Net income of Brazilian state-owned oil company Petrobras for the first half 2011 rose by 37 percent from a year earlier, to R$21.928 billion, Petrobras press release said.
The strong result was driven by a 12% increase in sales revenues thanks to a 2% growth in domestic oil and natural gas output and, mainly, a higher oil product (+9%) and gas natural (+7%) sales volume on the domestic market, which were more expensive due to a 5% increase in the average realization price, the Company said.
Commodity prices reflected a 44% surge in the average Brent crude oil price (up from US$77.27 per barrel to US$111.16 per barrel), which increased income from exports and international sales.
In the same period, the cost of goods sold (COGS) rose 16%, mainly as an impact of higher oil and oil product import (notably diesel) costs and increased extraction costs, government share and refining costs. Operating expenses were up 7% compared to 1H10, mainly due to higher spending on prospecting and exploration (R$512 million) and administrative expenses (R$448 million). The Company reported a 3% increase in operating profit and 4% increase in operating cash flow (EBITDA) compared to H1, 10.
The improved net financial result (positive variation of R$6.249 billion) contributed to the half year earnings, as a result of currency appreciation (+6.3%) on the Company's debt pegged to the US Dollar and of the increase in revenues from financial investments.
In the first half of the year, the Company paid out R$4.827 billion as interest on stockholders equity and R$1.565 billion as dividends to its shareholders. The second tranche of the early distribution of interest on stockholders equity, totaling R$2.609 billion, to be paid out by October, was also approved.
The strong result was driven by a 12% increase in sales revenues thanks to a 2% growth in domestic oil and natural gas output and, mainly, a higher oil product (+9%) and gas natural (+7%) sales volume on the domestic market, which were more expensive due to a 5% increase in the average realization price, the Company said.
Commodity prices reflected a 44% surge in the average Brent crude oil price (up from US$77.27 per barrel to US$111.16 per barrel), which increased income from exports and international sales.
In the same period, the cost of goods sold (COGS) rose 16%, mainly as an impact of higher oil and oil product import (notably diesel) costs and increased extraction costs, government share and refining costs. Operating expenses were up 7% compared to 1H10, mainly due to higher spending on prospecting and exploration (R$512 million) and administrative expenses (R$448 million). The Company reported a 3% increase in operating profit and 4% increase in operating cash flow (EBITDA) compared to H1, 10.
The improved net financial result (positive variation of R$6.249 billion) contributed to the half year earnings, as a result of currency appreciation (+6.3%) on the Company's debt pegged to the US Dollar and of the increase in revenues from financial investments.
In the first half of the year, the Company paid out R$4.827 billion as interest on stockholders equity and R$1.565 billion as dividends to its shareholders. The second tranche of the early distribution of interest on stockholders equity, totaling R$2.609 billion, to be paid out by October, was also approved.