PREVIEW-Petrobras Q2 earnings seen lower on crisis impact

* Petrobras to post Q2 profits of 6.97 bln reais

* Earnings to drop 21 pct vs 2008 on oil price fall

* Profits to increase 20 percent from Q1 2009

By Brian Ellsworth and Denise Luna

RIO DE JANEIRO, Aug 12 (Reuters) - The second quarter
profit of Brazilian state oil company Petrobras is down 21
percent over the same period last year, analysts polled by
Reuters said, as oil prices crashed in the wake of the global
financial crisis.

Petrobras (PETR4.SA)(PBR.N) will post a net profit of 6.97
billion reais, or some $3.81 billion, according an average of
analysts estimates for the second quarter earnings scheduled
for release on Friday after markets close.

The company faced average oil prices of around $60 per
barrel during the quarter compared with a peak of more than
twice that a year ago, although oil production edged up 6.7
percent year-on-year as the company brought new platforms
online.

The average estimate shows a 20 percent jump from first
quarter 2009 earnings of 5.82 billion reais, at the time around
$2.83 billion, as crude prices recovered with equity markets.

"I think this is going to be another quarter of strong
results," said Monica Araujo of the brokerage Ativa in Rio de
Janiero, citing stronger domestic fuel demand and increased
production at the state-run energy giant.

Earnings downsides include an appreciation of around 18
percent in the real currency that boosted costs in Brazil and a
June cut of 4.5 percent to the sale of price of gasoline and a
15 percent cut in the price of diesel.

Some of the reduction in revenues from fuel sales, a key
driver of earnings for Petrobras, may have been offset by the
increased value those sales due to the rising currency.

Petrobras in May pumped the first oil from the giant Tupi
field in the sub-salt region as part of a 15-month test that
will produce between 15,000 and 30,000 barrels per day,
although the test was suspended in July due to an equipment
failure.

In June a joint venture between Petrobras and Chevron Corp
(CVX.N) produced its first oil from the Frade field that is
expected to reach peak production of 90,000 barrels per day.

Petrobras hopes to turn Brazil into a major energy exporter
by developing sub-salt reserves discovered in 2007 that are
believed to contain billions of barrels of crude.

It intends to invest $174 billion through 2013 as part of
broad plan that includes developing fields from the little-
explored Santos Basin where Tupi is located.

New sub-salt exploration has been halted as the government
prepares an overhaul of existing oil legislation expected to
boost Petrobras' role in offshore development and give the
state a greater percentage of revenues.

The table below shows average estimates of five analysts in
reais under Brazilian accepted accounting standards:

F'CAST 2009 2009 2008 CHANGE

2ND QTR 1ST QTR 2ND QTR YR VS YR
Revenues 45,389 42,595 54,570 -17%
Ebidta 14,497 13,452 18,131 -20%
Profit 6,974 5,816 8,783 -21%

($1 = 1.83 reais)