Brazil's Petrobras posts solid margins, but one-off charges hit profits


Adds details on non-recurring charges

RIO DE JANEIRO, Oct 28 (Reuters) - Brazil's Petrobras posted solid margins in the third quarter, but posted an unexpected loss thanks to substantial non-recurring charges, the company said on Wednesday.

In a securities filing, Petroleo Brasileiro SA PETR4.SA, as the state-run oil company is formally known, posted a third-quarter loss of 1.546 billion reais ($275 million). Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for some one-off items, came in at 33.4 billion reais, above the Refinitiv estimate of 29.7 billion reais.

Among the one-off charges that the company highlighted was the payment of 1.9 billion reais to two state governments to settle outstanding tax disputes, as well as a significant bond buyback program. Declines in the Brazilian real against the U.S. dollar helped magnify some losses, the company added.

Petrobras said that, excluding one-off items, the company would have posted a net income of 3.2 billion reais, trouncing the Refinitiv estimate of 736 million reais.

($1 = 5.62 reais)

(Reporting by Gram Slattery and Sabrina Valle; Editing by Christian Plumb)

((; +55-11-95057-1453))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.