Petrobras Posts $11 Billion Impairment on Lower Oil Outlook

(Bloomberg) -- Petrobras, the Brazilian sate-controlled oil producer, posted a 65 billion-real ($11 billion) impairment in the first quarter after revising down its outlook for crude prices.

Even without the impairment, Petrobras reported a loss in the quarter on lower oil prices and the devaluation of Brazil’s real, the worst-performing major currency this year.

• Petrobras’ Ebitda, which excludes the devaluation, was ahead of expectations at 37.50 billion reais.
• While low oil prices have battered the entire industry, Petrobras has benefited from rebounding oil demand in China that helped bring total exports to a record in April. Since then, there are signs Petrobras is getting better prices for its crude from Chinese refiners as OPEC production cuts offer support.
• Petrobras said its divestment program remains intact, even though it may be delayed. It said it expects to close some refinery sales before the end of the year.
• A 3.8% drop in production in the quarter was from the least profitable fields, and output has rebounded in April.

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