Petrobras Q3 profit plunges below analyst estimates

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

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.

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