Petrobras’ expenses with interest and debt charges fall by more than 30% in 12 months

(TNPetroleo) Petrobras is significantly reducing the amount of interest and charges on its financial debt. Expenses with these financings dropped to US$ 669 million in the 3rd quarter of 2021, 31.1% lower than the US$971 million spent in the 3rd quarter of 2020. When comparing the first nine months of 2021 with the same period last year, the reduction obtained was also significant: a drop from approximately US$ 2.8 billion to approximately US$ 2.3 billion, a reduction of 17.9

“The reduction in debt service expenses is yet another demonstration of the financial rebalancing process achieved by Petrobras. These are interest and charges referring to loans that the company took out, amounts that were reverted to creditors. Now, part of these resources are available for allocation to profitable projects that generate value for the company or to be distributed to shareholders, with Brazilian society being the biggest beneficiary, with about 37% of the amounts returned, which add up to almost R$ 180 billion in taxes that we expect to pay in 2021”, highlights Rodrigo Araujo, Chief Financial and Investor Relations Officer.

The decrease in expenses with interest and charges is another reflection of the significant drop in the total amount of Petrobras’ debt. In 2014, these expenses reached amounts in the order of US$1.7 billion per quarter in financing costs alone and the total amount of its debt reached more than US$130 billion, or more than US$160 billion when including the chartering of oil platforms and other assets that started to be considered as debt as of 2019 with the adoption of IFRS 16 (Leases).

For many, this debt seemed unpayable. Petrobras, however, set as a goal the reduction of its total gross debt (financing and leases) to US$ 60 billion, an amount considered healthy for a company like Petrobras, by the end of 2022. Recently, in the results of the 3rd quarter of 2021, Petrobras reported that it reduced its gross debt to the value of US$ 59.6 billion, thus reaching the stipulated target more than a year in advance.

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