Petrobras reduces 2024 capex projection

Brazil’s Petrobras has revised downwards its 2024 capex projection. 

The state-run oil giant now plans to invest between US$13.5bn and US$14.5bn this year compared to the US$18.5bn originally foreseen in its 2024-28+ business plan. 

The main change was in the company’s exploration and production investment projection, from the initial forecast of US$15.5bn to between US$11.1bn and US$12.1bn. 

Petrobras' 2024-28+ original capex forecast 

In a statement, Petrobras said the new investment amount does not impact the oil and gas production curve and stressed that the total represents an increase of between 7% and 15% compared to capex in 2023.

Petrobras posted a US$344mn net loss in the second quarter compared with a US$5.83bn profit in the same period last year. 

Finance and investor relations director Fernando Melgarejo said the loss should be analyzed in the light of events that impacted the accounting result but had no significant impact on its cash. 

“The main events were the exchange rate variation for the period and the impact of adhering to the tax transaction, a decision deemed positive by the market because it ended billion-dollar disputes that brought great uncertainty to the company's cash flow,” he said in a results report.