Brazil’s Petrobras Has Record US$ 9.7 Billion Net Profit in First Half

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Petrobras headquarters in Rio de Janeiro, Brazil Brazil state-controlled oil and gas multinational Petrobras had record profit in the second quarter of the year, with 8.787 billion reais (US$ 5,442 billion), 29% over the total identified in the same period in 2007. The company's net profit during the first half of the year was also a record 15.708 billion reais (US$ 9.728 billion), 44% more than in the same period last year.

On disclosing the figures, the company's CFO and Investor Relations director, Almir Barbassa, pointed out that the figures are record. He attributed the high profits to elevation of oil prices on the foreign market and to price increases of gasoline and diesel oil.

Also according to Barbassa, the increase in sales contributed to the Petrobras result too. In the first semester, Petrobras invested 20.899 billion reais (US$ 12.942 billion).

The Petrobras market value at the end of the first half of the year reached R$ 457 billion (US$ 283 billion) – growth of 87% over the first half of 2007. In the evaluation of Petrobras, the significant growth was partly boosted by the discovery of gas and light oil in the pre-salt region of Santos Basin, and also by the perspective of greater production – aligned to an increase in international oil prices.

On August 8th, however, the company's value dropped to R$ 332.167 billion (US$ 205.702 billion). On informing the market value reduction to the market, the company justified as follows:

"The uncertainties surrounding the global economy, the strong movement of generalized share sales – not only in Brazil, but also worldwide – aligned to a landing of the global economy, with lower demand and retraction of oil prices, and of commodities as a whole, especially affected the price of Petrobras shares "a high liquidity paper that makes it very easy for investors to sell".

ABr

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