The company posted $7.2 billion in one measure of first-quarter earnings, beating analysts’ expectations by 23 percent, after a fuel price increase allowed its refining and supply unit to turn a profit for the first time since late 2010.
The results follow years of selling imported gasoline at a loss as part of a wider government policy to curb inflation. Chief Executive Officer Aldemir Bendine -- who in February replaced Maria das Gracas Silva Foster amid a dispute over how graft-related losses should be booked -- is developing a business plan to reduce the industry’s heaviest debt load and retain an investment-grade credit rating. Petrobras shares have surged 54 percent since he took office on Feb. 6.
“Our goal is to have a profitable company with excellent governance that is able to use its base of assets in an efficient way,” Bendine said in an earnings report Friday. “We are working to keep our economic and financial performance at high levels.”
Adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, rose to 21.5 billion reais ($7.2 billion) in the first three months of the year, from 14.4 billion reais a year earlier, the Rio de Janeiro-based company said. That beat a 17.5 billion-real average of four analysts’ estimates compiled by Bloomberg.
Rising Debt
Petrobras’s total debt rose 14 percent from the previous quarter to 400.6 billion reais. The earnings release comes just three weeks after the company ended a five-month internal debate on graft writedowns by disclosing audited 2014 earnings.
That averted a potential debt default and cleared the way to renter credit markets. Petrobras may have to post additional graft-related losses if it uncovers any, Chief Financial Officer Ivan Monteiro said at a press conference.
He said the company is reviewing priorities and should have a first proposal for the business plan ready in the first half of june The company reiterated several times that it's cooperating with investigators.
Bendine’s efforts to reduce debt and restore credibility will remain a challenge when crude prices are close to a six-year low and the company keeps missing production targets.
On April 22, Petrobras reported a record loss of 21.6 billion reais for 2014, including a corruption-linked writedown of 6.2 billion reais and a 44.6 billion-real impairment, mainly from overpriced and unfinished refinery projects.
Asset Sales
As part of its effort to reduce debt, Petrobras is seeking to sell $13.7 billion in assets over the next two years. A person with knowledge of the matter said Wednesday that the company is preparing to sell as much as 4 billion reais in Brazil’s domestic bond market as early as next week.
Chief Financial Officer Ivan Monteiro said last month that Petrobras would consider a dollar-denominated bond sale this year.
bloomberg.com
No comments:
Post a Comment