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Petrobras Posts Quarterly Loss as Fuel Sales, Output Slumps

  • Sales tumbled 5% on year and missed analysts’ estimates

Brazil’s deepest recession in a century is curbing lucrative fuel imports and eroding profits at state-controlled Petroleo Brasileiro SA.

The company’s net loss was 1.25 billion reais ($360 million), or 0.10 centavos per share, in the first quarter compared with a profit of 5.3 billion reais, or 41 cents, a year earlier. Sales fell to 70.3 billion reais, down 5 percent from a year ago and less than the 78.8 billion-real average estimate of four analysts in a Bloomberg survey.

Petrobras’s refining division, which drove profit in 2015 on lucrative imports of gasoline and diesel, became less profitable as Brazil’s deepest two-year recession on record eroded demand. Fuel imports slid 17 percent to 287,000 barrels a day from a year ago and domestic refinery output was flat, Petrobras said. Domestic oil and natural gas production fell 7 percent from a year ago to to 2.44 million barrels a day because of increased planned maintenance at offshore facilities.

“Imports of diesel and gasoline are low,” Sergio Tamashiro, an analyst at Haitong Research in Sao...


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