A strengthening Brazilian real will help boost Petrobras’ second-quarter earnings, due to be unveiled by the state-controlled player later on Friday, according to a report.
The currency trend has helped soften the blow of government price controls that force Petrobras to sell imported fuels at a loss in Brazil, according to the analyst survey published in Valor Economico newspaper.
The survey of analysts’ forecasts from six major banks gave an average predicted increase of 7.76 % in the Petrobras net profit, against the 6.682 billion Brazilian reais figure posted in the second quarter of 2013. The Brazilian real is currently worth $0.438.
A boost in profit would help Petrobras cope with the growing capital expenditure demands presented by the company’s huge offshore development portfolio in the pre-salt fields.
The same study pointed to a 4.6% decline in quarterly earnings calculated prior to interest, taxes, depreciation and amortisation (ebitda), according to the Valor report.