Petrobras revises down 2017 capex

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Tuesday, November 14, 2017

Brazil's Petrobras has revised down its 2017 capex to 16bn reais (US$4.87bn) from 17bn reais estimated in the second quarter.

According to the state-run oil company, the 6% reduction results from the postponement of construction of floating platforms and the Rota 3 pipeline as well as from adjustments in the Tartaruga Verde project schedule.

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The capex downsize also reflects discounts obtained by Petrobras in offshore support vessel daily rates and greater efficiency in the revitalization of platforms.

The cost of hydrocarbon extraction, in Brazil and abroad, however, increased slightly year-on-year to US$11.0/boe from US$10.4/boe due to the exchange rate effect.

Petrobras also scaled down its operating costs in the nine-month period to 58.4bn reais against 64.4bn reais. Its number of employees fell to 62,528 from 71,152.

EARNINGS

The Brazilian oil giant, which has been at the heart of the Lava Jato corruption probe, posted a net profit of 266mn reais (US$80.9mn) in the third quarter against a 16.5bn-real loss a year ago and a 316mn-real profit in the previous quarter. Revenues were 71.8bn reais from 70.4bn reais a year earlier.

The company's net debt/Ebitda ratio closed September at 3.16, down 0.13 percentage points against the previous quarter. The goal is to return to 2.5.

OUTPUT

Petrobras' oil and gas production averaged 2.749Mboe/d in the third quarter, down 0.97% from a year ago. In Brazil, output was down 0.67% to 2.640Mboe/d.