Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) reported that the company’s total natural gas and oil output in July came at 2.74 million boed, of which 114,000 boed produced abroad and 2.63 million boed in Brazil.
The average oil output in the nation came at 2.12 million bpd, 3% less than June’s. This outcome is primarily due to the planned shutdown of the P-58 platform, which runs in the Jubarte, Baleia Azul, Baleia Franca fields and Baleia Anã, in the Campos Basin. The production of natural gas in Brazil, discounting the liquefied volume, came at 80 million cubic meters/ day, 0.4% less than in the preceding month.
In July, the natural gas and oil output that Petroleo operate in the pre-salt layer resulted in 1.61 million bpd, a drop of 4.3% over the preceding month. This result is primarily due to the planned shutdown of the P-58. Oil output at overseas fields came at 65,000 bpd in July. Natural gas production came at 8.4 million cubic meters/day, up 2.9% over the June output. This jump was primarily due to the higher demand for Bolivian gas production.
During Q2 2017, Petroleo reported that net income remained in the same level in respect to Q2 2016, highlighting the lower oil products margins, the decline in the sales volume and the reduced operating expenses. Adjusted EBITDA jumped 6% R$ 44,348 million in 1H2017, showcasing lower import costs and operational expenses. Adjusted EBITDA Margin stood at 33% in 1H2017
In 1H2017, Free Cash Flow came at R$ 22,722 million, a jump of 70% over 1H2016. This result highlights the combination of reduction in investments and improvement in generation. Free Cash Flow in Q2 2017 came positive for the ninth successive quarter. Petroleo reported that gross debt came at R$ 376,587 million in the reported period as compared to R$ 385,784 million as of close of December 31, 2016.