Problem is greater than loss R$54MM Dears, the problem is greater than loss R$54MM. The cost and production costs of the stored oil, referring to spent to produce it, was "stocked" with the oil. Revenue should come only when sell, ok, but the cost, opex spending, would have to have been released as effectively incurred and was "stored". Read the paragraph below on (page 7) of the release.
For not having realized sales of oil in the quarter, production costs were recorded as inventory. The amount of R $ 82.3 million reflects the market value of this stock, considering the best estimate of realization of sale at the end of 1Q 15, and of this amount, R $ 27.8 million do not impact cash flow. The value of net realizable inventory includes the estimated selling price less estimated costs of completion and those necessary to make the sale. The Company recorded a provision for loss of R $ 19.1 million, reflecting the market value of its stock of oil
another point: the cash flow table (page 9) it is clear that: cash 363MM were achieved with: the 54MM The exchange rate and 13MM selling helicopters, totaling a 67mm inlet non-recurring revenues and are discounted cash would 363-67 = 296MM, and this without considering the impact for the preceding paragraph on "stock costs." In addition to "improve" the figures for operating expenses, from what I understand, they raised the stocks with actually spending. I did not find justification, but I think when they say that 27.8MM no impact on cash means referring to a value that is being mentioned as stock but that somehow was already recorded in the immediately preceding quarterly release. It is noteworthy that even this stock considering the best estimated value provisioned a loss of 19.1MM, thus, 296-19 = 277MM, the number would be! The 1T15 for now the dollar fell from 3.25 to 3.00 and obviously negatively appears in 2T15.