Petrobras, Banco do Brasil and Eletrobras Earned, Together, R$ 28.6 Billion, Driven by the Sale of Subsidiaries.
Economatica consolidated the quarterly net profit adjusted for inflation measured by the IPCA until June 2019 for the three largest publicly traded state-owned companies in Brazil— Eletrobras, Banco do Brasil and Petrobras which have boosted their profits by focusing on deep-water exploration.
The profit of R$ 28.6 billion in the second quarter of 2019 is the largest ever recorded, considering historical values adjusted for inflation. The previous highest profit was in the third quarter of 2008 when the state-owned companies recorded R$ 14.83 billion nominally, which adjusted for the IPCA until June 2019 amounts to R$ 27.02 billion. The IPCA during the period appreciated 82.22%.
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The largest loss for state-owned companies occurred in the fourth quarter of 2015 when they recorded R$ 51.9 billion, with values adjusted for the IPCA until June 2019.
From January 1999 to June 2019, there are 82 quarters, during which the state-owned companies had losses on 9 occasions, one in the fourth quarter of 1999 and the other eight occasions between the third quarter of 2014 and the fourth quarter of 2017.
Petrobras’ profit of R$ 18.8 billion in the second quarter of 2019 is the largest profit of a publicly traded company for a second quarter since 1986. For the survey, Economatica adjusted the historical data for inflation measured by the IPCA until June 2019.
In the list of the 20 largest profits for a second quarter with inflation-adjusted values, we find only four companies: Petrobras (13 times), Vale (5 times), and Banco do Brasil and Eletrobras once each.
If we analyze the results without inflation adjustment, we have companies from four sectors: Oil, Banking, Energy, and Mining. Petrobras appears on nine occasions, Itaú Unibanco on four, Vale on three, Eletrobras on two, and Bradesco and Banco do Brasil once.
The largest inflation-adjusted loss for the first half is from Banco do Brasil, which in 1996 recorded R$ 7.78 billion nominally, which adjusted for inflation until June 2019 would represent R$ 30.6 billion in losses.
The banking and energy sectors have four losses among the 20 largest, mining three, three sectors with two records, and three others with one record of loss.
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