Petrobras Breaks With Pack, Increases Spending and Returns to Growth With Latest Strategic Plan

Petrobras' latest five-year strategic plan calls for greater spending and an increased production outlook compared with its previous plan as it finds itself in a stronger financial position and holds a more optimistic oil price outlook than it did a year ago. Between 2022 and 2026, Petrobras plans to spend $68 billion compared with $55 billion spending in last year’s five-year plan, but with 84% still marked for the exploration and production. or E&P, segment. The increase in spending is accompanied by an increase in expected cash flow during the period as management increased their expectations for oil prices from $50/bbl flat to $72/bbl in 2022 and fading toward $55/bbl in the long term. Meanwhile, Petrobras' leverage is much reduced after achieving its $60 billion gross debt target this year, a year ahead of schedule.