Brazil: Petrobras 1H Net Income Drops 64 Pct

Brazil’s oil company Petrobras has reported that its net income for the 1st half of 2012 was 64% lower than a year ago primarily due to the impact of exchange rate depreciation on indebtedness and costs. Operating cash flow in terms of EBITDA, dropped 15%.

In the second quarter of 2012, there was a loss of R$1.346 billion due to exchange rate depreciation and an increase in the proportion of imported oil in the sales volume. Another factor impacting the outcome was the increase in extraordinary expenditure as dry or subcommercial wells drilled between 2009 and 2012 were written off, especially in new frontier areas. EBITDA for the quarter reached $10.599 billion.

A 3.94% increase in gasoline prices and a 7.83% rise in diesel prices came into effect on June 25. On July 16, diesel was adjusted again, this time by 6%.

Oil output in Brazil slipped 1% in the half-year, and 5% over the first quarter of 2012 due to maintenance shutdowns under a program designed to enhance operating efficiency in the Campos Basin. Two new production systems are slated to start producing in the 2nd half of the year: Baleia Azul (100,000 barrels/day) and Baúna & Piracaba (80,000 barrels/day).

Investments in the first half of the year amounted up to R$38.673 billion, 21% up on the same period in 2011. E&P accounted for 53% of the total. The 2012-2016 Business and Management Plan was announced in June. It allows for investments of $208.7 billion in projects in the deployment phase and $27.8 billion in projects under evaluation.

 [mappress]
Press Release, August 6, 2012