Petrobras' Profits Total R$ 316 Million in the Second Quarter: a 14.6% Decrease

08/11/2017 - 11h26

Petrobras profited R$ 316 million (US$ 100 million) in the second annual quarter, a 14.6% decrease when compared to the R$ 370 million (US$ 117 million) obtained in the second quarter of 2016. When compared to the first quarter of 2017, Petrobras' profits dropped by 93%.

The company attributed the dip to extraordinary circumstances, such as the application of Refis (a tax adjustment program) to the Petros pension fund, which cost R$ 6.2 billion (US$ 1.95 billion), and losses that totaled R$ 818 million (US$ 258 million) in connection with the Vitória 10,000 oil rig, which is on the Operation Car Wash (Lava Jato) radar.

"We have obtained a very significant result. Our operating profit [derived from the company's activities] went up by 5% [when compared to the first quarter], but there were extraordinary circumstances", said Petrobras CEO Pedro Parente.

Petrobras profited R$ 4.8 billion (US$ 1.5 billion) in the first semester, making up for losses that totaled R$900 million (US$ 284 million) in the first semester of 2016.

The change of fate is a reflection of the company's rise in productivity, its increase in exports as well as cost cuts. General and administrative spending was cut by 4% last semester.

Such changes have allowed the company to keep working on its main goal, which is to reduce debt. By the end of the quarter, the company's debt totaled R$ 295.3 billion (US$ 93.15 billion), a 1.8% drop when compared to the previous quarter, when company debt totaled R$ 300.9 billion (US$ 95 billion).

The company's refineries are functioning at a low level (77%) as it faces competition from private importers.

Translated by THOMAS MATHEWSON

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	Paulo Whitaker - 12.abr.2016/Reuters
	The logo of Brazil's state-run Petrobras oil company is seen on a tank in Cubatao, Brazil