Education
About Us
Working with TipRanks
Follow Us
Petroleo Brasileiro SA- Petrobras (PBR)
NYSE:PBR
RESEARCH TOOLSreports
Top Page
Petroleo Brasileiro SA- Petrobras
(NYSE:PBR)
68Neutral
Positive Factors
Capital Discipline
Cost-cutting measures and a focus on capital discipline improve the risk/reward profile for PBR, highlighting management's proactive approach to navigating lower oil prices.
Corporate Governance
The decision to hike diesel prices showcases improvement on the corporate governance front.
Production Growth
The ramp-up of new platforms is expected to contribute to PBR's output growth target, offering potential upside to production levels.
Negative Factors
Dividend Expectations
Petrobras announced a lower-than-expected dividend for 4Q24, which implies a yield well below expectations.
Financial Performance
4Q24 adjusted EBITDA came in 6% below consensus, with the Upstream segment underperforming.
Production Levels
Domestic oil production drops QoQ and YoY.
Petroleo Brasileiro SA- Petrobras (PBR) vs. S&P 500 (SPY)
Market Cap
$74.92B
Dividend Yield15.28%
Average Volume (3M)27.17M
Price to Earnings (P/E)9.1
Beta (1Y)0.19
Revenue Growth-10.84%
EPS Growth-61.73%
CountryUS
Employees41,778
SectorEnergy
Sector Strength45
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.95
Shares Outstanding3,721,115,700
10 Day Avg. Volume24,292,530
30 Day Avg. Volume27,166,727
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)1.57
Price to Sales (P/S)0.00
P/FCF Ratio2.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.28Price Target Upside35.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Petroleo Brasileiro SA- Petrobras Business Overview & Revenue Model
Company DescriptionPetróleo Brasileiro S.A. - Petrobras explores for, produces, and sells oil and gas in Brazil and internationally. The company operates through Exploration and Production; Refining, Transportation and Marketing; Gas and Power; and Corporate and Other Businesses segments. It engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, marketing, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; holding interests in transportation and distribution of natural gas; and fertilizer production and natural gas processing business. The Corporate and Other Businesses segment produces biodiesel and its co-products, and ethanol; and distributes oil products. Petróleo Brasileiro S.A. - Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.
How the Company Makes MoneyPetrobras generates revenue through multiple streams, primarily centered around its core operations in the oil and gas industry. The company's upstream operations, which involve the exploration and production of crude oil and natural gas, are a significant source of revenue. This segment benefits from Petrobras's extensive reserves and technological capabilities in deepwater drilling. The downstream segment, which includes refining, marketing, and distribution of petroleum products, also contributes to its earnings. Petrobras owns and operates refineries that process crude oil into various products such as gasoline, diesel, and petrochemicals, which are then marketed and sold. Additionally, Petrobras is involved in the production and sale of biofuels and other renewable energy solutions, aligning with global trends towards sustainable energy. Furthermore, strategic partnerships and joint ventures, both domestic and international, enhance its operational capabilities and market reach, supporting its financial performance.
Petroleo Brasileiro SA- Petrobras Financial Statement Overview
Summary
Petrobras exhibits strong profitability with solid margins and a stable balance sheet. However, there are concerns about recent declines in revenue and free cash flow growth. The company's moderate leverage provides a stable financial position.Income Statement
Petroleo Brasileiro SA- Petrobras has demonstrated solid profitability with a gross profit margin of approximately 50.2% and a net profit margin of 7.5% for the recent year. However, the revenue growth rate has been negative recently, indicating a decline in total revenue. The EBIT and EBITDA margins are strong at 41.5% and 40.1%, respectively, supporting the company's profitability.72
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 1.02, which suggests balanced leverage. The equity ratio stands at 32.5%, showing a stable foundation. Return on equity is lower at 10.0%, reflecting modest returns for shareholders compared to previous years.68
Positive
Cash Flow
Cash flow analysis shows a robust operating cash flow to net income ratio of 5.57, indicating strong cash generation relative to earnings. However, the free cash flow growth rate has been negative, suggesting a decline in free cash flow over the past year.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 79.36B | 102.41B | 124.47B | 83.97B | 53.68B | Gross Profit |
| 39.85B | 53.97B | 64.99B | 40.80B | 24.49B | EBIT |
| 32.95B | 39.27B | 53.26B | 31.00B | 20.05B | EBITDA |
| 31.86B | 52.30B | 70.05B | 44.90B | 16.99B | Net Income Common Stockholders |
| 5.92B | 24.88B | 36.62B | 19.88B | 1.14B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.54B | 15.55B | 10.77B | 11.12B | 12.37B | Total Assets |
| 181.87B | 217.07B | 187.19B | 174.35B | 190.01B | Total Debt |
| 60.39B | 62.60B | 53.80B | 58.74B | 75.54B | Net Debt |
| 57.11B | 49.87B | 45.80B | 48.28B | 63.83B | Total Liabilities |
| 122.45B | 138.09B | 117.36B | 104.54B | 130.13B | Stockholders Equity |
| 59.18B | 78.58B | 69.49B | 69.41B | 59.35B |
| Cash Flow | Free Cash Flow | |||
| 20.08B | 31.10B | 40.14B | 31.47B | 23.02B | Operating Cash Flow |
| 32.99B | 43.21B | 49.72B | 37.79B | 28.89B | Investing Cash Flow |
| -11.70B | -7.96B | -432.00M | 2.16B | -4.51B | Financing Cash Flow |
| -29.10B | -30.70B | -51.45B | -40.79B | -19.26B |
Petroleo Brasileiro SA- Petrobras Technical Analysis
Neutral
12.02
Price Trends
12.33
Negative
12.85
Negative
12.96
Negative
Market Momentum
-0.04
Negative
52.96
Neutral
78.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PBR, the sentiment is Neutral. The current price of 12.02 is above the 20-day moving average (MA) of 11.61, below the 50-day MA of 12.33, and below the 200-day MA of 12.96, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 78.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PBR.
Petroleo Brasileiro SA- Petrobras Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $196.59B | 15.26 | 7.40% | 4.17% | -2.62% | -20.13% | |
76 Outperform | $124.81B | 9.79 | 11.75% | 4.65% | -9.86% | -32.59% | |
74 Outperform | $45.56B | 16.91 | 4.78% | 4.83% | -2.17% | -25.00% | |
73 Outperform | $64.48B | 7.44 | 18.28% | 4.86% | 3.96% | -1.69% | |
69 Neutral | $77.30B | 186.20 | -1.87% | 6.24% | -7.70% | -113.83% | |
68 Neutral | $74.92B | 9.14 | 11.25% | 15.28% | -10.84% | -61.73% | |
57 Neutral | $7.18B | 3.26 | -3.67% | 5.68% | 0.47% | -50.25% |
* Energy Sector Average
Performance Comparison
PBR
Petroleo Brasileiro SA- Petrobras
12.02
-1.11
-8.45%
BP
BP
29.76
-5.34
-15.21%
E
Eni SPA
30.17
-0.43
-1.41%
SHEL
Shell
66.62
-2.07
-3.01%
EQNR
Equinor ASA
23.62
-2.46
-9.43%
TTE
TotalEnergies
59.68
-9.61
-13.87%
Petroleo Brasileiro SA- Petrobras Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -0.41%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced sentiment with strong financial performance, increased production, and exploration successes. However, these are tempered by declining oil prices, increased debt, and the need for austerity measures.Q1-2025 Updates
Positive Updates
Increased Oil Production
Oil production increased by 5.4% in the first quarter of 2025 compared to the previous quarter, significantly contributing to financial results.
Strong Financial Performance
Generated $8.5 billion in operational cash flow and reached a net income of $6 billion in the first quarter of 2025.
Successful Exploration Achievements
New discovery in the pre-salt layer of the Aram block and promising discoveries in the Campos Basin and Colombia.
Refinery and Production Capacity Expansion
Revamped Train 1 of the refinery, increasing capacity from 80,000 to 130,000 barrels per day, and further expansion plans are underway.
Significant Dividend Distribution
Approved BRL11.7 billion in dividends for the first quarter of 2025, maintaining strong shareholder returns.
Commitment to Sustainability
Signed a contract to reforest 50,000 hectares in the Amazon, capturing 15 million tons of carbon.
Innovative Product Development
Launched a bunker fuel with 24% renewable content in the Asian market, a significant step toward decarbonization.
Negative Updates
Declining Oil Prices
Oil prices decreased from $84 per barrel in Q1 2024 to $75 in Q1 2025, with further declines to $65 in Q2 2025, posing significant challenges.
Increased Debt and Leverage
Gross debt increased, nearing the $75 billion ceiling, while net leverage rose to 1.5 times, up from 0.8 times a year ago.
Cost Pressures and Austerity Measures
Need for significant cost reduction and capital discipline due to low oil prices, including simplifying projects and reducing operational costs.
Challenges in the Equatorial Margin
Pending licensing processes and uncertainties in exploration efforts, with significant investments planned but not yet yielding results.
Market Volatility and Pricing Strategy
High volatility in oil and product prices, requiring careful management of pricing strategies to avoid transferring volatility to customers.
Company Guidance
During the call, Petrobras provided detailed guidance on navigating the challenging oil price environment. The company highlighted a strategic focus on capital discipline and cost reduction, noting a decrease in the average oil price from $84 per barrel in Q1 2024 to $75 per barrel in Q1 2025, with further declines expected to $65 in Q2 2025. Petrobras emphasized its commitment to maintaining profitability by simplifying projects, ensuring good trading margins, and achieving significant cost reductions. The company's financial performance was strong, with a Q1 2025 net income of $6 billion and an adjusted EBITDA of $10 billion, reflecting an 8% increase from the previous quarter. Petrobras also reported a 5.4% increase in production compared to the previous quarter, contributing to cash generation of $8.5 billion. The company's strategic plan includes a break-even oil price of $28 per barrel, demonstrating resilience even in low-price scenarios. Additionally, Petrobras approved BRL11.7 billion in dividends and invested $4.1 billion in Q1 2025, with a focus on exploration and expanding reserves, particularly in the Brazilian equatorial margin.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.