Petroleo Brasileiro S.A. Petrobras - ADR

Strong Financial Performance Despite Accounting Loss: In 2024, Petrobras generated over BRL 204 billion in operational cash flow and paid BRL 102 billion in dividends. However, a reported accounting loss of BRL 17 billion in Q4 was primarily due to foreign exchange variations impacting debt, which did not affect the company's cash flow.

Increased CapEx Investments: Petrobras' capital expenditures surged to $16.6 billion in 2024, a 31% increase from the previous year, driven mainly by accelerated investment in the Buzios field. This higher spending is expected to enhance production capacity dramatically, with forecasts indicating production could reach up to 2 million barrels daily by 2030.

Buzios Field Potential: The Buzios field has demonstrated significant production potential, currently producing 800,000 barrels per day, with projections indicating that upcoming FPSOs could lead to a ramp-up to full capacity sooner than planned. This asset is critical for Petrobras, as it represents its most valuable field with the prospect of high production efficiency.