Petrobras shares fell 4% in Sao Paulo after the company announced a capital expenditure for 2024 that exceeded previous guidance by 15%. The reported spending of $16.6 billion for 2023 was also $2.1 billion above a revised estimate made in August, leading to surprise among analysts.
Shares of Brazil’s state-owned oil company, Petrobras, known under the ticker PETR3, experienced a significant decline of 4% upon the opening of markets in Sao Paulo on Thursday. This drop came as a surprise to analysts following the company’s announcement regarding its capital expenditure (capex) for 2024, which exceeded expectations by 15%. The company revealed that its capex for the previous year reached $16.6 billion, which was approximately $2.1 billion more than the revised guidance outlined in August, set at $18.5 billion.
In summary, Petrobras’s unexpected increase in capital expenditures has instigated a notable decline in its shares, reflecting market concern over the company’s financial forecasts. The announcement highlights the challenges the firm faces with its investment strategies, warranting closer scrutiny from investors and analysts alike.
Original Source: www.tradingview.com
