Friday, May 15, 2015

Petrobras has benefits despite corruption – ABC Color

RIO DE JANEIRO. The Brazilian oil company Petrobras was able to maintain in the first quarter of this year net profit virtually stable compared to the same period last year despite the crisis in the corruption scandal.

The largest company in Brazil, he announced today its earnings in the first three months of the year totaled 5,330 million reais ($ 1776.7 million), only 1.2% lower than in the first quarter of 2014 (5.393 million reais or 1797.7 million).

The profit in the first quarter of 2015 the company responsible for about 12 % of Brazilian GDP contrasted with losses 26.600 billion reais (8866.7 million dollars) incurred by the state in the last quarter of last year and 5.340 billion reais ($ 1.780 billion) in the third quarter of 2014 .

The result nearly doubled the expected by analysts and came amid negative situation caused by the corruption scandal, the fall in international oil prices, the strong depreciation of the real against the dollar and by lower fuel sales in the domestic market due to the slowdown in the Brazilian economy.

As a result of the corruption scandal, the company had to postpone important projects for which contracts had been awarded to builders accused of irregularities, so that their investments in the first quarter fell by 13% over the same period last year to 17,800 million reais (5,930 million dollars).

In the same way The 10% drop in domestic fuel sales in the first quarter due to the slowdown of the Brazilian economy did with that company revenues will fall by 9% in the period, to 74,400 million reais (about 24,800 million dollars).

Revenue fell also because the drop in international oil prices of almost 50% from the first quarter of 2014, caused a drop of 29% in the company entries export.

Another factor that negatively affected the outcome of the oil was 21% depreciation of the real against the dollar, which rose by 18% of the company’s debt, largely contracted foreign currency and the end of March amounted to 332.457 million reais (about 110.819 million dollars).

However, the fall in oil prices abroad helped the company to significantly reduce its expenses fuel imports.

The oil got to face all that negative situation mainly due to the decision of the Brazilian government to raise domestic fuel prices late last year.

This allowed the EBITDA (EBITDA) of oil Sumara 21.518 million reais (7172.7 million dollars) in the first quarter of this year, an increase of 50% over the same period last year and 7% in comparison with the last quarter of 2014.

The good gross profit was due, according to the company, the increase in oil production, which increased from 2.53 million bpd in the first quarter last year to 2.80 million bpd in the first three months of this year.

The quarterly profit is a relief for the company after suffering losses last year 21.587 million reais ( 7,200 million), representing the first annual loss in the company since 1991, partly caused by the deviations discovered in the last year and that Petrobras estimates that cost 6,200 million reais (2.066 million dollars).

The scandal has led to prison five former directors of the company and a dozen executives of major construction companies.

According to the prosecution, builders paid bribes to be favored in the tenders of Petrobras and those resources were distributed among the political parties supporting the network.

The highest court in the country investigated about fifty politicians for their alleged involvement in the case, most of the allied base Brazilian President Dilma Rousseff.

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