RIO DE JANEIRO, May 13 (Reuters) - Brazilian state-run oil company Petrobras (PETR4.SA) , opens new tab said on Tuesday it will revise its five-year strategic plan due to lower crude prices, sending investors a message of austerity during its first-quarter earnings conference call.

Lower Brent crude oil prices will require the firm to cut costs where possible while preserving investments for this year, according to executives.

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"When the price goes up, we feel more comfortable throwing ideas around. When the price goes down, it is time to tighten our belts," Chief Executive Magda Chambriard said.

Chambriard noted that Brent prices at around $65 per barrel would require the firm to simplify its projects, adding that the current moment called for cost-cutting and austerity measures.

The message marks a stark reversal from the one delivered by Petrobras since Brazilian President Luiz Inacio Lula da Silva took office in 2023 and pushed the company to invest more in order to create local jobs and boost Brazil's economy.

In 2023, Petrobras unveiled a $102 billion strategic plan for the 2024-2028 period, in what was then called one of the largest in its history, only to boost it a year later to $111 billion for the 2025-2029 period.

Now, the firm is enacting cost-cutting measures, Chief Financial Officer Fernando Melgarejo said, although he maintained that the capital expenditure for 2025 would be kept at the previously estimated $18.5 billion.

"We have to look for all cost-reduction alternatives so that we can maintain capex," said Melgarejo.

The executive said that before thinking about reducing investments, Petrobras would focus on cutting costs, simplifying ongoing projects and prioritizing projects that provide it with positive cash flow on a shorter-term basis.

The firm will continue to explore other ways to cut costs, said Melgarejo, adding, "We are concerned about this moment, but quite optimistic about both the capacity to increase production and the resilience we have here."

Petrobras on Monday reported a 48.6% year-on-year increase in first-quarter net profit, boosted by nonrecurring events, and announced about $2.1 billion in dividends.

Sao Paulo-traded shares of the firm were up 1.5% on Tuesday, in line with the broader Bovespa stock index (.BVSP) , opens new tab.

https://www.reuters.com/business/energy/brazils-petrobras-revise-strategic-plan-due-lower-oil-prices-2025-05-13/