Petrobras loses more than 10 billion dollars in the semester due to the pandemic

Rio de Janeiro, Jul 30 (EFE) .- The effects of the coronavirus pandemic led to Petrobras, the largest company in Brazil, suffering losses of 51,236 million reais (10,046 million dollars), in the first half of 2020, in contrast to earnings of 22,897 million reais (about $ 4,489 million at the current exchange rate) for the same period last year.

According to the semi-annual balance disclosed this Thursday by the company, the result was weighed down by the losses of the first quarter of the year that totaled 48,523 million reais (about $ 9,514 million at the current exchange rate), a collapse caused by the COVID-19 crisis .

In the second quarter, Petrobras recorded losses of 2,713 million reais (about $ 531 million), reversing the net profit of 18,866 million reais (about $ 3,699 million at the current exchange rate) in the same period in 2019.

The company also recalled that more than 10,000 employees have taken up a voluntary retirement plan, which represents 22% of Petrobras’ workforce, of which the majority will leave their positions this year and the rest in 2021.

The company, one of the largest oil companies in the world, attributed the losses for the semester to the impacts caused by the pandemic in the sector, causing a sharp drop in global demand and in oil prices.

Brent, which was trading at $ 65 a barrel in February, plummeted to $ 19 in April due to a 25% contraction in global demand.

With this, the billing for the semester was not as expected and totaled 126,367 million reais (about 24,777 million dollars), 11.9% less than that registered in the same period of 2019.

In the second quarter, the oil company’s revenues totaled 50,898 million reais (about 9,980 million dollars), a drop of 32.6% compared to the previous quarter and 29.9% compared to the same period last year.

TERMINATION PLAN FOR 22% OF THE TEMPLATE

Despite the impacts caused by the pandemic, the company produced 2.85 million barrels of oil and gas equivalents in the first half, 10.4% more than in the same period of 2019, while in the second quarter, the increase was 6.4 in the year-on-year comparison.

Adjusted Ebitda between January and June grew by 3.9% compared to the same period in 2019, to 62.49 billion reais (about $ 12.252 billion), while in the second quarter it fell 23.5% compared to same period of the previous year.

The president of the state-owned oil company, Roberto Castello Branco, considered that the company has emerged afloat in the midst of the crisis, although to do so it has had to reduce its budget from $ 12 billion to $ 8.5 billion.

“We steered the boat safely across seas that I had never sailed before,” he said.

Petrobras, controlled by the Brazilian State but with shares traded on the Sao Paulo, New York and Madrid stock exchanges, registered an increase in operating expenses due to the implementation of voluntary dismissal plans, something that although now adjusts the belt, in the future It will bring cost reductions of almost $ 800 million per year.

More than 10,000 employees have taken up the voluntary retirement plan, which represents 22% of Petrobras’ workforce, of which the majority will leave their positions this year and the rest in 2021.

Added to that is the announcement the oil company made last week to pay dividends totaling 1.7 billion reais (about $ 332 million) in common stock.

(c) EFE Agency