UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private
Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of May, 2024
Commission File Number 1-15106
PETRÓLEO BRASILEIRO S.A. – PETROBRAS
(Exact name of registrant as specified in its charter)
Brazilian Petroleum Corporation – PETROBRAS
(Translation of Registrant's name into English)
Avenida Henrique Valadares, 28 – 19th floor
20241-030 – Rio de Janeiro, RJ
Federative Republic of Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
Petrobras financial performance in 1Q24
Main highlights:
- Consistent results: adjusted EBITDA of US$ 12.1 billion, Operating Cash Flow (FCO) of US$ 9.4 billion and Net profit of US$ 4.8 billion
- Financial debt at US$ 27.7 billion, the lowest level since 2010. Gross debt is under control at US$61.8 billion, within the range established in our Strategic Plan.
- Return to society with payment of R$ 68.2 billion in taxes.
- In line with our commitment to distributing the results generated and the company's financial sustainability, shareholder remuneration for 1Q24 totaled R$ 14.60 billion, including R$ 1.15 billion in share buybacks and R$ 13.45 billion in dividends and interest on capital.
- Production milestone in Búzios: cumulative production of 1 billion barrels of oil with five platforms: P-74, P-75, P-76, P-77, and Almirante Barroso.
- High utilization of the refining facilities with value generation: utilization factor reached 92% with a yield of 67% for diesel, jet fuel, and gasoline.
- Expansion of the offer of more sustainable products: start of marketing of R5 diesel with renewable content and establishment of a partnership for the sale of CAP Pro W asphalt.
- Acquisition of I-RECs (Renewable Energy Certificates): certifies that all the electricity acquired by Petrobras for the development of its activities has been generated by renewable sources (neutrality of scope 2 emissions in 2023).
Disclaimer
This report may contain forward-looking
statements. Such forward-looking statements only reflect expectations of the Company's managers regarding future economic conditions,
as well as the Company's performance, financial performance and results, among others. The terms "anticipates", "believes",
"expects", "predicts", "intends", "plans", "projects", "objective", "should",
and similar terms, which evidently involve risks and uncertainties that may or may not be anticipated by the Company and therefore are
not guarantees of future results of the Company's operations that may differ from current expectations. The readers should not rely exclusively
on any forward-looking statement contained herein. The Company does not undertake any responsibility to update the presentations and forecasts
in the light of new information or its future developments, and the figures reported for 1Q24 onwards are estimates or targets. These
indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by others. We provide
these indicators because we use them as measures of company performance; they should not be considered in isolation or as a substitute
for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA
and Net Indebtedness in the Glossary and their reconciliations in the Liquidity and Capital Resources sections, Reconciliation of Adjusted
EBITDA and Net Indebtedness. Consolidated accounting information in accordance with International Accounting Standard IAS 34 - Interim
Financial Reporting, issued by the International Accounting Standards Board (IASB) and revised by independent auditors.
| 2 |
| |
Main items *
Table 1 – Main items
| Variation (%) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Sales revenues | 23,768 | 27,107 | 26,771 | (12.3) | (11.2) |
| Gross profit | 12,257 | 14,654 | 14,113 | (16.4) | (13.2) |
| Operating expenses | (3,273) | (6,632) | (2,560) | (50.6) | 27.9 |
| Consolidated net income (loss) attributable to the shareholders of Petrobras | 4,782 | 6,259 | 7,341 | (23.6) | (34.9) |
| Recurring consolidated net income (loss) attributable to the shareholders of Petrobras * | 4,816 | 8,288 | 7,392 | (41.9) | (34.8) |
| Net cash provided by operating activities | 9,386 | 11,669 | 10,347 | (19.6) | (9.3) |
| Free cash flow | 6,547 | 8,073 | 7,916 | (18.9) | (17.3) |
| Adjusted EBITDA | 12,127 | 13,470 | 13,956 | (10.0) | (13.1) |
| Recurring adjusted EBITDA * | 12,425 | 14,985 | 14,554 | (17.1) | (14.6) |
| Gross debt (US$ million) | 61,838 | 62,600 | 53,349 | (1.2) | 15.9 |
| Net debt (US$ million) | 43,646 | 44,698 | 37,588 | (2.4) | 16.1 |
| Net debt/LTM Adjusted EBITDA ratio | 0.86 | 0.85 | 0.58 | 1.2 | 48.3 |
| Average commercial selling rate for U.S. dollar | 4.95 | 4.95 | 5.19 | − | (4.6) |
| Brent crude (US$/bbl) | 83.24 | 84.05 | 81.27 | (1.0) | 2.4 |
| Domestic basic oil by-products price (US$/bbl) | 96.13 | 104.30 | 109.53 | (7.8) | (12.2) |
| TRI (total recordable injuries per million men-hour frequency rate) | 0.61 | 0.80 | 0.77 | (23.8) | (20.8) |
| ROCE (Return on Capital Employed) | 10.4% | 11.2% | 15.7% | -0,8 p.p. | -5,3 p.p. |
* See reconciliation of Recurring net income and Adjusted EBITDA in the Special Items section.
| 3 |
| |
Consolidated results
Net revenues
Table 2 – Net revenues by products
| Variation (%) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Diesel | 7,076 | 8,685 | 8,305 | (18.5) | (14.8) |
| Gasoline | 3,205 | 3,428 | 3,694 | (6.5) | (13.2) |
| Liquefied petroleum gas (LPG) | 758 | 784 | 929 | (3.3) | (18.4) |
| Jet fuel | 1,184 | 1,338 | 1,406 | (11.5) | (15.8) |
| Naphtha | 427 | 480 | 478 | (11.0) | (10.7) |
| Fuel oil (including bunker fuel) | 344 | 324 | 286 | 6.2 | 20.3 |
| Other oil products | 1,019 | 1,064 | 1,084 | (4.2) | (6.0) |
| Subtotal oil products | 14,013 | 16,103 | 16,182 | (13.0) | (13.4) |
| Natural gas | 1,322 | 1,325 | 1,526 | (0.2) | (13.4) |
| Crude oil | 1,229 | 1,478 | 1,350 | (16.8) | (9.0) |
| Renewables and nitrogen products | 31 | 32 | 21 | (3.1) | 47.6 |
| Revenues from non-exercised rights | 140 | 215 | 220 | (34.9) | (36.4) |
| Electricity | 128 | 234 | 110 | (45.3) | 16.4 |
| Services, agency and others | 247 | 262 | 244 | (5.7) | 1.2 |
| Total domestic market | 17,110 | 19,649 | 19,653 | (12.9) | (12.9) |
| Exports | 6,398 | 7,260 | 6,741 | (11.9) | (5.1) |
| Crude oil | 4,911 | 5,202 | 5,547 | (5.6) | (11.5) |
| Fuel oil (including bunker fuel) | 1,322 | 1,380 | 1,034 | (4.2) | 27.9 |
| Other oil products and other products | 165 | 678 | 160 | (75.7) | 3.1 |
| Sales abroad (*) | 260 | 198 | 377 | 31.3 | (31.0) |
| Total foreign market | 6,658 | 7,458 | 7,118 | (10.7) | (6.5) |
| Total | 23,768 | 27,107 | 26,771 | (12.3) | (11.2) |
| (*) Sales revenues from operations outside of Brazil, including trading and excluding exports. | |||||
In 1Q24, net revenue fell 12% compared to 4Q23, mainly influenced by lower revenue from diesel sales in the domestic market and exports.
The reduction in revenue from oil products in the domestic market was mainly due to lower prices, the seasonality of consumption, the increase in the biodiesel content in the diesel blend and the loss of competitiveness of gasoline to hydrated ethanol.
The lower revenue from the sale of oil on the domestic market resulted from lower sales volumes for Acelen, alongside lower prices.
In 1Q24, there was a drop in export revenues, with lower volume of gasoline exports and lower prices for oil exports. This reduction is mainly attributed to the devaluation of international prices when exports were carried out, to gasoline quality change operations in 4Q23 and maintenance stoppages in the quarter.
* Managerial information (non-revised).
| 4 |
| |
Cost of goods sold *
Table 3 – Cost of goods sold
| Variation (%) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Acquisitions | (3,508) | (4,042) | (4,885) | (13.2) | (28.2) |
| Crude oil imports | (1,881) | (2,328) | (2,668) | (19.2) | (29.5) |
| Oil products imports | (1,074) | (1,200) | (1,811) | (10.5) | (40.7) |
| Natural gas imports | (553) | (514) | (406) | 7.6 | 36.2 |
| Production | (7,570) | (7,961) | (7,155) | (4.9) | 5.8 |
| Crude oil | (6,404) | (6,568) | (6,249) | (2.5) | 2.5 |
| Production taxes | (2,672) | (3,338) | (2,710) | (20.0) | (1.4) |
| Other costs | (3,732) | (3,230) | (3,539) | 15.5 | 5.5 |
| Oil products | (701) | (832) | (440) | (15.7) | 59.3 |
| Natural gas | (465) | (561) | (466) | (17.1) | (0.2) |
| Production taxes | (125) | (121) | (92) | 3.3 | 35.9 |
| Other costs | (340) | (440) | (374) | (22.7) | (9.1) |
| Services, electricity, operations abroad and others | (433) | (450) | (618) | (3.8) | (29.9) |
| Total | (11,511) | (12,453) | (12,658) | (7.6) | (9.1) |
In 1Q24, lower sales volume was the predominant factor for the reduction in costs of goods sold. There were also lower costs with imports, mainly of oil, and a reduction in the costs of government take in oil production, following the devaluation of prices in the formation of stocks.
Operating expenses
Table 4 – Operating expenses
| Variation (%) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Selling, General and Administrative Expenses | (1,780) | (1,783) | (1,578) | (0.2) | 12.8 |
| Selling expenses | (1,333) | (1,329) | (1,221) | 0.3 | 9.2 |
| Materials, third-party services, freight, rent and other related costs | (1,120) | (1,146) | (1,026) | (2.3) | 9.2 |
| Depreciation, depletion and amortization | (173) | (143) | (150) | 21.0 | 15.3 |
| Allowance for expected credit losses | (10) | (8) | (21) | 25.0 | (52.4) |
| Employee compensation | (30) | (32) | (24) | (6.3) | 25.0 |
| General and administrative expenses | (447) | (454) | (357) | (1.5) | 25.2 |
| Employee compensation | (292) | (289) | (229) | 1.0 | 27.5 |
| Materials, third-party services, rent and other related costs | (120) | (129) | (102) | (7.0) | 17.6 |
| Depreciation, depletion and amortization | (35) | (36) | (26) | (2.8) | 34.6 |
| Exploration costs | (135) | (154) | (157) | (12.3) | (14.0) |
| Research and Development | (183) | (214) | (154) | (14.5) | 18.8 |
| Other taxes | (140) | (247) | (200) | (43.3) | (30.0) |
| Impairment (losses) reversals, net | 9 | (2,198) | (3) | − | − |
| Other income and expenses, net | (1,044) | (2,036) | (468) | (48.7) | 123.1 |
| Total | (3,273) | (6,632) | (2,560) | (50.6) | 27.9 |
In 1Q24, operating expenses reduced 51% compared to 4Q23, mainly reflecting lower impairment expenses and the result from the abandonment of areas that occurred in 4Q23.
Adjusted EBITDA
In 1Q24, Adjusted EBITDA reached US$12.1 billion, 10% lower compared to 4Q23, influenced by lower sales volumes of oil and oil products and the reduction in the price of oil and diesel margins. These effects were partially offset by lower operating expenses, especially the result from the abandonment of areas that occurred in 4Q23.
| 5 |
| |
Financial results
Table 5 – Financial results
| Variation (%) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Finance income | 552 | 588 | 465 | (6.1) | 18.7 |
| Income from investments and marketable securities (Government Bonds) | 432 | 446 | 333 | (3.1) | 29.7 |
| Other finance income | 120 | 142 | 132 | (15.5) | (9.1) |
| Finance expenses | (1,072) | (1,047) | (844) | 2.4 | 27.0 |
| Interest on finance debt | (554) | (549) | (541) | 0.9 | 2.4 |
| Unwinding of discount on lease liability | (547) | (532) | (358) | 2.8 | 52.8 |
| Discount and premium on repurchase of debt securities | − | (2) | − | − | − |
| Capitalized borrowing costs | 376 | 363 | 271 | 3.6 | 38.7 |
| Unwinding of discount on the provision for decommissioning costs | (272) | (210) | (212) | 29.5 | 28.3 |
| Other finance expenses | (75) | (117) | (4) | (35.9) | 1775.0 |
| Foreign exchange gains (losses) and indexation charges | (1,419) | 754 | (243) | − | 484.0 |
| Foreign exchange gains (losses) | (881) | 880 | 797 | − | − |
| Reclassification of hedge accounting to the Statement of Income | (697) | (773) | (1,154) | (9.8) | (39.6) |
| Indexation to the Selic interest rate of anticipated dividends and dividends payable | (70) | 129 | (32) | − | 118.8 |
| Legal agreement with Eletrobras - compulsory loans | − | 236 | − | − | − |
| Recoverable taxes inflation indexation income | 49 | 91 | 64 | (46.2) | (23.4) |
| Other foreign exchange gains and indexation charges, net | 180 | 191 | 82 | (5.8) | 119.5 |
| Total | (1,939) | 295 | (622) | − | 211.7 |
In 1Q24, the financial result was negative at US$ 1.9 billion, compared to a positive result of US$ 0.3 billion in 4Q23. This financial result was primarily impacted by the loss from the FX variation of the BRL against the USD, which depreciated by 3.2% in 1Q24 (from R$ 4.84/US$ on 12/31/23 to R$ 5.00/US$ on 03/31/24), and by the absence of revenue from monetary restatement related to the legal agreement with Eletrobras in 4Q23.
Net profit (loss) attributable to Petrobras shareholders
In 1Q24, net profit was US$4.8 billion, compared to US$6.3 billion in 4Q23. This result is mainly attributed to lower sales volumes and a decrease in oil price and diesel margins. Additionally, the result was impacted by worse financial results due to the depreciation of the Brazilian Real against the US Dollar. These effects were partially offset by the reduction in operating expenses and income tax.
Recurring net income attributable to Petrobras shareholders and recurring Adjusted EBITDA
In 1Q24, we did not have a relevant impact from non-recurring items. Excluding such items, net profit would remain at the same level of US$4.8 billion. Meanwhile, Adjusted EBITDA suffered a negative impact of US$0.3 billion, mainly due to losses from contingencies. Excluding this effect, Adjusted EBITDA would have reached US$12.4 billion.
| 6 |
| |
Special items
Table 6 – Special items
| Variation (%) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Net income | 4,805 | 6,282 | 7,370 | (23.5) | (34.8) |
| Non-recurring items | (62) | (3,071) | (77) | (98.0) | (19.5) |
| Non-recurring items that do not affect Adjusted EBITDA | 236 | (1,556) | 521 | − | (54.7) |
| Impairment of assets and investments | 26 | (2,208) | (2) | − | − |
| Gains and losses on disposal / write-offs of assets | 162 | 145 | 496 | 11.7 | (67.3) |
| Results from co-participation agreements in bid areas | 48 | 237 | 27 | (79.7) | 77.8 |
| Discount and premium on repurchase of debt securities | − | 34 | − | − | − |
| Legal agreement with Eletrobras - compulsory loans | − | 236 | − | − | − |
| Other non-recurring items | (298) | (1,515) | (598) | (80.3) | (50.2) |
| Voluntary Separation Plan | (2) | 2 | 3 | − | − |
| Collective bargaining agreement | (3) | (211) | − | (98.6) | − |
| Amounts recovered from Lava Jato investigation | 5 | 10 | 89 | (50.0) | (94.4) |
| Gains / (losses) on decommissioning of returned/abandoned areas | (7) | (1,179) | − | (99.4) | − |
| Gains / (losses) related to legal proceedings | (281) | (125) | (254) | 124.8 | 10.6 |
| Equalization of expenses - Production Individualization Agreements | (10) | (12) | (17) | (16.7) | (41.2) |
| Compensation for the termination of a vessel charter agreement | − | − | (317) | − | − |
| Export tax on crude oil | − | − | (102) | − | − |
| Net effect of non-recurring items on IR / CSLL | 29 | 1,042 | 26 | (97.2) | 11.5 |
| Recurring net income | 4,838 | 8,311 | 7,421 | (41.8) | (34.8) |
| Shareholders of Petrobras | 4,816 | 8,288 | 7,392 | (41.9) | (34.8) |
| Non-controlling interests | 22 | 23 | 29 | (4.3) | (24.1) |
| Adjusted EBITDA | 12,127 | 13,470 | 13,956 | (10.0) | (13.1) |
| Non-recurring items | (298) | (1,515) | (598) | (80.3) | (50.2) |
| Recurring Adjusted EBITDA | 12,425 | 14,985 | 14,554 | (17.1) | (14.6) |
In management's opinion, the special items presented above, although related to the Company's business, were highlighted as complementary information for a better understanding and evaluation of the result. Such items do not necessarily occur in all periods and are disclosed when relevant.
| 7 |
| |
Capex
Table 7 - Capex
| Variação (%) | |||||
| US$ milhões | 1T24 | 4T23 | 1T23 | 1T24 X 4T23 | 1T24 X 1T23 |
| Exploração & Produção | 2,472 | 2,752 | 2,040 | (10.2) | 21.2 |
| Refino, Transporte e Comercialização | 362 | 530 | 342 | (31.7) | 5.7 |
| Gás e Energias de Baixo Carbono | 108 | 134 | 33 | (19.7) | 227.2 |
| Outros | 101 | 142 | 67 | (28.7) | 51.1 |
| Subtotal | 3,043 | 3,558 | 2,482 | (14.5) | 22.6 |
| Bônus de assinatura | − | − | − | − | − |
| Total | 3,043 | 3,558 | 2,482 | (14.5) | 22.6 |
In 1Q24, capex totaled US$ 3.0 billion.
In the Exploration and Production segment, capex totaled US$ 2.5 billion, 21% higher than in 1Q23, due to increased investments in the development of major projects that will sustain the production curve over the next few years. In 1Q24, Capex was 10% lower than in 4Q23, mainly due to the postponement of subsea activities and of milestone payments for owned production units. Investments in 1Q24 were mainly concentrated in: (i) the Santos Basin pre-salt (US$ 1.3 billion), with the Búzios and Mero fields standing out; (ii) the Campos Basin pre- and post-salt projects (US$ 0.6 billion), with the Jubarte, Marlim and Raia Manta and Pintada fields standing out; and (iii) exploratory investments (US$ 0.2 billion).
In the Refining, Transportation and Marketing segment, capex totaled US$ 0.36 billion, with emphasis on scheduled refinery stoppages and REPLAN's new HDT. In the Gas and Low Carbon Energy segment, capex totaled US$ 0.10 billion in 1Q24, with the highlight being the Route 3 natural gas processing unit.
| 8 |
| |
Table 8 – Main projects
| Unit | Start-up | FPSO capacity (bbl/day) |
Petrobras Actual Investment US$ bn |
Petrobras Total Investment US$ bn1 |
Petrobras Stake | Status |
|
Mero 3 FPSO Marechal Duque de Caxias (Chartered unit) |
2024 | 180,000 | 0.33 | 0.9 | 38.6% | Project in phase of execution with production system in transit to Brazil. 11 wells drilled and 10 completed. |
|
Integrado Parque das Baleias (IPB) FPSO Maria Quitéria (Chartered unit) |
2025 | 100,000 | 0.62 | 1.9 | 100% | Project in phase of execution with production system under construction. 3 wells drilled and 2 completed.2 |
|
Búzios 7 FPSO Almirante Tamandaré (Chartered unit) |
2025 | 225,000 | 0.59 | 2.1 | 88.99% |
Project in phase of execution with production system under construction. 7 wells drilled and 5 completed. |
|
Búzios 6 P-78 (Owned unit) |
2025 | 180,000 | 1.51 | 4.8 | 88.99% | Project in phase of execution with production system under construction. 5 wells drilled and 3 completed. |
|
Mero 4 FPSO Alexandre de Gusmão (Chartered unit) |
2025 | 180,000 | 0.08 | 1.3 | 38.6% |
Project in phase of execution with production system under construction. 6 wells drilled and 2 completed. |
|
Búzios 8 P-79 (Owned unit) |
2026 | 180,000 | 1.25 | 5.1 | 88.99% | Project in phase of execution with production system under construction. 8 wells drilled and 2 completed. |
|
Búzios 9 P-80 (Owned unit) |
2026 | 225,000 | 0.59 | 5.4 | 88.99% |
Project in phase of execution with production system under construction. 2 wells drilled and 2 completed. |
|
Búzios 10 P-82 (Owned unit) |
2027 | 225,000 | 0.53 | 6.1 | 88.99% |
Project in phase of execution with production system under construction 1 well drilled. |
|
Búzios 11 P-83 (Owned unit) |
2027 | 225,000 | 0.32 | 5.5 | 88.99% | Project in phase of execution with production system under construction. 2 wells drilled. |
|
Raia Manta e Raia Pintada BM-C-33 (Non-operated project) |
2028 | 126,000 | 0.38 | 2,7 ³ | 30% | Project in phase of execution. |
|
1 Total investment with the Strategic Plan 2024-28 assumptions and Petrobras work interest (WI). Chartered units leases are not included. 2 Production Unit for revitalization project. Refers only to new wells. The scope of the project also includes the relocation of some wells of the units being decommissioned. 3 It is included investment in the FPSO, contracted on a lump sum turnkey modality, which includes engineering, procurement, construction and installation for the unit. The contractor will also provide FPSO operation and maintenance services during the first year from the start of production. | ||||||
| 9 |
| |
Liquidity and capital resources[1]
Table 9 - Liquidity and capital resources
| US$ million | 1Q24 | 4Q23 | 1Q23 |
| Adjusted cash and cash equivalents at the beginning of period | 17,902 | 17,272 | 12,283 |
| Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the beginning of period * | (5,175) | (5,162) | (4,287) |
| Cash and cash equivalents at the beginning of period | 12,727 | 12,110 | 7,996 |
| Net cash provided by operating activities | 9,386 | 11,669 | 10,347 |
| Net cash (used in) provided by investing activities | (3,324) | (3,228) | (1,104) |
| Acquisition of PP&E and intangible assets | (2,838) | (3,594) | (2,423) |
| Acquisition of equity interests | (1) | (2) | (8) |
| Proceeds from disposal of assets - Divestment | 569 | 42 | 1,855 |
| Financial compensation from co-participation agreements | 397 | − | 391 |
| Divestment (investment) in marketable securities | (1,475) | 313 | (930) |
| Dividends received | 24 | 13 | 11 |
| (=) Net cash provided by operating and investing activities | 6,062 | 8,441 | 9,243 |
| Net cash used in financing activities | (7,168) | (7,871) | (6,973) |
| Changes in non-controlling interest | 93 | 103 | (75) |
| Net financings | (1,599) | (1,207) | (1,269) |
| Proceeds from finance debt | 2 | 910 | 51 |
| Repayments | (1,601) | (2,117) | (1,320) |
| Repayment of lease liability | (1,918) | (1,792) | (1,389) |
| Dividends paid to shareholders of Petrobras | (3,455) | (4,436) | (4,192) |
| Share repurchase program | (232) | (538) | − |
| Dividends paid to non-controlling interests | (57) | (1) | (48) |
| Effect of exchange rate changes on cash and cash equivalents | (74) | 47 | 24 |
| Cash and cash equivalents at the end of period | 11,547 | 12,727 | 10,290 |
| Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the end of period * | 6,645 | 5,175 | 5,471 |
| Adjusted cash and cash equivalents at the end of period | 18,192 | 17,902 | 15,761 |
| Reconciliation of Free Cash Flow | |||
| Net cash provided by operating activities | 9,386 | 11,669 | 10,347 |
| Acquisition of PP&E and intangible assets | (2,838) | (3,594) | (2,423) |
| Acquisition of equity interests | (1) | (2) | (8) |
| Free cash flow** | 6,547 | 8,073 | 7,916 |
As of March 31, 2024, cash and cash equivalents totaled US$ 11.5 billion and adjusted cash and cash equivalents totaled US$ 18.2 billion.
In 1Q24, cash generated from operating activities reached US$ 9.4 billion and positive free cash flow totaled US$ 6.5 billion. This level of cash generation was used to: (a) shareholders remuneration (US$ 3.5 billion), (b) investments (US$ 2.8 billion), (c) lease liabilities amortization (US$ 1.9 billion), and (d) principal and interest due in the period amortization (US$ 1.6 billion).
* Includes government bonds, bank deposit certificates and time deposits of companies classified as held for sale.
** Free cash flow (FCF) is in accordance with the new Shareholder Remuneration Policy (“Policy”) approved on 07/28/2023 and corresponds to operating cash flow minus acquisitions of property, plant and equipment, intangible assets and equity interests. For comparative purposes, figures prior to 2Q23 have been adjusted in accordance with the new Policy.
| 10 |
| |
Debt indicators
As of 03/31/2024, gross debt reached US$ 61.8 billion, a decrease of 1.2% compared to 12/31/2023.
Average maturity went from 11.38 years on 12/31/2023 to 11.30 years on 03/31/2024 and its average cost varied from 6.4% p.a. to 6.5% p.a. over the same period.
The gross debt/adjusted EBITDA ratio reached 1.22x on 03/31/2024 compared to 1.19x on 12/31/2023.
On 03/31/2024, net debt reached US$43.6 billion, a decrease of 2.4% compared to 12/31/2023.
Table 10 – Debt indicators
| US$ million | 03.31.2024 | 12.31.2023 | Δ % | 03.31.2023 |
| Financial Debt | 27,738 | 28,801 | (3.7) | 29,836 |
| Capital Markets | 16,719 | 17,514 | (4.5) | 17,011 |
| Banking Market | 8,502 | 8,565 | (0.7) | 9,741 |
| Development banks | 664 | 698 | (4.9) | 720 |
| Export Credit Agencies | 1,705 | 1,870 | (8.8) | 2,201 |
| Others | 148 | 154 | (3.9) | 163 |
| Finance leases | 34,100 | 33,799 | 0.9 | 23,513 |
| Gross debt | 61,838 | 62,600 | (1.2) | 53,349 |
| Adjusted cash and cash equivalents | 18,192 | 17,902 | 1.6 | 15,761 |
| Net debt | 43,646 | 44,698 | (2.4) | 37,588 |
| Net Debt/(Net Debt + Market Cap) - Leverage | 31% | 30% | 3.3 | 37% |
| Average interest rate (% p.a.) | 6.5 | 6.4 | 1.6 | 6.5 |
| Weighted average maturity of outstanding debt (years) | 11.30 | 11.38 | (0.7) | 12.02 |
| Net debt/LTM Adjusted EBITDA ratio | 0.86 | 0.85 | 1.2 | 0.58 |
| Gross debt/LTM Adjusted EBITDA ratio | 1.22 | 1.19 | 2.4 | 0.82 |
| 11 |
| |
Results by segment
Exploration and Production
Table 11 – E&P results
| Variation (%) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Sales revenues | 16,077 | 18,506 | 15,730 | (13.1) | 2.2 |
| Gross profit | 9,463 | 10,909 | 9,351 | (13.3) | 1.2 |
| Operating expenses | (630) | (3,778) | (123) | (83.3) | 412.2 |
| Operating income | 8,833 | 7,131 | 9,228 | 23.9 | (4.3) |
| Net income (loss) attributable to the shareholders of Petrobras | 5,846 | 4,734 | 6,108 | 23.5 | (4.3) |
| Adjusted EBITDA of the segment | 11,182 | 11,575 | 10,895 | (3.4) | 2.6 |
| EBITDA margin of the segment (%)* | 70 | 63 | 69 | 7.0 | 0.3 |
| ROCE (Return on Capital Employed) (%)* | 14.3 | 14.5 | 18.5 | (0.2) | (4.2) |
| Average Brent crude (US$/bbl) | 83.24 | 84.05 | 81.27 | (1.0) | 2.4 |
| Production taxes Brazil | 2,981 | 3,255 | 2,784 | (8.4) | 7.1 |
| Royalties | 1,871 | 1,942 | 1,610 | (3.7) | 16.2 |
| Special participation | 1,101 | 1,304 | 1,162 | (15.6) | (5.2) |
| Retention of areas | 9 | 9 | 12 | − | (25.0) |
| Lifting cost Brazil (US$/boe) | 6.04 | 5.52 | 5.51 | 9.4 | 9.7 |
| Pre-salt | 3.99 | 3.78 | 3.71 | 5.5 | 7.5 |
| Deep and ultra-deep post-salt | 15.18 | 12.12 | 11.45 | 25.2 | 32.6 |
| Onshore and shallow waters | 16.35 | 16.15 | 14.70 | 1.3 | 11.2 |
| Lifting cost + Leases | 8.42 | 7.79 | 7.27 | 8.0 | 15.8 |
| Pre-salt | 6.28 | 6.13 | 5.61 | 2.4 | 11.9 |
| Deep and ultra-deep post-salt | 18.47 | 14.37 | 12.94 | 28.5 | 42.7 |
| Onshore and shallow waters | 16.35 | 16.15 | 14.70 | 1.3 | 11.2 |
| Lifting cost + Production taxes | 20.05 | 19.78 | 19.19 | 1.3 | 4.5 |
| Lifting cost + Production taxes + Leases | 22.43 | 22.05 | 20.95 | 1.7 | 7.0 |
| (*) EBITDA margin and ROCE variations in percentage points. | |||||
In 1Q24, E&P gross profit was US$ 9.5 billion, a 13% reduction compared to 4Q23, when the result was US$ 10.9 billion. This reduction was mainly due to lower production in the period and lower Brent prices, partially offset by lower government take.
Operating profit in 1Q24 was US$ 8.8 billion, 24% higher than in 4Q23. This increase is due to higher impairment losses and abandonment provisions, both recorded in the previous quarter.
Regarding government take, there was a reduction in the quarterly comparison (1Q24 vs. 4Q23), explained by the drop in production and the lower price of Brent.
The lifting cost for 1Q24, excluding government take and leasing, was US$ 6.04/boe, representing an increase of 9% compared to the last quarter (US$ 5.52/boe). This increase was mainly influenced by production losses in this period, generated by production stoppages and planned maintenance in the Campos Basin and Santos Basin, as well as the natural decline of mature fields. In addition, there was an increase in costs due to the intensification of subsea inspection and maintenance activities in the Campos Basin and Santos Basin.
In the pre-salt, there was a 6% increase in lifting costs, due to the higher volume of production stoppages and planned maintenance in the period, mainly in the Tupi, Sépia and Sapinhoá fields in the Santos Basin, associated with higher spending on subsea inspections in the Santos Basin.
In the post-salt, there was a 25% increase in lifting costs, due to production stoppages and planned maintenance in the period, mainly in the Marlim Sul, Roncador and Barracuda/Caratinga fields in the Campos Basin, associated with higher spending on subsea inspections in the Campos Basin.
In onshore and shallow water assets, there was a 1% increase in lifting costs, mainly due to the effect of production, due to the higher volume of downtime losses. This effect was mitigated by the reduction in maintenance costs in the quarter.
| 12 |
| |
Refining, Transportation and Marketing
Table 12 – RTM results
| Variation (%) (*) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Sales revenues | 22,190 | 25,278 | 24,842 | (12.2) | (10.7) |
| Gross profit (loss) | 2,207 | 2,175 | 2,974 | 1.5 | (25.8) |
| Operating expenses | (836) | (966) | (1,178) | (13.5) | (29.0) |
| Operating Income | 1,371 | 1,209 | 1,796 | 13.4 | (23.7) |
| Net income (loss) attributable to the shareholders of Petrobras | 775 | 711 | 1,199 | 9.0 | (35.4) |
| Adjusted EBITDA of the segment | 1,994 | 1,963 | 2,381 | 1.6 | (16.3) |
| EBITDA margin of the segment (%) | 9 | 8 | 10 | 1 | (1) |
| ROCE (Return on Capital Employed) (%) | 5.1 | 5.6 | 11.7 | (0.5) | (6.6) |
| Refining cost (US$ / barrel) - Brazil | 2.63 | 2.75 | 2.12 | (4.4) | 24.1 |
| Domestic basic oil by-products price (US$/bbl) | 96.13 | 104.30 | 109.53 | (7.8) | (12.2) |
| (*) EBITDA margin and ROCE variations in percentage points. | |||||
In 1Q24, the gross profit was higher than in 4Q23, mainly due to the effect of inventory turnover: in 1Q24 there was a positive variation in Brent, while in 4Q23 there was a negative variation in Brent. The estimated effect in 1Q24 was a positive US$ 435 million compared to a negative US$ 216 million in 4Q23. Excluding this effect, gross profit would have been US$ 1.8 billion in 1Q24 against US$ 2.4 billion in 4Q23.
There was a lower volume of sales of oil products on the domestic market, mainly diesel, due to the seasonality of consumption and the increase in biodiesel content, and gasoline, due to the seasonality of consumption and the higher competitiveness of ethanol between quarters. There was also a higher volume of oil exports as a result of less processing.
In 1Q24, operating profit was higher than in 4Q23, reflecting higher gross profit and lower operating expenses, mainly impairment in 4Q23.
In 1Q24, the unit cost of refining was 4.4% lower than in 4Q23 due to lower absolute costs, and the highlights were the reductions in materials and services related to maintenance and upkeep, and lower personnel expenses in 1Q24. Throughput was lower in 1Q24 compared to 4Q23, in a period of lower seasonal demand and scheduled maintenance stoppages.
| 13 |
| |
Gas and Low Carbon Energies
Table 13 – G&LCE results
| Variation (%) (*) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Sales revenues | 2,422 | 2,859 | 2,854 | (15.3) | (15.1) |
| Gross profit | 1,245 | 1,433 | 1,387 | (13.1) | (10.2) |
| Operating expenses | (889) | (934) | (779) | (4.8) | 14.1 |
| Operating income | 356 | 499 | 608 | (28.7) | (41.4) |
| Net income (loss) attributable to the shareholders of Petrobras | 242 | 308 | 388 | (21.4) | (37.6) |
| Adjusted EBITDA of the segment | 490 | 715 | 739 | (31.5) | (33.7) |
| EBITDA margin of the segment (%) | 20 | 25 | 26 | (5) | (6) |
| ROCE (Return on Capital Employed) (%) | 9.0 | 10.4 | 10.7 | (1.4) | (1.7) |
| Natural gas sales price - Brazil (US$/bbl) | 67.88 | 62.60 | 73.27 | 8.4 | (7.4) |
| Natural gas sales price - Brazil (US$/MMBtu) | 11.45 | 10.56 | 12.35 | 8.4 | (7.3) |
| Fixed revenues from power auctions (**) | 64.13 | 89.00 | 81.68 | (27.9) | (21.5) |
| Average price of electricity (US$/MWh) | 62.97 | 67.01 | 11.66 | (6.0) | 439.9 |
| (*) EBITDA margin and ROCE variations in percentage points. | |||||
| (**) The fixed revenue from auctions takes into account the remuneration for thermal availability and inflexible electricity committed in auctions. | |||||
Gross profit in 1Q24 was 13% lower than in 4Q23, mainly due to inter-segment revenues with annual commitments in December 2023, as well as lower natural gas sales volumes and the ending of energy contracts during 1Q24.
Operating profit in 1Q24 was 29% lower than in 4Q23, impacted mainly by lower gross profit, which was partially offset by lower operating expenses with impairment.
| 14 |
| |
Reconciliation of Adjusted EBITDA
EBITDA is an indicator calculated as the net income for the period plus taxes on profit, net financial result, depreciation and amortization. Petrobras announces EBITDA, as authorized by CVM Resolution 156 of June 2022.
In order to reflect the management view regarding the formation of the company's current business results, EBITDA is also presented adjusted (Adjusted EBITDA) as a result of: results in equity-accounted investments; impairment, reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments, results with co-participation agreement in production fields and gains/losses on disposal/write-offs of assets.
Adjusted EBITDA, reflecting the sum of the last twelve months (Last Twelve Months), also represents an alternative to the company's operating cash generation. This measure is used to calculate the Gross Debt and Net Debt to Adjusted EBITDA metric, helping to evaluate the company's leverage and liquidity.
EBITDA and adjusted EBITDA are not provided for in International Financial Reporting Standards (IFRS) and should not serve as a basis for comparison with those disclosed by other companies and should not be considered as a substitute for any other measure calculated in accordance with IFRS. These measures should be considered in conjunction with other measures and indicators for a better understanding of the company's performance and financial condition.
Table 14 - Reconciliation of Adjusted EBITDA
| Variation (%) (*) | |||||
| US$ million | 1Q24 | 4Q23 | 1Q23 | 1Q24 X 4Q23 | 1Q24 X 1Q23 |
| Net income | 4,805 | 6,282 | 7,370 | (23.5) | (34.8) |
| Net finance income (expense) | 1,939 | (295) | 622 | − | 211.7 |
| Income taxes | 2,147 | 1,966 | 3,596 | 9.2 | (40.3) |
| Depreciation, depletion and amortization | 3,362 | 3,632 | 2,924 | (7.4) | 15.0 |
| EBITDA | 12,253 | 11,585 | 14,512 | 5.8 | (15.6) |
| Results of equity-accounted investments | 93 | 69 | (35) | 34.8 | − |
| Impairment of assets (reversals), net | (9) | 2,198 | 3 | − | − |
| Results on disposal/write-offs of assets | (162) | (145) | (496) | 11.7 | (67.3) |
| Results from co-participation agreements in bid areas | (48) | (237) | (28) | (79.7) | 71.4 |
| Adjusted EBITDA | 12,127 | 13,470 | 13,956 | (10.0) | (13.1) |
| Adjusted EBITDA margin (%) | 51 | 50 | 52 | 1.0 | (1.0) |
| (*) EBITDA Margin variations in percentage points. | |||||
| 15 |
| |
Financial statements
Table 15 - Income statement - Consolidated
| US$ million | 1Q24 | 4Q23 | 1Q23 |
| Sales revenues | 23,768 | 27,107 | 26,771 |
| Cost of sales | (11,511) | (12,453) | (12,658) |
| Gross profit | 12,257 | 14,654 | 14,113 |
| Selling expenses | (1,333) | (1,329) | (1,221) |
| General and administrative expenses | (447) | (454) | (357) |
| Exploration costs | (135) | (154) | (157) |
| Research and development expenses | (183) | (214) | (154) |
| Other taxes | (140) | (247) | (200) |
| Impairment (losses) reversals, net | 9 | (2,198) | (3) |
| Other income and expenses, net | (1,044) | (2,036) | (468) |
| (3,273) | (6,632) | (2,560) | |
| Operating income | 8,984 | 8,022 | 11,553 |
| Finance income | 552 | 588 | 465 |
| Finance expenses | (1,072) | (1,047) | (844) |
| Foreign exchange gains (losses) and inflation indexation charges | (1,419) | 754 | (243) |
| Net finance income (expense) | (1,939) | 295 | (622) |
| Results of equity-accounted investments | (93) | (69) | 35 |
| Income before income taxes | 6,952 | 8,248 | 10,966 |
| Income taxes | (2,147) | (1,966) | (3,596) |
| Net Income | 4,805 | 6,282 | 7,370 |
| Net income attributable to: | |||
| Shareholders of Petrobras | 4,782 | 6,259 | 7,341 |
| Non-controlling interests | 23 | 23 | 29 |
| 16 |
| |
Table 16 - Statement of financial position – Consolidated
| ASSETS - US$ million | 03.31.2024 | 12.31.2023 |
| Current assets | 33,219 | 32,445 |
| Cash and cash equivalents | 11,547 | 12,727 |
| Marketable securities | 4,818 | 2,819 |
| Trade and other receivables | 5,041 | 6,135 |
| Inventories | 8,176 | 7,681 |
| Recoverable taxes | 1,541 | 1,178 |
| Assets classified as held for sale | 335 | 335 |
| Other current assets | 1,761 | 1,570 |
| Non-current assets | 180,404 | 184,622 |
| Long-term receivables | 25,992 | 26,798 |
| Trade and other receivables | 1,462 | 1,847 |
| Marketable securities | 1,880 | 2,409 |
| Judicial deposits | 14,821 | 14,746 |
| Deferred income taxes | 1,167 | 965 |
| Other recoverable taxes | 4,417 | 4,516 |
| Other non-current assets | 2,245 | 2,315 |
| Investments | 1,235 | 1,358 |
| Property, plant and equipment | 150,211 | 153,424 |
| Intangible assets | 2,966 | 3,042 |
| Total assets | 213,623 | 217,067 |
| LIABILITIES - US$ million | 03.31.2024 | 12.31.2023 |
| Current liabilities | 30,799 | 33,860 |
| Trade payables | 5,164 | 4,813 |
| Finance debt | 4,914 | 4,322 |
| Lease liability | 7,455 | 7,200 |
| Taxes payable | 4,961 | 5,466 |
| Dividends payable | 20 | 3,539 |
| Provision for decommissioning costs | 2,054 | 2,032 |
| Employee benefits | 2,796 | 2,932 |
| Liabilities related to assets classified as held for sale | 523 | 541 |
| Other current liabilities | 2,912 | 3,015 |
| Non-current liabilities | 100,775 | 104,232 |
| Finance debt | 22,824 | 24,479 |
| Lease liability | 26,645 | 26,599 |
| Income taxes payable | 279 | 299 |
| Deferred income taxes | 10,040 | 10,910 |
| Employee benefits | 15,310 | 15,579 |
| Provision for legal proceedings | 3,369 | 3,305 |
| Provision for decommissioning costs | 20,378 | 21,171 |
| Other non-current liabilities | 1,930 | 1,890 |
| Shareholders' equity | 82,049 | 78,975 |
| Attributable to the shareholders of Petrobras | 81,590 | 78,583 |
| Share capital (net of share issuance costs) | 107,101 | 107,101 |
| Capital reserve and capital transactions | 178 | 410 |
| Profit reserves | 77,423 | 72,641 |
| Accumulated other comprehensive deficit | (103,112) | (101,569) |
| Attributable to non-controlling interests | 459 | 392 |
| Total liabilities and shareholders´ equity | 213,623 | 217,067 |
| 17 |
| |
Table 17 - Statement of cash flow – Consolidated
| US$ million | 1Q24 | 4Q23 | 1Q23 |
| Cash flows from operating activities | |||
| Net income for the period | 4,805 | 6,282 | 7,370 |
| Adjustments for: | |||
| Pension and medical benefits | 433 | 389 | 370 |
| Results of equity-accounted investments | 93 | 69 | (35) |
| Depreciation, depletion and amortization | 3,362 | 3,632 | 2,924 |
| Impairment of assets | (9) | 2,198 | 3 |
| Inventory write down (write-back) to net realizable value | (44) | (3) | (8) |
| Allowance (reversals) for credit loss on trade and other receivables, net | 30 | (9) | 24 |
| Exploratory expenditure write-offs | 50 | 11 | 32 |
| Gain on disposal/write-offs of assets | (162) | (145) | (496) |
| Foreign exchange, indexation and finance charges | 1,935 | (316) | 656 |
| Income taxes | 2,147 | 1,966 | 3,596 |
| Revision and unwinding of discount on the provision for decommissioning costs | 280 | 1,390 | 212 |
| Results from co-participation agreements in bid areas | (48) | (237) | (28) |
| Early termination and cash outflows revision of lease agreements | (69) | (54) | (167) |
| Losses with legal, administrative and arbitration proceedings, net | 281 | 125 | 254 |
| Decrease (Increase) in assets | |||
| Trade and other receivables | 604 | (499) | 412 |
| Inventories | (627) | 432 | 989 |
| Judicial deposits | (288) | (623) | (403) |
| Other assets | 34 | 155 | 111 |
| Increase (Decrease) in liabilities | |||
| Trade payables | 407 | 63 | (478) |
| Other taxes payable | (520) | (10) | (217) |
| Pension and medical benefits | (203) | (244) | (178) |
| Provisions for legal proceedings | (78) | (225) | (85) |
| Other employee benefits | (59) | 193 | 35 |
| Provision for decommissioning costs | (263) | (305) | (165) |
| Other liabilities | (82) | (198) | (101) |
| Income taxes paid | (2,623) | (2,368) | (4,280) |
| Net cash provided by operating activities | 9,386 | 11,669 | 10,347 |
| Cash flows from investing activities | |||
| Acquisition of PP&E and intangible assets | (2,838) | (3,594) | (2,423) |
| Acquisition of equity interests | (1) | (2) | (8) |
| Proceeds from disposal of assets - Divestment | 569 | 42 | 1,855 |
| Financial compensation from co-participation agreements | 397 | − | 391 |
| Divestment (investment) in marketable securities | (1,475) | 313 | (930) |
| Dividends received | 24 | 13 | 11 |
| Net cash (used in) provided by investing activities | (3,324) | (3,228) | (1,104) |
| Cash flows from financing activities | |||
| Changes in non-controlling interest | 93 | 103 | (75) |
| Financing and loans, net: | |||
| Proceeds from finance debt | 2 | 910 | 51 |
| Repayment of principal - finance debt | (1,007) | (1,711) | (750) |
| Repayment of interest - finance debt | (594) | (406) | (570) |
| Repayment of lease liability | (1,918) | (1,792) | (1,389) |
| Dividends paid to Shareholders of Petrobras | (3,455) | (4,436) | (4,192) |
| Share repurchase program | (232) | (538) | − |
| Dividends paid to non-controlling interests | (57) | (1) | (48) |
| Net cash used in financing activities | (7,168) | (7,871) | (6,973) |
| Effect of exchange rate changes on cash and cash equivalents | (74) | 47 | 24 |
| 18 |
| |
| Net change in cash and cash equivalents | (1,180) | 617 | 2,294 |
| Cash and cash equivalents at the beginning of the period | 12,727 | 12,110 | 7,996 |
| Cash and cash equivalents at the end of the period | 11,547 | 12,727 | 10,290 |
| 19 |
| |
Financial information by business areas
Table 18 - Consolidated income by segment – 1Q24
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. | ELIMIN. | TOTAL |
| Sales revenues | 16,077 | 22,190 | 2,422 | 78 | (16,999) | 23,768 |
| Intersegments | 15,974 | 303 | 720 | 2 | (16,999) | − |
| Third parties | 103 | 21,887 | 1,702 | 76 | − | 23,768 |
| Cost of sales | (6,614) | (19,983) | (1,177) | (74) | 16,337 | (11,511) |
| Gross profit | 9,463 | 2,207 | 1,245 | 4 | (662) | 12,257 |
| Expenses | (630) | (836) | (889) | (918) | − | (3,273) |
| Selling expenses | (1) | (551) | (768) | (13) | − | (1,333) |
| General and administrative expenses | (20) | (84) | (28) | (315) | − | (447) |
| Exploration costs | (135) | − | − | − | − | (135) |
| Research and development expenses | (139) | (2) | − | (42) | − | (183) |
| Other taxes | (20) | (7) | (5) | (108) | − | (140) |
| Impairment (losses) reversals, net | (4) | − | − | 13 | − | 9 |
| Other income and expenses, net | (311) | (192) | (88) | (453) | − | (1,044) |
| Operating income (loss) | 8,833 | 1,371 | 356 | (914) | (662) | 8,984 |
| Net finance income (expense) | − | − | − | (1,939) | − | (1,939) |
| Results of equity-accounted investments | 17 | (130) | 21 | (1) | − | (93) |
| Income (loss) before income taxes | 8,850 | 1,241 | 377 | (2,854) | (662) | 6,952 |
| Income taxes | (3,005) | (466) | (120) | 1,218 | 226 | (2,147) |
| Net income (loss) | 5,845 | 775 | 257 | (1,636) | (436) | 4,805 |
| Net income (loss) attributable to: | ||||||
| Shareholders of Petrobras | 5,846 | 775 | 242 | (1,645) | (436) | 4,782 |
| Non-controlling interests | (1) | − | 15 | 9 | − | 23 |
| 20 |
| |
Table 19 - Consolidated income by segment – 1Q23
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. | ELIMIN. | TOTAL |
| Sales revenues | 15,730 | 24,842 | 2,854 | 76 | (16,731) | 26,771 |
| Intersegments | 15,450 | 474 | 805 | 2 | (16,731) | − |
| Third parties | 280 | 24,368 | 2,049 | 74 | − | 26,771 |
| Cost of sales | (6,379) | (21,868) | (1,467) | (77) | 17,133 | (12,658) |
| Gross profit | 9,351 | 2,974 | 1,387 | (1) | 402 | 14,113 |
| Expenses | (123) | (1,178) | (779) | (475) | (5) | (2,560) |
| Selling expenses | (7) | (533) | (652) | (24) | (5) | (1,221) |
| General and administrative expenses | (16) | (78) | (15) | (248) | − | (357) |
| Exploration costs | (157) | − | − | − | − | (157) |
| Research and development expenses | (124) | (2) | (1) | (27) | − | (154) |
| Other taxes | (18) | (106) | (9) | (67) | − | (200) |
| Impairment (losses) reversals, net | 13 | (16) | − | − | − | (3) |
| Other income and expenses, net | 186 | (443) | (102) | (109) | − | (468) |
| Operating income (loss) | 9,228 | 1,796 | 608 | (476) | 397 | 11,553 |
| Net finance income (expense) | − | − | − | (622) | − | (622) |
| Results of equity-accounted investments | 17 | 14 | 4 | − | − | 35 |
| Income (loss) before income taxes | 9,245 | 1,810 | 612 | (1,098) | 397 | 10,966 |
| Income taxes | (3,138) | (611) | (206) | 494 | (135) | (3,596) |
| Net income (loss) | 6,107 | 1,199 | 406 | (604) | 262 | 7,370 |
| Net income (loss) attributable to: | ||||||
| Shareholders of Petrobras | 6,108 | 1,199 | 388 | (616) | 262 | 7,341 |
| Non-controlling interests | (1) | − | 18 | 12 | − | 29 |
Table 20 - Quarterly consolidated income by segment – 4Q23
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. | ELIMIN. | TOTAL |
| Sales revenues | 18,506 | 25,278 | 2,859 | 112 | (19,648) | 27,107 |
| Intersegments | 18,381 | 339 | 924 | 4 | (19,648) | − |
| Third parties | 125 | 24,939 | 1,935 | 108 | − | 27,107 |
| Cost of sales | (7,597) | (23,103) | (1,426) | (115) | 19,788 | (12,453) |
| Gross profit | 10,909 | 2,175 | 1,433 | (3) | 140 | 14,654 |
| Expenses | (3,778) | (966) | (934) | (954) | − | (6,632) |
| Selling expenses | (1) | (577) | (739) | (12) | − | (1,329) |
| General and administrative expenses | (34) | (85) | (28) | (307) | − | (454) |
| Exploration costs | (154) | − | − | − | − | (154) |
| Research and development expenses | (168) | − | (1) | (45) | − | (214) |
| Other taxes | (84) | (15) | (20) | (128) | − | (247) |
| Impairment (losses) reversals, net | (2,009) | (108) | (81) | − | − | (2,198) |
| Other income and expenses, net | (1,328) | (181) | (65) | (462) | − | (2,036) |
| Operating income (loss) | 7,131 | 1,209 | 499 | (957) | 140 | 8,022 |
| Net finance income (expense) | − | − | − | 295 | − | 295 |
| Results of equity-accounted investments | 26 | (87) | (7) | (1) | − | (69) |
| Income (loss) before income taxes | 7,157 | 1,122 | 492 | (663) | 140 | 8,248 |
| Income taxes | (2,425) | (411) | (170) | 1,088 | (48) | (1,966) |
| Net income (loss) | 4,732 | 711 | 322 | 425 | 92 | 6,282 |
| Net income (loss) attributable to: | ||||||
| Shareholders of Petrobras | 4,734 | 711 | 308 | 414 | 92 | 6,259 |
| Non-controlling interests | (2) | − | 14 | 11 | − | 23 |
| 21 |
| |
Table 21 - Other income and expenses by segment – 1Q24
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. | ELIMIN. | TOTAL |
| Stoppages for asset maintenance and pre-operating expenses | (607) | (26) | (15) | (4) | − | (652) |
| Pension and medical benefits - retirees | − | − | − | (309) | − | (309) |
| Losses with legal, administrative and arbitration proceedings | (84) | (96) | (4) | (97) | − | (281) |
| Profit sharing | (71) | (48) | (9) | (48) | − | (176) |
| Variable compensation programs | (33) | (20) | (4) | (22) | − | (79) |
| Operating expenses with thermoelectric power plants | − | − | (66) | − | − | (66) |
| Institutional relations and cultural projects | − | (1) | − | (26) | − | (27) |
| Expenses with contractual fines received | (6) | − | (11) | − | − | (17) |
| Gains with Commodities Derivatives | − | 5 | − | − | − | 5 |
| Amounts recovered from Lava Jato investigation | − | − | − | 5 | − | 5 |
| Ship/take or pay agreements and fines imposed to suppliers | 1 | 13 | 32 | 1 | − | 47 |
| Results from co-participation agreements in bid areas | 48 | − | − | − | − | 48 |
| Fines imposed on suppliers | 49 | 3 | 1 | 3 | − | 56 |
| Early termination and changes to cash flow estimates of leases | 67 | 2 | (1) | 1 | − | 69 |
| Government grants | 1 | − | 1 | 76 | − | 78 |
| Reimbursements from E&P partnership operations | 156 | − | − | − | − | 156 |
| Results on disposal/write-offs of assets | 137 | 25 | 19 | (19) | − | 162 |
| Others | 31 | (49) | (31) | (14) | − | (63) |
| (311) | (192) | (88) | (453) | − | (1,044) |
Table 22 - Other income and expenses by segment – 1Q23
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. | ELIMIN. | TOTAL |
| Stoppages for asset maintenance and pre-operating expenses | (477) | (5) | (10) | (7) | − | (499) |
| Pension and medical benefits - retirees | − | − | − | (281) | − | (281) |
| Gains (losses) with legal, administrative and arbitration proceedings | (58) | (212) | 7 | 9 | − | (254) |
| Profit sharing | (14) | (9) | (2) | (10) | − | (35) |
| Variable compensation programs | (55) | (31) | (7) | (47) | − | (140) |
| Operating expenses with thermoelectric power plants | − | − | (41) | − | − | (41) |
| Institutional relations and cultural projects | − | (1) | − | (21) | − | (22) |
| Expenses with contractual fines received | (2) | 2 | (62) | − | − | (62) |
| Gains (losses) with Commodities Derivatives | − | 85 | (7) | 1 | − | 79 |
| Amounts recovered from Lava Jato investigation | − | − | − | 89 | − | 89 |
| Ship/take or pay agreements and fines imposed to suppliers | 1 | 11 | 21 | − | − | 33 |
| Results from co-participation agreements in bid areas | 28 | − | − | − | − | 28 |
| Fines imposed on suppliers | 37 | 4 | − | 2 | − | 43 |
| Early termination and changes to cash flow estimates of leases | 84 | 81 | 1 | 1 | − | 167 |
| Government grants | 1 | − | − | 103 | − | 104 |
| Reimbursements from E&P partnership operations | 161 | − | − | − | − | 161 |
| Results on disposal/write-offs of assets | 507 | (11) | (7) | 7 | − | 496 |
| Others (*) | (27) | (357) | 5 | 45 | − | (334) |
| 186 | (443) | (102) | (109) | − | (468) | |
| (*) It includes, in the first quarter of 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of US$ 317. | ||||||
| 22 |
| |
Table 23 - Other income and expenses by segment – 4Q23
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. | ELIMIN. | TOTAL |
| Stoppages for asset maintenance and pre-operating expenses | (518) | (6) | (15) | (5) | − | (544) |
| Pension and medical benefits - retirees | − | − | − | (295) | − | (295) |
| Losses with legal, administrative and arbitration proceedings | (41) | (63) | (8) | (13) | − | (125) |
| Profit sharing | (221) | (103) | (27) | (136) | − | (487) |
| Variable compensation programs | 34 | (1) | 5 | 17 | − | 55 |
| Operating expenses with thermoelectric power plants | − | − | (55) | − | − | (55) |
| Institutional relations and cultural projects | − | (1) | − | (66) | − | (67) |
| Expenses with contractual fines received | (4) | (2) | (35) | − | − | (41) |
| Gains with Commodities Derivatives | − | 31 | − | − | − | 31 |
| Amounts recovered from Lava Jato investigation | 10 | − | − | − | − | 10 |
| Ship/take or pay agreements and fines imposed to suppliers | 1 | 10 | 88 | 1 | − | 100 |
| Results from co-participation agreements in bid areas | 237 | − | − | − | − | 237 |
| Fines imposed on suppliers | 44 | 7 | 3 | 7 | − | 61 |
| Early termination and changes to cash flow estimates of leases | 46 | 7 | 1 | − | − | 54 |
| Government grants | 1 | − | − | 57 | − | 58 |
| Reimbursements from E&P partnership operations | 141 | − | − | − | − | 141 |
| Results on disposal/write-offs of assets | 167 | (24) | 4 | (2) | − | 145 |
| Others | (1,225) | (36) | (26) | (27) | − | (1,314) |
| (1,328) | (181) | (65) | (462) | − | (2,036) |
| 23 |
| |
Table 24 - Consolidated assets by segment – 03.31.2024
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Total assets | 135,702 | 34,706 | 7,204 | 41,622 | (5,611) | 213,623 |
| Current assets | 2,450 | 11,742 | 433 | 24,205 | (5,611) | 33,219 |
| Non-current assets | 133,252 | 22,964 | 6,771 | 17,417 | − | 180,404 |
| Long-term receivables | 9,088 | 2,090 | 81 | 14,733 | − | 25,992 |
| Investments | 339 | 687 | 153 | 56 | − | 1,235 |
| Property, plant and equipment | 121,455 | 20,052 | 6,461 | 2,243 | − | 150,211 |
| Operating assets | 104,258 | 17,212 | 3,927 | 1,706 | − | 127,103 |
| Assets under construction | 17,197 | 2,840 | 2,534 | 537 | − | 23,108 |
| Intangible assets | 2,370 | 135 | 76 | 385 | − | 2,966 |
Table 25 - Consolidated assets by segment – 12.31.2023
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Total assets | 138,868 | 34,802 | 6,776 | 41,899 | (5,278) | 217,067 |
| Current assets | 2,804 | 11,002 | 370 | 23,547 | (5,278) | 32,445 |
| Non-current assets | 136,064 | 23,800 | 6,406 | 18,352 | − | 184,622 |
| Long-term receivables | 9,028 | 2,068 | 83 | 15,619 | − | 26,798 |
| Investments | 344 | 811 | 145 | 58 | − | 1,358 |
| Property, plant and equipment | 124,254 | 20,786 | 6,101 | 2,283 | − | 153,424 |
| Operating assets | 108,405 | 18,128 | 3,605 | 1,770 | − | 131,908 |
| Assets under construction | 15,849 | 2,658 | 2,496 | 513 | − | 21,516 |
| Intangible assets | 2,438 | 135 | 77 | 392 | − | 3,042 |
| 24 |
| |
Table 26 - Reconciliation of Adjusted EBITDA by segment – 1T24
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Net income (loss) | 5,845 | 775 | 257 | (1,636) | (436) | 4,805 |
| Net finance income (expense) | − | − | − | 1,939 | − | 1,939 |
| Income taxes | 3,005 | 466 | 120 | (1,218) | (226) | 2,147 |
| Depreciation, depletion and amortization | 2,530 | 648 | 153 | 31 | − | 3,362 |
| EBITDA | 11,380 | 1,889 | 530 | (884) | (662) | 12,253 |
| Results of equity-accounted investments | (17) | 130 | (21) | 1 | − | 93 |
| Impairment of assets (reversals), net | 4 | − | − | (13) | − | (9) |
| Results on disposal/write-offs of assets | (137) | (25) | (19) | 19 | − | (162) |
| Results from co-participation agreements in bid areas | (48) | − | − | − | − | (48) |
| Adjusted EBITDA | 11,182 | 1,994 | 490 | (877) | (662) | 12,127 |
Table 27 - Reconciliation of Adjusted EBITDA by segment – 1T23
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Net income (loss) | 6,107 | 1,199 | 406 | (604) | 262 | 7,370 |
| Net finance income (expense) | − | − | − | 622 | − | 622 |
| Income taxes | 3,138 | 611 | 206 | (494) | 135 | 3,596 |
| Depreciation, depletion and amortization | 2,215 | 558 | 124 | 27 | − | 2,924 |
| EBITDA | 11,460 | 2,368 | 736 | (449) | 397 | 14,512 |
| Results of equity-accounted investments | (17) | (14) | (4) | − | − | (35) |
| Impairment of assets (reversals), net | (13) | 16 | − | − | − | 3 |
| Results on disposal/write-offs of assets | (507) | 11 | 7 | (7) | − | (496) |
| Results from co-participation agreements in bid areas | (28) | − | − | − | − | (28) |
| Adjusted EBITDA | 10,895 | 2,381 | 739 | (456) | 397 | 13,956 |
Table 28 - Reconciliation of Adjusted EBITDA by segment – 4Q23
| US$ million | E&P | RTM | Gas and Low Carbon Energies (G&LCE) | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Net income (loss) | 4,732 | 711 | 322 | 425 | 92 | 6,282 |
| Net finance income (expense) | − | − | − | (295) | − | (295) |
| Income taxes | 2,425 | 411 | 170 | (1,088) | 48 | 1,966 |
| Depreciation, depletion and amortization | 2,839 | 622 | 139 | 32 | − | 3,632 |
| EBITDA | 9,996 | 1,744 | 631 | (926) | 140 | 11,585 |
| Results of equity-accounted investments | (26) | 87 | 7 | 1 | − | 69 |
| Impairment of assets (reversals), net | 2,009 | 108 | 81 | − | − | 2,198 |
| Results on disposal/write-offs of assets | (167) | 24 | (4) | 2 | − | (145) |
| Results from co-participation agreements in bid areas | (237) | − | − | − | − | (237) |
| Adjusted EBITDA | 11,575 | 1,963 | 715 | (923) | 140 | 13,470 |
| 25 |
| |
| 26 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 13, 2024
PETRÓLEO BRASILEIRO S.A–PETROBRAS
By: /s/ Sergio Caetano Leite
______________________________
Sergio Caetano Leite
Chief Financial Officer and Investor Relations Officer