2/10/2012 1:56 AM ET
(RTTNews) - Brazilian federal oil company Petroleo Brasileiro SA (PBR: News ) or Petrobras, on Thursday reported a sharp decline in fourth-quarter profit, despite higher sales.
Net income attributable to shareholders of Petrobras more than halved to 5.05 billion reais ($2.93 billion), or 0.39 reais per share from 10.6 billion reais, or 1.07 reais last year, the state-controlled oil producer reported in a Brazilian regulatory filing. Sequentially, net income declined 20 percent.
The plunge in profit reportedly reflected a charge for impairment related to the reduction in value of unnamed assets on its books, higher exploration and production costs, increased wages after a labor agreement as well as higher costs because of the installation of new production equipment.
Net sales rose 20 percent to 65.26 billion reais from 54.23 billion reais a year earlier. Sequentially, sales grew 3 percent.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, fell 2 percent to 14.05 billion reais from 14.35 billion reais in the fourth quarter of 2010.
Total production of oil and natural gas was 2.67 million barrels per day, higher than 2.63 million barrels per day last year. Prices also increased from last year.
Earlier on Thursday Petrobras appointed its natural-gas and energy chief Maria das Gracas Foster to replace Jose Sergio Gabrielli as chief executive officer.
Jose Formigli, previously the head of Petrobras pre-salt unit, was named as the head of exploration and production business. The company also named Jose Alcides Santoro Martins to succeed Gracas Foster as head of the gas and energy unit.
Petrobras also announced that it will lease 21 offshore drilling rigs from Sete Brasil Participacoes SA and five from Ocean Rig UDW Inc for 15 years. As per reports, the company will pay Sete Brasil $530,000 per day and $548,000 per day to Ocean Rig for the rigs .
Petrobras shares closed Thursday's trading at $31.99, down $0.13 or 0.40 percent in the U.S.
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by RTT Staff Writer
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