Petrobras 3Q Profit, Sales Hit By Lower Oil Price, Weaker Dollar

By Jeffrey T. Lewis

SÃO PAULO--Petróleo Brasileiro's profit fell in the third quarter from a year earlier, despite an increase in sales volume, after a weaker dollar and lower oil prices reduced revenue in Brazilian reais.

The Rio de Janeiro-based oil company known as Petrobras reported net income of 26.6 billion reais, the equivalent of $5.4 billion, compared with BRL49.1 billion a year earlier. Recurring net income, which excludes one-time items, declined to BRL27.2 billion from BRL46.6 billion a year earlier.

The state-controlled company reported adjusted earnings before interest, taxes, depreciation and amortization of BRL66.2 billion, down from BRL91.4 billion, and revenue fell to BRL124.8 billion from BRL170.1 billion in the third quarter of last year.

Petrobras's output rose 8.9% in the third quarter from a year earlier, while sales by volume in its domestic market increased 1.3% in the same period, the company said in October in its quarterly production report.

The average price of a barrel of benchmark Brent crude oil fell to $86.76 in the quarter from $100.85 a year earlier, while the average exchange rate for the U.S. dollar weakened to $4.88 from $5.25, Petrobras said.

The lower price for a barrel of oil reduced Petrobras's revenue for the period in dollars, even after the increase in sales volumes, and the weaker U.S. currency also shrank the company's revenue in Brazilian reais.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

November 10, 2023 06:41 ET (11:41 GMT)

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