Sao Paulo — Brazilian fuel distribution company Petrobras Distribuidora SA posted a hefty rise in net income in the first quarter, reflecting a reduction of financial expenses in the period and one-off gains stemming from certain debt renegotiation agreements.
According to a securities filing late on Monday, the fuel distribution company recognized a 181 million real ($45.61 million) gain after debt renegotiations with distributors and ex-distributors of electric utility Centrais Eletricas Brasileiras SA.
Net income was 477 million reais in the first quarter, a 93 percent rise from a year ago, the filing said.
The company, majority owned by oil firm Petroleo Brasileiro SA, also reported an 8.7 percent rise in adjusted earnings before interest, tax, depreciation and amortization, a measure of operating income known as EBITDA. That line came in at 841 million reais, higher than the 732 million reais forecast by analysts.
BR Distribuidora, as the fuel distributor is known, also emphasized a significant increase of 12.5 percent in adjusted EBITDA margins, which went to 86 reais per cubic meter, up from 76 reais a year ago, the filing said. ($1 = 3.9683 reais)