Petrobras 3Q Net Income Rose on Year, Boosted by Oil Price
06 November 2018 - 10:03PM
Dow Jones News
By Jeffrey T. Lewis
SAO PAULO--Brazilian oil major Petroleo Brasileiro SA's
(PETR3.BR) profit jumped in the third quarter from a year earlier,
boosted by a rise in the price of oil.
Net income attributable to Petrobras shareholders reached 6.6
billion reais ($1.8 billion), soaring from BRL266 million in the
third quarter of 2017, while sales revenue rose to BRL98.3 billion
from BRL71.8 billion, the company said.
Adjusted earnings before interest, taxation, depreciation and
amortization came to BRL29.9 billion compared with BRL19.2 billion
a year earlier.
Petrobras agreed at the end of September to pay $853.2 million
to Brazilian and U.S. authorities to end years-long investigations
into corruption centered on the company. Excluding the settlement
costs, Petrobras would have had a net income attributable to
shareholders of BRL10.3 billion and adjusted Ebitda of BRL33.4
billion, the company said.
With uncertainty related to the graft probes mostly over, the
company is looking forward to ramping up output from its offshore
fields in the pre-salt area, so called because the oil deposits are
located in deep water off the coast of Sao Paulo and Rio de Janeiro
states, under the ocean floor, beneath thick layers of salt.
Petrobras has been increasing production from the pre-salt wells
while at the same time cutting costs, which will keep operations
profitable even if the price of oil falls much lower than it has
recently, analysts say.
The company's "cost advantage in pre-salt is its big ace in the
hole," said Gabriel Francisco, an analyst at XP Investimentos in
Sao Paulo.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
November 06, 2018 05:48 ET (10:48 GMT)
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