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Petrobras Posts $11 Billion Impairment on Lower Oil Outlook

Peter Millard

(Bloomberg) -- Petrobras, the Brazilian sate-controlled oil producer, posted a 65 billion-real ($11 billion) impairment in the first quarter after revising down its outlook for crude prices.

Even without the impairment, Petrobras reported a loss in the quarter on lower oil prices and the devaluation of Brazil’s real, the worst-performing major currency this year.

Petrobras’ Ebitda, which excludes the devaluation, was ahead of expectations at 37.50 billion reais.While low oil prices have battered the entire industry, Petrobras has benefited from rebounding oil demand in China that helped bring total exports to a record in April. Since then, there are signs Petrobras is getting better prices for its crude from Chinese refiners as OPEC production cuts offer support.Petrobras said its divestment program remains intact, even though it may be delayed. It said it expects to close some refinery sales before the end of the year.A 3.8% drop in production in the quarter was from the least profitable fields, and output has rebounded in April.

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