Economic and financial summary

Economic and financial summary
Highlights Consolidated Petrobras
2008 2007 2008 2007
law 11.638 law 6.404 law 11.638 law 6.404
Financial Highlights(1) (R$ million)            
Gross operating income (R$ million) 266.494 284.579 218.254 207.990 207.990 170.245
Net operating income (R$ million) 215.118 232.183 170.578 161.710 161.709 126.767
Income from operations 44.605 44.258 39.014 41.905 39.834 35.031
Net income (loss):            
Own activities 37.324 37.422 23.778 37.110 37.197 23.570
Subsidiaries/affiliated companies (874) (399) (465) 2.252 2.231 (662)
  36.450 37.023 23.313 39.362 39.428 22.908
Extraordinary items (2) (3.462) (3.108) (1.801) (2.892) (2.538) (879)
Net Profit (R$ million) 32.988 33.915 21.512 36.470 36.890 22.029
Net indeptedness(3) 48.824 48.824 26.670 (4) (4) (4)
EBITDA (R$ million)(4) 57.170 57.213 50.156 50.460 47.610 40.895
Indeptedness/EBITDA (%)(3)(4) 0,85 0,85 0,53 (4) (4) (4)
Toatal assets 292.164 294.514 231.228 311.011 293.223 211.233
Permanent assets (R$ million)(6) 207.334 208.830 155.831 152.135 134.009 107.130
Shareholders’ equity (R$ million) 138.365 138.358 113.854 144.051 143.602 116.012
Own capital / Third-party capital ratio(3) 50/50 49/51 52/48 48/52 51/49 57/43
  • (1) The amounts expressed in reais (R$), mentioned in this financial analysis, were calculated in accordance with accounting practices derived from the corporation law and rules and regulations of the Brazilian Securities Commission (CVM).
  • (2) It includes indebtedness contracted through leasing agreements.
  • (3) Income before taxes, minority interests, net financial income, interests in significant investments, and depreciation, amortization and abandonment cost. EBITDA is not an indicator calculated in accordance with accounting principles generally accepted in Brazil and possibly it may not serve as a basis for comparison with indicators with the same name, presented by other companies. EBITDA should not be considered as a substitute indicator to measure operating income, or even as a better form for measuring the liquidity and cash flow of the operating activities. EBITDA is additional information on the ability to pay debts, to maintain investments and to be able to cover working capital needs.
  • (4) The cash and cash equivalents are higher than the total indebtedness.
  • (5) It includes corporate investments, property, plant and equipment, intangible assets and deferred charges.
Economic and financial summary
Breakdown of ebitda (R$ Milhões)
year
2008 law 11.638 2008 2007 Δ%
Operating profit according to Corporation Law 48.205 49.226 35.540 39
(-) Financial Result (3.129) (4.022) 4.021 (200)
(-) Stakeholding in investiments 874 399 465 (14)
Provision for Employees Profit Sharing (1.345) (1.345) (1.012) 33
Operating profit 44.605 44.258 39.014 13
Depreciation/Amortization 11.632 12.030 10.696 12
Loss on recovery of assets 933 925 446 107
EBITDA 57.170 57.213 50.156 14
EBITDA margin (%) 27 25 29 (4)

The comparison of the Consolidated Shareholders’ Equity and Net Income with the corresponding Shareholders’ Equity and Net Income of Petrobras (Parent company) may be presented as follows:

Economic and financial summary
  (R$ MILlION)
Sahereholders’ equity law 11.638 Net income law 11.638
According to information from Petrobras at 12.31.2008 144.051 36.470
Profit on sale of products in inventories of subsidiaries (660) (660)
Reversion of profits on inventories for prior years capitalized interest   686
Capitalized interest (460) 38
Absorption of negative net equity of subsidiary* (4.160) (3.507)
Other eliminations (406) (39)
According to consolidated information at 12.31.2008 138.365 32.988

* In accordance with CVM Instruction 247/96, losses that are considered to be of a non permanent (temporary) nature on investments valued by the equity accounting method, whose invested companies do not present signs of stoppage or a need for financial support from the investor, must be limited to the amount of the investment by the parent company. Therefore, the losses caused by unsecured liabilities (negative net equity) of subsidiaries did not influence the results and shareholders’ equity of Petrobras in 2007, but generated an item for reconciliation between the financial statements of Petrobras and the consolidated financial statements.