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PDVSA profit tumbled in first quarter

Venezuela’s PDVSA revealed in an unusual filing to the US Securities and Exchange Commission, net profits in the first quarter of the year fell 54% to $1.6 billion, down from $3.5 billion in the same period last year.

The report cites PDVSA's consolidated financial statements, which had not previously been made public.

According to the report, gross income fell 23% in the quarter to $13.6 billion.

PDVSA's net profits may have fallen more than gross income because of payments the company makes to government social programmes, Reuters said.

The company has not reported financial results for any period after March of this year.

The steep decline in oil prices last fall and winter created a cashflow crisis at the end of last year that saw PDVSA fall behind in payments to service providers by billions of dollars.

Venezuelan crude fetched an average of $40.14 per barrel in the first quarter, down from $85.19 per barrel in the same period this year.

World oil prices fell to $33 per barrel in December but have rebounded this year, reaching a high of above $80 this week.

Higher prices and financing have helped PDVSA pay off some of its debt to service companies.

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