Petrobras ‘set for profit rise’

Looking up: Maria das Gracas Foster-led Petrobras set to post profit hike in Q2, analysts believe

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.

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