Send us Feedback

Petrobras (PBR)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

PBR » Topics » Changes 4Q-2006 X 3Q-2006 MAIN INFLUENCES

This excerpt taken from the PBR 6-K filed Mar 12, 2007.

Changes 4Q-2006 X 3Q-2006
MAIN INFLUENCES

    R$ million 
 
Main Items   Net
Revenues 		   Cost of
Goods Sold  		   Gross 
Profit
 
. Domestic Market:                           - Effect of Volumes Sold    (124)                      153    29 
                                                         - Effect of Prices    (875)                      -    (875)
. Intl. Market:                                   - Effect of Export Volumes    1.006    (427)   579 
                                                         - Effect of Export Price    (2.359)                      -    (2.359)
. Increase in expenses: (*)   -                       560    560 
. Extraordinary items in 3Q06:          - adjustment to special participations (**)   -                       426    426 
                                                          -expenses with re-injected gas (***)   -                       406    406 
. Increase in Profitability of Distribution Segment    (24)                      -    (24)
. Increase (Decrease) in operations of commercialization abroad    (744)                      742    (2)
. Increase (Decrease) in international sales    1.582    (1.782)   (200)
. FX effect on controlled companies abroad    (328)                      483    155 
. Others    (456)   (191)   (647)
       
    (2.322)                      370    (1.952)
       

(**) New interpretation by the ANP disallowing deductibility of charges associated with project finance expenses for the Marlim field.
(***) Expense adjustments with gas produced and re-injected in Solimões, Campos and Espírito Santo basins.

(*) Expenses Composition:    Value 
- Import of gas, crude oil and oil products    (187)
- Domestic Government Take    324 
- Third-Party Services    423 
   
    560 
   

7

•
The increase in operational expenses was primarily a result of the following items:
 
  •     
General and administrative expenses increased (R$ 269 million) due to higher personnel expenses related to the Collective Bargaining Agreement 2005/2006 (R$ 96 million); and services related to consulting and administrative support (R$ 92 million);
  •     
Exploration expenses increased (R$ 287 million) as a result of wells write-offs in Campos, Espírito Santo, Ceará and Sergipe basins (R$ 166 million), and internationally in the U.S. (R$ 111 million), Argentina (R$ 20 million) and Nigeria (R$ 13 million). The increase in exploration expenses were partially offset by the positive effect of the revision of estimated costs related to wells write-offs (R$ 89 million);
  •     
Research and technology development increased (R$ 103 million) with R$ 116 million destined to ANP settlement;
  •     
Other taxes increased (R$ 94 million) primarily as a result of higher CPMF expenses (R$ 19 million) and higher taxes on international remittances and financial payments (R$ 35 million).
 
• Such effects were partially compensated by a favorable financial income of R$ 602 million given:
 
  •     
Premium related to the bond buyback during 3Q06, affecting the comparison with the 4Q06 (R$ 348 million);
  •     
Greater capitalization of financing interests related to projects (R$ 170 million) and the reduction of extraordinary expenses related to tax charges (R$ 79 million).
  •     
Financial gains as a result of the renegotiation with the electric sector (R$ 70 million) and a crude oil and oil products hedge (R$ 44 million);
  •     
Despite the appreciation of the Real in 4Q06 (1.66%) and the interest rate reduction in the country, the financial earnings from cash equivalent investments tied to the exchange rate and the DI were below those of 3Q06 (R$ 153 million).
 
•
Improved non-operating result (R$ 73 million) stems mainly from the sale of E&P assets in Argentina amounting to R$ 69 million.
 
•
Tax benefits for interests of own capital of R$ 671 million in 4Q06 were below the R$ 1.492 million in 3Q06, and did not trigger higher taxes or social contributions than those paid in 3Q06, on the contrary, they allowed for a reduction of the taxable income in 4Q06 as stated above.
 

8

PETROBRAS SYSTEM  Operational Performance 
     

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki