Brazilian oil major Petrobras reported a net profit of BRL 42.8bn ($8.29bn) vs. losses of -$2.7bn in 2Q2020 whilst also beating estimates of BRL $30.7bn ($5.9bn). Revenues were up 55% to $20.9bn in Q2 vs. $9.4bn in the previous quarter. Petrobras attributed its strong performance to the increase in domestic and international sales volumes and to the 13% rise in Brent prices from the previous quarter. Operating cash flow increased 50% YoY to $10.8bn and free cash flow stood at $9.3bn vs. $3bn in 2Q2020. Petrobras reported gross debt of $63.7bn in Q2, falling from $91.2bn during the same period last year. Petrobras vowed to increase dividend payments as soon as it reaches the $60bn gross debt target. Petrobras approved two extraordinary dividend payouts in 2021, totaling $6.1bn. CEO Silva e Luna said, “We continue to work hard, supported by decisions that are absolutely technical, and evolving and becoming stronger”.
Petrobras bonds were slightly up with its 6.25% 2024s up 0.39 to 112.675, yielding 1.29%
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