Worst Performer Petrobras Snaps Profit Streak on Currency

Petroleo Brasileiro SA, the worst-performing global oil company this year, unexpectedly reported its first quarterly loss in 13 years as local currency depreciation pushed up costs. Shares fell.

Petrobras had a loss of 1.35 billion reais ($666 million), compared with a 2.94 billion-real average profit estimate in a Bloomberg survey and a year-ago profit of 10.9 billion reais. The real’s 9.1 percent second-quarter drop raised the cost of equipment and services in dollars while lower output, costs related to dry holes and fuel import losses also hurt earnings.