Petrobras Q1 Net Income Falls By 30%

(RTTNews) - Petrobras Brasileiro (PBR) Friday reported 30 percent decline in its first quarter net income, reflecting lower income before finance expense, share of profit of equity-accounted investments, profit sharing and income taxes and a decrease in net finance income (expense), partially offset by lower income tax expenses.

Net income for the quarter declined by 30 percent to 5.4 billion Brazilian reais from 7.69 billion Brazilian reais in the year ago period.

On a per share basis, net income was 0.41 Brazilian reais, compared to 0.59 Brazilian reais last year.

Sales revenues were 81.545 billion Brazilian reais, 12 percent higher than the 72.535 billion Brazilian reais same period last year.

On an adjusted basis, EBITDA for the period was 14.35 billion Brazilian reais, compared to 16.23 billion Brazilian reais prior year.

The Brazilian company announced Voluntary Separation Incentive Plan with 8,298 employees have enrolled, representing 12.4% of the company's total workforce. The company specified that fifty-five percent of the separations are expected to occur in 2014. Cost reduction is significant and should reach the conservative estimate of 13.0 billion Brazilian reais from 2014 to 2018.

The refining and supply unit lost 4.81 billion Brazilian reais in the period, 13 percent more than a year earlier as fuel imports continued to drag on results.