Brazilian oil major Petrobras reported a net profit of BRL 31.1bn ($5.5bn), vs. losses of BRL -1.6bn (-$284mn) in 3Q2020 whilst beating estimates of BRL 20bn ($3.6bn). Revenues were up 9.8% QoQ to BRL 121.6bn ($21.6) and 72% higher YoY mainly due to the appreciation in Brent crude prices, the increase in volumes and prices of oil products in the domestic market as well as higher revenue from natural gas and electricity. Petrobras reported free cash flows of BRL 47.2bn ($9bn) vs BRL 40.1bn ($7.1bn) in 3Q2020. Gross debt stood at BRL 59.5bn ($10.5bn) in Q3, falling 25% from BRL 79.5bn ($14.1) during the same period last year reaching Petrobras’ goal of bringing debt below BRL 60bn ahead of its 2022 target. Petrobras also approved an extraordinary dividend payment of BRL 31.8bn ($5.6bn), marking the second payment since its bylaws changed a year ago. Petrobras’ CFO Rodrigo Araujo Alves said, “To deliver numbers of such quality and to finally sort out our debt equation makes us proud. We strongly believe that we still have a lot of value to deliver, to be built from our cash flow, portfolio management and investments in resilient and world-class assets, which will certainly translate into enormous wealth for all our stakeholders”.
Petrobras’ dollar bonds were slightly down with its 5.999% 2028s down 1.7 points to 109, yielding 4.33%.
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