• Categories
  • Archives

Brazil’s Petrobras Gets Record Earnings Despite Higher Extraction Costs

Brazilian government owned Oil Company Petrobras announced Friday, November 11, a record high third-quarter net profit on a rise in output and fuel prices. Net consolidated profit was the equivalent of US$ 2.6 billion, below market estimates, plus signs of rising oil extraction costs.

Petrobras said in a statement profit rose 27% from approximately US$ 2 billion a year earlier, excluding a one-time tax benefit obtained in the third quarter of last year. But when compared to its total profit of US$ 2.57 billion, the increase from a year earlier was only about 1%.

Earnings before interest, taxes, depreciation and amortization rose to 5.74 billion dollars from 4.39 billion a year earlier, Petrobras said. Analysts, on average, expected Brazil’s industrial flagship to post net consolidated profit of about US$ 2.7 billion and gross earnings of US$ 6 billion. Net consolidated revenues rose 18% to US$ 16.52 billion.

Petrobras’ domestic oil output rose a steep 13% from year-ago levels, reaching nearly 1.73 million barrels per day on average as two new rigs started operating on the Barracuda and Caratinga fields in the Campos basin.

However the costs of oil extraction in Brazil between January and September rose 33% from a year earlier to US$ 5.54 per barrel despite an increase in output. They also rose 19% in the third quarter from the previous quarter.

Petrobras attributed the increase to a 16% appreciation of the local currency against the dollar and a rise in drilling and production equipment costs on the world market. Refining costs rose 50% in the period due to the currency effect and programmed maintenance stoppages at four refineries.

This article appeared originally in Mercopress – www.mercopress.com.

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Hunger Live and in Color

With Lula, the Brazilian media will have to face the country. The Brazil of ...

Brazil Shuns Iberoamerican Summit, Which Deals with 25 Million Migrants

The plight of millions of Latinamerican migrants looking for better living conditions in the ...

Brazil Starts US$ 133 Billion, Ten-Year Push in Search of Oil and Gas

Energy corporations will invest US$ 133 billion in the next ten years looking for ...

Brazilian Bar Association Calls for Removal or Arrest of Brasília’s Governor

Ophir Cavalcante, president of Brazil’s National Bar Association (OAB), has sent the government’s chief ...

Everything Seems Wrong, Yet Brazil Is an Agricultural Powerhouse

The record-breaking failure of 18.2 million tons, worth US$ 4.1 million (10 million reais), ...

After Talking to Blair and Merkel Brazil Lula’s Is Hopeful on WTO Accord

Speaking this Monday, May 15, to Brazilians on his weekly radio program, "Breakfast with ...

Software Firm and Taiwan Memory Maker Invest in Brazil

Brazilian software company Datasul has acquired Informenge, a management software solutions provider for health ...

Thanks to Auto-Industry Brazil Grows 0.3% in June

Brazil's industrial production should grow 0.3% in June compared to May. The figure is ...

Brazilian Amazon Suffers Worst Drought in 100 Years

In Brazil, a long-lasting drought that affected the Amazon Rain Forest last year was ...

Lula’s Education Program for Brazil: a Grim Comedy of Errors

In January 2003, when I was Brazil’s Minister of Education, I suggested to President Lula ...