Brazil: Petrobras Net Income Dives

Petrobras of Brazil said its net income for the 1st half of 2012 was BRL7.868 billion, 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.

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]

LNG World News Staff, August 5, 2012