Petrobras (PBR)

Net income

Petrobras posted net income of R$ 6,901 million in 3Q-2009, with an operating profit corresponding to 21% of the net operating income (32% in 2Q-2009 ).

⁽¹⁾ Before financial income and expenses and equity accounting.

The main factors that contributed to the 22% decrease in net income for the period from January to September 2009 in relation to the period from January to September 2008 were:

• 18% decrease in net operating income as a result of:

• Decrease in the average prices of exports, particularly petroleum and fuel oil, and in the sales on the domestic market, particularly naphtha, aviation kerosene and fuel oil, reflecting the behavior of international quotations; and
  
  
• Decrease in the volumes sold on the domestic market, particularly diesel (-6%), natural gas (-28%) and gasoline (-5%), partially offsetting the increase in the volumes sold on the foreign market, particularly petroleum (+28%).

• 21% decrease in the costs of goods sold, as a result of the lower expenditures on imports of oil and oil products and on government interests, reflecting the decrease in international quotations.

• Increase in the following expenditures:

• Sales (R$ 339 million), due to the increase in contractual charges for storage and movement of products (R$ 341 million), incurred through not using the minimum contracted capacity of the pipelines and terminals (ship or pay) and charges related to the gas pipelines of the Gasene Consortium, which entered into operation at the end of 2008. There was also an increase in the expenses with freightage of the ships for exports, under VCP and TCP contracts (R$ 116 million), due to the increase in the exports of oil and oil products, eased by the decrease in the allowance for doubtful receivable (R$ 78 million);

Net income

Petrobras posted net income of R$ 7,889 million in the second quarter of 2009, with an operating profit corresponding to 32% of the net operating income (25% in the first quarter of 2009).

(1) Before financial income and expenses and equity accounting.

The main factors that contributed to the 15% decrease in net income for this half year in relation to the first half of 2008 were:

• 15% decrease in net operating income, due to:

• Decrease in the average realization prices for naphtha, aviation kerosene and fuel oil, reflecting the behavior of international quotations; and

• Decrease in the volume sold on the domestic market, particularly the sales of naphtha (-5%), fuel oil (-4%), natural gas (-27%) and diesel (-5%).

• 17% decrease in average unit costs, as a result of:

• Lower expenditures with imports of oil and oil products and with government interests, reflecting the decrease in international quotations, as well as the lower volume of imports of oil products, especially diesel and aviation kerosene;

• Increase in the following expenditures:

• Exploration costs (R$ 486 million), due to greater expenses for geology and geophysics (R$ 357 million), due to the intensification of the Company’s investment program, in addition to the increase in expenses for the write-off of dry or economically unviable wells (R$ 114 million);

Net income

Petrobras obtained a net profit of R$ 11.352 million in 3Q-2008, with an operating profit corresponding to 23,94% of the net operating revenue (31,04% in 2Q08).

⁽¹⁾ Before financial income and expenses and the equity adjustment.

The main factors that contributed to the net income in 2008, in relation to 2007, were:

• 32% increase in net operating revenue:

• Increase in the volume sold on the domestic market, in particular the sales of gasoline (4%), natural gas (32%), diesel (9%) and aviation kerosene (10%);

• Increase in the average realization prices on the domestic and foreign markets, reflecting the increase in international prices.

• 35% increase in the average unit costs, as a result of:

• Greater expenditures with government interests and imports of oil and oil products due to the increase in international prices;

• Greater expenditures with afreightment of platforms, reflecting the fact that new fields came into operation (FPSO Piranema, FPSO Golfinho, P52 and P54 Roncador).

• Increase in the following expenses:

• Selling expenses (R$ 609 million), as a result of recording an allowance for doubtful accounts (R$ 58 million), a greater volume transported by the Malhas Consortium and the entry of new gas pipelines as from July 2007 (R$ 256 million) and greater expenditures with sea freights and the readjustment of tariffs in the contract for pipelines and terminals with Transpetro as from August 2007 (R$ 166 million);

Net Income

Petrobras recorded a net income of R$ 8.366 million in the 2Q-2008, with an operational profit corresponding to 31,04% of the net operating revenue (32,03% in the 2Q-2007).

⁽¹⁾ Before financial income and equity pick-up.

The main factors that contributed towards generating net income in the first half of 2008, in relation to the same period in 2007, were as follows:

• A 28% increase in net operating revenue:

• Increase in volume sold on the local market, particularly diesel (9%), LPG (35%) and aviation fuel (10%);

• An increase in average realization prices (ARPs) on the local market and overseas, reflecting the increase in international oil prices.

• A 30% increase in the average unit costs of the products sold, as a result of:

• Higher spending on government participations an imports of petroleum and petroleum products due to the increase in international oil prices;

• Higher spending on platform chartering, as new fields go into operation (FPSO Piranema, FPSO Golfinho, P52 and P54 Roncador).

Net income

PETROBRAS recorded net income of R$ 6.813 million in Q3-2006, with an operating profit corresponding to 20% of net operating revenue (33% in Q3-2005).

⁽¹⁾ Before financial expenses and revenues, equity in the net income of subsidiaries and net monetary and exchange variance.

The main factors which contributed to forming the net income in the period January to September 2006 in relation to the same period in 2005 were:

• 13% increase to the Average Realization Price (PMR) of basic derivatives on the domestic market throughout 2006 (especially Gasoline, Diesel Oil and Naphtha) and a 12% PMR increase in exports reflecting the higher prices of Oil on the international market (Brent 25%) and Fuel Oil (33%), contributing to the 16% increase in Net Operating Revenue in the period January to September 2006, as compared to the same period in 2005.
  
  
• Higher sales volumes, especially on the domestic market for: (i) gasoline (7%), due to the growth in the total fleet of gasoline vehicles, considering that users of vehicles which can run on both ethanol and gasoline gave priority to using gasoline in the months compared (ii) naphtha (6%), because of the higher volumes supplied to Braskem, due to PETROBRAS undercutting international prices and (iii) GLP (1%), due to greater consumption in the domestic sector, of around 4% in the north and northeast of Brazil, resulting from the Family Allowance benefit introduced by the government.

Net Income

PETROBRAS recorded net income of R$ 7.100 million in Q2-2006, with an operating profit corresponding to 34% of net operating revenue (29% in Q2-2005).

Net income

PETROBRAS had a net income of R$6,914 million for the period ended March 31, 2006, with an operational income which corresponds at 38% of the net operating revenue (30% as March 31, 2005).

• Increase in the Realization Average Price (“Preço Médio de Realização – PMR”) of basic oil products in the local market in 2005 (mainly gasoline and fuel oil) and increase in PMR of exports, reflecting a higher quotation of the Oil in the international market (32%) and of the Oil Products (31%), contributing to increase (25%) of Net Operating Revenue of 1Q-2006, in relation of the same 2005 period.
• Increase in the Brazilian crude oil and NGL production 14% over 1Q-2005, generatin an increase in the participation of national crude oil in total volumes processed by the refineries (81% for the 1Q-2006 and 79% for the 1Q-2005).
• Decrease in charges related to fiscal judicial contingencies in 1Q-2006, considering that in 1Q-2005 the Company had a loss of the fiscal process amounting to R$286 million, fact that did not occur in 2006.
• The net financial result decreased the net income in R$679 million in 1Q-2006, mainly, due to the exchange variation effects over operations with subsidiaries and marketable securities, compensated, in part, by financing and suppliers net finance revenue.
• The equity pick up results from subsidiaries contributes with a gain of R$343 million for the 1Q-2006 net income.

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