Petrobras Touts $6.5B in 1Q Net Earnings

Petrobras announces its consolidated results of the first quarter 2011 (1Q11), in accordance with generally accepted accounting practices in United States (US GAAP).

The consolidated net income reached US $6.5 billion in the 1Q11, (US $1.00 per ADS), compared to US $4.3 billion in the 1Q10 (US $ 0.98 per ADS). The increase of 51% was primarily due to higher production volumes, higher prices and higher domestic sales volumes. The increase was also due to higher foreign exchange gains on net debt denominated in U.S. dollars.

Adjusted EBITDA was US $9.5 billion in 1Q11, compared to US $8.4 billion in the 1Q10.

Capital expenditures amounted to US $9.9 billion in the 1Q11, most of which allocated to the expansion of future oil and gas production capacity.