Deliver Your News to the World

Petrobras ends its second quarter with positive Ebitda and free cash flow


WEBWIRE

Even in a challenging scenario such as the second quarter of 2020, Petrobras has managed to present solid results due to swift decisions taken shortly after the crisis’ beginning. The company has ended the quarter with a recurring Ebitda of US$ 3,4 billion and free cash flow of US$ 3,0 billion. The numbers show that, even with a 42% reduction in the oil barrel price (Brent) and the period’s lower internal demand, the company proceeded steadily in its operation, with sufficient balance to ensure its liquidity.

Both indicators are followed closely by the market as good indicatives of the company’s financial health. Ebidta serves to analyse the operational result of the company through time. It is important as it takes away the effect of interest, taxes, depreciation and amortization of liquid revenue, making result comparisons among companies easier, as it is a fundamental information aiding in decision making by potential investors. As for the free cash flow, it is the balance results - resulting from the difference between operational revenue and period investments - used to meet financial obligations and potential dividends. In addition to it, it is crucial for deleveraging of any company.

The company’s liquid result also reflects the crisis effects, of the indemnities from the Voluntary Offboarding Program (Programas de Desligamento Voluntário - PDVs) and Incentivized Retirement Program (Programa de Aposentadoria Incentivada - PAI) and the financial results, with recurring liquid loss of US$ 2,5 billion.

In this challenging scenario, Petrobras managed to end the quarter with a gross debt of US$ 91,2 billion, an increase of only US$ 2,0 billion in relation to the previous quarter. This movement was important in order to strengthen the reserves and ensure liquidity for facing this moment of higher volatility. From the second semester on, the company begins its pre-payment of rotative credit lines in order for the balance to come closer to pre-crisis levels. In the last 27th, for instance, it made a pre-payment of US$ 3,5 billion, from a total of US$ 8 billion committed credit lines.

[p"Our capacity for reaction and our strategy were shown to be effective in facing this crisis and the consequent global recession. We will keep on working and taking the necessary decisions in order for Petrobras to become an even more resilient and profitable company" - commented Andrea Almeida, financial executive and investor-relations manager, in a video published for investors.[/p]

The company’s operational performance remains high despite the pandemic effects. Check the report with the quarter main operational results here, published in day 21/07.
More transparency in sustainability metrics

Some iniciatives granting more transparency to the company’s goals in Environmental, Social, and Governance – ESG - factors were highlights in this trimester. Among them are Petrobras’ support to the Task Force for Climate-related Financial Disclosures – TCFD, an initiative from the G20 Financial Stability Board, and the Climate Dossier update.

Check here the full report of financial results in the second quarter of 2020.


( Press Release Image: https://photos.webwire.com/prmedia/6/262274/262274-1.jpg )


WebWireID262274





This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.