Brazilian oil producer Petrobas (PBR) is tumbling 6% today after the company reported lower-than-expected fourth-quarter adjusted profits and announced a quarterly dividend that came in well below analysts' average outlook.

Additionally, PBR reported that its capital expenditures had jumped a higher-than-expected 31% last year.

A row of massive oil rigs in a desert landscape, against a setting sun.

The Highlights of Petrobras' Financial Results

Excluding certain one-time items, the company generated Q4 net income of 17.7 billion Brazilian reals, below analysts' average estimate of 18.35 billion reals. Overall, PBR reported a net loss of 17 billion reals or $2.9 billion.

The company announced a quarterly dividend of 9.1 billion reals or $1.6 billion, versus analysts' mean outlook of $2.8 billion.

Also importantly, PBR reported that its capital expenditures had surged 31% in 2024 to $16.6 billion. That was above both the company's previous guidance and analysts' average estimate.

Petrobras' Comments

"Petrobras’ results in 2024 were impacted mainly by an item of an accounting nature," CFO Fernando Melgarejo stated. Specifically, he mentioned "the exchange rate variation in debts between Petrobras and its subsidiaries abroad” as one accounting issue that had impacted the company last year.

The Recent Price Action of PBR Stock

In the last month, the shares have dropped 4.5% while they are down 6% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.