Petrobras Q1 Earnings Probably Jumped 30%

When it reports results on Friday, Petrobras PBR, Brazil's state-run oil producer, could show a 30% increase in first-quarter profits helped by higher oil prices and increased production, a refrain echoed by many of the world's oil majors this earnings season. Analysts expect Petrobras to post a profit of $6.2 billion, but investors may be more interested to hear what the company has to say about its massive five-year $224 billion budget that was unveiled last year. Those spending plans are easily the largest of any major international integrated oil company. Petrobras' total oil production in the first quarter of this year averaged 2.191 million barrels per day, compared with 2.134 million barrels per day in the same period of 2010, Reuters reported. The company has said it hopes to double its daily output by 2020 and executives have said this year that Petrobras remains on track to meeting that goal. By market value, Petrobras is the third-largest publicly traded oil company in the world behind Exxon Mobil XOM and PetroChina PTR, the largest U.S. and Chinese oil companies, respectively.