![](https://a673b.bigscoots-temp.com/wp-content/uploads/2016/01/pbr.jpg)
Petroleo Brasileiro S.A. (NYSE: PBR), better known as Petrobras, reported first-quarter 2016 earnings after markets closed on Thursday. The Brazilian oil major reported a net loss of 1.246 billion reais (about $359 million), much worse that the consensus estimate for a profit of 3.64 billion reais (about $1.05 billion). Sales fell 5% year over year to around $2.02 billion, and operating earnings fell 37% to around $235 million.
Petrobras attributed the quarterly loss to higher interest costs, unfavorable currency exchange rates and lower production. The tumble in operating earnings reflected lower gross earnings of 6% due to an 8% decline in domestic demand and lower oil prices. The company also sold less natural gas and faced lower demand for electricity generation.
Production of oil and liquefied natural gas in Brazil totaled 1.98 million barrels per day, down 6% sequentially and down 8% year over year. Natural gas production in the country was down 3%, both sequentially and year over year.
Including foreign production, Petrobras reported total production of 2.62 million barrels of oil equivalent per day, down 6% sequentially and down 7% year over year.
Refined product production of 1.96 million barrels a day was flat, both sequentially and year over year, but sales declined 8%.
The average price of Brent crude fell about 22% from $43.69 in the fourth quarter of last year to $33.89 in the first quarter. Year over year, the price decline was 37%.
Petrobras’s American depositary shares (ADSs) closed Thursday at $7.35, in a 52-week range of $2.71 to $10.46. ADSs slipped about 2% early Friday’s to $7.20, above the consensus price target of $4.88. One ADS is equal to two ordinary shares.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.