% of our production.
- Largest reserves addition in Petrobras' history, with 1.97 billion barrels of oil equivalent, resulting in a 219% replacement of 2021 production.
- Achievement of the debt target 15 months ahead of schedule, closing the year with a gross debt of US$ 58,7 billion.
- Moody's credit rating updated by 1 level, from "Ba2" to "Ba1", with a stable outlook, and upgrade of the company's intrinsic rating by 1 level, from "ba2" to "ba1”.
- Average total utilization factor (FUT) of 83% of our refineries in 2021, the highest index in the last five years, which shows the efficiency gains in unit management.
- Conclusion of obligations with the US Department of Justice (DOJ).
- Return to the Dow Jones Sustainability Index World, one of the world’s most important indexes, after six years.


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