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.

Tags:

Ads

You May Also Like

The Man with a Fish Between the Legs

Moment of matchless power is that in which a man will do anything, really ...

Brazilian TAM Starts Daily Flights to Orlando

TAM Brazilian airline will begin operating its new daily flight to Orlando, Florida, on ...

Au Revoir, Dictionary-Man

Bibliography: By Alessandra Dalevi With characteristic humility Antônio Houaiss used to call himself "a ...