Lower oil prices and weaker dollar impact earnings
- Petrobras’s profit fell in 3Q despite increase in sales volume
- Net income decreased to BRL26.6 billion from BRL49.1 billion
- Recurring net income declined to BRL27.2 billion from BRL46.6 billion
- Adjusted EBITDA decreased to BRL66.2 billion from BRL91.4 billion
- Revenue fell to BRL124.8 billion from BRL170.1 billion
- Output rose 8.9% in 3Q, domestic sales volume increased 1.3%
- Average price of Brent crude oil fell to $86.76 from $100.85
- Average exchange rate for USD weakened to $4.88 from $5.25
Petróleo Brasileiro, also known as Petrobras, reported a decline in profit for the third quarter despite an increase in sales volume. The company’s net income decreased to BRL26.6 billion from BRL49.1 billion, while recurring net income declined to BRL27.2 billion from BRL46.6 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also decreased to BRL66.2 billion from BRL91.4 billion. Revenue fell to BRL124.8 billion from BRL170.1 billion. Despite these challenges, Petrobras saw a 8.9% increase in output and a 1.3% increase in domestic sales volume. The average price of Brent crude oil fell to $86.76 from $100.85, and the average exchange rate for the U.S. dollar weakened to $4.88 from $5.25. These factors impacted Petrobras’s revenue in both dollars and Brazilian reais.
Factuality Level: 8
Factuality Justification: The article provides specific financial figures and data to support its claims about Petrobras’ profit falling in the third quarter. It also explains the reasons for the decline, including the weaker dollar and lower oil prices. The information provided is consistent and does not contain any obvious bias or opinion masquerading as fact.
Noise Level: 7
Noise Justification: The article provides relevant information about Petrobras’ profit decline in the third quarter due to a weaker dollar and lower oil prices. It includes specific figures and compares them to the previous year. However, it lacks analysis of long-term trends or antifragility and does not hold powerful people accountable or explore the consequences of decisions. It also does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Petróleo Brasileiro (Petrobras)
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of Petrobras, a major oil company. It discusses the decline in profit due to a weaker dollar and lower oil prices, which impacted the company’s revenue in Brazilian reais. However, there is no mention of any extreme events or their impact.
Public Companies: Petróleo Brasileiro (Petrobras)
Key People:
Reported publicly:
www.marketwatch.com 
