This excerpt taken from the PBR 6-K filed Jun 8, 2007.
The reduction in net income for 1Q-2007 as compared to 1Q-2006 was primarily due to the decline in average prices for crude oil and petroleum products in Brazil and abroad, influenced by the fall in international oil prices. Below is a breakdown of the factors leading to the reduction in net income:
A R$ 977 million reduction in gross profit:
** CIF Values.