This excerpt taken from the PBR 6-K filed Aug 25, 2006.
(1) Before financial expenses and revenues, equity in the net income of subsidiaries and net monetary and exchange variance.
The growth in net income was mainly due to the increase in Gross Profit by R$ 5,877 million, chiefly caused by the following factors:
Other factors included:
These effects were partially offset by the increase in the following expenses:
Positive effect of R$ 1,086 million on the net financial result, due to:
Decrease to nonoperating expenses mainly due to the reduction in losses incurred by idle capacity on the platforms P-14 and P-34 (R$ 126 million).
Higher expenses on income of social contribution taxes, due to the effect of the tax benefit on the provision for interest on capital in June 2005, which boosted profits in H1-2005 by R$ 746 million.