Petrobras reported a net income of 26.6 billion reais ($5.4 billion) for the third quarter, compared to 49.1 billion reais in the same period last year. The recurring net income, which excludes one-time items, declined from 46.6 billion reais to 27.2 billion reais.
The state-controlled company's adjusted earnings before interest, taxes, depreciation, and amortization were 66.2 billion reais, down from 91.4 billion reais. Additionally, revenue decreased from 170.1 billion reais to 124.8 billion reais in Q3 2021.
Production and Sales
Petrobras reported an 8.9% increase in output compared to the third quarter of the previous year. Additionally, sales by volume in the domestic market showed a modest growth of 1.3% during the same period, according to the company's quarterly production report from October.
Impact of Oil Prices and Exchange Rates
The average price of benchmark Brent crude oil decreased from $100.85 to $86.76 per barrel in the third quarter. Simultaneously, the average exchange rate for the U.S. dollar weakened from $5.25 to $4.88. These factors contributed to a reduction in Petrobras's revenue for the period, despite the increase in sales volumes.
Despite experiencing an increase in sales volume, Petrobras's profit for the third quarter of 2021 declined due to the impact of lower oil prices and a weakened U.S. dollar. The company remains focused on navigating these challenges and maintaining its position in the industry.