Petrobras' Q2 profit gets big boost from asset sales

|About: Petróleo Brasileiro S.A. - ... (PBR)|By:, SA News Editor

Petrobras (NYSE:PBR) reports its highest-ever Q2 profit of 18.87B reais ($4.9B), easily beating analyst estimates, due largely to the sale of assets including its gas distribution unit.

PBR says net income would have totaled 5.02B reais without one-time items, and adjusted EBITDA would have been 33.4B reais.

So far in 2019, the company says it has received some $12.76B from asset sales, including $8.72B from its sale of gas pipelines to Engie in Q2.

PBR says it used part of the proceeds from the sales to cut its debt, which fell to $83.67B at the end of Q2 from $95.53B at the end of Q1.

PBR said previously that production from its pre-salt fields jumped nearly 13% Q/Q, but output from post-salt offshore fields fell 4.1%, largely because of the closure of production on some platforms, and output from shallow water and onshore wells slid 10%.

"No one controls the price of oil, but the company controls its production numbers, so that’s the emphasis of shareholders and analysts," says Raymond James analyst Pavel Molchanov.

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