By Jeffrey T. Lewis
SAO PAULO--Petroleo Brasileiro SA reported a loss in the second quarter as the price of oil declined because of a drop in demand during the coronavirus health crisis.
Petrobras, as the company is known, said it had a net loss of 2.7 billion reais ($524 million) in the second quarter, compared with net income of 18.9 billion reais in the same period a year earlier. The company reported a recurring net loss, which excludes one-time items, of 13.7 billion reais, from recurring net income of 8.9 billion reais in the same quarter last year.
Adjusted earnings before interest, taxation, depreciation and amortization declined 23.5% from a year earlier to 25 billion reais, and recurring adjusted Ebitda fell 47% to 17.7 billion reais. Revenue fell 29.9% to 50.9 billion reais.
The company won a court decision regarding a tax dispute that resulted in the big differences in the recurring loss and recurring adjusted Ebitda and the non-recurring figures, Petrobras said. The sharp drop in sales was due to a 57.6% decline in the price of Brent crude from a year earlier and the drop in demand related to the coronavirus pandemic, according to Petrobras.
Petrobras said last week its output in the second quarter fell 3.7% from the first quarter to an average of 2.8 million barrels of oil equivalent per day because of a sharp drop in demand related to the coronavirus pandemic. Production was up 6.4% from the second quarter of last year.
The company's total debt reached $91.2 billion at the end of the second quarter, an increase of $4 billion from the end of 2019. But net debt, which is total debt minus liquid assets, declined by $8 billion in the same period because of the company's strong cash flow in the period, Petrobras said.
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(END) Dow Jones Newswires
July 30, 2020 18:31 ET (22:31 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.