Presenting its 2019 performance today (20 February), Petrobras said that it was ‘well positioned’ to benefit from the IMO 2020 0.50% global sulphur cap as it has ramped up its production of very low sulphur fuel oil (VLSFO).
The Brazilian state oil company claimed: ‘Our refining facilities and logistics infrastructure are well positioned to capture opportunities, especially in Asia, Europe and the United States markets.’
The company added that there had been an ‘increase in bunker 0.5% production whose appreciation allowed fuel oil exports to grow under more advantageous conditions’. Total fuel oil production, said Petrobras, increased by 54% from 162,000 barrels a day (b/d) in the fourth quarter (Q4) of 2018 to 249,000 b/d in Q4 2019.
Petrobras has seen a strong appetite for its low sulphur product in overseas markets, and said there was ‘a growing increase in export premiums in the second half of 2019, with Singapore being the main destination for the company's exports’.
‘In 2019,’ the company added, ‘the trading of fuel oil abroad generated additional value of US$ 150 million for Petrobras.’
As previously reported, Petrobras is currently going through the process of selling eight of its refineries. In today’s presentation, Petrobras noted that all the refinery sales are in the binding phase and the programme will mean that the company’s refining capacity will be reduced by 50%, from 2.2 million b/d to 1.1 million b/d.
The company’s financial key metrics included a net income of $10.2 billion and an adjusted EBITDA of $32.7 billion.
The full presentation can be access here.