Petrobras shares fell 4% in São Paulo after the firm announced capital expenditure plans that exceeded analysts’ expectations by 15%. The company reported a total capex of $16.6 billion for the previous year, exceeding its revised guidance. This development has raised concerns among investors regarding the firm’s financial strategies.
Shares of Brazil’s state-run oil company, Petrobras, faced a notable decline of 4% on the B3 exchange in São Paulo following the unexpected revelation of its capital expenditure (capex) plans for 2024. Analysts were surprised by the announcement, which indicated spending that exceeded the company’s own guidance by 15%.
On the previous day, Petrobras disclosed that its capex for the prior year totaled $16.6 billion, surpassing its revised guidance by approximately $2.1 billion. This revised forecast had initially been adjusted downward from $18.5 billion in August, leading to investor concern about the company’s financial outlook.
In conclusion, Petrobras’ shares experienced a significant decline, prompted by higher-than-anticipated capital expenditure reports for 2024. The company’s spending of $16.6 billion for the previous year, exceeding earlier guidance, raises questions about its financial strategy and investor confidence moving forward. Such uncertainties contribute to the volatility observed in its stock performance.
Original Source: www.tradingview.com
