Petrobras (PBR) Down on Refining Losses

The misguided strategy of Petrobras (NYSE:PBR), the state-run oil giant from Brazil, to fix prices in order to control the cost of fuel for Brazil consumers, was pressured down even after profits rose to record levels in the first quarter.

Profits were up from the higher price of oil, exchange rate advantages and investment earnings. The investment earnings came from using the $70 billion in a stock offering for that purpose.

The company's earnings came in at $6.7 billion for the quarter

Petrobras' refining unit on the other had a loss of $58 million on the price fixing mentioned above, where the effects from the policy are felt the most.

Petrobras (PBR) closed Friday at $33.04, down $0.63, or 1.87 percent.