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

Credit: REUTERS/SERGIO MORAES

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)

((gram.slattery@thomsonreuters.com; +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.

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