Petrobras’ Q2 2022 recurring net income jumped 9% to $9.1bn YoY, primarily due to strong EBITDA growth of 34% YoY to $20.2bn. This was a result of the swelling global demand for oil following the pandemic and the Russian-Ukraine crisis, which led to Brent prices appreciating by 12% and sales volumes expanding significantly. This was partially offset by $3.2bn of losses from finance and investment-related activities driven by the 10.6% depreciation of the BRL vs. the dollar. Despite capex rising 74% to $3.1bn, mainly due to its co-participation agreement for the Sepia and Atapu fields, its free cash flows climbed 61% to $12.8bn with a considerable inflow of $5.2bn coming from this deal. On the balance sheet, its net debt stood at $34.4bn, down 14.1% from the previous year with its net debt/adjusted EBITDA ratio decreased from 0.81x last quarter to 0.60x. In light of the strong earnings performance, Petrobras announced a huge dividend payout of 6.732 BRL/share ($1.30), amounting to BRL 87.8bn ($16.9bn).
After the earnings release, Petrobras’ 5.625% 2043s jumped 0.78 points to trade at 87.75, yielding 6.73%.