Petrobras Sees Record Quarterly Profit Amid Middle East Conflict
Brazil's state-run oil firm Petrobras posted its third-highest quarterly profit in history, driven by surging oil prices due to the US-Iran conflict. In the second quarter, Petrobras' net profit rose 96% year over year to 52.4 billion reais, exceeding analysts' expectations of 44.7 billion reais.
The company's earnings before interest, taxes, depreciation, and amortization (Ebitda) grew 79.6% to 93.8 billion reais, beating estimates of 90.1 billion reais. Petrobras invested approximately US$5.3 billion in the quarter, with 82% allocated to exploration and production.
The firm's operating cash flow was impacted by a delay in receiving 9.7 billion reais from the government in subsidies for participating in fuel price controls. However, Petrobras' chief financial officer Fernando Melgarejo noted that the company's operational records led to 'one of the strongest quarterly financial results in Petrobras' history.'