TN PETRÓLEO

State-owned Petroleos de Venezuela SA said its net income in the first half of 2009 fell by 67 percent to $3.17 billion due to slightly lower output and a steep decline in oil prices.


"The total consolidated net profit for the period was $3.17 billion, down by $6.37 billion compared to the same period of 2008," PDVSA said in statement Thursday.


That drop in profits was due both to lower sales volumes and a 51 percent decline in the price of oil per barrel.


"For the January-June 2009 period, the average export price for the Venezuelan basket was $47.33 per barrel, which represents a decline of $48.79 compared to June, 30, 2008," the statement said.


Output, meanwhile, was affected by cuts agreed by the Organization of Petroleum-Exporting Countries in response to lower global demand.


"Average crude production at the end of the first half came in at 3.1 billion barrels of crude per day, down by 186,000 bpd from the first half of 2008," PDVSA said.


These factors caused revenues to fall by 52 percent in the first half of the year.


"In the six months that ended on June 30, 2009, revenue totaled $32.5 billion, a decline of $35.2 billion relative to the same period of 2008," the statement read.


PDVSA's revenues account for roughly 90 percent of the country's export earnings and fund about half the national government's budget, with the company's contributions paying for health clinics for the poor and other social programs.


Venezuela is one of the world's top 10 oil producers and exporters and a leading supplier of crude to the United States.