Petrobras collects $464M from Brazil for diesel subsidy as H1 profit jumps 55%
What's the deal? PetrobrasDealroom has a profile for this one. Try Dealroom → has received 2.568 billion reais (€434 million) from Brazil's federal government for its role in a public subsidy program covering diesel sales. The payment split into two tranches: 643.8 million reais (€108.8 million) for June 1 to June 15, and 1.924 billion reais (€325.2 million) for June 16 to June 30.
Why now? The disbursement is the latest under a scheme designed to cushion diesel prices for Brazilian consumers. Since the plan launched, Petrobras has accumulated 9.5 billion reais (€1.606 billion) in total compensation.
The numbers: The state-controlled oil company, in which Brazil holds a 35.45% stake, posted a first-half profit of $16.627 billion (€14.399 billion), up 55.3% year-on-year. Revenue reached $57.142 billion (€49.485 billion), a 35.7% increase.
The signal: Government reimbursements are helping keep Petrobras profitable while it absorbs the cost of holding fuel prices down. It's a balancing act between serving public policy and rewarding shareholders, one that hinges on the state continuing to pay its share.
Image credit: Rodrigo_Soldon
