petrobras bucked the trend of recovery
The state oil company the brazilian Petrobras recorded a loss of 16.5 billion reais (4.5 billion euros) in the third quarter, bucking the recovery trend of the previous quarter.
The fall was driven mainly by the “‘impairment’ [impairment, low] assets and investments in affiliates of 15.7 billion reais [4,25 billion euros],” reads a press note released Thursday.
According to the company, the ‘impairment’ resulted from the appreciation of the brazilian real, the increase in the rate of discount, review a set of assumptions, such as the price of Brent and the exchange rate of the long-term, and by changes in the portfolio of investments in the business plan.
“it Is a non-recurring event and the Petrobras does not expect that in the coming quarters occur results of impairment tests of this magnitude that happened in this quarter,” said the financial director of Petrobras, Ivan Monteiro, cited by the brazilian press.
Among the factors that contributed to the injury, the company pointed out the costs in the negotiated agreements with investment funds in litigation against Petrobras in New York, in the United States, and the expense with a program of terminations voluntary.
The executive manager of the company’s performance, Mário Jorge da Silva, quoted by the local press, noted that, if it were not for the extraordinary events, Petrobras would have ended the quarter with a profit of about 600 million reais (162,7 million euros).
“The free cash flow was positive for the sixth consecutive quarter, totaling 16,4 billion reais [4,45 billion euros], a value 52% higher than that recorded in the second quarter. This result is explained by a 22% increase of operating cash generation and a reduction of 8% of the investments,” said the giant oil company.
The result before taxes, interest, depreciation, and amortization (EBITDA) adjusted in the third quarter amounted to 21.6 billion reais (5.8 billion euros), being 6% higher than the previous quarter due to the increase of production and export of oil and lower spending on imports,” reads the note.
In the first nine months of the year, the oil that is in the center of the largest corruption scandal in brazilian history, investigated in Operation Lava Jet – has a loss of 17.3 billion reais (4.7 billion euros).
In the second quarter, petroleum had a net profit of 370 million reais (100 million euros), after three quarters of losses.
The company ended September with a debt of 398 billion reais (107,7 billion euros).
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