Brazil's Petrobras profits fall 20 pct in 2007 as real gains

Petroleo Brasileiro SA, Brazil's state-run oil company, said profits fell 4 percent in the fourth quarter and 20 percent in 2007 as the country's strengthening currency eroded soaring dollar profits amid record oil prices.

Net fourth-quarter income fell to 5 billion reals (US$3 billion, euro2 billion) from 5.2 billion (US$3.1 billion, euro2.04 billion) in the year-ago period, the company, known as Petrobras, said in earnings release. Net income for the year fell to 21.5 billion reals (US$12.9 billion; euro8.5 billion) from 25.9 billion reals (US$15.5 billion; euro10.2 billion) in 2006.

Brazil's real gained 20.6 percent in 2007, from $US0.47 on January 1 to …