Petrobras Q3 profits increase 40% to US$1.85bn

Brazilian federal energy giant Petrobras (NYSE: PBR) reported consolidated net income of 5.36bn reais (US$1.85bn) in the third quarter of 2003, a 40% increase over 2Q03. In the year through September 2003, net income was 14.8bn reais, an increase of 180% from the same period 2002. Consolidated net operating revenue in 3Q03 was 23.8bn reais. The Q3 profit is higher than analyst's forecast of around 4.5bn reais, according to an AE Brazil survey of eight analysts. Analysts estimated revenue for the quarter at 23bn reais to 26bn reais. "This performance reflects basically the alignment of the sales prices of some oil by-products in the domestic market to the international prices and the exchange rate devaluation. Consolidated net income was additionally affected by increased export revenues, which rose because of higher international oil prices," Petrobras said. Ebitda reached 8.23mn reais for Q3, up 44% from 5.71bn reais in same period in 2002. January-September Ebitda increased 87% to 25.7bn reais from the same period in 2002. Forecasts for Petrobras third quarter Ebitda ranged from 8.8bn reais to 9.1bn reais. In 3Q03, production of petroleum and natural gas in Brazil grew nearly 2% over the same period of last year, reaching an average of 1.56 million barrels of oil equivalent a day (mboe/d). In 3Q03, the average production of oil by-products in Brazil was 1.67mboe/d, with growth of 1% from January through September 2002. The company's board approved 3.29bn reais of interest on capital to be distributed to shareholders by February 2004 and deducted from dividends to be discussed at the next AGM.