Petrobras 1Q Net Income Down 17 Pct (Brazil)
Brazil’s state-run oil company Petrobras on Saturday reported its 1st quarter 2013 net income of 7.7 billion reais ($3.85 billion), a 17% drop when compared to 9.21 billion reais achieved in the same quarter of 2012
Operating profit reached R$ 9,849 million, up 72% on the previous quarter due to readjustments in the price of diesel and gasoline, lower import costs and lower operating expenses.
In its press release Petrobras said: “Net income remained stable compared to the previous quarter, due to higher operating income which was offset by lower financial gains and higher tax on profits.”
Compared to the first quarter of 2012, operating income was 16% lower, reflecting higher import volumes, the effect of exchange rate depreciation (13%) and higher operating expenses. Net income was 17% lower, due to lower operating income and no tax benefit.
Total oil and natural gas production amounted to an average of 2,552,000 barrels/day during the quarter, which was 2% down on the fourth quarter of 2012.
“As expected, production decreased due to the natural decline in the fields and more maintenance stoppages, concentrated in the first six months of the year,” said the company in a press release.
Two production systems came into operation in the Santos Basin: The FPSO Cidade de São Paulo, in the pre-salt Sapinhoá field, and the FPSO Cidade de Itajai in the post-salt Baúna field. The third system – the FPSO Cidade de Paraty is already being anchored in the Lula Nordeste field and will start production in late May 2013.
A new pre-salt production record of 311,000 barrels per day was reached on April 17.
The new discoveries were: South of Tupi and Florim in Transfer of Rights areas; Sagitário in the pre-salt Santos Basin and Mandarim in the post-salt Marlim Sul field in the Campos Basin.
The Recovery of Operational Efficiency Program in the Campos Basin (PROEF) showed gains of 34,000 barrels per day in oil and NGL production in the 1st quarter of 2013.
“The Operating Cost Optimization Program (Procop) showed above expected overall results for the quarter, resulting in savings of R$ 1,260 million (one third of the target for the year),” the Rio de Janeiro-based company added.
Petrobras beat the oil processing record on April 7 (2,149 thousand barrels/day). The domestic market grew (+9%) in the quarter mainly met by increasing production of oil products (+10%) compared to the same period of 2012.
Diesel price adjusted twice (amounting to 10.7%) and one gasoline adjustment (6.6%).
Investments amounted to R$ 19,769 million, with 54% in Exploration and Production.