Petrobras Reports Consolidated Results for 2Q10

Petrobras announced its consolidated results for the first quarter of 2010 (2Q10), in accordance with International Financial Reporting Standards (IFRS). The figures for fiscal year 2009 were adjusted for comparison purposes.

In 2Q10, net income totaled R$ 8.29 billion (R$ 0.95 per share), versus R$ 8.16 billion in 2Q09 (R$ 0.93 per share). Gross income reached R$ 19.4 billion in 2Q10 (R$ 20.09 billion in 2Q09).

In 1H10, net income totaled R$ 16.02 billion, 11% over the 1H09 (R$ 14.45 billion). The result reflects an increase of 3% in oil and gas production, higher export prices and 11% upturn in domestic sales volume.

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.

Investments totaled R$ 38,101 million in 1H10, 17% higher than in 1H09, and were mainly allocated to the E&P (41%) and Refining, Transportation & Marketing (36%) segments. The investments were financed mainly by the Company’s cash flow, which amounted to R$ 15.9 billion in 2Q10, and R$ 31.0 billion in 1H10 (EBITDA).