- Petrobras (NYSE:PBR) -3.1% premarket after announcing its Q2 net profit fell 68% Y/Y to 292M Brazilian reais ($92.3M) on a 6% drop in revenue, driven by lower fuel sales in the domestic market amid Brazil's worst recession on record.
- PBR also cites unfavorable rulings in tax cases that forced it to pay 6.23B reais and setting up an 818M reais provision due to a dispute involving an offshore drilling vessel as primary causes for the profit decline.
- Q2 EBITDA fell 6.6% Y/Y to 19.09B reais, below the analyst consensus estimate of 20.21B reais.
- But free cash flow was positive for the ninth consecutive quarter, allowing PBR to continue chipping away at its massive debt load which totaled $113.8B at the end of Q2, down from $115.1B at the end of Q1.
- PBR says it has regained the ability to obtain financing locally and overseas, reflecting its debt reduction efforts.
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