PBR » Topics » Other Operating Expenses

This excerpt taken from the PBR 6-K filed Sep 9, 2009.

Other Operating Expenses

Other operating expenses decreased 42.8% to U.S.$636 million in the first half of 2009 from U.S.$1,112 million in the first half of 2008. A breakdown of other operating expenses by segment is included on page 28.

The most significant changes between the first half of 2009 and 2008 were:

• a U.S.$205 million extraordinary expense for marking inventory to market value in the first half of 2009;

• 276.2% (U.S.$116 million) increase in expense for unscheduled stoppages of plant and equipment, to U.S.$158 million in the first half of 2009 compared to U.S.$42 million in the first half of 2008;

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• 2.0% (U.S.$3 million) decrease in operating expense at thermoelectric power plants, to U.S.$146 million in the first half of 2009 compared to U.S.$149 million in the first half of 2008;

• 34.3% (U.S.$35 million) decrease in expense for health, safety, and environment (HSE), to U.S.$67 million in the first half of 2009 compared to U.S.$102 million in the first half of 2008;

• 40.9% (U.S.$70 million) decrease in expense for losses and contingencies related to legal proceedings, to U.S.$101 million in the first half of 2009 compared to U.S.$171 million in the first half of 2008;

• 40.9% (U.S.$134 million) decrease in expense for institutional relations and cultural projects, to U.S.$194 million in the first half of 2009 compared to U.S.$328 million in the first half of 2008; and

• 95.9% (U.S.$162 million) decrease in expense for contractual fines, to U.S.$7 million in the first half of 2009 compared to U.S.$169 million in the first half of 2008.

This excerpt taken from the PBR 6-K filed Jun 1, 2009.

Other Operating Expenses

Other operating expenses decreased 27.7% to U.S.$436 million in the three-month period ended March 31, 2009 from U.S.$603 million in the three-month period ended March 31, 2008. A breakdown of other operating expenses by segment is included on page 27.

The most significant changes between the three-month period ended March 31, 2009 and March 31, 2008 were:

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a U.S.$98 million extraordinary expense for marking inventory to market value in the first quarter of 2009;
 
100.0% (U.S.$31 million) increase in expense for unscheduled stoppages of plant and equipment, to U.S.$62 million in the first quarter of 2009 compared to U.S.$31 million in the first quarter of 2008;
 
23.9% (U.S.$11 million) decrease in expense for health, safety, and environment (HSE) to U.S.$35 million in the first quarter of 2009 compared to U.S.$46 million in the first quarter of 2008;
 
17.2% (U.S.$16 million) decrease in operating expense at thermoelectric power plants, to U.S.$77 million in the first quarter of 2009 compared to U.S.$93 million in the first quarter of 2008;
 
62.9% (U.S.$56 million) decrease in expense for losses and contingencies related to legal proceedings to U.S.$33 million in the first quarter of 2009 compared to U.S.$89 million in the first quarter of 2008; and
 
48.1% (U.S.$77 million) decrease in expense for institutional relations and cultural projects, to U.S.$83 million in the first quarter of 2009 compared to U.S.$160 million in the first quarter of 2008.
This excerpt taken from the PBR 20-F filed May 22, 2009.
Other Operating Expenses
 
PifCo recognized a loss of US$577 million due to inventory impairment for the year ended December 31, 2008, as a result of the recent decline in the international oil prices.
 
This excerpt taken from the PBR 6-K filed Mar 30, 2009.

Other Operating Expenses

Other operating expenses increased 24.8% to U.S.$2,665 million for 2008 from U.S.$2,136 million for 2007. A breakdown of other operating expenses by segment is included on page 30.

The most significant charges for 2008 were:

• U.S.$675 million expense for institutional relations and cultural projects;

• U.S.$545 million expense for marking inventory to market value;

• U.S.$345 million expense for idle capacity at thermoelectric power plants;

• U.S.$322 million expense related to the negotiation of collective bargaining agreements;

• U.S.$273 million expense for losses and contingencies related to legal proceedings;

• U.S.$237 million expense for contractual fines; and

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• U.S.$214 million expense for health, safety, and environment (HSE).

The most significant charges for 2007 were:

• U.S.$649 million expense for institutional relations and cultural projects;

• U.S.$498 million expense related to changes in the Petros Pension Plan regulations;

• U.S.$244 million expense for HSE;

• U.S.$240 million expense for contractual fines;

• U.S.$235 million expense related to collective bargaining agreements;

• U.S.$211 million expense for losses and contingencies related to legal proceedings;

• U.S.$176 million expense for idle capacity at thermoelectric power plants; and

• U.S.$65 million expense for unscheduled stoppages of plant and equipment.

This excerpt taken from the PBR 6-K filed Nov 28, 2008.

Other operating expenses

Other operating expenses increased 13.0% to U.S.$1,942 million in the nine-month period ended September 30, 2008, from U.S.$1,718 million in the nine-month period ended September 30, 2007. A breakdown of other operating expenses by segment is included on page 28.

The most significant expenses in the nine-month period ended September 30, 2008 were:

  • a U.S.$516 million expense for institutional relations and cultural projects;

  • a U.S.$322 million expense related to collective bargaining agreement;

  • a U.S.$249 million expense related to operating expenses with thermoelectrics;

  • a U.S.$229 million expense of losses and contingencies related to legal proceedings;

  • a U.S.$216 million expense for contractual fines;

  • a U.S.$176 million expense for health, safety, and environment (HSE); and

  • a U.S.$173 million expense related to allowance for inventory to market value.

The most significant expenses in the nine-month period ended September 30, 2007 were:

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  • a U.S.$496 million expense related to the amendments to certain clauses in the Petros Plan regulations; 

  • a U.S.$413 million expense for institutional relations and cultural projects; 

  • a U.S.$172 million expense for idle capacity from thermoelectric power plants; 

  • a U.S.$165 million expense for HSE; 

  • a U.S.$144 million expense related to the collective bargaining agreement; and  

  • a U.S.$132 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits. 
This excerpt taken from the PBR 6-K filed Sep 4, 2008.

Other operating expenses

Other operating expenses decreased 15.2% to U.S.$1,112 million in the first half of 2008, from U.S.$1,312 million in the first half of 2007. A breakdown of other operating expenses by segment is included on page 27.

The most significant expenses in the first half of 2008 were:

• a U.S.$328 million expense for institutional relations and cultural projects;

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• a U.S.$171 million expense of losses and contingencies related to legal proceedings;

• a U.S.$169 million expense for contractual fines;

• a U.S.$149 million expense related to operating expenses with thermoelectrics;

• a U.S.$102 million expense for health, safety, and environment (HSE); and

• a U.S.$42 million expense for unscheduled stoppages of plants and equipment.

The most significant expenses in the first half of 2007 were:

• a U.S.$512 million expense related to the amendments to certain clauses in the Petros Pension Plan regulations;

• a U.S.$255 million expense for institutional relations and cultural projects;

• a U.S.$120 million expense for idle capacity from thermoelectric power plants;

• a U.S.$110 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits;

• a U.S.$97 million expense for health, safety, and environment (HSE); and

• a U.S.$60 million expense related to the implementation of our new salaries plan.

This excerpt taken from the PBR 6-K filed May 22, 2008.

Other operating expenses

Other operating expenses decreased 19.2% to U.S.$603 million for the first quarter of 2008, from U.S.$746 million for the first quarter of 2007. A breakdown of other operating expenses by segment is located on page 27.

The most significant expenses for the first quarter of 2008 were:

  • a U.S.$160 million expense for institutional relations and cultural projects;

  • a U.S.$146 million expense for contractual fines;

  • a U.S.$93 million expense related to operating expenses with thermoelectric;

  • a U.S.$89 million expense of losses and contingencies related to legal proceedings;

  • a U.S.$46 million expense for health, safety, and environment (HSE); and

  • a U.S.$31 million expense for unscheduled stoppages of plant and equipment.

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The most significant expenses for the first quarter of 2007 were:

  • a U.S.$498 million expense related to the amendments to certain clauses in the Petros Plan regulations;

  • a U.S.$138 million expense for institutional relations and cultural projects; and

  • a U.S.$51 million expense related to thermoelectric operating expenses.
This excerpt taken from the PBR 6-K filed Mar 18, 2008.

Other operating expenses

Other operating expenses increased to a total of U.S.$2,136 million for 2007, from U.S.$1,120 million for 2006. A breakdown of other operating expenses by segment is located on page 31.

The most significant charges for 2007 were:

  • a U.S.$498 million expense related to the changes in the Petros Pension Plan regulations;

  • a U.S.$235 million expense related to the implementation of our new salaries plan;

  • a U.S.$211 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits;

  • a U.S.$244 million expense for health, safety, and environment (HSE);

  • a U.S.$649 million expense for institutional relations and cultural projects;

  • a U.S.$65 million expense for unscheduled stoppages of plant and equipment; and

  • a U.S.$176 million expense for idle capacity from thermoelectric power plants.

The most significant charges for 2006 were:

  • a U.S.$568 million expense for institutional relations and cultural projects;

  • a U.S.$238 million expense for idle capacity from thermoelectric power plants;

  • a U.S.$133 million expense for HSE;

  • a U.S.$75 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits;

  • a U.S.$64 million expense for unscheduled stoppages of plant and equipment; and

  • U.S.$32 million gain related to recovery of exploratory expenses in Nigeria.

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This excerpt taken from the PBR 6-K filed Nov 29, 2007.

Other operating expenses

Other operating expenses increased to a total of U.S.$ 1,718 million for the nine-month period ended September 30, 2007, as compared to U.S.$ 600 million for the nine-month period ended September 30, 2006. A breakdown of other operating expenses by segment is shown on page 30.

The most significant charges for the nine-month period ended September 30, 2007 were:

• a U.S.$ 496 million expense related to the changes in the Petros Pension Plan regulations;

• a U.S.$ 413 million expense for institutional relations and cultural projects;

• a U.S.$ 172 million expense for idle capacity from thermoelectric power plants;

• a U.S.$ 165 million expense for health, safety, and environment (HSE);

• a U.S.$ 144 million expense related to the implementation of our new salaries plan;

• a U.S.$ 134 million expense related to contractual fines; and

• a U.S.$ 132 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits.

The most significant charges for the nine-month period ended September 30, 2006 were:

• a U.S.$ 336 million expense for institutional relations and cultural projects;

• a U.S.$ 187 million expense for idle capacity from thermoelectric power plants;

• a U.S.$ 103 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits; and

• a U.S.$ 46 million gain related to bonuses received from partners and other results with non-core activities.

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

Other operating expenses

Other operating expenses increased to a total of U.S.$ 1,312 million for the first half of 2007, as compared to U.S.$ 272 million for the first half of 2006. A breakdown of other operating expenses by segment is shown on page 30.

The most significant charges for the first half of 2007 were:

  • a U.S.$ 512 million expense related to the amendments to certain clauses in the Petros Pension Plan regulations;

  • a U.S.$ 255 million expense for institutional relations and cultural projects;

  • a U.S.$ 120 million expense for idle capacity from thermoelectric power plants;

  • a U.S.$ 110 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits;

  • a U.S.$ 97 million expense for health, safety, and environment (HSE); and

  • a U.S.$ 60 million expense related to the implementation of our new salaries plan.

The most significant charges for the first half of 2006 were:

  • a U.S.$ 206 million expense for institutional relations and cultural projects;

  • a U.S.$ 179 million gain related to bonus received from partners and other results with non-core activities;

  • a U.S.$ 129 million expense for idle capacity from thermoelectric power plants;

  • a U.S.$ 73 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits; and

  • a U.S.$ 52 million expense for HSE.
This excerpt taken from the PBR 6-K filed Jun 13, 2007.

Other operating expenses

Other operating expenses increased to a total of U.S.$ 733 million for the first quarter of 2007, as compared to U.S.$ 81 million for the first quarter of 2006. A breakdown of other operating expenses by segment is shown on page 28.

The most significant charges for the first quarter of 2007 were:

  • a U.S.$ 498 million expense related to the amendments to certain clauses in the Petros Plan regulations;

  • a U.S.$ 138 million expense for institutional relations and cultural projects; and

  • a U.S.$ 68 million expense for idle capacity from thermoelectric power plants.

The most significant charges for the first quarter of 2006 were:

  • a U.S.$ 115 million gain related to a bonuses received from partners and other results with non- core activities;

  • a U.S.$ 94 million expense for institutional relations and cultural projects; and

  • a U.S.$ 90 million expense for idle capacity from thermoelectric power plants.
This excerpt taken from the PBR 6-K filed Apr 10, 2007.

Other operating expenses

Other operating expenses decreased 25.6% to a total of U.S.$ 1,081 million for 2006, as compared to U.S.$ 1,453 million for 2005. A breakdown of other operating expenses by segment is shown on page 31.

The most significant charges for 2006 were:

  • a U.S.$ 568 million expense for institutional relations and cultural projects;

  • a U.S.$ 331 million expense for idle capacity from thermoelectric power plants;

  • a U.S.$ 75 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits;

  • a U.S.$ 64 million expense for unscheduled stoppages of plant and equipment; and

  • a U.S.$ 46 million gain related to bonuses received from partners and other results with non-core activities.

The most significant charges for 2005 were:

  • a U.S.$ 457 million expense for thermoelectric plants related to idle capacity and penalties and contingencies;

  • a U.S.$ 397 million expense for institutional relations and cultural projects;

  • a U.S.$ 255 million loss related to the exchange of assets between us and Repsol that occurred in 2001. See Note 10(b) to our consolidated financial statements for the year ended December 31, 2006;

  • a U.S.$ 139 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits;

  • a U.S.$ 64 million expense for unscheduled stoppages of plant and equipment; and

  • a U.S.$ 61 million expense related to contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.
This excerpt taken from the PBR 6-K filed Nov 28, 2006.

Other operating expenses

Other operating expenses decreased 29.5% to a total of U.S.$ 582 million for the nine-month period ended September 30, 2006, as compared to U.S.$ 825 million for the nine-month period ended September 30, 2005. A breakdown of other operating expenses by segment is shown on page 30.

The most significant charges for the nine-month period ended September 30, 2006 were:

  • a U.S.$ 336 million expense for institutional relations and cultural projects;
  • a U.S.$ 46 million gain related to bonuses received from partners and other results with non- core activities;
  • a U.S.$ 260 million expense for idle capacity from thermoelectric power plants; and
  • a U.S.$ 103 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits.

The most significant charges for the nine-month period ended September 30, 2005 were:

  • a U.S.$ 225 million expense for institutional relations and cultural projects;
  • a U.S.$ 249 million expense for thermoelectric plants related to idle capacity and penalties and contingencies;
  • a U.S.$ 136 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits;

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  • a U.S.$ 74 million expense for unscheduled stoppages of plant and equipment; and
  • a U.S.$ 39 million expense related to contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.
This excerpt taken from the PBR 6-K filed Sep 6, 2006.

Other operating expenses

Other operating expenses decreased 57.7% to a total of U.S.$ 278 million for the first half of 2006, as compared to U.S.$ 657 million for the first half of 2005. A breakdown of other operating expenses by segment is shown on page 28.

The most significant charges for the first half of 2006 were:

  • a U.S.$ 206 million expense for institutional relations and cultural projects;

  • a U.S.$ 179 million gain related to bonus received from partners and other results with non- core activities;

  • a U.S.$ 178 million expense for idle capacity from thermoelectric power plants; and

  • a U.S.$ 73 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits.

The most significant charges for the first half of 2005 were:

  • a U.S.$ 191 million expense with thermoelectric plants related to idle capacity and penalties and contingencies;

  • a U.S.$ 155 million expense for losses resulting from legal proceedings and contingencies related to pending lawsuits;

  • a U.S.$ 138 million expense for institutional relations and cultural projects;

  • a U.S.$ 55 million expense for unscheduled stoppages of plant and equipment; and

  • a U.S.$ 29 million expense related to contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.
This excerpt taken from the PBR 6-K filed Jun 28, 2006.

Other operating expenses

Other operating expenses decreased 66.3% to a total of U.S.$ 81 million for the first quarter of 2006, as compared to U.S.$ 240 million for the first quarter of 2005. A breakdown of other operating expenses by segment is shown on page 27.

The most significant charges for the first quarter of 2006 were:

  • a U.S.$ 115 million gain related to bonus received from partners and other results with non-core activities;
  • a U.S.$ 94 million expense for institutional relations and cultural projects; and
  • a U.S.$ 90 million expense for idle capacity from thermoelectric power plants.

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The most significant charges for the first quarter of 2005 were:

  • a U.S.$ 132 million expense for losses resulted from legal proceedings;
  • a U.S.$ 72 million expense for institutional relations and cultural projects;
  • a U.S.$ 62 million expense for idle capacity from thermoelectric power plants; and
  • a U.S.$ 26 million gain related to bonus received from partners and other results with non-core activities.
This excerpt taken from the PBR 6-K filed Nov 23, 2005.

Other operating expenses

Other operating expenses increased 42.3% to an expense of U.S.$ 249 million for the nine-month period ended September 30, 2005, as compared to an expense of U.S.$ 175 million for the nine-month period ended September 30, 2004.

The most significant charges for the nine-month period ended September 30, 2005 were:

  • a U.S.$ 136 million expense related to idle capacity from thermoelectric power plants;

  • a U.S.$ 74 million expense for unscheduled stoppages of plant and equipment; and

  • a U.S.$ 39 million increase in contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.

The charges for the nine-month period ended September 30, 2004 were:

Page: 10


  • a U.S.$ 63 million expense related to idle capacity from thermoelectric power plants;

  • a U.S.$ 61 million expense for unscheduled stoppages of plant and equipment; and

  • a U.S.$ 51 million increase in contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.
This excerpt taken from the PBR 6-K filed Aug 25, 2005.

Other operating expenses

Other operating expenses increased to an expense of U.S.$ 176 million for the first half of 2005, as compared to an expense of U.S.$ 143 million for the first half of 2004.

The most significant charges for the first half of 2005 were:

  • a U.S.$ 92 million expense related to idle capacity from thermoelectric power plants;

  • a U.S.$ 55 million expense for unscheduled stoppages of plant and equipment; and

  • a U.S.$ 29 million increase in contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.

The charges for the first half of 2004 were:

  • a U.S.$ 65 million expense for unscheduled stoppages of plant and equipment;

  • a U.S.$ 42 million operating expenses related to idle capacity from thermoelectric power plants; and

  • a U.S.$ 36 million increase in contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.
This excerpt taken from the PBR 20-F filed Jun 30, 2005.

Other operating Expenses

 

For 2003 we recognized losses amounting to U.S.$326 million under other operating expenses which were composed of:

 

    a U.S.$173 million expense for unscheduled stoppages of plant and equipment;

 

    a U.S.$97 million provision for expected losses on the sale of property, plant and equipment related to off-shore production; and

 

    a U.S.$56 million increase in losses associated with our ship-or-pay commitment related to the OCP pipeline in Ecuador.

 

This excerpt taken from the PBR 6-K filed Jun 13, 2005.

Other operating expenses

 

Other operating expenses increased to an expense of U.S.$ 89 million for the first quarter of 2005, as compared to an expense of U.S.$ 62 million for the first quarter of 2004.

 

The most significant charges for the first quarter of 2005 were:

 

    a U.S.$ 51 million expense related to idle capacity from thermoelectric power plants;

 

    a U.S.$ 24 million expense for unscheduled stoppages of plant and equipment; and

 

    a U.S.$ 14 million increase in contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.

 

The charges for the first quarter of 2004 were:

 

    a U.S.$ 38 million expense for unscheduled stoppages of plant and equipment;

 

    a U.S.$ 19 million operating expense related to idle capacity from thermoelectric power plants; and

 

    a U.S.$ 5 million increase in contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.

 

This excerpt taken from the PBR 6-K filed Jun 8, 2005.

Other operating expenses

 

Other operating expenses decreased 20.6% to an expense of U.S.$ 259 million for 2004, as compared to an expense of U.S.$ 326 million for 2003.

 

The charges for 2004 were:

 

    a U.S.$110 million expense for idle capacity from thermoelectric power plants;

 

    a U.S.$85 million expense for unscheduled stoppages of plant and equipment; and

 

    a U.S.$64 million increase in contractual losses from compliance with our ship or pay commitments with respect to our investments in the OCP pipeline in Ecuador.

 

The charges for 2003 were:

 

    a U.S.$173 million expense for unscheduled stoppages of plant and equipment;

 

    a U.S.$97 million provision for expected losses on the sale of property, plant and equipment related to offshore production; and

 

    a U.S.$56 million increase in losses associated with our ship or pay commitments related to the OCP pipeline in Ecuador.

 

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