PreSalt.com

14 Nov 2009 - by PreSalt.com

Petrobras 3Q09 Analysis PART 3 (Final) - (Bovespa: PETR3/PETR4, NYSE: PBR / PBRA, Latibex: XPBR / XPBRA, BCBA: APBR / APBRA)

Continue from PART 2

Lower lifting costs – In pace with the lower average oil prices, lifting costs in Brazil, not including government take,  continued on the fall. Compared to 3Q08, the cost, in Reais, was down 4% Even with the recovery in oil prices throughout the year, lifting costs in Reais, without government take, also fell compared to 2Q09 (4%) on account of the lower expenses with extraordinary interventions in the Campos Basin.

New issuing successful – The credibility the Company has achieved and its investment grade allowed a total of $34.8 billion in funds to be raised in 2009, even after the strong international crisis that affected the financial market last year,  which increased aversion to risk.

The last operation Petrobras carried out successfully was in October, when it completed the issuing of notes in the international capitals market, for the total amount of $4 billion and due in 10 and 30 years. The operation was carried out by means of its wholly-owned subsidiary PifCo.

This issuing was the biggest debt placement made by a Brazilian company in the international capitals market ever, with a demand 2.9 times larger than its final volume and the participation of upwards of 500 investors from the United States, Europe, Asia and Latin America. The Company's capital structure remained unchanged in the quarter, at 28%, within the desired level of 25% to 35%.

Economic contribution to Brazil – The economic contribution Petrobras made to the country, measured via tax, fee, and social contribution generation, totaled R$14.232 billion, 3% less than 3Q08, but 9% more than 2Q09. Government take in the country remained stable compared to a year ago.

However, reflecting the recovery of the international oil prices in the quarter, which affected the average reference price for domestic oil for tax payment effects, and on account of the extraordinary provisioning for Marlim, government take in Brazil rose 70% compared to 2Q09.

Petrobras' market value accumulates a significant rise in 2009 – The good results Petrobras has achieved and its excellent future perspectives afforded a significant rise in the Company's market value, which rose 50% in the year. In the year to date, Petrobras' stock outperformed the main international indices. The preferred stock traded at Bovespa surged 53.24% in the period, while the ordinary stock increased 48.60%. Petrobras' market value closed September at R$336.772 billion.

The market reacted positively to the New Regulatory Model – After the new regulatory model was announced on 08/31/09, Petrobras' market value accumulated a 31% increase. This was the biggest growth among the oil and gas sector's main global players and is evidence the market's good receptivity of the new regulatory framework.