Offshore Technology

Petrobras profits fall below record-high 2022 results due to volatile oil prices

Brazil’s state-owned oil company, Petrobras, recorded a net profit of $25.07bn (124.77bn reais) in 2023, the second-highest result in the company's history.

Brazil’s state-owned oil giant, Petrobras, recorded a net profit of $25.07bn in 2023, a 24% decrease from its record-high profits in 2022, the company announced on Thursday.

Petrobras' earnings fell in the last quarter of 2023 due to the 18% depreciation in Brent crude oil prices and 23% lower oil product margins. Despite the drop in earnings, the company recorded the second-highest results in its 70-year history.

“Even in this most challenging scenario, we broke production records after production records, increased investments, reduced financial debt, and put four new platforms into operation in this first year of management,” Petrobras president Jean-Paul Prates said in the press release.

Petrobras’ EBITDA (earnings before interest, taxes, depreciation and amortisation) decreased 8.5% to $66.85bn reais in the fourth quarter. This figure fell short of analysts' predictions, estimated at $76.3bn reais, according to London Stock Exchange Group estimates, Reuters reported.

In 2023, total production from pre-salt oil surpassed 2.17 million barrels of oil equivalent, a 10% increase from the previous year's record, representing 78% of the company's total production, the company said.

Petrobras invested $12.7bn throughout 2023, a 29% increase from 2022, and invested $3.6bn in Q4 2023. The company's net debt increased by 7.7% to $44.7bn in the same year. In a separate announcement, Petrobras stated that its board approved the distribution of 14.2bn reais in dividends to shareholders, and that they will receive 1.09894844 reais per share.

“This is the first year of a journey that will lead Petrobras to lead the fair energy transition in Brazil gradually and consciously. We will face the challenges by taking advantage of synergies with our businesses and leveraging our expertise, never neglecting the generation of economic value, as could be the case for a company that wants to remain competitive and perpetuate value for future generations,” Prates added.

According to the company, it also achieved carbon efficiency in refining, exploration and production by reducing 1.8 million tons of carbon dioxide-equivalent emissions in 2023 compared with 2022.