Soaring: Petrobras announces first quarter results
Petrobras flies high in first quarter
Brazilian state oil company Petrobras yesterday posted a 68% rise in its first-quarter net profits, beating market expectations, on higher oil output and prices of some fuels it sells.
Petrobras said net consolidated profit totalled 6.9 billion reais ($4.1 billion), up from 4.1 billion reais a year earlier. Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose to 13.8 billion reais from 11 billion a year ago.
Analysts, on average, had expected net consolidated profit of about 5.6 billion reais and Ebitda - a measure of cash flow - of 12.6 billion reais. The net income was also 37% higher than in the fourth quarter of last year, while Ebitda rose 15% from the previous quarter.
"The net profit came way above expectations, and it's already impacting the stock in after-market trades," said Nelson Rodrigues de Matos, an analyst with Banco do Brasil in Rio de Janeiro, expecting the shares to rise today.
Petrobras shares closed 0.18% higher at 45.75 reais on the Sao Paulo Stock Exchange before the results were announced, even as world oil prices fell.
Net revenue rose 21% from the same quarter of 2007 to nearly 46.9 billion reais, largely in line with forecasts, Reuters reported.
Rodrigues de Matos said the Ebitda margin effectively dropped if non-recurrent payments into the company's Petros pension fund were discounted from last year's results.
Oil production, or lifting, costs in Brazil jumped 20% from a year ago and edged up 1% from the preceding quarter to $8.66 per barrel.
Petrobras said without the impact of the appreciation of the local currency, the real, lifting costs rose 8% from a year ago and fell 1% from the fourth quarter. The real is trading near its highest levels since 1999.
"Lifting costs rose quite significantly, but I don't think it is worrisome as it is the trend in the whole industry. General and administrative expenditure and tax costs actually surprised coming on the low side," Rodrigues de Matos said.
The company's average oil and gas output rose 2% from a year earlier to about 2.35 million barrels per day as a number of new production platforms came on stream. But the units had yet to reach capacity by mid-2008, and their operation is inflating costs, analysts said.
A New York-based analyst who did not want to be identified warned that Petrobras's refining operations disappointed, with refining margins dropping more than expected.
"It is a bit alarming, but the situation is likely to improve after the price hike," he said.
Refining capacity usage in Brazil fell 1 percentage point to 89%. Output of oil products in Brazil and abroad fell 7% from a year ago to 1.89 million bpd.
Oil imports rose 3% from a year ago to 351,000 bpd, while crude exports fell 17% to 314,000 bpd. Net imports of oil and products totaled 7,000 bpd, while a year ago Petrobras had net exports of 187,000 bpd. Petrobras expects to end this year with net exports, making it the third year of the country's self-sufficiency in oil.