Petrobras (PETR4) Q2 2024 earnings summary

Executive summary

• Solid second quarter 2024 results with robust operational execution, though impacted by non-recurring tax settlements and exchange rate volatility, which had minimal cash effect.

• Achieved planned production of 2,737 MBOED in 1H24, with pre-salt fields contributing 81% of total volume and high refining utilization at 91%.

• Net income for Q2 2024 was $5.4 billion excluding one-off events, but reported a net loss of $344 million due to non-recurring items; recurring net income was $3.1 billion.

• Capex for H1 2024 reached $6.4 billion, up 12–12.5% year-over-year, with a strategic focus on reserve replacement, energy transition, and international exploration.

• Commitment to capital discipline, transparency, and robust shareholder returns, with the lowest financial debt since 2008.

Financial highlights

• Net income excluding non-recurring items was $5.4 billion in Q2 2024; adjusted EBITDA reached $12 billion, and operating cash flow was around $10 billion.

• Free cash flow was $6.1 billion, and capex for Q2 2024 totaled $3.4 billion, up 11.5% sequentially.

• Tax payments increased 24% year-over-year, totaling BRL 70 billion in Q2 2024.

• Dividends and interest on capital distributed in H1 2024 totaled R$54.64 billion.

• Net cash provided by operating activities was R$93.65 billion for H1 2024.

Outlook and guidance

• 2024 capex guidance revised to $13.5–$14.5 billion, a 7–15% increase over 2023, with production targets on track despite temporary setbacks.

• Continued focus on reserve replacement, energy transition, and international expansion if domestic opportunities are limited.

• Optimized cash flow target under review, aiming for further efficiency by 2025.

• Management expects continued volatility in oil prices and exchange rates, focusing on operational efficiency and cost control.