Brazilian state-run oil company Petrobras has reported a 38% decline in its first-quarter net recurring profit compared to the same period a year earlier, missing analysts’ expectations on both the result and its dividend payout.
Petrobras posted a net recurring profit of 23.9 billion reais ($4.63 billion) for the quarter ended in March, well below the analysts’ estimate of 30.2 billion reais, according to LSEG data. The firm approved a dividend payment of 13.45 billion reais ($2.61 billion) to shareholders, amounting to around 1.04 reais per common and non-voting share, which was also below Citigroup’s forecast of $3 billion.
The company cited lower sales volumes, a drop in oil prices, and a narrower profit margin on diesel sales compared to the fourth quarter of 2022 as the main reasons for the weaker performance. Petrobras also blamed the devaluation of the Brazilian real during the period.
The firm’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter shrank by about 17% from the same period in 2023 to 60.04 billion reais, missing the LSEG poll’s expected result of 67.92 billion reais. Revenue fell by around 15% to 117.7 billion reais on the same comparison, despite a higher average Brent price year-over-year.
Sales of oil, gas, and derivatives amounted to 2.92 million barrels of oil equivalent per day, a 4.6% decrease compared to the previous year, partly due to an increase in the biofuel mixture in the country’s fuel sales, according to the company.