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Petrobras Posts 2Q Net Loss of BRL2.7 Billion on Lower Oil Prices, Decline in Demand

   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.


Write to Jeffrey T. Lewis at


(END) Dow Jones Newswires

July 30, 2020 18:31 ET (22:31 GMT)

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