Brazilian oil company Petrobras reported a profit of $7.341 billion in the first quarter of 2023, during the beginning of leftist President Luiz Inácio Lula da Silva’s administration, the company announced Thursday. Petrobras’ report highlighted the company’s “excellent operating performance,” highlighting the development of the pre-salt fields.
However, first-quarter earnings represented a 14.7% drop compared to the same period last year, when they reached $8.605 billion. There was also a decrease of 11% compared to the fourth quarter of 2022. This decrease is mainly attributed to the depreciation of Brent crude oil by 8% during that period, the company reported.
In addition, Petrobras approved the payment of dividends to its shareholders in the total amount of R$24.7 billion (US$4.97 billion), equivalent to R$1.89 per share. In 2022, the company posted a record profit of 188 billion reais, driven by the global increase in oil prices.
Petrobras president Jean-Paul Prates highlighted the importance of the pre-salt blocks as a driver of the company’s revenues and EBITDA. The pre-salt blocks are oil deposits located deep in the Atlantic Ocean under a layer of salt, and their extraction poses significant technological challenges. Prates noted that production is increasing with greater efficiency and lower emissions.
During former President Jair Bolsonaro’s term in office, Petrobras faced pressure due to frequent changes in the company’s management and concerns about rising gasoline prices. Under Lula’s government, the federal tax collection on gasoline and diesel, which had been suspended by Bolsonaro, was partially reinstated. In addition, a tax on crude oil exports was implemented, which generated controversy with foreign oil companies.