Petrobras Q4 Earnings Beat as Output Growth Offsets Oil Drop

Core Insights - Petrobras (PBR) reported fourth-quarter earnings per ADS of 72 cents, exceeding the Zacks Consensus Estimate of 57 cents, and improved from the previous year's profit of 49 cents, driven by upstream production growth and higher downstream earnings [1][9] Financial Performance - Consolidated net income for Petrobras was $4,750 million, up from $3,083 million a year earlier, while adjusted EBITDA rose to $11,107 million from $7,165 million [2] - Revenues increased by 13.4% year-over-year to $23,608 million, surpassing the Zacks Consensus Estimate of $23,062 million [2][9] Dividend and Capital Expenditure - Petrobras announced plans to distribute RMB 8.1 billion in dividends and equity interests [3] - Capital investments and expenditures totaled $6,313 million, compared to $5,731 million in the prior-year quarter [11] Segment Performance Upstream - Average oil and gas production reached 3,109 thousand barrels of oil equivalent per day (MBOE/d), an increase from 2,628 MBOE/d in the same period of 2024, with Brazilian production improving by 18.6% to 3,081 MBOE/d [4] - Upstream revenues improved to $14,329 million from $13,388 million year-over-year, despite a nearly 15% drop in average Brent prices to $63.69 per barrel [5][9] - The upstream segment recorded a net income of $3,099 million, up 48% from $2,094 million in the fourth quarter of 2024 [6] Downstream - Downstream revenues totaled $22,298 million, a 15.6% increase from $19,291 million year-over-year, driven by higher domestic sales volumes [7] - The downstream unit's profit surged to $576 million from $15 million in the fourth quarter of 2024, supported by increased revenues and higher product prices [7][9] Cost and Financial Position - Sales, general, and administrative expenses rose to $1,991 million, a 31% increase from the previous year, while total operating expenses decreased by 25.9% due to a significant reduction in other expenses [8] - Petrobras' net debt increased to $60,593 million from $52,240 million a year ago, with cash and cash equivalents at $6,471 million [12]