Petrobras Earnings Jump on Oil Rally and Brazil Water Crisis

Petrobras Earnings Jump on Oil Rally and Brazil Water Crisis

(Bloomberg) -- Brazil’s state-controlled oil company saw its earnings surge in the second quarter, thanks to a rally in crude prices and a hydropower crunch in Brazil that boosted electricity demand.

Since late last year, Petrobras has sold more fuel oil domestically and increased output at its own thermal power plants, part of a wider policy in Brazil to conserve water levels at hydroelectric dams and avert power outages. Though the power division at Petroleo Brasileiro SA, as the company is formally known, represents a fraction of overall revenue, it was a standout. Electricity generation more than tripled in the second quarter from a year ago.