Petrobras Third Quarter Earnings Slip 26 Percent on Higher Costs, Currency

Brazil's premier oil company Petroleo Brasileiro, or Petrobras, reported a 26 percent year-over-year decline in net profit on the back of higher costs.

Petrobras' net profit fell to 6.3 billion reais ($3.6 billion) from the 8.6 billion reais reported a year ago, largely on losses from its currency exchange rate and on an increase in lifting, refining and maintenance costs at some of its fields.

The company recorded 17 percent in topline growth from last year, which grew to 64.1 billion reais from 54.7 billion reais on higher sales in natural gas and increased oil production in the domestic market.

However, Petrobras took a 42 percent hit in earnings when compared to its second quarter, after the Brazilian currency lost 19 percent to the U.S. dollar.

Petrobras is an increasingly big player in the oil and natural gas market, and it aims to be one of the top five integrated energy companies in the world by 2020.

The company is also involved in alternative energy, and officially started up its Mangue Seco Wind Farm on Nov. 1, the International Business Times previously reported.