Brazilian state-owned oil company Petrobras reported a net profit of BRL32.6 billion (US$5.66 billion in the third quarter of 2024. The company also posted other solid financial indicators for the quarter, including recurring EBITDA of BRL64.4 billion (US$11.2 billion), free cash flow of BRL38 billion (US$6.6 billion), and robust operational cash flow (OCF) of BRL62.7 billion (US$10.9 billion) —one of the top six quarterly operational cash flows in its history.
These results are outlined in Petrobras' Q3 2024 Financial Report, released on Thursday, November 7.
"We achieved a significant net profit in the quarter, driven by strong cash generation and reductions in both financial and gross debt," said Petrobras CEO Magda Chambriard. "This was accomplished in a challenging environment, with a decline in Brent oil prices. Furthermore, in Q3, we invested US$ 4.5 billion in projects to ensure the company's future. Our results demonstrate that we are on the right path."
Petrobras said OCF is a key indicator of the company's ability to generate resources from its ongoing operations and is an essential metric for assessing corporate performance.
The adjusted recurring EBITDA for Q3 2024 was BRL64.4 billion, a three per cent increase compared to the previous quarter. The positive performance was driven by the higher average exchange rate of the Brazilian real against the US dollar, the increased volume of oil produced in the company's refined products mix, and growth in sales. These factors were partially offset by a six per cent decline in Brent oil prices and lower refining margins, mainly due to a 16 per cent decrease in the price differential between diesel and crude oil (crack spread). Adjusted recurring EBITDA represents recurring profit earned before interest, taxes, depreciation, and amortisation.
The company's financial debt was reduced by 2.1 per cent last quarter to approximately US$25.8 billion, marking the lowest level since 2008. Gross debt also fell by 0.8 per cent to US$59.1 billion (including US$33.4 billion in leases), remaining within the target range set by Petrobras' 2024-2028 Strategic Plan.
Petrobras made substantial investments in the third quarter, totaling US$4.5 billion, an increase of about 30 per cent compared to the previous quarter.
The company's investment strategy continues to focus primarily on large pre-salt projects. In the first nine months of 2024, total investments reached US$10.9 billion, reflecting a 19.5 per cent increase over the same period in 2023 (9M23). Petrobras has maintained its full-year 2024 CAPEX projection at a range between US$13.5 billion and US$14.5 billion, as announced in August.
The company's strong performance allowed the board of directors to approve the payment of BRL17.12 billion (US$2.97 billion) in dividends, which will be distributed in two installments (February and March), in accordance with Petrobras' Shareholder Remuneration Policy.
In Q3 2024, Petrobras paid BRL64.4 billion in taxes to various levels of government (federal, state, and municipal).
On October 30, the Marechal Duque de Caxias (Mero 3) floating production, storage, and offloading (FPSO) unit began producing oil and gas at the Mero field in the Libra block, located in the pre-salt Santos Basin. The unit has the capacity to produce up to 180,000 barrels of oil per day and compress up to 12 million cubic meters of gas daily.
The Maria Quitéria FPSO, which was initially expected to begin operations in 2025, had its start-up brought forward and produced its first oil on October 15. Installed at the Jubarte field in the pre-salt Campos Basin, this unit can produce up to 100,000 barrels of oil per day and process up to 5 million cubic meters of gas daily. The platform is equipped with emission-reducing technologies, including a combined-cycle power generation system that enhances operational efficiency and reduces operational greenhouse gas emissions by approximately 24 per cent.
October also saw the arrival of the Almirante Tamandaré FPSO, which was shipped from China to Brazil. This unit will be installed at the Búzios field in the pre-salt Santos Basin, off the coast of Rio de Janeiro.
Almirante Tamandaré is the first high-capacity FPSO to be deployed in the field, with the potential to produce up to 225,000 barrels of oil per day and process 12 million cubic meters of gas daily.