Petrobras Reports 70% Profit Drop in 2024 as Revenue and EBITDA Decline

Petrobras, Brazil’s state-controlled oil giant, reported a net loss of R$17 billion ($2.83 billion) in the fourth quarter of 2024, reversing a profit of R$31 billion ($5.17 billion) in the same period of 2023.

This marks a sharp downturn attributed to non-recurring factors, including currency devaluation and higher operational provisions, which had no direct cash impact. Without these one-off events, the company would have posted a profit of R$17.7 billion ($2.95 billion).

The company’s quarterly revenue fell 9.7% year-over-year to R$121.27 billion ($20.21 billion) from R$134.26 billion ($22.38 billion). Adjusted EBITDA dropped 38.7%, reaching R$40.97 billion ($6.83 billion), reflecting weaker oil prices and increased costs.

Operating expenses surged 31.9% to R$43 billion ($7.17 billion), driven by higher financing costs and provisions for asset decommissioning. For the full year, Petrobras recorded a net profit of R$36.6 billion ($6.1 billion), down 70.6% from its record-breaking R$124.6 billion ($20.77 billion) in 2023.

Annual revenue declined by 4.1% to R$490.83 billion ($81.81 billion), while adjusted EBITDA fell 18.2% to R$214.42 billion ($35.74 billion). The company’s financial results were heavily influenced by a negative financial result of R$90.6 billion ($15.1 billion) due to exchange rate variations on foreign debt.

Despite these challenges, Petrobras maintained strong investments, allocating $5.73 billion in Q4 2024—a 61% increase from the same quarter in 2023—primarily for pre-salt projects like the Búzios field and other production systems in the Santos Basin.

Petrobras Performance and Strategic Outlook

Operationally, Petrobras met its oil and gas production targets for 2024, achieving an average daily output of 2.7 million barrels of oil equivalent per day (boed). Pre-salt fields accounted for 81% of total production, underscoring their strategic importance despite maintenance-related disruptions.

Petrobras also advanced its diversification strategy by exploring partnerships in ethanol production and investing $129 million in low-carbon energy initiatives during Q4.

Looking ahead, Petrobras plans to invest $111 billion over five years (2025-2029), with $16 billion dedicated to low-carbon projects as it aims for net-zero operational emissions by 2050.

However, challenges such as fluctuating oil prices, currency volatility, and rising competition will test its resilience in maintaining profitability and market leadership amidst global energy transitions.

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