Petrobras has a profit of R$ 54.3 billion in the second quarter

Petrobras posted a profit of BRL 54.3 billion in the second quarter of 2022, as a result of the strong impact of the mega-increases in fuel prices in March. The company also announced the record distribution of BRL 87.8 billion in dividends.

The state-owned company’s profit was the second largest ever recorded by a Brazilian company, only below the result announced by Petrobras itself in the fourth quarter of 2020 (R$ 70.6 billion, in values ​​adjusted for inflation).

In the first quarter of 2022, the company had already announced a profit of BRL 44.5 billion, which led to the distribution of BRL 48.5 billion in dividends. Thus, the company will distribute R$ 136.3 billion for the accumulated profit of R$ 98.9 billion in the first half.

Remuneration to shareholders benefits the federal government, which requested early dividends from state-owned companies in order to fund emergency aid and tax exemptions that helped lower fuel prices at pumps on the eve of elections.

With 28.67% of the company’s shares, the Union will be entitled to around R$ 25 billion of the dividends announced this Thursday (28). In the year, transfers from the state-owned company to the government as remuneration to shareholders total R$ 39 billion.

In a statement, Petrobras said that the announced value “is compatible with the company’s financial sustainability in the short, medium and long term and is in line with the commitment to generate value for society and shareholders”.

According to the company, the second-quarter profit reflects higher international oil prices and better margins in the sale of fuels and natural gas. It was also impacted by an agreement with partners in pre-salt fields, which generated R$ 14.2 billion.

In the quarter, the company sold fuel at an average price of R$665.50 per barrel, up 22.3% from the previous quarter and 65.9% from the second quarter of 2021.

The company’s refining area, responsible for the sale of fuels, had a profit of R$ 13.6 billion, up 53.2% over the same period in 2021. The profit of the exploration and production area grew by 103.8 %, to R$ 53.3 billion.

“The results of the second quarter of 2022 show the resilience and solidity of the company, which is capable of generating sustainable results, continuing with its trajectory of value creation”, wrote, in the balance sheet delivered to the CVM (Securities Commission), the director of Finance at the state-owned company, Rodrigo Araújo.

In addition to the mega-increases in fuel prices in March, which influenced the second quarter’s accounts, Petrobras raised the price of diesel oil again in early May, a move that led to the resignation of former president of state-owned José Mauro Coelho.

Coelho was replaced by Caio Paes de Andrade, who took office at the end of June with the mission of holding fuel prices and has already announced two cuts in the price of gasoline this month, claiming to accompany the drop in oil prices.

Petrobras closed the second quarter with revenue of R$ 170.9 billion, up 54.4% over the same quarter of the previous year. Ebitda, an indicator that measures a company’s cash generation, rose 58.6% to R$90.2 billion.

The company’s gross debt stood at US$ 53.6 billion (R$ 277.6 billion, at the current exchange rate), below the US$ 65 billion stipulated as a target by the company’s management.

“The reduction in gross debt, the high level of cash generation and solid liquidity allowed the company to approve a shareholder remuneration payment in the amount of R$ 6.73 per common and preferred share”, justified the state company.

The high dividends were approved by the board at a meeting this Thursday and are the target of criticism from opponents of the current management. For Ineep (Institute for Strategic Studies on Oil, Natural Gas and Biofuels), the decision meets the electoral calendar.

“The rise in the prices of derivatives boost the dividends that will be passed on to the federal government, but reduce the company’s long-term investments and boost inflation”, commented the researcher at the institute Mahatma dos Santos.