Petrobras (NYSE:PBR) is going on a spending diet. Today, the company unveiled its business and management plan for 2014 to 2018, revealing that it will shrink its capital expenditures by $16 billion. All told, the Brazilian oil major anticipates it will spend nearly $221 billion on investments during the five year-period, down from $237 in the previous half-decade plan.
Much of the cost-cutting will come in the downstream division, which is slated to receive just under $39 billion in accordance with the new initiative. In the preceding plan, the unit received almost $65 billion.
The move comes in the wake of Petrobras' release of its Q4 and fiscal 2013 results. For the quarter, revenue grew by 10% on a year-over-year basis to 81 billion reals ($35 billion); however, net income declined 19% to 6.3 billion reals ($2.7 billion). Those figures for the entirety of 2013 were, respectively, 305 billion reals ($130 billion), a gain of 8% from 2012's figure, and 23.6 billion reals ($10 billion), a year-over-year increase of 11%.
Eric Volkman has no position in Petrobras. The Motley Fool recommends Petrobras. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.