Pursuant to Rule 13a-16 or 15d-16 of the
20035-900 - Rio de Janeiro, RJ
Federative Republic of Brazil
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
(Rio de Janeiro, May 8, 2003) — PETRÓLEO BRASILEIRO S.A. – PETROBRAS, [BOVESPA: PETR3/PETR4, NYSE: PBR/PBRA, LATIBEX: XPBR/XPBRA], Brazil’s biggest oil & gas, petrochemicals and energy company announces that the Executive Board has authorized an increase in fiscal year 2003 provisions for the energy sector to US$ 416 million from US$ 205 million, equivalent to 94% of the Company’s revised maximum monetary exposure for the period.
The additional provisioning of US$ 211 million will be booked in the financial statements for the first quarter 2003 to be announced in the report to the financial market.
The reasons for the increased provisions were the failure to realize forecasted sales of available energy through the PPA’s in 2003 and the level at which the thermal plant is operating.
With a view to reducing its exposure to the energy business, Petrobras continues to make every effort to sell all available electric energy as well as adjusting its investments to the new reality of the Electric Sector as a whole.
The Board believes any provisioning
for subsequent years is still premature.
Finally, we would point out that the
Net Present Value of the maximum financial exposure to the energy sector as at March 31,
2003, assuming a discount rate of 12% p.a., is US$1.74 billion.
Rio de Janeiro, May 8,
2003.
PETRÓLEO
BRASILEIRO S.A. – PETROBRAS
Gustavo Tardin Barbosa
Interim
CFO and Investor Relations Director
Ildo Luis Sauer
Gas and Energy Director
Contacts:
Investor Relations Department
Luciana Bastos de Freitas Rachid - Executive Manager
E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 - 4th floor
20031-912 - Rio de Janeiro, RJ
(55-21) 2534-1510 / 2534-9947
This document may contain forecasts that merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
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PETRÓLEO BRASILEIRO
S.A--PETROBRAS | ||
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By: |
/S/ José Sergio Gabrielli de Azevedo
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José Sergio Gabrielli de Azevedo
Chief Financial
Officer and Investor Relations Director
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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.