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The Brazilian Petrobras reversed part of its losses in the first quarter

Rio de Janeiro, May 13 (EFE) .- The Brazilian oil company Petrobras obtained in the first quarter of the year a net profit of 1,167 million reais (about 220.2 million dollars), with which it reversed part of the record losses that suffered in the same period of 2020 (48,523 million reais or 9,155.2 million dollars).

Profits in the first three months of this year, however, were 98.1% lower than in the last quarter of 2020, when the company reached a record profit of 59.89 billion reais (about 11.3 billion dollars), according to the financial balance sent this Thursday to the shareholders.

The oil company, the largest company in Brazil, attributed the good result of the first quarter to the rise in the average price of Brent-type oil in the international market to 60.9 dollars a barrel, a value 37.7% higher than that of the first three months of 2020 and 21.2% higher than the last quarter of last year.

According to the statement released by the company, the drop in earnings compared to the last quarter of last year was caused by the impact that the depreciation of the real against the dollar had on the financial result.

Likewise, the reversal of a large part of the accounting adjustment that it made last year in the value of its assets to adapt them to the historical crisis caused then by the sharp drop in global demand and oil prices as a result of the pandemic of the covid.

This accounting adjustment sank the result of the first quarter of last year, when the company suffered record losses for a quarter and for a value much higher than its net profit in all of 2019, and its reversal was the one that triggered the profit of the last quarter of the year passed equally up to a record value.

According to the balance sheet, Petrobras fuel sales in the domestic market grew by 15.5% compared to the first quarter of last year and exports by 13.6%, with China as the main destination and a 56% share in the shipments.

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The rise in oil prices and increased sales allowed the company, which is controlled by the State but has shares traded on the Sao Paulo, New York and Madrid stock exchanges, to reverse the 6% drop in its production , up 2.45 million barrels per day in the first quarter of this year.

The rise in the price of crude oil and the increase in fuel sales raised the company’s income by 14.2% compared to the first quarter of last year, to 86,174 million reais (about 16,259 million dollars) between January and March.

The jump in turnover allowed the gross operating profit or ebitda to increase by 30.5% compared to the same period last year, to 48,949 million reais (about 9,235.7 million dollars), and 4.1% in the comparison with the last quarter of 2020.

“The numbers demonstrate the ability of our team to generate sustainable results for investors and society in general, even in a challenging context,” said the president of Petrobras, Joaquim Silva e Luna, in a message to shareholders.

Silva e Luna, an Army reserve general who took command of the largest Brazilian company last month amid shareholder fears of increased government intervention in the company, expressed his commitment to the oil company’s financial results. .

“Petrobras will maintain the trajectory of generating value for its shareholders with a management based on transparency, dialogue and rationality, and with investments concentrated in assets in which we are known as world leaders,” he said.

In recent years, the oil company concentrated its investments on the gigantic pre-salt reserves, a horizon of exploitation in very deep waters of the Atlantic Ocean that could make Brazil one of the world’s largest oil exporters, and deepened a plan to sell assets less profitable, like refineries.

The divestment plan allowed the company’s gross debt to fall 20.5% in one year, from $ 89,237 million in March last year to $ 70,966 million in March this year.

The company’s investments, meanwhile, fell to 1,913 million dollars in the first quarter, with a drop of 21.3% compared to the same period last year and 6.6% compared to the last quarter 2020.

(c) EFE Agency

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