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UPDATE 1-Brazil's Petrobras meets Q3 estimates as lifting costs drop

(Adds information on EBITDA, lifting costs, and background)

RIO DE JANEIRO, Oct 24 (Reuters) - Brazilian state-run oil firm Petroleo Brasileiro SA on Thursday posted its third-quarter results, in line with market expectations, boosted by higher production and lower lifting costs per barrel in key offshore areas.

Petroleo Brasileiro, widely known as Petrobras, said in a securities filing that its net income came in at 9.09 billion reais ($2.25 billion), significantly lower from the previous quarter partly because of the already announced one-off charges, some of which pertained to arbitral and legal disputes.

Petrobras also benefited from billions of dollars in divestments in the second quarter, making for a difficult comparative base.

However, third-quarter margins largely came in line with the consensus. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) stood at 32.6 billion reais, a touch above UBS analysts' estimate of 32.3 billion reais.

Petrobras said lifting costs in Brazil's pre-salt, a key oil-producing zone located off the coast of Sao Paulo and Rio de Janeiro, had fallen to $5 per barrel.


($1 = 4.04 reais)

(Reporting by Gram Slattery; Editing by Christian Schmollinger and Sherry Jacob-Phillips)