Saturday, February 18, 2006

 

Petrobras announces record profits

Petrobras, the largest corporation in Brazil, announced yesterday that their profits in 2005 reached R$ 23.7 bn, up from R$ 16.8 bn in 2004.
Considering that the exchange rate on Dec. 31st was US$ 1 = R$ 2.34, that profit converts into a little more than US$ 10 bn. This was, again, the biggest profit of a Latin America corporation; Petrobras had also had the biggest profit in LA in 2004 and 2003.
The increase in profit had two main reasons: the increase in production of oil and gas (1.9 million barrels of oil a day, up from 1.8 million in 2004) and the increase of oil prices in the international market.
Petrobras is traded in the Stocks Exchange, but the Federal Government still retains control. Since after Petrobras lost the monopoly, in 1998, the company has been following market practices; one consequence of this is that gasoline prices in Brazil now follow international prices; in Feb. 2006, one liter of gasoline costs about US$ 1.1 (varies from State to State).
Read more: article by O Globo (in Portuguese)
Article by Reuters (in English)



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