Petrobras shares dropped 4% in Sao Paulo following a surprising announcement of a capital expenditure for 2024 that was 15% higher than analysts anticipated. The company reported $16.6 billion in capex spending for the previous year, exceeding its revised guidance by about $2.1 billion.
Shares of Brazil’s state-owned oil company Petrobras (ticker: PETR3) experienced a sharp decline of 4% during trading on the Sao Paulo B3 market on Thursday. This drop followed the company’s unexpected announcement regarding its capital expenditure (capex) for 2024, which exceeded analysts’ expectations. The reported capex for 2023 was $16.6 billion, which is approximately $2.1 billion more than Petrobras had previously guided for, a figure that was already revised down from an initial estimate of $18.5 billion last August.
In summary, Petrobras shares fell significantly after the company disclosed a capital expenditure increase, which was far above market expectations. The unexpected increase in spending for 2024 has raised concerns among investors, prompting a notable decline in share value. Analysts will likely reassess future projections as further details emerge about the company’s financial strategy and spending priorities.
Original Source: www.tradingview.com
