Loading...
01/11 03:36
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects a positive outlook with strong financial metrics like high adjusted EBITDA and operating cash flow, despite a decline in net profit. The completion of the buyback program and potential for a new one, along with significant greenhouse gas reductions, are favorable. The Q&A section highlighted strategic energy transition plans and international expansion, though some responses lacked detail. Overall, the combination of strong operational performance, disciplined financial management, and positive strategic initiatives suggests a positive stock price movement.
Net Profit $4.8 billion (16% decrease from Q4 2023, but a slight decrease compared to Q1 2023 due to currency devaluation)
Adjusted EBITDA $12.1 billion (8th highest in company history)
Operating Cash Flow $9.4 billion (approximately R$46.5 billion)
Free Cash Flow $6.5 billion (approximately R$32.4 billion)
Financial Debt $27.7 billion (lowest level since 2010)
Taxes Paid R$68 billion (significant contribution to society)
Production Growth 3.7% increase compared to Q1 2023 (despite planned maintenance downtimes)
Refinery Utilization Rate 92% (7 percentage points higher than Q1 2023)
Crack Spread for Diesel 26% decrease in margin from Q4 2023 to Q1 2024 (14% decrease quarter-over-quarter)
Enterprise Value to Proved Reserves 33.3% increase quarter-over-quarter (10 times the growth of majors)
Total Shareholder Return (TSR) 107.3% in U.S. dollars (for the period March to March)
Dividends Approved R$13.45 billion (part of shareholder remuneration policy)
Gross Debt Decreased (specific figures not provided)
Greenhouse Gas Emissions Reduction 40% reduction since 2015 (55% reduction in recent measures)
Production of High-Value Products 67% of total production (includes diesel, gasoline, and jet fuel)
Investment in Energy Transition $3.6 billion in recent years (focus on innovation and technology)
Production Capacity Increase Marechal Duque de Caxias FPSO expected to add 180,000 barrels of oil per day in the second half of 2024.
New Product Launch: Expanded offer of more sustainable products starting to sell R5 diesel, a diesel with renewable content. Established partnership with the second largest asphalt retailer in Brazil to sell CAP Pro W, a more sustainable type of asphalt.
Market Expansion: Increased production from FPSOs Sepetiba in Mero and Anita Garibaldi in the Campos Basin. Marechal Duque de Caxias FPSO will start operations in the second half of 2024, adding 180,000 barrels per day and 12 million cubic meters of natural gas.
Operational Efficiency: Refinery utilization factor reached 92%, seven percentage points above the previous year. Despite scheduled maintenance, high production of aviation fuel and lubricants was maintained.
Strategic Shift: Focus on energy transition with a reported 55% reduction in emissions and ongoing investments in technology. Investment in training programs for social vulnerability, aligning with the 2024-2028 strategic plan.
Production Downtime: Petrobras experienced a planned drop in oil and gas production due to scheduled maintenance downtimes on platforms, which is expected to impact short-term production levels.
Competitive Pressures: The company faced a 26% reduction in the crack spread for diesel, which is significant for revenue generation, indicating competitive pressures in the market.
Regulatory Issues: Increased mandates for diesel usage and higher production of ethanol have pressured sales, affecting the company's revenue from refined products.
Economic Factors: The company reported a $2 billion impact on net income due to foreign exchange fluctuations, highlighting vulnerability to economic conditions.
Environmental Challenges: Petrobras is actively involved in addressing climate catastrophes in Brazil, which poses operational challenges and requires resource allocation for community support.
Investment Risks: The company is undergoing significant investments in new production units and technology, which carry inherent risks related to execution and market conditions.
Production Growth: Petrobras' production grew by 3.7% compared to Q1 2023, maintaining a growth curve projected in the 2024-2028 strategic plan.
Marechal Duque de Caxias FPSO: Scheduled to start operations in the second half of 2024, with a capacity of 180,000 barrels per day and 12 million cubic meters of natural gas.
Investment in Energy Transition: Petrobras has invested approximately $3.6 billion in energy transition initiatives, focusing on innovation and technology.
Autonomy and Income Program: Offering 20,000 positions for professional training courses for individuals in social vulnerability, integrated with the 2024-2028 strategic planning.
Diversity Initiatives: Investing in increasing diversity among company leaders, with 17% of leadership positions held by women.
Financial Projections: Net profit of $4.8 billion and adjusted EBITDA of $12.1 billion for Q1 2024.
Debt Management: Financial debt reduced to $27.7 billion, the lowest level since 2010.
Future Production Levels: Production levels are expected to recover gradually, maintaining the production curve set in the strategic plan.
Shareholder Returns: 66% of cash generation returned to society as dividends and taxes, with a payout of R$13.45 billion approved.
Free Cash Flow: Free cash flow of $6.5 billion for Q1 2024.
Net Profit: $4.8 billion
Adjusted EBITDA: $12.1 billion
Operating Cash Flow: $9.4 billion
Financial Debt: $27.7 billion
Payout: R$13.45 billion
Dividends Generated: R$14.6 billion
Buyback Program: R$1.15 billion deducted from dividends
Total Shareholder Return (TSR): 107.3% in USD for PN ADRs
Ordinary Shares TSR: 83.9%
The earnings call summary presents a mixed picture: strong net income growth (31%) and adjusted EBITDA increase (8%) are positive, but reduced CapEx and increased debt raise concerns. Dividends remain stable, yet the Q&A reveals uncertainties, such as unclear management responses about dividends and cautious debt management. The market's response is likely to be neutral, balancing positive financial performance against strategic and economic challenges.
The earnings call reflects a positive outlook with strong financial metrics like high adjusted EBITDA and operating cash flow, despite a decline in net profit. The completion of the buyback program and potential for a new one, along with significant greenhouse gas reductions, are favorable. The Q&A section highlighted strategic energy transition plans and international expansion, though some responses lacked detail. Overall, the combination of strong operational performance, disciplined financial management, and positive strategic initiatives suggests a positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
