(Corrects to say that BP's target date for net zero emissions
is 2050, not 2020)
By Gram Slattery and Marta Nogueira
RIO DE JANEIRO, Feb 20 (Reuters) - Oil exports by Petrobras
should fall slightly in the first quarter and production is
already taking a hit, due to scheduled maintenance stoppages,
executives said on Thursday, a sign the Brazilian state-run oil
firm may have to endure some short-term pains to consolidate
long-term gains.
On a conference call to discuss Petrobras' fourth-quarter
results, executives said that January production was little
changed from December at around 3 million barrels of oil
equivalent per day (boepd), but February production was feeling
the effects of the stoppages.
Petroleo Brasileiro SA, as the firm is formally
known, is undergoing an ambitious maintenance program at many of
its platforms this year, including in the so-called "pre-salt,"
a prolific and profitable deepwater formation.
The effects of coronavirus are also having an effect on the
firm.
While executives said there has been no impact on deliveries
to China, Petrobras downstream chief Anelise Lara noted that
prices for products such as bunker fuel have taken a hit.
Petrobras is making a concerted push to up its sales of
bunker fuel, which is used for ships, as new international
regulations strictly limit the sulfur content of the fuel. As
Brazilian oil is naturally low in sulfur, executives have said
they may be in a position to benefit.
"We noticed a decrease in crack spreads for bunker in
relation to what we were seeing in December, for example," said
Lara, referring to the difference between bunker prices and
crude prices.
"We came to see bunker prices in Singapore around fuel oil
prices, which has never happened in history."
On Wednesday evening, Petrobras posted a record 2019 profit,
though quarterly results were fairly average. Brazil-listed
preferred shares in the firm were down 2.4% in early afternoon
trade, while the Brazil's benchmark Bovespa equities index
was down 1.7%.
"I COULD BE A BILLIONAIRE"
In discussions with analysts and journalists, Petrobras
Chief Executive Roberto Castello Branco also took a veiled jab
at rivals including BP PLC, which earlier this month
announced a goal to achieve zero net emissions by 2050. Such
long-term targets, he argued, are impossible to enforce,
especially given that the company's administration is likely to
turn over several times in that period.
"I could announce various goals for 2050, such as that I
could be a billionaire," Castello Branco said, when asked about
the firm's long-term environmental targets.
Petrobras has repeatedly said it is laser-focused on oil
production, and has no expertise in renewable energy. The
company announced in late January that it was selling its piece
of a large wind farm in northern Brazil.
(Reporting by Gram Slattery and Marta Nogueira
Editing by Chizu Nomiyama and Marguerita Choy)
BP (BP.)