PetroReconcavo (RECV3) recorded a 54% decline in net profit in the fourth quarter of 2023 compared to the same period in 2022, falling from R$408.6 million to R$186.7 million.
The net result was negatively impacted by lower EBITDA during this period.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to R$312.6 million, a year-on-year decrease of 36%. This resulted in the adjusted EBITDA margin falling by 14.6 percentage points (percentage points) to 41.4%.
Master class
Promising stocks on the stock exchange
Download our list of 10 small-cap stocks that, in expert opinion, have upside potential in the coming months and years, and watch a free lesson
Total net revenues amounted to R$689 million in the fourth quarter of last year, a decrease of 11% compared to the same period in 2022, due to a 12% decrease in oil production on the same basis of comparison.
The average production cost (lifting cost) for the fourth quarter of 2023 was $14.28, an increase of 17% compared to the same quarter of the previous year.
The net financial result was positive at R$35.7 million in the fourth quarter of 2023, down 32% from the financial gains at the same point in 2022.
Continues after ad
Total capital expenditures, after deducting the line of abandoned wells, amounted to R$1.1 billion in the year and R$201 million in the quarter.
As of December 31, 2023, the company's net debt amounted to R$881.1 million, compared to net cash of R$37.3 million in the same period in 2022.
The leverage index, measured by net debt/EBITDA, was 0.69 times on December 23, an increase of 0.71 percentage points compared to the same period in 2022.
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.