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Petrobras Q3 profit plunges below analyst estimates

  • Petrobras (PBR) reports Q3 net earnings of 3.4B Brazilian reais ($1.6B), down 39% Y/Y and far below analyst consensus, on heavy diesel imports and stagnant crude oil output (pdf).
  • Strong domestic demand for diesel amid Brazil's record grains harvest combined with flat production, the company says; imports undercut its profit as the Brazilian government forced it to subsidize local fuel consumption by not allowing it to pass higher international prices along to consumers at the pump.
  • Q3 revenues rose 5% to 77.7B reais, while adjusted EBITDA fell 28% Y/Y to 13.1B reais.
  • Shares -1.2% AH.
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Comments (3)
  • saratogahawk
    , contributor
    Comments (1975) | Send Message
    Many of us have been saying this was in the cards. I think a lot of this has to be laid directly on government intervention and bad policies. This report is so bad we may actually see the bottom set in for PBR in the near future. Maybe a perverse opportunity. However, probably not one for me unless I am really drunk and accidentally hit the "buy" button.
    26 Oct 2013, 09:33 AM Reply Like
  • diadochi
    , contributor
    Comments (224) | Send Message
    And why with all this bad news has the price been going through the roof? No doubt certain information rich actors acting on some insider tip--probably some Brazilian government action like letting them sell petrochemicals there at world prices that is not yet public. Got to let all our friends buy in first, though. I'm long, so I should be happy, but when I see stuff like this...
    28 Oct 2013, 11:36 AM Reply Like
  • saratogahawk
    , contributor
    Comments (1975) | Send Message
    Sure seems fishy but Brazil knows that it is in trouble and I bet they will manipulate diesel pricing over the next couple of years to get PBR out of this hole.
    28 Oct 2013, 11:55 AM Reply Like
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