THE Petrobras informed on Wednesday (19) that it registered net profit of R $ 40.137 billion in 2019, which represents a growth of 55.7% in comparison with the previous year. According to the state-owned company, this was the biggest profit in the company’s history.
In the fourth quarter of 2019, the company’s net income totaled R $ 8.153 billion, an increase of 10.2% against 2018.
In the year, the profit of the state-owned company before interest, taxes, depreciation and amortization (adjusted EBITDA) reached R $ 129.249 billion, an increase of 12.5% in relation to 2018. Between October and December, Ebitda advanced 25.2% , to R $ 36.5 billion, in comparison with the same period of the previous year.
Evolution of Petrobras’ annual profit or loss
Net result, in billions of reais
Source: Petrobras and Economática
One of the factors that helped the company to record record profits was divestments. In 2019, Petrobras disposed of a series of assets. In all, these divestments totaled US $ 16.3 billion. The company sold control of BR Distribuidora what if disposed of TAG Investimentos, for example.
With that, the state managed to increase its profit, even in the face of the drop in average oil prices from $ 71 per barrel in 2018 to $ 64.
In a note, Petrobras explains that, after years of stagnation, the state’s oil and gas production surpassed the mark of 3 million barrels per day. The average cash extraction cost reached US $ 6.5 per barrel in the fourth quarter of 2019, falling by US $ 3.0 compared to the beginning of 2018. Pre-salt operations, with a cost of US $ 3 per barrel, made a relevant contribution to the fall in the total average cost.
Petrobras’ market value grew 25%, from US $ 80.9 billion at the end of 2018 to US $ 101.1 billion in December 2019.
Last year, gross debt was $ 87.121 billion, an increase of 3.27% compared to 2018.
The remuneration to shareholders in the form of dividends and interest on own capital (JCP) was R $ 10.6 billion, equivalent to R $ 0.73 per common share and R $ 0.92 per outstanding preferred share.
In 2019, net revenues totaled R $ 302.245 billion, a decrease of 2.6% in relation to that observed in 2018 (R $ 310.255 billion). The company justified the reduction because of the drop in the price of Brent oil, a drop in the volume of derivatives sold at lower prices and a reduction in the revenues from units abroad.