Petroleo Brasileiro SA
,
Brazil
’s state-controlled oil producer, said quarterly
profit rose 32 percent as it accelerated drilling in fields that are among the
largest crude finds in the
Americas
in more than three decades.
Second-quarter net income gained to 10.9 billion
reais ($6.86 billion), or 84 centavos a share, from 8.3 billion reais, or 95
centavos, a year earlier, Rio de Janeiro-based Petrobras said yesterday in a
statement. The per-share figure fell after the company sold about $70 billion
of shares in September.
Petrobras is investing $224.7 billion over five
years to develop deepwater fields and ramp up output at Lula, the largest
discovery in
Brazil
’s history. The company disclosed several
“relevant” findings in the quarter as it seeks to boost production from
discoveries located deep underneath the seabed.
“We’re going to accelerate the number of wells
drilled this year,” Chief Financial Officer Almir Barbassa said late yesterday
at a press conference in
Rio de
Janeiro
. “We’re
expecting to receive a large number of rigs.”
Crude prices rose above $125 a barrel for the
first time in 2 1/2 years in the quarter, helping to fuel a 15 percent gain in
sales to 61.5 billion reais. Output rose 0.4 percent after offshore platform
maintenance slowed its production growth.
“Prices were quite good during the entire
quarter, but production wasn’t that good,” Andres Kikuchi, an analyst at Link
Investimentos in
Sao
Paulo
, said
in a telephone interview before the results were released.
‘Instability’
Petrobras also posted a financial gain of 2.9
billion reais, compared with a loss of 630 million reais in the year- earlier
period, after a stronger local currency reduced the value of the company’s
dollar-denominated debt.
The company said it still sees “instability” in
global markets, although the impact on the company is limited because its
operations are concentrated in
Brazil
.
“If we have a double dip, it will contaminate
developing countries and oil demand,” Barbassa said. “We’re prepared for a
scenario of lower
oil
prices
.”
Petrobras, worth about 291 billion reais at the
end of trading yesterday, has lost 23 percent this year in
Sao Paulo
. Of the 20 analysts who rate the company and
tracked by Bloomberg, 13 recommend buying the stock and seven say “hold.”
New Oil Reserves
Petrobras trails Exxon Mobil Corp., PetroChina
Co., Royal Dutch Shell Plc and Chevron Corp. in market value.
The company revised its $224.7 billion
investment plan this year to include $12.4 billion for the development of new
oil reserves it bought from the government as part of its $70 billion share sale,
the largest in history. The company acquired the right to develop about 5
billion barrels of oil.
Petrobras will need to raise as much as $91
billion of debt in the next five years to cover investments and debt payments.
In addition to developing the Lula field,
Petrobras may take a minimum stake of 30 percent in the government’s Libra
deposit. Lula and Libra are the
Americas
’ biggest oil discoveries since
Mexico
’s Cantarell in 1976. The fields are in a deep-water
region known as the pre-salt along Brazil’s coast.
Petrobras rose 69 centavos, or 3.4 percent, to
20.99 reais in Sao Paulo trading yesterday. The earnings report was released
after the end of regular trading.
In addition to developing the Lula field, Petrobras may take a minimum stake of 30 percent in the government’s Libra deposit. Lula and Libra are the Americas’ biggest oil discoveries since Mexico’s Cantarell in 1976. The fields are in a deep-water region known as the pre-salt along Brazil’s coast.
Petrobras rose 69 centavos, or 3.4 percent, to 20.99 reais in Sao Paulo trading yesterday. The earnings report was released after the end of regular trading.