2.6 Billion Reais Profit from Brazilian Treasury Sales in PBR latest Quarter.
So the estimates "beat" came from financial games. So they count the sale of 2.6 billion reais of Brazilian treasuries as "earnings" as debt soars? So we must assume a write down of book value in the same amount or are these trading gains on whale trades? What is going on here?
"It's good to see the company reporting a higher profit and beating expectations, but the numbers also raise a lot of questions and doubts," said Pedro Galdi, oil company analyst with SLW Corretora, a Sao Paulo securities brokerage. "It's hard to see how this result shows a company improving its operations and fiscal discipline."
In a note accompanying results, Foster said management knows the company's operational problems, is working to fix them, and believes Petrobras has good medium and long-term prospects. Output in 2013, though, will remain at 2012 levels, she said.
All of the fourth-quarter profit increase can be attributed to a 2.64-billion-real sale of Brazilian government Treasury bonds and a two-thirds decline in income and social security taxes, according to the company's income statement.
The company's operational difficulties were more sharply reflected in the annual result, the worst for the Rio de Janeiro-based company in eight years.
Full-year 2012 profit of 21.2 billion reais was 36 percent less than in 2011, owing to soaring costs and a second-quarter loss, the company's first in 13 years.