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Petrobras increases spending by 24pc in 3Q

  • : Crude oil
  • 25/11/07

Brazilian state-controlled Petrobras' investments increased by 24pc in the third quarter from a year earlier, as the firm continues to focus on production in the offshore pre-salt.

Petrobras spent $5.5bn in capital expenditure (capex) in July-September, of which $4.7bn was for exploration and production.

Of this investment in exploration and production, $2.7bn went to developing production of the pre-salt cluster in the Santos basin, particularly the construction of seven new floating production, storage and offloading units that will serve the Buzios, Atapu and Sepia fields.

A further $900mn went to developing production in the Campos basin's pre- and post-salt, and $500mn went to exploration.

Total investments over the first nine months of the year were $14bn, a 29pc increase on the same period last year. Capex guidance for 2025 as outlined in Petrobras' 2025-2029 business plan is $18.5bn.

Petrobras posted a profit of R32.7bn ($6bn) in the third quarter, a 0.5pc increase on the same quarter last year and 23pc more than in the previous quarter.

Higher crude production as well as stronger crude exports and domestic sales of diesel drove the third quarter result, Petrobras said. It also cited a small rallying of oil prices, with the price of Brent growing by 2pc compared with the second quarter, and lower operational costs, as contributing factors.

The company's board approved a payout of R12.16bn ($2.3bn) to shareholders, or R0.9432/share, down from R1.3282/share a year earlier. Dividends will be paid in two installments, in February and March.


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