This excerpt taken from the PBR 6-K filed Aug 14, 2006.
CHANGES 2Q-2006 X 1Q-2006
The increase in operating income was partially offset by an increase in the following expenses:
A positive impact of R$ 303 million on the net financial results is mainly due to the improvement in the net financial results from reduced losses associated with monetary assets and liabilities (R$ 220 million), as a result of the lower appreciation of the real in the 2Q-2006 (0.37%) compared to the 1Q-2006 (7.19%) .
Reduction in the loss with exchange rate variation (R$ 375 million) calculated on stockholders equity from companies headquartered outside of Brazil, as a result of the lower appreciation of the real against the U.S. dollar in the 2Q-2006 (0.37%) versus the 1Q-2006 (7.19%);