São Paulo – Petrobras CEO Roberto Castello Branco (pictured above) described on Thursday (29) as an “excellent performance” the company’s financial outcome in the third quarter of 2020. The company posted a loss of BRL 1.5 billion (USD 275 million), down 43% from the second-quarter loss of BRL 2.7 billion (USD 469 million). In Q3 2019, however, the company saw a net profit of BRL 9 billion (USD 2 billion).
Branco said that the result came “despite the environment of uncertainty and although the oil industry has been severely hit by the global recession, with price reductions and reduced demand.” During an online press conference, though, he said the environment is still quite challenging.
Branco argued that investors give more importance to the cash flow. The cash flow measured as the earnings before interest, taxes, depreciation and amortization (EBITDA) came in at BRL 33.4 billion (USD 5.8 billion) in Q3 2020, up 33.8% quarter-on-quarter and 2.6% year-on-year.
Petrobras’ oil and gas output was up 9% from a year ago, and refineries, after reaching a minimum usage level of 55%, operated above the 80% of the utilization factor in Q3.
Petrobras’ net revenue came in at BRL 70.7 billion (USD 12.3 billion) in Q3, up 39% from the previous period but down 8.2% from a year ago. Among the reasons for the increase, the company listed the recovery of demand for petroleum products, an increased market share, exports, as well as higher Brent prices in reais.
Branco reported that, for divestments, they expect to close a deal to sell Refinaria Landulpho Alves (RLAM) by the end of the year. As for the Refinaria Isaac Sabbá (REMAN) and Gaspetro, he explained that talks are under way, but the sales are not expected to be closed any time soon.
Translated by Guilherme Miranda
