Net profit – Petrobras’ result was influenced by the strong decrease in the oil price in the quarter, which affected the average domestic oil sales price (63% decrease) and the revenues derived from oil and derivatives exports. The lower demand for derivatives in the internal market, a reflex of the decreased industrial activity, also affected the result. On the other hand, the increases made to the diesel fuel and gasoline prices in May 2008, as well as the reduced imports and the lower government takes attenuated these effects. As a result, the company’s net profit declined 20% compared to a year ago. In spite of the expressive oil price reduction (55%), cash generation, as measured by the EBITDA, reached BRL13 billion 423 million (only 5% less than in first quarter of 2009 compared to first quarter of 2008), while the net operating revenue was BRL42 billion 595 million.
Compared to fourth quarter of 2008, the net profit was down 6%. The financial result diminished from a positive BRL2.4 billion in fourth quarter of 2008, to a negative BRL849 billion in the period on account of the exchange rate effects on assets valued in Dollars. More income tax and social contributions were paid because of the fiscal benefit brought on by the provisioning of interest on equity done in fourth quarter of 2008. Cash generation (EBITDA), meanwhile, was up 46%, reflecting a reduction in costs and operating expenses.
Petrobras sets a daily production record – Oil & natural gas production in Brazil reached 2,261,000 barrels of oil equivalent per day (boed) in the first quarter 2009, up 7% over a year ago. Production going on stream at platforms P-53 (Marlim Leste), P-51 (Marlim Sul), and FPSO Cidade de Niterói (Marlim Leste), between 4Q08 and 1Q09, and the increased production at units P-52 and P-54 (Roncador) contributed to this increase, surpassing the natural decline of the mature fields. The exclusive oil production in Brazil topped-out at 1,952,000 barrels per day (bpd), 7% more than a year ago, while the natural gas production reached 309,000 boed, 2% above the average achieved in 1Q08. A daily oil production record in Brazil was set on May 4: 2,059,000 barrels.
Oil and gas production abroad reached 221,000 boed, 2% lower than a year ago. Petrobras’ total oil and natural gas production, including Brazil and abroad, was 6% higher than a year ago: 2,482,000 boed.
Extended Well Test at Tupi
The Extended Well Test (EWT) of Tupi, at block BM-S-11, operated by Petrobras (65%), in partnership with BG Group plc (25%) and Galp Energia (10%), was kicked-off on May 5, 2009. FPSO BW Cidade de Sao Vicente, capable of producing up to 30,000 barrels of oil per day, is currently producing at the site and achieving good results. The test, which commenced production in the Santos Basin’s pre-salt layer, is scheduled to last 15 months and will collect technical information that will contribute to the development of the pre-salt reservoirs.
Investments up 41% – Investments made in first quarter of 2009 reached BRL14 billion 380 million, a 41% surge compared to a year ago. In line with the goals set forth by its Strategic Planning, Petrobras continues prioritizing investments in oil and natural gas production capacity development in Brazil by means of own investments and by structuring projects with partners. Of the total invested, BRL7.1 billion were allocated to the E&P segment, 52% more than first quarter of 2008. Resources allocated to the Gas & Energy area were increased by 303% compared to a year ago, focusing on enhancing the gas pipeline network to offload production and develop associated and non-associated natural gas projects to supply the Brazilian demand. The capital invested in downstream rose 59% on account of the projects carried out to improve fuel quality and to boost heavy oil processing at the company’s refineries.
91% usage of the installed capacity in Brazil – Petrobras’ refineries in Brazil processed 1,759,000 barrels of oil per day and produced 1,771,000 barrels of derivatives per day. An average of 91% of the installed refining capacity was used, with priority on the production of diesel fuel. Of the total volume of processed oil, 80% came from Brazilian fields.
The total feedstock processed in the refineries abroad surged 58% over a year ago. The inclusion of the refinery in Japan, acquired in April 2008, and the return to normalcy of the activities of the refinery in the United States, after scheduled shutdowns, contributed to this increase.
Sales volume
The sales volume in the domestic market was 8% lower than a year ago due, mainly, to the decreased sales of diesel fuel, naphtha, and natural gas. The 6% decrease in diesel fuel sales reflects the increase in the biodiesel blend to 3% in the composition of the fuel for distribution and the retraction of industrial production and of farming. Additionally, in first quarter of 2008, there was an extraordinary demand for diesel fuel for thermal power generation seeking to save water in the hydroelectric plant reservoirs, an event that did not repeat itself in first quarter of 09, hindering period comparability. Insofar as natural gas is concerned, consumption was down in the non-thermal market because of the economic deceleration and of the lower thermal demand derived from the higher levels of the water in the reservoirs in Southeastern Brazil. The lower demand of the petrochemical chain, meanwhile, affected naphtha sales. International sales, on the other hand, were 22% higher than a year ago due to the beginning of the sales of Nigerian production, in September 2008.
Increased exports
In first quarter of 2009, Petrobras exported 666,000 barrels per day of oil and derivatives, 16% more than exports a year ago. Importing 566,000 barrels per day, the volumetric surplus was 100,000 barrels per day. Increased oil production, derived from new production units going on stream and from the lower domestic demand, contributed to boost exports. The lower oil prices affected export-related revenues, which totaled $2.23 billion, 51% less than a year ago. The financial debt in Petrobras’ trade balance, meanwhile, fell 81%, to BRL150 million in first quarter of 2009, down from $775 million a year ago.
