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Stock impact report

From Production Cuts To Oil Discovery To Lower Costs, Petrobras Can Remain A Key Oil Player [Seeking Alpha]

Petroleo Brasileiro S.A. Petrobras American Depositary Shares representing Preferred Shares (PBR.A) 
US:NYSE Investor Relations: investidorpetrobras.com.br/en
Company Research Source: Seeking Alpha
Oil plunging to the $20/barrel range has caused dozens of producers, pipeline operators and exploratory firms to sink rapidly amidst a lack of cooperation between Saudi and Russian executives and a growing fear of a demand plunge from coronavirus. Brazilian powerhouse Petrobras (PBR2019 Performance2019 saw theimplementation of a new strategyFor the year, oil production rose above 3 million bpd among a decrease in average cash lifting cost of $3 per boe (a 31.6% decrease from 2018). Reducing the cash lifting cost allowed Petrobras to reduce its total costs of revenue by ~$7 billion for the YoY period; operating expenses also fell by ~$5 billion. Even as crude prices fell from the $70 to the $60 range, net income remained at $9.3 billion.Petrobras has one of the highest indebtedness in its industry and the world, with a gross debt of $84.3 billion in 2018. Strong cash flow, divestitures and investments provided enough cash flow for Petrobras to reduce debt by ~$21 billion and rearrange Show less Read more
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