Brazil’s Petrobras’ oil extraction and refining fall in the 3rd quarter

Petrobras’ oil and natural gas extraction fell by 6.5% in the 3rd quarter of this year compared to the same period in 2021, while refining had a reduction of 9.4%.

Compared to the second quarter of 2022, the drop was 0.3% and 1.2%, in that order. The data are contained in a report published by Petrobras on Monday, October 24.

According to the state-owned company, the drop in oil and gas extraction was due to the reduction of its share in the production of the pre-salt fields of Sepia and Atapu.

The impact was about 43,000 barrels of oil equivalent per day (unit of measurement used to equate the production of oil and natural gas).

In addition, the shutdown for removing a platform vessel off the coast of Espírito Santo and the natural decline of fields with many years of production also affected the result.

The reduction in refining was due to scheduled refinery maintenance shutdowns and the sale of the Mataripe refinery (formerly Landulpho Alves, in Bahia).

The unit’s production was reported in the Q3 2021 report.

Despite the result in refining, there was an increase of 4.7% in fuel sales by Petrobras to distributors compared to the 2nd quarter.

The period from July to September usually has a higher demand for diesel oil because of the grain crop planting and the higher industrial activity, which increases road cargo transportation.

According to Petrobras, diesel commercialization increased by 4.6% between the 2nd and 3rd quarters. In the relation between the first nine months of 2021 and 2022, sales fell 6.8%.

“The main factor was the impact of the divestment of RLAM [Landulpho Alves Refinery], which concluded in November 2021. Also contributing to the decline in sales was the increase in deliveries by other domestic producers and importers and the reduction in diesel consumption for thermoelectric generation,” the state-run company wrote.

Petrobras refers to the water crisis of 2021, which increased the consumption of fuels to generate energy by thermoelectric plants once there was a reduction in the level of water reservoirs in hydroelectric plants.

In the case of gasoline, the drop in the average price to the consumer after the reduction of state taxes weighed, says Petrobras. The fuel sales grew 8% compared to the 2nd quarter when gasoline hit record prices, and ethanol became more competitive.

Compared to the 3rd quarter, there was a drop of 11.2% in the gasoline market. In the accumulated nine-month period, the reduction is 4.5%.

TRADE BALANCE

Petrobras’ net exports fell 78.7% compared to the 2nd quarter of 2022 and 76.9% compared to the period from July to September 2021 because Petrobras sold less oil and fuel oil to other countries while importing more diesel and gasoline.

“The lower volumes of oil and fuel oil exports are explained by exports that remained on track for 4Q22,” the state-owned company said.

Petrobras’ production and sales report precedes its quarterly results. In Q2 2022, the state-owned company reported lower oil and gas production, with an increase in refining.

Fuel sales increased by 1% in a period of high prices. It recorded net profits of R$54.3 billion (US$10.2 billion) and distributed R$87.8 billion in dividends to shareholders.

With information from Poder360

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error