Petrobras Reports Declining Profits in Q2

SÃO PAULO - Petrobras, the Rio de Janeiro-based oil company, has announced a drop in profits for the second quarter compared to the previous year. This decline can be attributed to the decrease in global oil prices and a significant drop in crack spreads for diesel fuel.

The company reported a net income of 28.8 billion reais ($5.9 billion USD), down from 54.3 billion reais recorded in the same period last year. Recurring net income, which excludes one-time items, also decreased from 44.9 billion reais to 28.8 billion reais year-on-year.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 56.7 billion reais, down from 98.3 billion reais. Additionally, revenue declined to 113.8 billion reais from 171 billion reais in Q2 of the previous year.

Petrobras cited the average price of a barrel of benchmark Brent crude oil, which fell from $113.78 to $78.39 during the second quarter, as a contributing factor to its reduced profits. The company also noted that crack spreads, representing the difference between the cost of oil and the price of its derived products, experienced a decline of over 40% during this period.