Petrobras reported a decline in its profits in 2023, causing its shares to plummet.

During the session, the decline in shares moderated to -10.8%.

Written by: Gabriel Micillo • Friday, March 8, 2024 • 1 min read

• Last updated: Friday, March 8, 2024

Additionally, the company did not announce the expected payment of extraordinary dividends, something that the market had taken into account.

Brazilian oil company Petrobras announced on Thursday night an annual profit attributable to shareholders of $24.884 billion in 2023, representing a decrease of 32.1% compared to the previous year, due to the decline in oil prices.

As a result, shares of the state-owned oil company plummeted by as much as -12% before the market opening on Friday. Thus, in the last month, Petrobras shares have accumulated a decline of almost -4% (-3.9%). During the session, the decline in shares moderated to -10.8%.

The results were disclosed by the state oil company and were described as “excellent” by CEO Jean Paul Prates in a statement issued by the company. In 2022, total earnings had reached $36.623 billion.

The company’s report indicates that the variation is mainly due to the depreciation of the Brent price (-18%) and lower margins on derivatives, also highlighting the impact of increased operating expenses. While in 2022, the Brent oil barrel was priced at $101.19, in 2023, the price dropped to $82.62.

Despite these positive results, the company did not announce the expected payment of extraordinary dividends, something that the market had taken into account.

On February 28th, Petrobras shares experienced a significant decline after Prates stated in an interview with Bloomberg that the company would adopt a more cautious stance in dividend distribution.

Petrobras achieved positive results in 2023 after earning profits worth $6.259 billion in the last quarter of the year, although this amount was 24.1% lower than that achieved in the fourth quarter of 2022.

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ABOUT THE AUTHOR See More

Gabriel Micillo

Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.