Petrobras, the Brazilian state-controlled oil giant, has announced its financial results for the year 2024, reporting a staggering net profit of R$ 36.6 billion (approximately US$ 7.5 billion). This figure marks a dramatic decline of 70.6% compared to the previous year's impressive profit of R$ 124.6 billion (US$ 24.9 billion). The financial report was disclosed on February 26, 2025, reflecting the company's performance across various operational metrics.
The significant downturn was largely attributed to unfavorable currency fluctuations and tax disputes, which impacted the company’s financial results. Specifically, the fourth quarter of 2024 was particularly challenging for Petrobras, concluding with losses totaling R$ 17 billion (US$ 2.8 billion). Despite these setbacks, Petrobras maintained operational resilience, with President Magda Chambriard emphasizing the company's enduring financial capacity.
Chambriard stated, “O excelente resultado operacional e financeiro de 2024 demonstra, mais uma vez, a capacidade da nossa empresa de gerar valores que são revertidos para a sociedade e para os nossos investidores.” This sentiment reflects Petrobras's commitment to operational excellence, even amid significant financial challenges.
The company's net profit decline was compounded by several key factors. According to CFO Fernando Melgarejo, the negative impact on net income was primarily due to “variação cambial,” or currency fluctuations between Petrobras and its foreign subsidiaries. He explained, “A variação cambial nestas transações entra no resultado líquido da holding no Brasil e impactou negativamente o lucro de 2024.” Consequently, the overall financial impact was substantial yet characterized by internal balancing within operational perspectives.
Despite these adversities, Petrobras managed operational success, reporting total revenues of R$ 490.8 billion for 2024, albeit down 4.1% from 2023. Investment levels remained strong, with the company allocating R$ 91 billion to various projects, reinforcing its commitment to enhancement and innovation within the sector.
Noteworthy production figures also accompanied the financial results, as Petrobras achieved total oil and natural gas output of 2.7 million barrels of oil equivalent per day. This achievement includes records reached in its pre-salt fields, showcasing the company's capacity to maintain operational efficiency amid financial decline.
The report highlighted significant operational statistics, where total international production rose to 4.5 million barrels of oil equivalent, displaying increased operational capacity even under reduced margin pressures. Notably, Petrobras reached new levels, producing 2.2 million barrels of oil equivalent per day from its pre-salt fields alone.
Looking at the resilience amid operational hurdles, the 2024 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) tallied at R$ 214.4 billion, representing an 18.2% reduction compared to 2023. The ratio of net debt to EBITDA increased from 0.85 to 1.29, highlighting rising financial commitments and pressures within the environment.
Petrobras's operational dynamics also included dividend payouts totaling R$ 9.1 billion, set to be distributed to shareholders, reflecting the company’s effort to sustain investor engagement. For 2024, total payments to shareholders were projected to reach R$ 75.8 billion, aiming to affirm confidence amid fluctuated profit margins.
Challenges confronting Petrobras included external pressures, such as declining crude oil prices and reduced refining margins. The situation was described as reflective not only of Petrobras's performance but as indicative of broader instabilities within the oil market globally. The company endured significant repercussions, with Brent crude experiencing volatility, affecting fundamentals across operations.
Moving forward, Petrobras has positioned itself with intent to navigate through these financial obstacles, focusing on enhancing revenue generation strategies, improving operational efficiencies, and securing balance sheets against potential downturns.
Overall, the financial results presented by Petrobras for the year 2024 paint a picture of resilience amid adversity, marking one of its most challenging years to date. With strategic leadership under Chambriard and forward-looking investments aimed at bolstering operational stability, the company aims to restore investor confidence and secure its role as a pivotal player within the global oil market.