Petrobras Shares Decline After Unexpected Capex Announcement
Petrobras shares fell 4% in São Paulo following news of unexpected capital expenditures that were 15% above guidance for 2024. The company reported a capex of $16.6 billion for the previous year, which was $2.1 billion over its adjusted estimate.
Shares of Brazil’s state-controlled oil company, Petrobras, experienced a significant decline, falling 4% on the B3 stock exchange in São Paulo as trading commenced on Thursday. This downturn followed an unexpected announcement regarding the company’s capital expenditure, which exceeded analysts’ expectations by 15% for the year 2024. Petrobras disclosed that its capex spending for the previous year reached $16.6 billion, surpassing its original guidance by approximately $2.1 billion after a revision from $18.5 billion in August.
In summary, Petrobras’ shares dropped significantly due to unforeseen capital expenditures that exceeded analyst forecasts. The firm’s capex for the previous year was notably higher than earlier guidance, prompting concerns among investors. This situation reflects the challenges of managing expectations in the volatile oil sector and could have implications for Petrobras’ financial outlook moving forward.
Original Source: www.tradingview.com
