Causes of Q2 loss less likely in the future - Brazil’s Petrobras

06 August 2012 19:50  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--The factors that caused Petrobras’s weak second–quarter results are less likely to occur with the same intensity in subsequent quarters, Brazil’s state energy producer said on Monday.

Petrobras posted on Friday a second–quarter net loss of reais (R) 1.35bn ($662m,  €540m), compared with a net profit of R10.94bn reported for the same period last year.

The company also reported earnings before interest, tax, depreciation and amortisation (EBITDA) of R10.6bn, down 34% year on year.

The losses were due to a weaker Brazilian currency against the dollar, write-offs of dry or sub-commercial wells and higher operating costs, the company said.

“Weak second–quarter results do not reflect expectations for the remaining quarters,” said Petrobras CEO Maria das Gracas Foster during a conference call with investors.

Foster noted that unfavourable exchange rates, which boosted the company’s debt costs, have stabilised since the devaluation of the real.

Furthermore, the company wrote-off losses of R2.7bn in the quarter relating to 41 dry or sub-commercial wells that were drilled between 2009 and 2012, she said.

Foster added that there would be no change to divestment plans, estimates or leverage limits established in the company’s 2012-2016 business plan.

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By: Simon West

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