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Petrobras declares $1.6 billion dividend after swinging to Q2 net profits

Petrobras, the Brazilian oil company, announced on Thursday dividends and interest to equity holders of $8.66 billion reais. It reported a swing in its second-quarter net profits of $26.7 billion reais.

The result was a marked improvement over the net loss of 2.6 million reais that occurred in the same period last year.

In the earnings report, Chief Financial Officer Fernando Melgarejo stated that "we had excellent operational performances in the second quarter. This was driven by the implementation and improvement of new production systems in the operating fields."

The company reported that adjusted earnings before interest taxes, depreciation, and amortization (EBITDA), rose by 5.1% to 52.3 billion Brazilian reais in the reporting period.

Melgarejo stated that despite the significant drop in Brent prices during the first quarter, the recurring net profit (which excludes one-off items) remained the same as the previous quarter.

Petrobras reported that Brent oil prices in the second quarter averaged $67.82 a barrel, down from $75.66 a barrel in the previous three months.

The company reported that capital expenditures, or capex totaled $4.4billion in the third quarter. This was up by 9% compared to the previous three-month period and in line with its targets.

Petrobras, in a separate presentation said that it expected its oil and natural gas production to reach the upper limit of its target by 2025.

The full-year guidance for production is 2.8 million barrels equivalent per day (boed), plus a 4% margin.

(source: Reuters)