Petrobras, the Brazilian oil company, registered last year a consolidated net profit of US$ 6.8 billion. According to the state owned company’s press advisory, this was the greatest result in the history of Petrobras, which also obtained record values in 2004 in investments, 21.8 billion reais (US$ 8.3 billion) and net sales, 108.2 billion reais (US$ 41 billion).
According to a statement released by Petrobras, the Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) added up to 36 billion reais (US$ 13.7 billion), an increase by 10% in relation to the previous year. The sales increased by 12.5 billion reais (US$ 4.7 billion) over 2003, which contributed to this term’s record profit.
Petrobras attributed the expansion not only to the increase in volumes sold, but also to the prices of derivatives on the domestic market, linked to the oil prices in the international market, as well as a reduction in 2.7 billion reais (US$ 1.0 billion) in the operating expenses.
The gross profit obtained in 2004 totalled 45.1 billion reais (US$ 17.1 billion), an increase in 5% over 2003. The value of the state owned company shares grew 26.6% (ordinary) and 27.2% (preferred capital stock).
The company’s market value hit a record of 112.5 billion reais (US$ 42.7 billion) on the 30th of December last year – 29% increase in relation to 2003.
Due to the year’s result and Ebitda, the Petrobras Board of Directors will propose at the next shareholders’ meeting, to take place on the 31st of March, the distribution of 5.44 billion reais (US$ 2.1 billion) in dividends, which corresponds to 4.60 reais (US$ 1.75) per share.
Translated by Silvia Lindsey