Oil & Gas - Brazil

BR Distribuidora 2008 profits up 53% to US$568mn

BR Distribuidora 2008 profits up 53% to US$568mn

By -

BR Distribuidora, Brazilian federal energy company Petrobras' (NYSE: PBR) distribution unit, made 1.29bn reais (US$568mn) in net profits in 2008, up 53.3% from 841mn reais in 2007.

The profit reflects higher sales volumes and cost control measures, the company said in a statement.

Fuel sales rose 11.4% to 37.8Bl from 2007 levels. Petrobras' market share totaled 34.9%.

A focus on efficiency "can be the antidote against the effects of the financial crisis," BR Distribuidora president José Eduardo Dutra said.

The Brazilian fuel market grew 8.9% in 2008 to 97.7Bl from 89.7Bl in 2007.

INVESTMENTS

BR Distribuidora plans to invest 4.3bn reais in 2009-13 to boost its services portfolio, according to the statement.

The automotive market will receive most of the investments with 1.4bn reais, followed by LPG distributor Liquigás (1bn reais), the consumer, gas and energy markets (953mn reais) as well as the logistics and corporate segment (918mn reais).

The numbers take into account the company's need to optimize costs and growing competition in the distribution sector.