Petrobras (PETR4) Q3 2024 earnings summary

Executive summary

• Achieved recurring EBITDA of $11.6B and net income of $5.9B in 3Q24, with strong cash generation and record pre-salt production, supported by early start-up of FPSO Maria Quitéria and Marechal Duque de Caxias.

• Achieved record 2P production of 3 billion barrels, with new FPSOs operational and accelerated project deliveries, boosting capacity and revenue generation.

• Maintained high operational efficiency, with refinery utilization at 95% for the quarter and record pre-salt oil processing.

• Significant gas discovery in Colombia and acquisition of a 10% stake in a South African block.

• Net income for the nine months ended September 30, 2024, was R$53,971 million, down from R$94,003 million in the same period of 2023, reflecting lower sales revenues and higher finance expenses.

Financial highlights

• Recurring EBITDA reached $11.6B; recurring net income was $5.9B for 3Q24.

• Free cash flow totaled $6.9B, with operating cash flow up 24% quarter-on-quarter to $11.3B.

• Gross debt at $59.1B and financial debt at $25.8B, the lowest since 2008.

• Paid R$64.4B in taxes and approved R$17.1B in dividends and interest on capital for Q3 2024.

• Sales revenues for the nine months reached R$369,561 million, a decrease from R$377,736 million year-over-year.

Outlook and guidance

• No change to full-year investment guidance; 2024 investments expected at $10.9B.

• Strategic plan includes $7.5B for exploration (2024-2028), with $3.1B for Equatorial Margin and $1.3B for international projects.

• Campos Basin revitalization prioritized, targeting 200,000 barrels/day additional production in 2025-26.

• Continued focus on capital discipline, cash optimization, and liability management.

• Extraordinary dividend decisions to be made after strategic plan approval, considering long-term cash flow and investment needs.