Petrobras (PBR)

The behavior of the main components of consolidated net income, in relation to the 1H-2007, was as follows:

• A R$ 5,980 million increase in gross profit:

The behavior of the main components of consolidated net income, in relation to the 1H-2007, was as follows:

• A R$ 5,980 million increase in gross profit:

(1) CIF Values.
(2) Expenditures on cabotage, terminals and pipelines 

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• A R$ 685 million reduction in operating expenses, notably:

• Tax expenses (R$ 347 million), due to the elimination of the CPMF financial transaction tax as of January/08, offset by the increase in the IOF financial operations tax rate in the same month;

• Other operating expenses (R$ 945 million), especially from the non-recurring expenses with the Petros Plan (R$ 1,050 million) and the bonus associated with the new jobs and salaries plan (R$ 123 million) in 2007, partially offset by contractual fines related to natural gas supply (R$ 295 million);

Offset by the following expenses:

• Selling expenses (R$ 457 million), due to higher sales volume and freight costs (R$ 214 million), the increase in provisions for doubtful credits (R$ 74 million);

• Exploration costs (R$ 233 million), from the write-off of dry and uneconomically wells in Brazil (R$ 528 million), offset by the reduction in seismic costs abroad (R$ 294 million);

• General and administrative expenses (R$ 130 million), due to the increase in the workforce, the 2007/08 collective bargaining agreement, the new jobs and salaries plan and the 2007 advancement and promotion plan.

• An increase in the non-operating result (R$ 350 million), due to gains from the change in holdings provoked by the Quattor’s corporate restructuring (R$ 409 million).
  
  
• Increase in income tax and social contributions (R$ 2,392 million), due, among other factors, to the tax benefits of interest on own capital accrued in 2007 (R$ 746 million).

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