Post Earnings Coverage as Petrobras' Q1 Bottom-line Outshined Forecasts
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Upcoming AWS Coverage on RSP Permian Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 31, 2017 / Active Wall St. announces its post-earnings coverage on Petroleo Brasileiro S.A. - Petrobras (NYSE: PBR) (NYSE: PBR-A). The Company released its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 11, 2017. The Rio de Janeiro, Brazil-based Company's quarterly sales revenues grew 21% y-o-y and posted positive EPS for the reported quarter. Register with us now for your free membership at:
One of Petroleo Brasileiro S.A. - Petrobras' competitors within the Oil & Gas Drilling & Exploration space, RSP Permian, Inc. (NYSE: RSPP), released on May 02, 2017, its financial and operating results for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on RSP Permian in the coming days.
Today, AWS is promoting its earnings coverage on PBR; touching on RSPP. Get our free coverage by signing up to
During Q1 FY17, Petrobras sales revenues came in at $21.74 billion, which was above the $17.99 billion recorded at the end of Q1 FY16. However, sales revenue for the reported quarter fell short of market consensus estimates of $24.19 billion.
The Brazil's state-run oil Company reported net income attributable to shareholders of $1.42 billion, or $0.11 per share, in Q1 FY17 versus net loss attributable to shareholders of $318 million, or $0.02 loss per diluted share, in Q1 FY16. Market analysts had forecasted net income of $0.07 per share for the Company in Q1 FY17.
Operating Metrics
Petrobras' cost of sales in the reported was $14.17 billion compared to $12.62 billion in the last year's comparable quarter. The Company's gross profit increased during Q1 FY17 to $7.56 billion, 35% of sales revenues from $5.37 billion, or 30% of sales revenues, in the past year's same quarter. The Company reported operating income for Q1 FY17 of $4.54 billion, or 21% of sales revenues, versus $2.08 billion, or 12% of sales revenue, in Q1 FY16. Furthermore, adjusted EBITDA increased during Q1 FY17 to $8.03 billion, or 37% of sales revenues, from $5.42 billion, or 30% of sales revenues, in the prior year's comparable quarter.
In Q1 FY17, Petrobras' crude oil and NGL production in Brazil was 2,182 thousand barrels per day (Mbbl/d) up from 1,980 Mbbl/d in Q1 FY16. However, crude oil and NGL production outside Brazil was down to 42 Mbbl/d in Q1 FY17 from 62 Mbbl/d in the prior year's corresponding quarter. Furthermore, net exports during the reported quarter were 489 Mbbl/d, against net import of 33 Mbbl/d in Q1 FY16.
Segment Performance
Exploration & Production's segment's sales revenue surged 75% to $10.57 billion in Q1 FY17 from $6.06 billion in the year ago same quarter. The segment posted operating income of $3.14 billion in Q1 FY17 versus operating loss of $196 million in Q1 FY16. Meanwhile, the segment's adjusted EBITDA also surged to $5.67 billion in Q1 FY17 from $2.36 billion in Q1 FY16.
During Q1 FY17, Refining, Transportation, and Marketing segment's sales revenues came in at $17.15 billion, rising 26% from $13.58 billion in Q1 FY16. The segment reported operating income of $1.67 billion in Q1 FY17 compared to $2.94 billion in Q1 FY16. Furthermore, the segment's adjusted EBITDA came in at $2.30 billion in Q1 FY17 compared to $3.44 billion in Q1 FY16.
Petrobras' Gas & Power segment's sales revenues for the reported quarter were $2.45 billion, which came in 2% above the $2.40 billion recorded in year ago comparable quarter. The segment's operating income for Q1 FY17 stood at $495 million compared to $281 million in Q1 FY16. Additionally, the segment's adjusted EBITDA for Q1 FY17 stood at $718 million versus $474 million in the prior year's same period.
For the reported period, Distribution segment's sales revenues were up by 3% to $6.65 billion from $6.45 billion in Q1 FY16. The segment's operating income for Q1 FY17 was $178 million versus operating loss of $12 million in Q1 FY16. Moreover, the segment's adjusted EBITDA surged to $217 million in Q1 FY17 from $24 million in the previous year's comparable quarter.
Cash Matters and Balance Sheet
In the quarter ended on March 31, 2017, Petrobras' net cash provided by operating activities was $7.38 billion compared to $4.43 billion in the prior year's same quarter. The Company's free cash flow in the reported quarter stood at $4.25 billion versus $610 million in Q1 FY16.
The Company's cash and cash equivalents balance fell to $19.21 billion as on March 31, 2017, from $21.21 billion at the close of books on December 31, 2016. Meanwhile, the Company's net debt was down to $94.99 billion as on March 31, 2017, from $96.38 billion as on December 31, 2016. Net debt to adjusted EBITDA ratio was 3.36 as on March 31, 2017, compared to 3.76 as on December 31, 2016. Furthermore, leverage was down to 54% as on March 31, 2017, from 55% as on December 31, 2016.
Stock Performance
At the closing bell, on Tuesday, May 30, 2017, Petrobras' stock slipped 2.79%, ending the trading session at $8.70. A total volume of 21.05 million shares were traded at the end of the day. In the previous twelve months, shares of the Company have soared 48.97%. The stock currently has a market cap of $54.78 billion.
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