Petrobras announces $1.6 bln dividend as it swings to Q2 net profit

Brazilian oil firm Petrobras PETR3 on Thursday announced dividends and interest on equity to shareholders of 8.66 billion reais ($1.60 billion) as it reported a swing to a second-quarter net profit of 26.7 billion reais.

The result represented a significant improvement from a net loss of 2.6 billion reais for the same period a year earlier.

"We had excellent operational performance in the second quarter, driven by the implementation of new production systems and improved efficiency in the fields in operation," Chief Financial Officer Fernando Melgarejo said in the company's earnings report.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 5.1% in the period, to 52.3 billion reais, the company said in the report.

Recurring net profit, which strips out one-off items, remained stable versus the first quarter of the year, despite a significant decline in Brent prices, Melgarejo said.

Brent oil prices averaged $67.82 per barrel in the second quarter, Petrobras said, compared to $75.66 per barrel in the first three months of the year.

Capital expenditure, or capex, totaled $4.4 billion in the quarter, up 9% from the previous three months and in line with the company's targets, it said.

In a separate presentation, Petrobras said it expects its oil and gas output to hit the upper end of its target in 2025.

Its full-year production guidance stands at 2.8 million barrels of oil equivalent per day (boed), with 4% leeway.

($1 = 5.4156 reais)