Petrobras debt, operational metrics improve despite profit miss

Petróleo Brasileiro SA cut debt by 20 percent and had positive free cash flow for the seventh straight quarter during the fourth quarter, in a further sign of recovery at Brazil’s state-controlled oil company in spite of a quarterly profit miss.

Net income at Petrobras (PETR4.SA) came in at 2.510 billion reais ($812 million) last quarter, reversing a loss of 16.458 billion reais in the July-to-September period. Drastic cost-cutting and higher well productivity helped offset weaker revenue trends, the main culprit behind the profit miss.

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