Despite Loss in Venezuela, Brazil’s Petrobras Has Record Profit

Brazilian state-controlled oil company Petrobras ended 2006 with a net profit of 25.9 billion reais (US$ 12.2 billion), the highest in its history. The result was 9% higher than in 2005, which was already an all-time high.

The company's consolidated data, released today, February 13, show that 33.7 billion reais (US$ 15.9) were invested last year, 31% more than in 2005.

Oil production in Brazil increased by 6% and production of oil derivatives grew by 2%. The company's foreign refining capacity increased by 87%, leading to a 23% growth in international production of oil derivatives. The company's physical exports saw a 21% increase.

Petrobras, however, saw its profit fall by 76% in its foreign operations going from 1.45 billion reais (US$ 688 million) in 2005 to 350 million reais (US$ 166 million) in 2006. In Venezuela the company lost 370 million reais (US$ 176 million).

With the changes in the contracts rules Petrobras, which had 100% of the shares in exploratory fields in Venezuela had it reduced to 40%. In Bolivia, taxes increases meant that the Brazilian company had to pay an extra US$ 100 million in tariffs and royalties.

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  • Show Comments (3)

  • Andy Murphy

    what difference does it make? A bunch of politicos mis managing the company. I feel sorry for the Brazilian engineers ,Technicians and ordinary workers that worked hard to make Petrobras a proud symbol of Brazil. Soon they will be joining the ex Telebras employees who went into obscurity.

  • ch.c.

    To Forrest !
    Petrobras is not state owned contrary to what you say….but state controlled.
    Quite a difference ! smile

  • Forrest Allen Brown

    money put it to use
    SO LULAS FRIENDS ARE WANTING TO CUT IN ON PETROBRAS MONEY !!!!!!!!!

    IF THE COMPANY IS STATE OWNED WHY DONT THEY USE THE MONEY TO HELP THE CITIZENS OF BRASIL .

    LIKE ALASKA DOES GIVE EVERY ONE A OIL TAX CHECK ABOUT $1.500 A PERSON IN ALSAKA

    JUST THE OTHER DAY 8.000 INDANS WERRE GOING TO STARVE AS THE STATE DID NOT HAVE MONEY FOR FOOD
    HOW MUCH OF THAT OIL IS TAKEN FROM INDAN LAND

    AND WHT DOES GAS IN BRAZIL GO UP WHEN IT GOES UP IN THE REST OF THE WORLD
    IF BRAZIL IS ENEGRY SELF SERVING ?????

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