U.S. markets closed
  • S&P 500

    4,228.48
    -55.26 (-1.29%)
     
  • Dow 30

    33,706.74
    -292.30 (-0.86%)
     
  • Nasdaq

    12,705.21
    -260.13 (-2.01%)
     
  • Russell 2000

    1,957.35
    -43.38 (-2.17%)
     
  • Crude Oil

    89.91
    -0.59 (-0.65%)
     
  • Gold

    1,760.30
    -10.90 (-0.62%)
     
  • Silver

    18.97
    -0.50 (-2.56%)
     
  • EUR/USD

    1.0044
    -0.0048 (-0.47%)
     
  • 10-Yr Bond

    2.9890
    +0.1090 (+3.78%)
     
  • GBP/USD

    1.1823
    -0.0109 (-0.92%)
     
  • USD/JPY

    136.9300
    +1.0680 (+0.79%)
     
  • BTC-USD

    21,281.85
    -2,123.53 (-9.07%)
     
  • CMC Crypto 200

    504.88
    -36.72 (-6.78%)
     
  • FTSE 100

    7,550.37
    +8.52 (+0.11%)
     
  • Nikkei 225

    28,930.33
    -11.77 (-0.04%)
     

Brazil's Petrobras smashes profit estimates amid divestments, Ukraine War

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
Updates fuel prices at a Brazilian oil company Petrobras in Brasilia
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

By Gram Slattery

RIO DE JANEIRO (Reuters) -Brazil's Petrobras smashed second quarter profit and margin estimates, boosted by divestments and higher margins in its fuel and natural gas businesses, the company said on Thursday.

In a securities filing, Petroleo Brasileiro SA, as the state-run oil firm is formally known, reported a net income of 54.33 billion reais ($10.5 billion). That represented a 26.8% increase from the same period last year, and was well above the Refinitiv consensus estimate of 38 billion reais.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, adjusted for certain non-recurring factors, came in at 98.26 billion reais, up 58.6% in annual terms and well above the Refinitiv estimate of 83.2 billion reais.

In comments accompanying the figures, Petrobras attributed its results to strong Brent prices, as well as improved margins in its natural gas and fuels business, which includes gasoline, diesel and various other petroleum derivatives.

The effective divestment of part of its Atapu and Sepia offshore fields to two Chinese state-run oil firms helped boost profits, while the global hunt for alternative sources of oil due to the war in Ukraine also favored the company.

Petrobras said the war significantly affected its export markets, as Asian buyers received Russian crude that European and North American buyers forwent.

The percentage of Petrobras exports purchased by China, for instance, fell from 38% to 15%, the company said, while exports to Europe increased significantly.

($1 = 5.18 reais)

(Reporting by Gram Slattery; Additional reporting by Roberto Samora in Sao Paulo; Editing by Sandra Maler and Chris Reese)