Petrobras, Brazil’s state-controlled oil giant, reported a net loss of $470 million for the second quarter. This loss was primarily due to unfavorable exchange rates and a significant one-time tax charge. Without this tax charge, Petrobras would have posted a net profit of $5.4 billion. Despite the loss, the company highlighted the tax charge as a positive development, noting it resolved major disputes that had caused uncertainty in its cash flow.
The company also announced it achieved its lowest debt level since the third quarter of 2008, totaling $26.3 billion. Petrobras saw a 12.5% increase in capital expenditures for the first half of the year, reaching $6.4 billion. However, the company revised its full-year investment forecast downward to between $13.5 billion and $14.5 billion, down from an earlier estimate of $18.5 billion.
Looking ahead, Petrobras plans to increase its investments by 31% over the next five years, totaling $102 billion. Of this amount, 72% will be directed towards oil and gas projects, aiming to raise its daily oil and gas output to 3.2 million barrels of oil equivalent from the current 2.8 million barrels.
Earlier this week, Reuters reported that Petrobras has received environmental licenses to increase production at two offshore oil fields, Mero and Buzios, located in the Santos Basin. The production boost from these fields is expected to add 66,000 barrels per day to Brazil’s total output, with Petrobras responsible for 36,000 barrels per day and the remainder attributed to its partners in the fields.