Petrobras reports 30% drop in net profits for second quarter

Petroleo Brasileiro SA (Petrobras) reported a second-quarter net profit of $118 million, down 30% from last year’s net profit in the same period, largely attributed to impairment charges related to its Comperj refinery project outside Rio de Janeiro (OGJ Online, July 25, 2016).

Offsetting the impairment, the Brazilian state-owned firm recorded 7% growth in total oil and natural gas output to 2.8 million boe/d, a 14% increase in oil and oil product exports, lower costs related to natural gas imports, and a 30% reduction in net financial expenses. It also posted a 15% decrease in net debt during the period.

As part of the firm’s $15-billion divestment plan, Petrobras this year has agreed to sell its 67.19% interest in Petrobras Argentina (PESA) to Pampa Energia for $897 million, Petrobras Chile Distribucion Ltda. to Southern Cross Group for $490 million, and its 66% interest in the BM-S-8 offshore license in the Santos basin to Statoil ASA for $2.5 billion (OGJ Online, July 29, 2016).

The firm last month said it entered discussions for the sale of its petrochemical unit Petroquimica Suape e Citepe with Mexican petrochemical firm Alpek.

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