RIO DE JANEIRO, Oct. 14, 2024 — Oil giant Petrobras (PBR, Financials) is looking to effectively cut capital expenditures for 2025, curtailing its previously forecasted $21 billion to around $17 billion, Reuters reported Monday. This comes as the Brazilian government looked to push Petrobras to boost investments to stimulate economic growth and create jobs.
Petrobras, though, has laid down plans for a $102 billion investment plan for 2024-2028, representing a 31% increase over the previous five-year plan, reflecting a more "realistic" budget. Additionally, the company seeks to balance government demands and its strategic priorities, focusing on projects with higher and swifter returns.
Nonetheless, it remains uncertain whether we'll see the 2025-2029 strategic plan unveiled in November, likely to feature a much lower capital expenditure (capex) than its current plan. Also, Reuters reports that Petrobras will continue emphasizing efficiency, focusing on projects such as new oil and gas wells that are expected to profit in a swifter fashion. It's important to note Petrobras stock has mostly been in the red, dropping almost 8% of its value YTD.
