Petrobras announced its consolidated results for the first quarter of 2010 (1Q10), in accordance with International Financial Reporting Standards (IFRS). The figures for fiscal year 2009 were adjusted for comparison purposes.
In 1Q10, net income totaled R$ 7.73 billion (R$ 0.88 per share), versus R$ 6.29 billion in 1Q09 (R$ 0.72 per share).Gross income increased from R$ 16.82 billion in 1Q09 to R$ 19.31 in 1Q10.
This strong result was driven by higher oil prices in the international market and growth the production and sales volume, reflecting the economic recovery, and the appreciation of the real. The net income increase should also be highlighted considering the adversely affected by the 19% increase in operating expenses, which was basically due to the constitution of provisions for contingencies for lawsuits. Margins in the quarter remained stable in comparison with the previous year: operating margin of 23% and net margin of 15%.
In terms of results by segment, the increase in oil prices and growth in export volumes in the quarter had a positive impact on the results in the Exploration and Production (E&P) segment. However, the Refining, Transportation & Marketing segment reported lower results due to higher oil prices and the reduction in domestic gasoline and diesel prices implemented in June 2009.Meanwhile, the other segments recorded excellent results thanks to: the positive impact of E&P activities in the International segment; higher sales margins in the Distribution segment and the increase in fixed revenue from energy auctions in the Gas & Power segment.
Investments totaled R$ 17,753 million in 1Q10, 23% higher than in 1Q09, and were mainly allocated to the E&P (53%) and Refining, Transportation & Marketing (31%) segments. The bulk of investments were financed by the Company’s cash flow, which, as measured by EBITDA, amounted to R$ 15.1 billion in 1Q10, 12% up on 1Q09.
The Company concluded the payment of dividends to shareholders related to fiscal year 2009, in the amount of R$ 8.3 billion (30.5% of net income of 2009 and R$ 0.95 per share).The last payment of dividends and interest on own capital (IOC) was made on April 30, 2010, in the amount of R$ 0.2472 per share.
Regarding the 2010 results, the Board of Directors approved an advanced payment of IOC to its shareholders, in the amount of R$ 0.20 per share. The payment date has not been set, but will be no later than August 31, 2010, and the record date will be May 21, 2010. This payment will be offset against the dividends to be paid related to the 2010 fiscal earnings.