Petrobras Debt Reduced, Still High

Brazil's state-run Petrobras' net 1H2018 income was reals 17bn ($4.54bn) thanks to increase in higher international oil prices, it said August 3. Net debt was $73.66bn, reduced by 13% compared to end-2017.

Operating income and cash inflows of $5bn from divestments during 1H2018 were the main factors for reducing net debt, which was 3.23 times earnings before interest, taxes, depreciation and amortisation (adjusted Ebitda), compared to 3.67 at the end of last year.

Its net oil and gas production was 2.7 million barrels of oil equivalent per day in 1H2018, in line with its target for 2018.

Operational highlights during 1H2018 included the start-up of the first production system in the Transfer of Rights area P-74 in the Búzios field, and a new production system in the Campos Basin with the FPSO Cidade Campos dos Goytacazes on the Tartaruga Verde field.

Another highlight was the arrival of the P-67 to Brazil, which will be the eighth platform to operate in the Lula/Cernambi fields. Since 2017, Petrobras has increased its exploration area by 31%, with acquisitions in the bidding rounds of Brazil's upstream regulator ANP, prioritizing those with greater potential in the Campos and Santos Basins.