OREANDA-NEWS. See the main items of our financial and operating results of the first half of 2013, announced Friday (09/08):

• In the first half of 2013, net income increased by 77% over the previous six-month period, due to the higher operating result, and the lower impact of exchange rates on the financial result. The 23% operating income upturn was chiefly due to higher diesel and gasoline prices, increased oil product output, lower write-offs of dry and economically unviable wells and divestments.

• In the quarter, operating income was 13% higher than in the first quarter of 2013, mainly reflecting gains from the sale of assets in Africa. Net income was 19% lower, chiefly due to the negative financial result, impacted by the depreciation of the Brazilian Real against the U.S. dollar.

• Total oil and natural gas production averaged 2,553 million bpd in the first half of 2013, 3% less than in the previous six-month period, associated with natural decline (10-12% p.a.) and the concentration of scheduled stoppages in the first half of 2013. In quarter-on-quarter terms, production was flat, in line with the Company's plan.

• Domestic oil product output increased by 8% in the first six months of 2013, as refineries improved their operating performance and were therefore able to meet the 6% increase in domestic demand, leading to a 19% in oil product imports.

• Positive results of structuring programs: 74% and 93% of operational efficiency in the Campos Basin and Rio operating units, respectively, in line with the goals of the Program for Increasing the Operating Efficiency of Campos Basin Operations (PROEF); BRL 2,9 billion in savings through the Operating Cost Optimization Program (Procop), in addition to a BRL 1,906 billion increase in results and the BRL 3,364 billion in cash from the sale of assets in Africa as part of the Divestment Program (PRODESIN).

• Extension of hedge accounting to protect future exports, in mid-May, allowing exchange rate losses of BRL 7,982 billion related to approximately 70% of net debt exposed to exchange rate fluctuations to be recorded in Shareholders' Equity.

• Total net funding of USD 15,1 billion in the second quarter of 2013, led by the USD 11 billion global notes issued in May.

• Investments totaled BRL 44,113 billion, 54% of which in Exploration and Production activities.