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    Your email address will not be published.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

    Brazil and Spain Mean Business

    Tomorrow, Carlos Garcia, former Brazilian Ambassador to Spain and current president of the Brazil-Spain ...

    Brazil’s Museum of Tolerance Starts Little War Between Armenian and Turkish People

    According to the Armenian newspaper Yerkir the Brazilian government has decided to create a ...

    December 1993

    CONTENTS: Cover: Overhauling the Constitution (p. 7) Literature: Lygia Fagundes Telles’s short story (p. ...

    Brazil: Come Tour a Favela!

    In the last few years, money and investment has begun to trickle into the ...

    Brazil’s Squealer Congressman First in Line for House Guillotine

    The Brazilian Chamber of Deputies’ Ethics Council (Conselho de Ética e Decoro Parlamentar da ...

    Brazilian journalist Luiz Lanzetta

    Brazil’s Presidential Campaign Advisor Resigns Over Spying Charges

    An alleged espionage plan to tap information from the opposition presidential candidate José Serra ...

    Nísio Gomes

    Dozens of Brazilian Indians Take Over Camp after a Chief Is Killed by Masked Men

    Brazil’s Federal Police are investigating the attack on Indians occurred in Mato Grosso do ...

    Frontpage of Folha de S. Paulo shows damage from Israeli air attack in Lebanon

    A View from Brazil: Israeli Attacks Are a Crime Against Humankind and Democracy

    Another Brazilian Air Force jet reaches the homeland carrying wearied vacationers turned war refugees. ...

    Light out of Darkness

    A country where the population can reduce by 20 percent the domestic consumption of ...