Yahoo Finance Petrobras' (PBR) Quarterly Production Grows, Oil Exports Fall
Petrobras S.A. PBR, the Brazilian state-owned oil and gas giant, has reported that its first-quarter production of oil, natural gas and NGLs has risen 3.7% from the prior-year level. The total production of hydrocarbons reached 2,776 million barrels of oil equivalent (boe) per day. In particular, crude oil production increased 4.4% from the prior-year level to 2.24 million boe per day.
The increase in production can be attributed to the ramp-up of the five FPSOs — Almirante Barroso, P-71, Anna Nery, Anita Garibaldi and Sepetiba. Along with this, Petrobras also noted that the start of production from 19 new wells in the Campos and Santos Basin aided the production rate.
In the first quarter, Petrobras saw a sequential decline of 5.4% in production, attributed to increased losses from shutdowns and maintenance, as well as the natural decline of mature fields. The decrease was partially offset by an increase in contributions from Almirante Barroso and P-71, and the ramp-up of Sepetiba and Anita Garibaldi.
Out of the total quarterly production, 67% came from the pre-salt zone. The pre-salt fields are oil-rich offshore regions located along the southeastern Atlantic coast of Brazil. The region contributed to a 9.1% increase in production, thereby offsetting any decline in output from other fields.
Despite an increase in production, total exports fell 4.4% year over year. Oil exports rose 2.5% sequentially but dropped 11.3% on a year-over-year basis. Per PBR’s statement, the conflict in the Middle East has caused disruptions in the maritime freight transport route, consequently altering the flows of its oil exports.
Petrobras plans to inject $100 billion as an investment this decade to bolster its offshore oil production. The Brazilian energy giant stated that it intends to be there till the very end of the oil era, which is why it needs new exploration and production frontiers to open. The company has highlighted its interest in wind and solar power as well, stating that it expects these alternative energy technologies to contribute to half of PBR’s revenues within a decade.
Some noteworthy developments of the company from the first quarter include the FPSO Marechal Duque de Caxias, heading for its destination to the Mero field in the pre-salt of the Santos Basin from the shipyard in China, in February. In March, Petrobras announced that its Búzios oilfield has achieved the production milestone of 1 billion barrels of oil.
Zacks Rank and Key Picks
Currently, PBR has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energysector are SM Energy SM, Hess Corporation HES and Sunoco LP SUN. SM Energy and Hess presently sport a Zacks Rank #1 (Strong Buy) each, while Sunoco carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company with its operations focused on the prolific resources offshore Guyana. The company has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion boe in gross recoverable resources, adding to Hess’ production potential.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than that of the composite stocks in the industry, providing unitholders with consistent returns.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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