Petroleo Brasilierio SA (Petrobras) reported net income of $1.76 billion during this year’s first quarter, down only 1% from the same period in 2014.
Petrobras says the results, which came during a tumultuous period for the company, reflect an increase in net financial expenses, mainly due to higher depreciation of the Brazilian real vs. the US dollar.
Just last month Petrobras wrote down $2.1 billion from improper payments identified in the Brazilian Federal Police’s “Operation Car Wash” anticorruption investigation that resulted in the February resignations of Chief Executive Maria das Gracas Foster and five other senior executives (OGJ Online, Apr. 23, 2015).
In March, Petrobras reported plans to divest $13.7 billion in assets during 2015-16 after Moody’s revoked the company’s investment-grade rating (OGJ Online, Mar. 3, 2015).
Operating profit during the quarter was $4.41 billion, up 76% from last year’s first quarter, mainly due to growth in oil and natural gas production at higher margins in marketing of derivatives and lower expenses relating to imports, the company says.
Investment during the quarter totaled $5.9 billion, down 13% year-over-year. About 80% of the company’s investment was allocated to its exploration and production segment. Petrobras ended the quarter with $22.61 billion in cash.
Petrobras’s oil and gas production in Brazil and abroad increased 11% to 2.8 million boe/d compared with last year’s first quarter. The company in April reached a monthly record in presalt oil production at 715,000 b/d.
