BATON ROUGE, LOUISIANA (Steve Stewart, Energy Analytics Institute, 12.May.2025, Words: 677) — Petrobras reported adjusted EBITDA excluding 1-off events reached $10.7bn in the first-quarter 2025 (1Q:25), while net income, also excluding 1-off events, was $4bn.
Adjusted EBITDA excluding 1-off events rose 8% compared to the 4Q:24, mainly driven by the increase in oil production, higher oil sales in the foreign and domestic markets, and the higher diesel crack spreads.
“The first quarter of 2025 was marked by positive results that reflect Petrobras’ strong performance.We generated a higher cash flows, mainly due to a 5% increase in production volume compared to the previous quarter. This production growth was reflected in Adjusted EBITDA, which rose 46% compared to 4Q24,” Petrobras chief financial and investor relations officer Fernando Melgarejo said in the statement.
Net income excluding 1-off events rose 30.7% compared to the 4Q:24. Considering 1-off events, net income reached $6bn due to improved financial results, which was positive at $1.7bn, benefiting from a 7% appreciation of the exchange rate at the end of the period, reflecting the effects of currency variation on the debts between Petrobras and its overseas subsidiaries, Petrobras announced on 12 May 2025 in its 1Q:25 financial press release.
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Main 1Q:25 financial highlights
— Maintenance of strong cash generation with operating cash flow of $8.5bn and free cash flow of $4.5bn in the 1Q:25,
— Consistent results: excluding 1-off events, adjusted EBITDA was $10.7bn and net income was $4bn,
— Capex of $4.1bn in the 1Q:25, 29.1% lower than the 4Q:24, reinforces the atypical level observed in the previous quarter, which was explained by the closing of the gap between the physical and financial progress of the Búzios platforms, as a response to the actions implemented in the second-half 2024, Petrobras said.
“We remain committed to executing our Business Plan: we invested $4bn in this first quarter of the year, which represents 22% of the annual guidance. These investments are focused on pre-salt projects, with emphasis on the Búzios and Atapu fields. We are drilling and connecting more wells and advancing in the construction of new units that will support the growth of our production curve. These are projects that generate value for our shareholders and will translate into revenue in the upcoming years,” Melgarejo said.
Main 1Q:25 operational highlights
— Reached total production of oil and natural gas of 2.77 million boe/d (MMboe/d) in the 1Q:25, up 5.4% compared to the 4Q:24,
— Started production on FPSO Almirante Tamandaré (Búzios 7) on 15 Feb. in the Búzios Field, in Santos Basin pre-salt. The FPSO has the potential to produce up to 225,000 barrels of oil per day (b/d) and process 12 million cubic meters (MMm3/d)of gas,
— Confirmed new discoveries in Campos Basin (North Brava Block), in Santos Basin (Aram and Búzios), and concluded the cased-hole formation test in Colombia (Sirius-2 well),
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— Completed the mooring of FPSO Alexandre de Gusmão (180,000 b/d) in Mero 4,
— Completed the revamp on Train 1 of RNEST, which expanded processing capacity from 115,000 b/d to 130,000 b/d,
— Achieved a processing level of 73% of pre-salt oil, 200 bps above the 4Q:24, and 69% yield of diesel, gasoline, and jet fuel (high-value oil products) in total production volume,
— Started commercial operation of the 2nd module of the Natural Gas Processing Unit of the Boaventura Energy Complex, increasing total processing capacity from 10.5 MMm3/d to 21 MMm3/d of gas,
— Sold, for the first time, VLSFO (Very Low Sulfur Fuel Oil) with 24% renewable content (B24) in the Asian market, — Signed a contract with the Indian state-owned Bharat Petroleum Corporation Limited (BPCL) to export up to 6 million barrels (MMbbls) of oil per year starting in 2025 (new markets for Petrobras’ oil exports)
— Celebrated and amended contracts for the supply of natural gas in the free market, totaling a volume of 1.25 MMm3/d.
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By Steve Stewart reporting from Baton Rouge. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
