Brazilian state-controlled oil company Petrobras posted net income of 4.96 billion reais (some $2.17 billion) in the second quarter, down 20 percent from the same period of 2013.
Petrobras also said in a statement that net income fell 8 percent from the first quarter, when the company registered its worst result in seven years.
Net income for the year’s first half was down 25 percent from 2013.
The company attributed the quarterly result, among other reasons, to the “impact of operating expenses,” including a voluntary early-retirement program that cost 2.38 billion reais (some $1.04 billion), and lower earnings on asset sales.
Petrobras also blamed debt-interest payments that amounted to 800 million reais (some $350.1 million).
The company’s refining division, meanwhile, also weighed on its financial results, posting a 3.88 billion reais ($1.7 billion) loss in the second quarter, up 54.8 percent from the same period of 2013.
The government forces Petrobras to sell the gasoline and diesel it imports at below cost on the domestic market as part of a bid to keep inflation in check, and that fuel subsidy has caused the company’s debt to soar.