Petrobras and its subsidiaries presented a consolidated net profit of R$ 35,189 million in the year ended December 31, 2010, after eliminating intercompany transactions and deducting the minority interest, which is a 17% increase in relation to the previous year (R$ 30,051 million).
This result was impacted by:
Increase in gross profit of R$ 3,095 million, due to:
Greater volumes sold in Brazil (R$ 7,528 million), especially for diesel, influenced by the recovery of industrial activity, and for gasoline, a reflection of the scarcity of alcohol on the market, favoring migration to gasoline in flex fuel vehicles, and the reduction in the addition of anhydrous alcohol in C gasoline, in addition to the appreciation of the average of prices of exports (R$ 6,069 million).
Higher costs (R$ 10,647 million), resulting from greater expenditures from importing oil, oil products and gas and from government interests in Brazil.
Increase in expenditures, especially:
Sales (R$ 1,285 million), on account of the greater volume of products sold and the quotation for freight (R$ 543 million), the increase in expenditures with personnel and services of third parties (R$ 244 million), a provision for doubtful accounts (R$ 137 million) and depreciation (R$ 117 million), due to the entry into operation of the northern section of Gasene;
General and Administrative (R$ 605 million), especially the greater expenditures with personnel (R$ 312 million), mainly from a salary readjustment negotiated in the 2010/2011 collective labor agreement;
Better net financial results (R$ 2,725 million), on account of the fluctuations in the exchange rate on the net liabilities in US dollars in 2010, while in 2009 there were exchange losses posted on the average balance of the net assets in US dollars, in conformity with the table below:
2010 vs 2009 (%)
Net Financial Result
Expenses / Financial Revenue
Monetary and Exchange Variation
In 2010: appreciation of the Real against the U.S. dolar in 4.3% over net liabilities in the period.
In 2009: appreciation of the Real against the U.S. dolar in 25,5% over average balance of net assets in the period.
Positive effect of the non-controlling interest (R$ 2,581 million) resulting from the fluctuation in the exchange rate on the indebtedness of the SPEs, through the exercise of the share purchase option of some structured projects, and through the review of the flows of future receipts related to financial leasing operations.
The provision for interest on shareholders' equity in 2010 generated a tax benefit of R$ 3,456 million (R$ 2,446 million in 2009).