Petrobras hit by lower oil price

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The Brazilian state-run oil producer, Petrobras, has reported a fall in profits because of lower oil prices.

Petrobras reported a net profit of 5.8bn reais ($2.8bn; £1.85bn) in the January to March quarter, compared with 7.2bn reais in the same period in 2008.

The company said a key factor was the 55% fall in the average price of Brent crude, which dropped from $97 a barrel a year ago to $44 in the last quarter.

Net revenue fell 9% year-on-year to 42.6bn reais in the three-month period.

Higher interest charges on its debts had also impacted on its results, the company said.

However, Petrobras said that it had invested a total of 14.4bn reais in the quarter, an increase of 41% on the first quarter of 2008, and that oil and gas production was up 7%.

Petrobras president Sergio Gabrielli said he was satisfied with the results given the difficult economic conditions.