Rio de Janeiro – August 3, 2012 – Petrobras today announced its consolidated results stated in millions of Reais, prepared in accordance with International Financial Reporting Standards – IFRS issued by the International Accounting Standards Board – IASB.

Consolidated net income attributable to the shareholders of Petrobras and EBITDA reached R$7,868 million and R$27,120 million, respectively, in the first half of 2012.

The Company registered consolidated net loss of R$1,346 million in the second quarter of 2012.

Highlights

 

R$ million
			For the first half of
2Q-2012	2Q12 x 1Q12 (%)		2012	2011	2012 x 2011 (%)
(1,346)		Consolidated net income/ (loss) attributable to the shareholders of Petrobras	7,868	21,928	(64)
2,579	(4)	Total domestic and international oil and natural gas production (mbbl/d)	2,628	2,618
10,599	(36)	EBITDA	27,120	31,764	(15)

The net loss reported in the second quarter of 2012 was mainly a result of exchange depreciation, but was also affected by other operating and economic conditions:

• The depreciation of the Real against the U.S.
  
  Dollar significantly affected the net financial expenses due to our dollar-indexed debt as well as the dollar-related costs of the Company.

• Higher expenses with write-offs of dry or sub-commercial wells, mainly drilled between 2009 and 2012, primarily located in areas of new frontiers.

• Crude oil production decreased due to maintenance stoppages aiming to increase operational efficiency.

• Higher lifting costs due to stoppages and expenses with the operational efficiency improvement program of mature fields, which benefits did not occur in this period.

• The price of oil products sold in Brazil remained significantly lower than international prices, during greater part of this quarter, being partially adjusted on June, 25, 2012.

• The oil products demand increased and was primarily met by realization of inventories purchased previously at higher costs and a higher percentage of oil products imports in the sales mix, mainly diesel.

• The decrease in international prices at the end of the period generated inventory losses in the refineries outside of Brazil.

• LNG imports increased in order to meet higher thermoelectric demand while electricity sales margins decreased due to the higher differences settlement price.
  
  The thermoelectric demand diminished at the end of the period.

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