February 27, 2025 [Reuters]- Petrobras recorded a net loss of R$17 billion in the fourth quarter, compared to a net profit of R$31 billion in the same period in 2023, with accounting impacts related to exchange rates, the company reported on Wednesday.

The result contributed to a 70.6% drop in net income for 2024, which totaled R$36.6 billion, after the company had the second best performance in its history in 2023, with R$124.6 billion.

Despite the negative numbers, the company recorded an operating cash flow of R$204 billion (US$38 billion) during the year, since accounting effects do not affect the company’s cash flow.

In a statement, the Financial and Investor Relations Director, Fernando Melgarejo, stated that the result was impacted mainly by the exchange rate variation in debts between Petrobras and its subsidiaries abroad.

“These are financial transactions between companies in the same group, which generate opposite effects that ultimately balance each other out economically. This is because the exchange rate variation in these transactions affects the holding company’s net result in Brazil and negatively impacted its 2024 profit. At the same time, there was a direct positive impact on equity,” said Melgarejo.

If exclusive events are excluded, net income for the fourth quarter would be R$17.7 billion (US$3.1 billion). The result for the year to date would be R$103 billion (US$19.4 billion) without these effects.

Accordingly, the board approved the payment of R$9.1 billion in dividends to shareholders, to be confirmed at the Annual General Meeting. Considering the dividends paid in advance by the company throughout the year, the remuneration to shareholders for the 2024 fiscal year should total R$75.8 billion.

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