Oil Daily | Petrobras Boosts Dividends Amid Rising Income; OPEC May Halt Production Increases
Market BriefTuesday, May 13, 2025 8:01 am ET
3min read【Company News】
Brazil's state oil firm Petrobras will distribute $2.1 billion in dividends following a notable rise in net income due to one-off items and favorable exchange rates. Petrobras' net income increased by 48.6% year-over-year to $6.2 billion, but without one-off items, it fell by 12.1%.
Petrobras approved interim dividends of $2.1 billion, aligning with its Shareholder Compensation Policy. This requires distributing 45% of free cash flow to shareholders if gross debt is at or below the $75 billion limit from the Strategic Plan. Higher investments raised concerns about potential limits to shareholder distributions.
Petrobras saw increased cash flows, primarily from a 5% production volume rise. Adjusted EBITDA rose 46% compared to the prior quarter. Investments reached $4 billion, 22% of annual guidance, focused on pre-salt projects such as Búzios and Atapu fields.
Last week, Petrobras discovered high-quality oil in the pre-salt Santos Basin at an Aram block exploratory well. This discovery adds to Petrobras' investment in pre-salt projects, highlighting its commitment to long-term revenue generation.
NRG Energy is set to purchase $12 billion worth of gas-fired power generation facilities from LS Power Equity Advisors, doubling its generation capacity. The acquisition includes 18 natural gas-fired plants, expanding NRG’s footprint in the Northeast and Texas.
NRG Energy’s acquisition reflects increased U.S. electricity demand, driven by AI growth and manufacturing reshoring. Data centers are expected to account for 8.6% of U.S. electricity demand by 2035, doubling their share today, according to BloombergNEF.
Goldman Sachs suggests that OPEC is likely to halt further production increases due to worsening global economic conditions. OPEC's decision to raise daily output by 411,000 barrels in July may be reassessed based on actual economic data.
Goldman Sachs predicts a halt in OPEC production increases beyond July due to weakening global oil demand. Overproduction by Iraq and Nigeria could limit the impact of raised quotas, as these changes only legalize existing production levels.
【Others】
Spain is investigating the cause of a massive blackout on April 28, which disconnected its transmission system from the European grid, affecting Portugal and parts of France. Authorities are examining cyber defenses of small solar and wind power plants.
Red Electrica, Spain's grid operator, ruled out a cyber attack as the blackout's cause. Investigations continue, fueling debate about renewable energy's role and grid resilience against cyber threats.
Two labor unions in Norway reached a wage agreement with the oil industry, preventing strikes that could affect oil and gas output. Norway remains Europe's largest natural gas supplier and plans record investments in oil and gas despite net-zero goals.
Norway plans to invest $22.9 billion in oil and gas this year, a record high. The government recently awarded stakes in 53 licenses despite environmental opposition, emphasizing the need for exploration to maintain stable production.
The House Committee on Energy and Commerce proposed phasing out tax credits linked to climate policies, raising $6.5 billion. This is part of Republican efforts to roll back climate funding from Biden's Inflation Reduction Act.
The proposal targets incentives for EVs, home energy efficiency improvements, and wind/solar subsidies. It sparked strong reactions from the climate tech industry, with concerns about undermining clean energy efforts.
Tripoli witnessed chaos following the alleged assassination of Abdel Ghani al-Kikli, commander of Libya’s Stability Support Authority. His death triggered clashes, raising fears of renewed conflict in a politically divided Libya.
Libya faces challenges like political instability and disputes over sovereign institutions. The UN urged calm to prevent conflict escalation, which could threaten Libya’s economic recovery and oil exports.
Kazakhstan's oil exports via the CPC pipeline are expected to decline in May due to geopolitical dynamics. The pipeline has faced disruptions after Russian inspections and restrictions following a December oil spill.
Kazakhstan signed over $5 billion in agreements with the UAE to diversify energy partnerships. Challenges include complying with OPEC quotas and infrastructure issues attributed to Ukrainian drone attacks.
China is enhancing export controls on critical minerals to maintain its dominant sector position. The Chinese Commerce Ministry announced a crackdown on smuggling and illegal exports of strategic minerals.
China's export restrictions on rare earths and minerals target evasion methods and third-country transshipments. Recent U.S.-China trade talks resulted in a suspension of high tariffs, easing bilateral tensions.
Egypt's EGAS signed a 10-year agreement with Hoegh Evi for a floating LNG import unit near Alexandria amid growing gas demand and decreasing domestic production. The Hoegh Gandria will replace the current operational LNG import terminal.
Egypt seeks to boost domestic oil and gas production with a new licensing round offering 13 offshore and onshore blocks. The country imports LNG to ease energy shortages and blackouts, transitioning from net exporter to importer.
Brazil's state oil firm Petrobras will distribute $2.1 billion in dividends following a notable rise in net income due to one-off items and favorable exchange rates. Petrobras' net income increased by 48.6% year-over-year to $6.2 billion, but without one-off items, it fell by 12.1%.
Petrobras approved interim dividends of $2.1 billion, aligning with its Shareholder Compensation Policy. This requires distributing 45% of free cash flow to shareholders if gross debt is at or below the $75 billion limit from the Strategic Plan. Higher investments raised concerns about potential limits to shareholder distributions.
Petrobras saw increased cash flows, primarily from a 5% production volume rise. Adjusted EBITDA rose 46% compared to the prior quarter. Investments reached $4 billion, 22% of annual guidance, focused on pre-salt projects such as Búzios and Atapu fields.
Last week, Petrobras discovered high-quality oil in the pre-salt Santos Basin at an Aram block exploratory well. This discovery adds to Petrobras' investment in pre-salt projects, highlighting its commitment to long-term revenue generation.
NRG Energy is set to purchase $12 billion worth of gas-fired power generation facilities from LS Power Equity Advisors, doubling its generation capacity. The acquisition includes 18 natural gas-fired plants, expanding NRG’s footprint in the Northeast and Texas.
NRG Energy’s acquisition reflects increased U.S. electricity demand, driven by AI growth and manufacturing reshoring. Data centers are expected to account for 8.6% of U.S. electricity demand by 2035, doubling their share today, according to BloombergNEF.
Goldman Sachs suggests that OPEC is likely to halt further production increases due to worsening global economic conditions. OPEC's decision to raise daily output by 411,000 barrels in July may be reassessed based on actual economic data.
Goldman Sachs predicts a halt in OPEC production increases beyond July due to weakening global oil demand. Overproduction by Iraq and Nigeria could limit the impact of raised quotas, as these changes only legalize existing production levels.
【Others】
Spain is investigating the cause of a massive blackout on April 28, which disconnected its transmission system from the European grid, affecting Portugal and parts of France. Authorities are examining cyber defenses of small solar and wind power plants.
Red Electrica, Spain's grid operator, ruled out a cyber attack as the blackout's cause. Investigations continue, fueling debate about renewable energy's role and grid resilience against cyber threats.
Two labor unions in Norway reached a wage agreement with the oil industry, preventing strikes that could affect oil and gas output. Norway remains Europe's largest natural gas supplier and plans record investments in oil and gas despite net-zero goals.
Norway plans to invest $22.9 billion in oil and gas this year, a record high. The government recently awarded stakes in 53 licenses despite environmental opposition, emphasizing the need for exploration to maintain stable production.
The House Committee on Energy and Commerce proposed phasing out tax credits linked to climate policies, raising $6.5 billion. This is part of Republican efforts to roll back climate funding from Biden's Inflation Reduction Act.
The proposal targets incentives for EVs, home energy efficiency improvements, and wind/solar subsidies. It sparked strong reactions from the climate tech industry, with concerns about undermining clean energy efforts.
Tripoli witnessed chaos following the alleged assassination of Abdel Ghani al-Kikli, commander of Libya’s Stability Support Authority. His death triggered clashes, raising fears of renewed conflict in a politically divided Libya.
Libya faces challenges like political instability and disputes over sovereign institutions. The UN urged calm to prevent conflict escalation, which could threaten Libya’s economic recovery and oil exports.
Kazakhstan's oil exports via the CPC pipeline are expected to decline in May due to geopolitical dynamics. The pipeline has faced disruptions after Russian inspections and restrictions following a December oil spill.
Kazakhstan signed over $5 billion in agreements with the UAE to diversify energy partnerships. Challenges include complying with OPEC quotas and infrastructure issues attributed to Ukrainian drone attacks.
China is enhancing export controls on critical minerals to maintain its dominant sector position. The Chinese Commerce Ministry announced a crackdown on smuggling and illegal exports of strategic minerals.
China's export restrictions on rare earths and minerals target evasion methods and third-country transshipments. Recent U.S.-China trade talks resulted in a suspension of high tariffs, easing bilateral tensions.
Egypt's EGAS signed a 10-year agreement with Hoegh Evi for a floating LNG import unit near Alexandria amid growing gas demand and decreasing domestic production. The Hoegh Gandria will replace the current operational LNG import terminal.
Egypt seeks to boost domestic oil and gas production with a new licensing round offering 13 offshore and onshore blocks. The country imports LNG to ease energy shortages and blackouts, transitioning from net exporter to importer.
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