Rio de Janeiro – Petrobras reported a net profit of BRL 18.9 billion in Q2 2019, an all-time high. It said the result is up 368% year-on-year from BRL 4 billion in Q1 2019, and up 87% from BRL 10.1 billion in Q2 2018.
The result was mainly driven by the conclusion of the sale of Petrobras’ stake in Transportadora Associada de Gás S.A. (TAG), in a BRL 33.5 billion deal. BRL 2 billion were used in settling the gas transportation company’s debt with the Brazilian Development Bank (BNDES).
The record profit also stemmed from an international oil price hike and the appreciation of the US dollar relative to the real.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was BRL 32.7 billion in Q2, up 19% from Q1 2019. The result was buoyed by higher oil prices, stronger diesel sales and higher margins for gasoline, naphtha and natural gas.
Net debt
Free cash flow was positive for the 17th straight quarter, at BRL 11.3 billion. Net debt kept going down, this time by 12% in Q2 from Q1, to USD 83.7 billion.
Investment amounted to USD 2.6 billion, 82% of which came from exploration and production. “We had good financial results in quarter two, mostly from the sale of TAG, with net profit reaching an all-time high at BRL 19 billion. We will stay on our value-oriented path of focusing on higher-return assets, like the pre-salt, and our relentless quest to cut costs,” Petrobras CEO Roberto Castello Branco was quoted as saying.
According to Petrobras, oil and natural gas production reached 2.63 million barrels of oil equivalent per day in Q2, up 3.8% from Q1. Pre-salt production climbed 12.7% to 1.17 million boed.
Translated by Gabriel Pomerancblum
