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PETROBRAS: Profit Falls 14.6% In The 2Q17 And Misses Estimates

(Agencia CMA Latam) - Petrobras' net profit in the second quarter decreased by 14.6% from a year earlier, to R$ 316 million, the company said Thursday. The result was way below the R$ 2.906 billion net income expected by analysts, according to a survey from Agencia CMA.

The lower results were partially impacted by a 6.1% decline in Petrobras' revenue, to R$ 66.996 billion. Lower profit margins in fuels, smaller sales volumes, and higher taxes also hurt the company's earnings and were partially offset by a decrease in operational expenses.

Analysts expected Petrobras to post R$ 68.062 billion in revenues for the second quarter. The state-owned oil company EBITDA (earnings before taxes, depreciation, and amortization) decreased by 6,63%, to R$ 19.094 billion - also lower than the R$ 21.926 billion forecast by analysts.

During the second quarter, Petrobras output fell by 1% from a year earlier, to 2.776 million barrels of oil equivalent per day (boed). In Brazil, however, the production increased by 1.8%, to 2.658 million boed.

Oil and products imports decreased by 5.01%, to 341 thousand barrels per day (bpd) in the second quarter, from 359 thousand barrels per day a year earlier.

Petrobras' net debt decreased 6% since the end of last year, to US$ 295.3 billion, and was equivalent to 3.23 times the company's EBITDA in the second quarter, from 3.54 times at the end of December.

The company wants to secure nearly R$ 2 billion in long term credit lines with BNDES - a government-owned development bank - to buy equipment and also said that it intends to refinance part of the US$ 9.6 billion debt maturing on 2018.

According to Petrobras' Financial Director, Ivan Monteiro, the company aims to reduce its 2018 debt to nearly US$ 8 billion.

by Agencia CMA Latam

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