Petrobras (PETR4) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 results showed stable operational and financial performance, with recurring net income of $5.4 billion, but a reported net loss of $344 million due to non-recurring tax settlements and exchange rate impacts.

• Adjusted EBITDA ranged from $9.6 billion to $12 billion, with robust operating cash flow of $9.1–$10 billion and free cash flow of $6.1 billion.

• CapEx for 1H24 was $6.4 billion, up 12–12.5% year-over-year, with a focus on pre-salt projects and energy transition.

• Financial debt reached its lowest level since 2008, with net debt at $23.8–$26.3 billion and gross debt at $46.2–$59.6 billion.

• Strategic focus remains on reserve replacement, energy transition, and international exploration for long-term growth.

Financial highlights

• Net income excluding one-off events was $5.4 billion in 2Q24; adjusted EBITDA reached up to $12 billion.

• Operating cash flow was $9.1–$10 billion, and free cash flow was $6.1 billion.

• CapEx for 1H24 was $6.4 billion, with 2024 guidance at $13.5–$14.5 billion, a 7–15% increase over 2023.

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

• Shareholder remuneration for Q2 2024 totaled BRL 14.3 billion, including dividends and share buybacks.

Outlook and guidance

• 2024 CapEx projected at $13.5–$14.5 billion, up 7–15% from 2023, with no impact on production targets.

• Production guidance remains on track, with new FPSOs and production systems expected to boost output.

• Investments are set to rise in 2024 without affecting the production curve.

• Positive outlook for new platform startups and reserve replacement, with continued focus on growth and profitability.