Petrobras bucks the trend

The company’s pre-salt portfolio helped offset last year’s economic crisis, but investors will still be nervous about potential downstream interference

Brazilian state-controlled oil company Petrobras achieved a rare feat among its regional peers in 2020. Despite almost 12 months of depressed oil prices and cratering energy demand, the NOC posted an annual net income of $1.1bn, salvaged mainly by robust Chinese crude demand and rapidly climbing pre-salt production. Annual revenues dropped by 89pc last year. But despite heavy economic bruising caused by Brent prices plunging 35pc, mounting impairment charges, currency devaluation and a sluggish pace in divestments, the financial toll was offset by the company’s strong upstream performance. Oil and gas output increased by 2.5pc year on year, reaching a record 2.84mn bl/d oe. The figure would