Petrobras expected to post Q4 profit on higher oil prices, lower writedowns

Sao Paulo

PETROLEO Brasileiro SA, Brazil's state-controlled oil company, is likely to return to a profit in the fourth quarter, reflecting the impact of higher average oil prices, lower asset writedowns and cost-cutting, analysts said on Monday.

Rio de Janeiro-based Petrobras probably earned 3.701 billion reais (S$1.69 billion) in the last quarter, reversing a net loss of 16.458 billion reais in the third quarter, according to the average analyst estimate compiled by Thomson Reuters. Petrobras lost a record 35.8 billion reais a year earlier.