This excerpt taken from the PBR 6-K filed Aug 25, 2005.
RESULTS OF OPERATIONS FOR THE FIRST HALF OF 2005 COMPARED TO THE FIRST HALF OF 2004
The comparison between our results of operations for the first half of 2005 and the first half 2004 has been affected by the 13.4% decrease in the average Real/U.S. dollar exchange rate for the first half of 2005 as compared to the average Real/U.S. dollar exchange rate for the first half of 2004. For ease, we refer to this change in the average exchange rate as the 13.4% increase in the value of the Real against the U.S. dollar in the first half of 2005, as compared to the first half of 2004.
The exchange variation resulting from monetary assets and liabilities related to operations of consolidated subsidiaries whose functional currency are not Reais are not eliminated in the consolidation process and such results are accounted for as cumulative translation adjustments.