Petrobras Argentina 2Q Net Profit ARS72 Mln Vs ARS203 Mln

BUENOS AIRES (Dow Jones)–Petrobras Argentina SA (PZE, PESA.BA), the local unit of Brazilian oil giant Petroleo Brasileiro (PBR, PETR4.BR), on Wednesday reported second-quarter net profit of ARS72 million ($17.3 million).

That puts the company’s profit down almost 65% from the same period a year ago, when it was ARS203 million.

«The variation of ARS131 million is due mainly to greater exploration costs in the second quarter…,» Petrobras said in a statement to the Buenos Aires Stock Exchange.

Petrobras also said net profit was lower because earnings didn’t include income from Innova SA, a unit that was sold in March 2011. In the second quarter of 2010 Innova had operating income of ARS74 million.

Second-quarter net sales fell to ARS3.237 billion, compared with ARS3.620 billion a year earlier.

Administrative costs totaled ARS391 million, down from ARS419 million.

Exploration costs totaled ARS130 million, compared with ARS65 million a year earlier.

-By Taos Turner, Dow Jones Newswires; 5411-4103-6728; taos.turner@dowjones.com

Source: online.wsj.com