6-K 1 pbrrmf2q24rs_6k.htm 6-K

 

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 August, 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____

 

 

 
 

 

 

 
 

Table of Contents

Highlights - 2Q24 4
Main items 5
Consolidated results 6
Net revenues 6
Cost of goods sold * 7
Operating expenses 8
Adjusted EBITDA 8
Financial results 9
Net profit (loss) attributable to Petrobras shareholders 9
Non-recurring items 10
Capex 11
Liquidity and capital resources 13
Debt indicators 15
Results by segment 16
Exploration and Production 16
Refining, Transportation and Marketing 18
Gas and Low Carbon Energies 19
Reconciliation of Adjusted EBITDA 20
Exhibits 21
Financial statements 21
Financial information by business areas 24
Glossary 37

 

  

PETROBRAS | Performance Report | 2Q24

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DISCLAIMER

This report may contain forward-looking statements about future events. Such forecasts reflect only the expectations of the company's management about future economic conditions, as well as the company's industry, performance and financial results, among others. The terms "anticipates", "believes", "expects", "predicts", "intends", "plans", "projects", "aims", "should", as well as other similar terms, are intended to identify such forecasts, which, of course, involve risks and uncertainties foreseen or not foreseen by the company and, consequently, are not guarantees of the company's future results. Therefore, future results of the company's operations may differ from current expectations, and the reader should not rely solely on the information contained herein. The Company undertakes no obligation to update the presentations and forecasts in the light of new information or future developments. The figures reported for 2Q24 onwards are estimates or targets. Additionally, this presentation contains some financial indicators that are not recognized under BR GAAP or IFRS. These indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by other companies. We provide these indicators because we use them as measures of the company's 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 Debt in the Glossary and respective reconciliations in the Liquidity and Capital Resources, Reconciliation of Adjusted EBITDA and Net Debt sections. Consolidated interim financial information prepared in accordance with International Accounting Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) and reviewed by the independent auditors.

 

  

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Highlights - 2Q24

 

 

* Net profit excluding non-recurring items and exchange rate effect Real x Dollar

** Amount paid in June/24 for entry into the Tax Transaction

 

 

“Petrobras maintained robust cash generation in the second quarter of 2024, which allowed it to make US$ 3 billion in investments, comply with our shareholder remuneration policy and pay dividends.  The net result for the quarter should be analyzed in light of events that impacted the accounting result but had no relevant impact on the company's cash flow. The main events were the exchange rate variation for the period - an effect between companies in the Petrobras System that has no cash effect or even equity effect - and the impact of adhering to the tax transaction - a decision deemed positive by the market because it ended billion-dollar disputes that brought great uncertainty to the company's cash flow. Without these events, net income for 2Q24 would have reached US$ 5.4 billion and EBITDA would have been US$ 12 billion, in line with the previous quarter”. Fernando Melgarejo, Chief Financial and Investor Relations Officer

Main highlights:

•Continued robust cash generation
•Lowest financial debt level since 3Q08, at US$ 26.3 billion
•Capex totaled US$ 6.4 billion in 1H24, up 12.5% on 1H23
•Adherence to the Tax Transaction ends significant legal disputes worth R$45 billion

Reversal of loss

•Approval of the resumption of operations at Araucária Nitrogenados S.A. (ANSA) allowed the reversal of the impairment losses

Contributions

•Greater contribution to society, with tax payments 24% higher than in 2Q23
•Approval of dividends and interest on equity of R$13.6 billion, to be paid in two installments (November and December), using R$6.4 billion from the capital remuneration reserve

 

  

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Main items

Table 1 - Main items*

            Variation (%)
 R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Sales revenues 122,258 117,721 113,840 239,979 252,908 3.9 7.4 (5.1)
Gross profit 61,047 60,701 57,681 121,748 130,992 0.6 5.8 (7.1)
Operating expenses (26,508) (16,217) (15,604) (42,725) (28,899) 63.5 69.9 47.8
Consolidated net income (loss) attributable to the shareholders of Petrobras (2,605) 23,700 28,782 21,095 66,938 − − (68.5)
Recurring consolidated net income (loss) attributable to the shareholders of Petrobras (*) 15,728 23,873 29,402 39,601 67,822 (34.1) (46.5) (41.6)
Net cash provided by operating activities 47,170 46,481 47,751 93,651 101,510 1.5 (1.2) (7.7)
Free cash flow 31,881 32,428 33,315 64,309 74,441 (1.7) (4.3) (13.6)
Adjusted EBITDA 49,740 60,044 56,690 109,784 129,187 (17.2) (12.3) (15.0)
Recurring adjusted EBITDA (*) 62,332 61,523 59,101 123,855 134,714 1.3 5.5 (8.1)
Gross debt (US$ million) 59,630 61,838 57,971 59,630 57,971 (3.6) 2.9 2.9
Net debt (US$ million) 46,160 43,646 42,177 46,160 42,177 5.8 9.4 9.4
Net debt/LTM Adjusted EBITDA ratio (**) 0.95 0.86 0.74 0.95 0.74 10.5 28.4 28.4
Average commercial selling rate for U.S. dollar 5.22 4.95 4.95 5.08 5.07 5.5 5.5 0.2
Brent crude (US$/bbl) 84.94 83.24 78.39 84.09 79.83 2.0 8.4 5.3
Domestic basic oil by-products price (R$/bbl) 476.25 476.14 475.28 476.20 521.47 − 0.2 (8.7)
TRI (total recordable injuries per million men-hour frequency rate) 0.70 0.61 0.80 0.70 0.80 14.8 (12.5) (12.5)
ROCE (Return on Capital Employed) 9.8% 10.4% 12.8% 9.8% 12.8% -0,6 p.p. -3 p.p. -3 p.p.

 

 

(*) See reconciliation of Recurring net income and Adjusted EBITDA in the Non-reccuring Items section.

(**) Ratio calculated in USD.

  

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Consolidated results

Net revenues

Table 2 – Net revenues by products

            Variation (%)
R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Diesel 36,396 35,051 35,099 71,447 78,249 3.8 3.7 (8.7)
Gasoline 16,015 15,868 18,700 31,883 37,889 0.9 (14.4) (15.9)
Liquefied petroleum gas (LPG) 4,134 3,756 4,712 7,890 9,541 10.1 (12.3) (17.3)
Jet fuel 5,980 5,865 5,461 11,845 12,763 2.0 9.5 (7.2)
Naphtha 2,521 2,118 2,132 4,639 4,617 19.0 18.2 0.5
Fuel oil (including bunker fuel) 1,213 1,702 1,294 2,915 2,780 (28.7) (6.3) 4.9
Other oil products 5,596 5,047 5,584 10,643 11,217 10.9 0.2 (5.1)
Subtotal oil products 71,855 69,407 72,982 141,262 157,056 3.5 (1.5) (10.1)
Natural gas 5,918 6,546 7,083 12,464 15,010 (9.6) (16.4) (17.0)
Crude oil 5,502 6,088 6,756 11,590 13,772 (9.6) (18.6) (15.8)
Renewables and nitrogen products 227 156 122 383 231 45.5 86.1 65.8
Revenues from non-exercised rights 632 692 1,072 1,324 2,214 (8.7) (41.0) (40.2)
Electricity 543 631 756 1,174 1,326 (13.9) (28.2) (11.5)
Services, agency and others 1,052 1,223 1,394 2,275 2,661 (14.0) (24.5) (14.5)
Total domestic market 85,729 84,743 90,165 170,472 192,270 1.2 (4.9) (11.3)
Exports 35,053 31,690 21,950 66,743 56,964 10.6 59.7 17.2
Crude oil 26,813 24,318 14,416 51,131 43,225 10.3 86.0 18.3
Fuel oil (including bunker fuel) 5,859 6,554 6,580 12,413 11,952 (10.6) (11.0) 3.9
Other oil products and other products 2,381 818 954 3,199 1,787 191.1 149.6 79.0
Sales abroad (*) 1,476 1,288 1,725 2,764 3,674 14.6 (14.4) (24.8)
Total foreign market 36,529 32,978 23,675 69,507 60,638 10.8 54.3 14.6
Total 122,258 117,721 113,840 239,979 252,908 3.9 7.4 (5.1)
(*) Sales revenues from operations outside of Brazil, including trading and excluding exports

 

Net revenues for 2Q24 increased by 4% compared to the previous quarter.

The 11% increase in export revenues is mainly attributable to the growth in revenues from oil exports. This result reflects the 8% appreciation of Brent prices in BRL in the period.

Revenues from domestic sale of oil products were 3% higher when compared to 1Q24, mainly due to higher realized prices, mainly Naphtha and QAV, associated with higher volumes of oil products sold, especially diesel, driven by seasonal consumption and increased economic activity.

The lower revenue from the domestic oil sale was due to lower sales volumes to Acelen.

The reduction in natural gas revenues in 2Q24 is mainly explained by lower demand from the non-thermal sector alongside a decrease in the average selling price.

 

  

PETROBRAS | Performance Report | 2Q24

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Cost of goods sold (*)

Table 3 – Cost of goods sold

            Variation (%)
R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Acquisitions (21,587) (17,388) (21,598) (38,975) (46,979) 24.1 (0.1) (17.0)
Crude oil imports (13,492) (9,321) (10,335) (22,813) (24,195) 44.7 30.5 (5.7)
Oil products imports (5,994) (5,324) (7,760) (11,318) (17,173) 12.6 (22.8) (34.1)
Natural gas imports (2,101) (2,743) (3,503) (4,844) (5,611) (23.4) (40.0) (13.7)
Production (37,529) (37,489) (32,094) (75,018) (69,260) 0.1 16.9 8.3
Crude oil (30,546) (31,719) (26,812) (62,265) (59,276) (3.7) 13.9 5.0
Production taxes (13,865) (13,235) (12,280) (27,100) (26,358) 4.8 12.9 2.8
Other costs (16,681) (18,484) (14,532) (35,165) (32,918) (9.8) 14.8 6.8
Oil products (4,226) (3,470) (2,787) (7,696) (5,070) 21.8 51.6 51.8
Natural gas   (2,757) (2,300) (2,495) (5,057) (4,914) 19.9 10.5 2.9
Production taxes (624) (619) (455) (1,243) (932) 0.8 37.1 33.4
Other costs (2,133) (1,681) (2,040) (3,814) (3,982) 26.9 4.6 (4.2)
Services, electricity, operations abroad and others (2,095) (2,143) (2,467) (4,238) (5,677) (2.2) (15.1) (25.3)
Total (61,211) (57,020) (56,159) (118,231) (121,916) 7.4 9.0 (3.0)

 

In 2Q24, the cost of goods sold increased by 7% when compared to 1Q24. The increase in costs of oil and oil products imports reflects the appreciation of prices in inventory build-up and higher share of imports in the processed load in refineries and sales mix. This increase was partially offset by the lower share of Bolivian gas in the sales mix and the lower cost of acquiring LNG.

 

* Managerial information (non-revised).

  

PETROBRAS | Performance Report | 2Q24

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Operating expenses

Table 4 – Operating expenses

            Variation (%)
R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Selling, General and Administrative Expenses (9,486) (8,822) (7,868) (18,308) (16,067) 7.5 20.6 13.9
Selling expenses (6,612) (6,606) (5,947) (13,218) (12,291) 0.1 11.2 7.5
Materials, third-party services, freight, rent and other related costs (5,570) (5,549) (5,070) (11,119) (10,399) 0.4 9.9 6.9
Depreciation, depletion and amortization (870) (855) (764) (1,725) (1,541) 1.8 13.9 11.9
Allowance for expected credit losses 11 (51) 21 (40) (86) − (47.6) (53.5)
Employee compensation (183) (151) (134) (334) (265) 21.2 36.6 26.0
General and administrative expenses (2,874) (2,216) (1,921) (5,090) (3,776) 29.7 49.6 34.8
Employee compensation (*) (1,916) (1,447) (1,209) (3,363) (2,398) 32.4 58.5 40.2
Materials, third-party services, rent and other related costs (762) (594) (555) (1,356) (1,084) 28.3 37.3 25.1
Depreciation, depletion and amortization (196) (175) (157) (371) (294) 12.0 24.8 26.2
Exploration costs (913) (670) (945) (1,583) (1,762) 36.3 (3.4) (10.2)
Research and Development (1,008) (908) (850) (1,916) (1,650) 11.0 18.6 16.1
Other taxes (5,079) (695) (1,632) (5,774) (2,671) 630.8 211.2 116.2
Impairment (losses) reversals, net 201 45 (1,946) 246 (1,962) 346.7 − −
Other income and expenses, net (10,223) (5,167) (2,363) (15,390) (4,787) 97.9 332.6 221.5
Total (26,508) (16,217) (15,604) (42,725) (28,899) 63.5 69.9 47.8
(*) In the second quarter of 2024, it mainly refers to the actuarial revision of the Saúde Petrobras - AMS health care plan, reflecting the change in the benefit, in the amount of R$ 418 million.

 

The increase in G&A relative to 1Q24 reflects mainly the effects of the 2023 labor agreement and the higher expenses with third-party services. 

The higher tax expenses in 2Q24 were mainly due to adherence to the tax transaction, which allowed the settlement of significant legal disputes related to discussions on the incidence of taxes on remittances abroad involving chartering of vessels or platforms and their respective service contracts.

In other net operating expenses, the increase observed in 2Q24 is primarily explained by higher expenses with healthcare plan for retired employees due to the 2023 labor agreement.

On the other hand, there was a reversal of the impairment loss for Araucária Nitrogenados S.A., reflecting the approval of the reactivation of the fertilizer plant.

 

Adjusted EBITDA

In 2Q24, Adjusted EBITDA reached R$ 50 billion, a decrease of 17% compared to 1Q24, driven by lower margins on diesel and gasoline, increased imports, and non-recurring items, especially losses from the 2023 labor agreement and adherence to the tax transaction. These effects were partially offset by increased exports revenues, mainly due to the appreciation of Brent.

  

PETROBRAS | Performance Report | 2Q24

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Financial results

Table 5 – Financial results

            Variation (%)
R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Finance income 2,488 2,736 2,553 5,224 4,972 (9.1) (2.5) 5.1
Income from investments and marketable securities (Government Bonds) 1,981 2,140 2,101 4,121 3,833 (7.4) (5.7) 7.5
Other finance income 507 596 452 1,103 1,139 (14.9) 12.2 (3.2)
Finance expenses (15,631) (5,310) (4,295) (20,941) (8,682) 194.4 263.9 141.2
Interest on finance debt (2,705) (2,744) (2,537) (5,449) (5,349) (1.4) 6.6 1.9
Unwinding of discount on lease liability (2,905) (2,708) (1,973) (5,613) (3,835) 7.3 47.2 46.4
Capitalized borrowing costs 1,996 1,861 1,573 3,857 2,981 7.3 26.9 29.4
Unwinding of discount on the provision for decommissioning costs (1,345) (1,347) (1,085) (2,692) (2,184) (0.1) 24.0 23.3
Other finance expenses (*) (10,672) (372) (273) (11,044) (295) 2768.8 3809.2 3643.7
Foreign exchange gains (losses) and indexation charges (23,253) (7,005) 1,473 (30,258) 241 231.9 − −
Foreign exchange gains (losses) (**) (18,683) (4,343) 7,402 (23,026) 11,572 330.2 − −
Reclassification of hedge accounting to the Statement of Income (3,126) (3,452) (5,337) (6,578) (11,329) (9.4) (41.4) (41.9)
Indexation to the Selic interest rate of anticipated dividends and dividends payable (1,634) (346) (1,987) (1,980) (2,151) 372.3 (17.8) (7.9)
Recoverable taxes inflation indexation income (787) 245 150 (542) 485 − − −
Other foreign exchange gains (losses) and indexation charges, net (*) 977 891 1,245 1,868 1,664 9.7 (21.5) 12.3
Total (36,396) (9,579) (269) (45,975) (3,469) 280.0 13430.1 1225.3

(*) On June 30, 2024, it includes financial expense of R$10,399 million and indexation charges of R$1,184 million, related to the Adhesion to the tax transaction.

 

(*) Foreign exchange variation of Brazilian Reais x Dollar in the following periods: 2Q24: -R$ 18,667 million; 1Q24: -R$ 4,499 million; 2Q23: +R$ 7,612 million; 1H24: -R$ 23,166 million; 1H23: +R$ 12,122 million.

 

In 2Q24, the financial result was - R$ 36.4 billion. This financial result was primarily impacted by the appreciation of USD against BRL on passive exposure. The BRL depreciated 11.2% in 2Q24, versus a depreciation of 3.2% in 1Q24 (the exchange rate changes from R$ 5.00/USD on March 31, 2024 to R$ 5.56/USD on June 30, 2024).

Additionally, financial expenses related to the Tax Transaction were accrued, reflecting charges and monetary updates.

 

Net profit (loss) attributable to Petrobras shareholders

In 2Q24, the financial result associated with non-recurring items, mainly the effects of the adherence to the Tax Transaction and losses related to the 2023 labor agreement, resulted in a loss of R$ 2.6 billion. Excluding the aforementioned items and the depreciation of BRL against USD, net profit would have reached R$ 28,0 billion, while adjusted EBITDA would have been R$ 62.3 billion.

  

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Non-recurring items

Table 6 – Non-recurring items

            Variation (%)
 R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Net income (loss) (2,515) 23,810 28,936 21,295 67,243 − − (68.3)
Non-recurring items (23,009) (306) (940) (23,314) (1,343) 7419.3 2347.8 1636.0
Non-recurring items that do not affect Adjusted EBITDA (10,417) 1,173 1,471 (9,244) 4,186 − − −
Impairment of assets and investments 207 130 (1,946) 337 (1,954) 59.2 − −
Gains and losses on disposal/write-offs of assets 663 806 3,416 1,469 5,993 (17.7) (80.6) (75.5)
Results from co-participation agreements in bid areas 296 237 (1) 533 143 24.9 − 272.7
Discount and premium on repurchase of debt securities − − 2 − 4 − − −
Effect of the tax transaction on net finance income (expense) (11,583) − − (11,583) − − − −
Other non-recurring items (12,592) (1,479) (2,411) (14,071) (5,527) 751.4 422.3 154.6
Voluntary Separation Plan (2) (9) 10 (11) 27 (77.8) − −
Collective bargaining agreement (29) (10) (30) (39) (30) 190.0 (3.3) 30.0
Amounts recovered from Lava Jato investigation 8 26 20 34 483 (69.2) (60.0) (93.0)
Gains/(losses) on decommissioning of returned/abandoned areas (4) (38) (58) (42) (61) (89.5) (93.1) (31.1)
Gains/(losses) related to legal proceedings (1,277) (1,398) (1,361) (2,675) (2,680) (8.7) (6.2) (0.2)
Effect of the tax transaction on other taxes (4,256) − − (4,256) − − − −
Equalization of expenses - Production Individualization Agreements (77) (50) (29) (127) (120) 54.0 165.5 5.8
Gains/(losses) arising from actuarial review of health care plan (6,955) − − (6,955) − − − −
Compensation for the termination of a vessel charter agreement − − − − (1,654) − − −
Export tax on crude oil − − (963) − (1,492) − − −
Net effect of non-recurring items on IR/CSLL 4,676 133 320 4,809 459 3415.8 1361.3 947.7
Recurring net income 15,818 23,983 29,556 39,801 68,127 (34.0) (46.5) (41.6)
Shareholders of Petrobras (*) 15,728 23,873 29,402 39,601 67,822 (34.1) (46.5) (41.6)
Non-controlling interests 90 110 154 200 305 (18.2) (41.6) (34.4)
Adjusted EBITDA 49,740 60,044 56,690 109,784 129,187 (17.2) (12.3) (15.0)
Non-recurring items (12,592) (1,479) (2,411) (14,071) (5,527) 751.4 422.3 154.6
Recurring Adjusted EBITDA 62,332 61,523 59,101 123,855 134,714 1.3 5.5 (8.1)
(*) Net income without non-recurring items and without the real x dollar exchange rate effect: 2Q24: +R$ 28,048 million; 1Q24: +R$ 26,842 million; 2Q23: +R$ 24,378 million; 1H24: +R$ 54,890 million; 1H23: +R$ 59,821 million.

In management's view, the non-recurring 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 shall be disclosed when relevant.

  

PETROBRAS | Performance Report | 2Q24

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Capex

Table 7 – Capex

            Variation (%)
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Exploration & Production 2,767 2,472 2,599 5,239 4,639 11.9 6.5 12.9
Refining, Transportation and Marketing 447 362 365 809 707 23.7 22.6 14.4
Gas & Low Carbon Energies 93 108 43 201 76 (13.7) 116.9 164.8
Others 86 101 93 187 160 (15.4) (8.3) 16.5
Subtotal 3,393 3,043 3,100 6,436 5,582 11.5 9.5 15.3
Signature bonus − − 141 − 141 − − −
Total 3,393 3,043 3,241 6,436 5,723 11.5 4.7 12.5

 

In 1H24, Capex totaled US$ 6.4 billion, 12.5% higher when compared to 1H23. The Capex projection for 2024 has been revised to a range between US$ 13.5 billion and US$ 14.5 billion. This level of investment has no impact on the oil and gas production curve and represents an increase of 7% to 15% compared to the total Capex made in 2023.

In 2Q24, capex totaled US$ 3.4 billion, 11,5% higher than in 1Q24, mainly due to the large pre-salt projects.

In the Exploration and Production segment, Capex totaled US$ 2.8 billion, 11,9% higher than in 1Q24, due to the expansion of Capex in the Marlim Revitalization, in the Campos Basin, and progress in the construction of FPSOs in Búzios, in the Santos Basin. Capex in 2Q24 were mainly concentrated on: (i) developing production in the pre-salt area of the Santos Basin (US$ 1.5 billion); (ii) developing production in the pre- and post-salt areas of the Campos Basin (US$ 0.7 billion); (iii) exploratory investments (US$ 0.2 billion).

In the Refining, Transportation and Marketing segment, Capex totaled US$ 0.45 billion, with emphasis on scheduled refinery stoppages and REPLAN's New Medium HDT. In the Gas and Low Carbon Energies segment, Capex totaled US$ 0.09 billion in 2Q24, with investments in the Route 3 natural gas processing unit standing out.

The following table presents the main information about the new oil and gas production systems, already contracted.

 

 

 

 

 

 

  

PETROBRAS | Performance Report | 2Q24

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Table 8 – Main projects

Unit Start-up FPSO capacity (bbl/day)

Petrobras Actual Investment

(US$ bn)

Petrobras Total Investment

(US$ bn)(1)

 Petrobras Stake Status

Mero 3

FPSO Marechal Duque de Caxias

(Chartered unit)

 2024 180,000 0.36 0.9 38.6%

Project in phase of execution with production system on location.

12 wells drilled and 11 completed.

Integrado Parque das Baleias (IPB)

FPSO Maria Quitéria

(Chartered unit)

 2024(2) 100,000 0.74 1.9 100%

Project in phase of execution. Production system arrived in Brazil.

3 wells drilled and 3 completed.(3)

Búzios 7

FPSO Almirante Tamandaré

(Chartered unit)

 2025 225,000 0.74 2.1 88.99%

Project in phase of execution with production system in transit to Brazil.

8 wells drilled and 6 completed.

Búzios 6

P-78

(Owned unit)

 2025 180,000 1.71 4.8 88.99%

Project in phase of execution with production system under construction.

7 wells drilled and 4 completed.

Mero 4

FPSO Alexandre de Gusmão

(Chartered unit)

 2025 180,000 0.11 1.3 38.6%

Project in phase of execution with production system under construction.

7 wells drilled and 3 completed.

Búzios 8

P-79

(Owned unit)

 2026 180,000 1.40 5.1 88.99%

Project in phase of execution with production system under construction.

8 wells drilled and 4 completed.

Búzios 9

P-80

(Owned unit)

 2026 225,000 0.67 5.4 88.99%

Project in phase of execution with production system under construction.

3 wells drilled and 2 completed.

Búzios 10

P-82

(Owned unit)

 2027 225,000 0.64 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 0.53 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 0.47 2,7(4) 30% Project in phase of execution.

Atapu 2

P-84

 2029 225,000 0.09 6.0 65.7% Project in phase of execution.

Sépia 2

P-85

 2030 225,000 0.03 4.7 55.3% Project in phase of execution.

(1) Total investment with the 2024-28+ Strategic Plan assumptions and Petrobras work interest (WI). Chartered units leases are not included.

(2) The FPSO Maria Quitéria is scheduled to start operation in the last quarter of 2024, thus advancing the schedule of 2024-28+ Strategic Plan, which was to start operation in 2025.

(3) 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.

(4) 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.

  

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Liquidity and capital resources

Table 9 - Liquidity and capital resources

R$ million 2Q24 1Q24 2Q23 1H24 1H23
Adjusted cash and cash equivalents at the beginning of period 90,890 86,670 80,068 86,670 64,092
Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the beginning of period (*) (33,201) (25,057) (27,791) (25,057) (22,369)
Cash and cash equivalents at the beginning of period 57,689 61,613 52,277 61,613 41,723
Net cash provided by operating activities 47,170 46,481 47,751 93,651 101,510
Net cash (used in) provided by investing activities (10,461) (16,440) (4,003) (26,901) (9,741)
Acquisition of PP&E and intangible assets (15,260) (14,049) (14,389) (29,309) (26,981)
Reductions (additions) in investments (29) (4) (47) (33) (88)
Proceeds from disposal of assets - Divestment 1,011 2,801 7,875 3,812 17,521
Financial compensation from co-participation agreements − 1,951 − 1,951 2,032
Divestment (investment) in marketable securities 3,612 (7,260) 2,269 (3,648) (2,569)
Dividends received 205 121 289 326 344
(=) Net cash provided by operating and investing activities 36,709 30,041 43,748 66,750 91,769
Net cash used in financing activities (54,178) (35,582) (43,504) (89,760) (79,765)
Changes in non-controlling interest 174 463 128 637 (264)
Net financings (5,766) (7,930) (5,759) (13,696) (12,354)
     Proceeds from finance debt 3,047 8 52 3,055 315
     Repayments (8,813) (7,938) (5,811) (16,751) (12,669)
Repayment of lease liability (10,256) (9,504) (7,277) (19,760) (14,500)
Dividends paid to shareholders of Petrobras (37,454) (17,182) (30,595) (54,636) (52,398)
Share repurchase program (772) (1,147) − (1,919) −
Dividends paid to non-controlling interests (104) (282) (1) (386) (249)
Effect of exchange rate changes on cash and cash equivalents 3,609 1,617 (2,639) 5,226 (3,845)
Cash and cash equivalents at the end of period 43,829 57,689 49,882 43,829 49,882
Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the end of period (*) 31,051 33,201 26,233 31,051 26,233
Adjusted cash and cash equivalents at the end of period 74,880 90,890 76,115 74,880 76,115
Reconciliation of Free Cash Flow          
Net cash provided by operating activities 47,170 46,481 47,751 93,651 101,510
Acquisition of PP&E and intangible assets (15,260) (14,049) (14,389) (29,309) (26,981)
Reductions (additions) in investments (29) (4) (47) (33) (88)
Free cash flow (**) 31,881 32,428 33,315 64,309 74,441

(*) 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.

 

  

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As of June 30, 2024, cash and cash equivalents totaled R$ 43.8 billion and adjusted cash and cash equivalents totaled R$ 74.9 billion.

In 2Q24, cash generated from operating activities reached R$ 47.2 billion and free cash flow totaled R$ 31.9 billion. In addition to generating cash, this level of cash generation was used to: (a) shareholders remuneration (R$ 37.5 billion), (b) investments (R$ 15.3 billion), (c) lease liabilities amortization (R$ 10.3 billion), and (d) principal and interest due in the period amortization (R$ 8.8 billion).

The funds raised during the quarter will be used for liability management, aiming to extend debt maturities and improving the capital structure, in order to preserve liquidity and solvency.

 

  

PETROBRAS | Performance Report | 2Q24

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Debt indicators

As of 06/30/2024, gross debt reached US$ 59.6 billion, a decrease of 3.6% compared to 03/31/2024.

Average maturity went up from 11.30 years on 03/31/2024 to 11.76 years on 06/03/2024 and average cost went up 6.5% p.a. to 6.6% p.a. over the same period.

The gross debt/adjusted EBITDA ratio reached 1.22x on 06/30/2024, the same as 03/31/2024.

On 06/30/2024, net debt reached US$ 46.2 billion, an increase of 5.8% compared to 03/31/2024.

 

Table 10 – Debt indicators

US$ million 06.30.2024 03.31.2024 Δ % 06.30.2023
Financial Debt 26,321 27,738 (5.1) 29,228
Capital Markets 16,554 16,719 (1.0) 17,363
Banking Market 7,327 8,502 (13.8) 8,775
Development banks 585 664 (11.9) 735
Export Credit Agencies 1,702 1,705 (0.2) 2,190
Others 153 148 3.4 165
Finance leases 33,309 34,100 (2.3) 28,743
Gross debt 59,630 61,838 (3.6) 57,971
Adjusted cash and cash equivalents 13,470 18,192 (26.0) 15,794
Net debt 46,160 43,646 5.8 42,177
Net Debt/(Net Debt + Market Cap) - Leverage 33% 31% 6.5 33%
Average interest rate (% p.a.) 6.6 6.5 1.5 6.6
Weighted average maturity of outstanding debt (years) 11.76 11.30 4.1 12.12
Net debt/LTM Adjusted EBITDA ratio 0.95 0.86 10.5 0.74
Gross debt/LTM Adjusted EBITDA ratio 1.22 1.22 0.0 1.02
R$ million        
Financial Debt 146,315 138,587 5.6 140,856
Finance Lease 185,158 170,368 8.7 138,519
Adjusted cash and cash equivalents 74,880 90,890 (17.6) 76,115
Net Debt 256,593 218,065 17.7 203,260
  

PETROBRAS | Performance Report | 2Q24

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Results by segment

Exploration and Production

 

Table 11 – E&P results

            Variation (%) (*)
R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Sales revenues 81,779 79,644 72,922 161,423 154,644 2.7 12.1 4.4
Gross profit 49,219 46,884 42,646 96,103 91,225 5.0 15.4 5.3
Operating expenses (8,200) (3,117) (2,707) (11,317) (3,345) 163.1 202.9 238.3
Operating income 41,019 43,767 39,939 84,786 87,880 (6.3) 2.7 (3.5)
Net income (loss) attributable to the shareholders of Petrobras 27,227 28,975 26,456 56,202 58,198 (6.0) 2.9 (3.4)
Adjusted EBITDA of the segment 52,319 55,396 48,950 107,715 105,542 (5.6) 6.9 2.1
EBITDA margin of the segment (%) 64 70 67 67 68 (6) (3) (2)
ROCE (Return on Capital Employed) (%) 14.2 14.3 15.5 14.2 15.5 (0.1) (1.3) (1.3)
Average Brent crude (US$/bbl) 84.94 83.24 78.39 84.09 79.83 2.0 8.4 5.3
Production taxes Brazil 15,393 14,765 13,346 30,158 27,807 4.3 15.3 8.5
     Royalties 9,601 9,268 7,691 18,869 16,053 3.6 24.8 17.5
     Special participation 5,744 5,451 5,597 11,195 11,634 5.4 2.6 (3.8)
     Retention of areas 48 46 58 94 120 4.3 (17.2) (21.7)
 Lifting cost Brazil (US$/boe) 6.05 6.04 5.96 6.05 5.73 0.1 1.5 5.5
Pre-salt 3.87 3.99 3.72 3.93 3.72 (2.9) 3.9 5.7
Deep and ultra-deep post-salt 16.62 15.18 14.56 15.87 12.93 9.5 14.2 22.7
Onshore and shallow waters 16.83 16.35 15.71 16.58 15.21 2.9 7.1 9.0
 Lifting cost + Leases 8.49 8.42 7.92 8.46 7.59 0.9 7.2 11.4
Pre-salt 6.26 6.28 5.71 6.27 5.66 (0.3) 9.6 10.8
Deep and ultra-deep post-salt 19.90 18.47 16.85 19.15 14.80 7.7 18.1 29.4
Onshore and shallow waters 16.83 16.35 15.71 16.58 15.21 2.9 7.1 9.0
 Lifting cost + Production taxes 20.16 20.05 19.29 20.10 19.24 0.6 4.5 4.5
 Lifting cost + Production taxes + Leases 22.61 22.43 21.25 22.51 21.10 0.8 6.4 6.7
(*) EBITDA margin and ROCE variations in percentage points.

 

In 2Q24, E&P's gross profit was R$ 49.2 billion, a 5% increase when compared to 1Q24, mainly explained by the depreciation of the BRL against the USD, associated with higher Brent prices, partially offset by lower production.

Operating income in 2Q24 was R$ 41.0 billion, 6% lower than in 1Q24. This reduction is due to higher tax expenses resulting from the adherence to the tax transaction related to taxes on remittances abroad involving chartering of vessels or platforms and their respective service contracts.

Regarding government take, there was an increase in the quarterly comparison (2Q24 vs. 1Q24), due to the depreciation of the BRL against the USD and higher Brent prices, offset by the lower production.

  

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Lifting cost in 2Q24, excluding government take and leasing, were US$ 6.05/boe, remaining practically stable compared to 1Q24 (US$ 6.04/boe). The higher volume of production losses due to stoppages and interventions in this quarter was offset by the BRL depreciation against the USD (5%) in the period, reducing costs in the North American currency.

In the Pre-salt, there was a 3% reduction in lifting costs, explained by the exchange rate depreciation and lower spending on subsea inspections in the Jubarte and Tupi fields, partially offset by a higher volume of losses due to production stoppages and interventions.

In the Post-salt, there was a 9% increase in lifting costs, mainly due to the higher volume of production losses from stoppages, maintenance, and interventions to comply with safety regulations, associated with higher spending on well interventions, especially in the Marlim Sul field. These effects were mitigated by the aforementioned exchange rate depreciation.

In Onshore and Shallow Water assets, there was a 3% increase in lifting costs. This increase resulted from lower production in Manati due to a production stoppage, as well as higher spending on well interventions in onshore fields in Bahia, partially offset by the exchange rate depreciation during the period.

  

PETROBRAS | Performance Report | 2Q24

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Refining, Transportation and Marketing

 

Table 12 - RTM results

            Variation (%) (*)
R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Sales revenues 114,935 109,905 104,328 224,840 233,380 4.6 10.2 (3.7)
Gross profit 7,825 10,934 8,619 18,759 24,068 (28.4) (9.2) (22.1)
Operating expenses (3,660) (4,143) (5,682) (7,803) (11,823) (11.7) (35.6) (34.0)
Operating Income 4,165 6,791 2,937 10,956 12,245 (38.7) 41.8 (10.5)
Net income (loss) attributable to the shareholders of Petrobras 1,426 3,837 1,599 5,263 7,808 (62.8) (10.8) (32.6)
Adjusted EBITDA of the segment 7,053 9,875 7,940 16,928 20,291 (28.6) (11.2) (16.6)
EBITDA margin of the segment (%) 6 9 8 8 9 (3) (1) (1)
ROCE (Return on Capital Employed) (%) (**) 4.6 5.0 7.6 4.6 7.6 (0.4) (3.0) (3.0)
Refining cost (US$/barrel) - Brazil 2.63 2.63 2.24 2.63 2.18 (0.1) 17.3 20.6
Refining cost (R$/barrel) - Brazil 13.88 13.05 11.04 13.46 11.05 6.4 25.7 21.8
Price of basic oil products - Domestic Market (R$/bbl) 476.25 476.14 475.28 476.20 521.47 0.0 0.2 (8.7)
(*) EBITDA margin and ROCE variations in percentage points.
(**) Figures for 1Q24, 2Q23 and 1H23 revised.

 

In 2Q24, RTM's gross profit decreased when compared to 1Q24, mainly due to lower margins on oil products in the domestic market. Considering the effect of inventory turnover of R$ 2,815 million in 2Q24 and R$ 2,170 million in 1Q24, RTM's gross profit would have been R$ 5,010 million in 2Q24 compared to R$ 8,764 million in 1Q24.

The lower margins in the domestic market, mainly for diesel and gasoline, followed international margins for these products between quarters. Higher sales volumes, mainly of diesel due to demand seasonality, and gasoline due to its better competitiveness compared to ethanol in fueling flex-fuel vehicles, partially offset the lower margins.

In 2Q24, operating income was lower than 1Q24, reflecting the reduction in gross profit, partially offset by the reduction in operating expenses, mainly due to the reversal of impairment of Araucária Nitrogenados (ANSA).

In 2Q24, the refining cost per barrel in reais was 6.4% higher than in 1Q24. The increase was mainly due to higher expenses on materials and services related to maintenance and conservation.

  

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Gas and Low Carbon Energies

 

Table 13 – G&LCE results

            Variation (%) (*)
R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Sales revenues 11,449 11,989 13,701 23,438 28,524 (4.5) (16.4) (17.8)
Gross profit 5,728 6,151 5,650 11,879 12,852 (6.9) 1.4 (7.6)
Operating expenses (4,531) (4,406) (3,795) (8,937) (7,846) 2.8 19.4 13.9
Operating income 1,197 1,745 1,855 2,942 5,006 (31.4) (35.5) (41.2)
Net income (loss) attributable to the shareholders of Petrobras 920 1,191 1,212 2,111 3,222 (22.8) (24.1) (34.5)
Adjusted EBITDA of the segment 1,911 2,405 2,467 4,316 6,300 (20.5) (22.5) (31.5)
EBITDA margin of the segment (%) 17 20 18 18 22 (3) (1) (4)
ROCE (Return on Capital Employed) (%) (**) 8.4 9.1 10.0 8.4 10.0 (0.7) (1.6) (1.6)
Natural gas sales price - Brazil (US$/bbl) 63.69 67.88 70.96 65.88 72.13 (6.2) (10.2) (8.7)
Natural gas sales price - Brazil (US$/MMBtu) 10.74 11.45 11.96 11.11 12.16 (6.2) (10.2) (8.6)
Fixed revenues from power auctions (***) 320 318 430 638 854 0.6 (25.6) (25.3)
Average electricity sales price (R$/MWh) 132.59 312.62 61.52 201.63 61.18 (57.6) 115.5 229.6
(*) EBITDA margin and ROCE variations in percentage points.
(**) Figure for 1Q24 revised.
(***) The fixed revenue from auctions takes into account the remuneration for thermal availability and inflexible electricity committed in auctions.

 

In 2Q24, the gross profit of the Gas and Low Carbon Energies segment was lower due to a reduction in sales revenues as a result of lower gas volumes sold to the non-thermoelectric segment combined with a 6.2% reduction in the average selling price of natural gas. The drop in revenue was partially offset by the lower acquisition cost of LNG in 2Q24.

The operating income in 2Q24 was 31.4% lower than in 1Q24, mainly impacted by the lower gross profit.

  

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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 No. 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, 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 (%) (*)
R$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Net income (loss) (2,515) 23,810 28,936 21,295 67,243 − − (68.3)
Net finance income (expense) 36,396 9,579 269 45,975 3,469 280.0 13430.1 1225.3
Income taxes (338) 10,638 12,766 10,300 31,456 − − (67.3)
Depreciation, depletion and amortization 16,361 16,648 16,082 33,009 31,268 (1.7) 1.7 5.6
EBITDA 49,904 60,675 58,053 110,579 133,436 (17.8) (14.0) (17.1)
Results in equity-accounted investments 996 457 106 1,453 (75) 117.9 839.6 −
Impairment of assets (reversals), net (201) (45) 1,946 (246) 1,962 346.7 − −
Results on disposal/write-offs of assets (663) (806) (3,416) (1,469) (5,993) (17.7) (80.6) (75.5)
Results from co-participation agreements in bid areas (296) (237) 1 (533) (143) 24.9 − 272.7
Adjusted EBITDA 49,740 60,044 56,690 109,784 129,187 (17.2) (12.3) (15.0)
Adjusted EBITDA margin (%) 41 51 50 46 51 (10.0) (8.8) (5.0)
(*) EBITDA Margin variations in percentage points.
  

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Exhibits

Financial statements

Table 15 - Income statement - Consolidated

R$ million 2Q24 1Q24 2Q23 1H24 1H23
Sales revenues 122,258 117,721 113,840 239,979 252,908
Cost of sales (61,211) (57,020) (56,159) (118,231) (121,916)
Gross profit 61,047 60,701 57,681 121,748 130,992
Selling expenses (6,612) (6,606) (5,947) (13,218) (12,291)
General and administrative expenses (2,874) (2,216) (1,921) (5,090) (3,776)
Exploration costs (913) (670) (945) (1,583) (1,762)
Research and development expenses (1,008) (908) (850) (1,916) (1,650)
Other taxes (5,079) (695) (1,632) (5,774) (2,671)
Impairment (losses) reversals, net 201 45 (1,946) 246 (1,962)
Other income and expenses, net (10,223) (5,167) (2,363) (15,390) (4,787)
  (26,508) (16,217) (15,604) (42,725) (28,899)
Operating income 34,539 44,484 42,077 79,023 102,093
Finance income 2,488 2,736 2,553 5,224 4,972
Finance expenses (15,631) (5,310) (4,295) (20,941) (8,682)
Foreign exchange gains (losses) and inflation indexation charges (23,253) (7,005) 1,473 (30,258) 241
Net finance income (expense) (36,396) (9,579) (269) (45,975) (3,469)
Results of equity-accounted investments (996) (457) (106) (1,453) 75
Income (loss) before income taxes (2,853) 34,448 41,702 31,595 98,699
Income taxes 338 (10,638) (12,766) (10,300) (31,456)
Net Income (loss) (2,515) 23,810 28,936 21,295 67,243
Net income (loss) attributable to:          
Shareholders of Petrobras (2,605) 23,700 28,782 21,095 66,938
Non-controlling interests 90 110 154 200 305
           
  

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Table 16 - Statement of financial position – Consolidated

ASSETS - R$ million 06.30.2024 12.31.2023
Current assets 159,310 157,079
Cash and cash equivalents 43,829 61,613
Marketable securities 23,848 13,650
Trade and other receivables, net 24,489 29,702
Inventories 40,796 37,184
Recoverable taxes 15,564 5,703
Assets classified as held for sale 2,347 1,624
Other current assets 8,437 7,603
Non-current assets 899,378 893,809
Long-term receivables 123,216 129,735
Trade and other receivables, net 6,533 8,942
Marketable securities 7,469 11,661
Judicial deposits 69,368 71,390
Deferred income taxes 6,096 4,672
Other recoverable taxes 22,070 21,861
Other non-current assets 11,680 11,209
Investments 5,480 6,574
Property, plant and equipment 755,739 742,774
Intangible assets 14,943 14,726
Total assets 1,058,688 1,050,888
     
     
LIABILITIES - R$ million 06.30.2024 12.31.2023
Current liabilities 177,972 163,928
Trade payables 26,752 23,302
Finance debt 25,663 20,923
Lease liability 41,340 34,858
Taxes payable 31,095 26,463
Dividends payable 12,757 17,134
Provision for decommissioning costs 9,222 9,837
Employee benefits 12,780 14,194
Liabilities related to assets classified as held for sale 4,362 2,621
Other current liabilities 14,001 14,596
Non-current liabilities 504,676 504,620
Finance debt 120,652 118,508
Lease liability 143,818 128,773
Income taxes payable 1,347 1,446
Deferred income taxes 33,778 52,820
Employee benefits 76,942 75,421
Provision for legal proceedings 17,374 16,000
Provision for decommissioning costs 100,923 102,493
Other non-current liabilities 9,842 9,159
Shareholders' equity 376,040 382,340
Attributable to the shareholders of Petrobras 373,479 380,441
Share capital (net of share issuance costs) 205,432 205,432
Capital reserve and capital transactions (2,457) (538)
Profit reserves 123,032 159,171
Retained earnings (losses) 7,697 −
Accumulated other comprehensive deficit 39,775 16,376
Attributable to non-controlling interests 2,561 1,899
Total liabilities and shareholders' equity 1,058,688 1,050,888

 

  

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Table 17 - Statement of cash flow – Consolidated

R$ million 2Q24 1Q24 2Q23 1H24 1H23
Cash flows from operating activities          
Net income for the period (2,515) 23,810 28,936 21,295 67,243
Adjustments for:          
Pension and medical benefits - actuarial losses 9,100 2,145 1,924 11,245 3,848
Results of equity-accounted investments 996 457 106 1,453 (75)
Depreciation, depletion and amortization 16,361 16,648 16,082 33,009 31,268
Impairment of assets (reversals), net (201) (45) 1,946 (246) 1,962
Inventory write down (write-back) to net realizable value 1 (216) 66 (215) 22
Allowance (reversals) for credit loss on trade and other receivables, net 98 151 49 249 174
Exploratory expenditure write-offs 294 248 32 542 197
Gain on disposal/write-offs of assets (663) (806) (3,416) (1,469) (5,993)
Foreign exchange, indexation and finance charges   37,314 9,561 1,106 46,875 4,483
Income taxes (338) 10,638 12,766 10,300 31,456
Revision and unwinding of discount on the provision for decommissioning costs 1,349 1,385 1,143 2,734 2,245
Results from co-participation agreements in bid areas (296) (237) 1 (533) (143)
Early termination and cash outflows revision of lease agreements (417) (342) (445) (759) (1,313)
Losses with legal, administrative and arbitration proceedings, net 1,277 1,398 1,361 2,675 2,680
Decrease (Increase) in assets          
Trade and other receivables 4,263 2,913 3,794 7,176 5,940
Inventories 1,359 (3,115) 502 (1,756) 5,629
Judicial deposits 4,660 (1,424) (1,888) 3,236 (3,981)
Other assets (549) 183 801 (366) 1,371
Increase (Decrease) in liabilities          
Trade payables (855) 2,025 926 1,170 (1,541)
Other taxes payable (7,066) (2,530) (3,729) (9,596) (4,858)
Pension and medical benefits (1,448) (1,006) (1,348) (2,454) (2,273)
Provisions for legal proceedings (638) (389) (667) (1,027) (1,111)
Other employee benefits (1,573) (292) (1,273) (1,865) (1,092)
Provision for decommissioning costs (1,043) (1,304) (859) (2,347) (1,714)
Other liabilities (1,391) (395) (123) (1,786) (637)
Income taxes paid (10,909) (12,980) (10,042) (23,889) (32,277)
Net cash provided by operating activities 47,170 46,481 47,751 93,651 101,510
Cash flows from investing activities          
Acquisition of PP&E and intangible assets (15,260) (14,049) (14,389) (29,309) (26,981)
Reductions (additions) in investments (29) (4) (47) (33) (88)
Proceeds from disposal of assets - Divestment 1,011 2,801 7,875 3,812 17,521
Financial compensation from co-participation agreements − 1,951 − 1,951 2,032
Divestment (investment) in marketable securities 3,612 (7,260) 2,269 (3,648) (2,569)
Dividends received 205 121 289 326 344
Net cash (used in) provided by investing activities (10,461) (16,440) (4,003) (26,901) (9,741)
Cash flows from financing activities          
Changes in non-controlling interest 174 463 128 637 (264)
Financing and loans, net:          
Proceeds from finance debt 3,047 8 52 3,055 315
Repayment of principal - finance debt (6,728) (5,006) (3,660) (11,734) (7,554)
Repayment of interest - finance debt (2,085) (2,932) (2,151) (5,017) (5,115)
Repayment of lease liability (10,256) (9,504) (7,277) (19,760) (14,500)
Dividends paid to Shareholders of Petrobras (37,454) (17,182) (30,595) (54,636) (52,398)
Share repurchase program (772) (1,147) − (1,919) −
Dividends paid to non-controlling interests (104) (282) (1) (386) (249)
Net cash used in financing activities (54,178) (35,582) (43,504) (89,760) (79,765)
Effect of exchange rate changes on cash and cash equivalents 3,609 1,617 (2,639) 5,226 (3,845)
Net change in cash and cash equivalents (13,860) (3,924) (2,395) (17,784) 8,159
Cash and cash equivalents at the beginning of the period 57,689 61,613 52,277 61,613 41,723
Cash and cash equivalents at the end of the period 43,829 57,689 49,882 43,829 49,882
 
  

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Financial information by business areas

Table 18 - Consolidated income by segment - 1H24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Sales revenues 161,423 224,840 23,438 797 (170,519) 239,979
Intersegments 160,505 2,792 7,206 16 (170,519) −
Third parties 918 222,048 16,232 781 − 239,979
Cost of sales (65,320) (206,081) (11,559) (744) 165,473 (118,231)
Gross profit 96,103 18,759 11,879 53 (5,046) 121,748
Expenses (11,317) (7,803) (8,937) (14,668) − (42,725)
Selling expenses (6) (5,535) (7,608) (69) − (13,218)
General and administrative expenses (214) (901) (321) (3,654) − (5,090)
Exploration costs (1,583) − − − − (1,583)
Research and development expenses (1,455) (13) (8) (440) − (1,916)
Other taxes (4,453) (145) (42) (1,134) − (5,774)
Impairment (losses) reversals, net (21) 201 − 66 − 246
Other income and expenses, net (3,585) (1,410) (958) (9,437) − (15,390)
Operating income (loss) 84,786 10,956 2,942 (14,615) (5,046) 79,023
Net finance income (expense) − − − (45,975) − (45,975)
Results of equity-accounted investments 235 (1,968) 297 (17) − (1,453)
Income (loss) before income taxes 85,021 8,988 3,239 (60,607) (5,046) 31,595
Income taxes (28,827) (3,725) (1,000) 21,536 1,716 (10,300)
Net income (loss) 56,194 5,263 2,239 (39,071) (3,330) 21,295
Net income (loss) attributable to:            
Shareholders of Petrobras 56,202 5,263 2,111 (39,151) (3,330) 21,095
Non-controlling interests (8) − 128 80 − 200

 

  

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Table 19 - Consolidated income by segment – 1H23

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Sales revenues 154,644 233,380 28,524 818 (164,458) 252,908
Intersegments 152,037 4,285 8,119 17 (164,458) −
Third parties 2,607 229,095 20,405 801 − 252,908
Cost of sales (63,419) (209,312) (15,672) (829) 167,316 (121,916)
Gross profit 91,225 24,068 12,852 (11) 2,858 130,992
Expenses (3,345) (11,823) (7,846) (5,841) (44) (28,899)
Selling expenses (55) (5,300) (6,778) (114) (44) (12,291)
General and administrative expenses (172) (822) (164) (2,618) − (3,776)
Exploration costs (1,762) − − − − (1,762)
Research and development expenses (1,270) (69) (10) (301) − (1,650)
Other taxes (1,724) (76) (90) (781) − (2,671)
Impairment (losses) reversals, net (78) (2,029) − 145 − (1,962)
Other income and expenses, net 1,716 (3,527) (804) (2,172) − (4,787)
Operating income (loss) 87,880 12,245 5,006 (5,852) 2,814 102,093
Net finance income (expense) − − − (3,469) − (3,469)
Results of equity-accounted investments 186 (274) 106 57 − 75
Income (loss) before income taxes 88,066 11,971 5,112 (9,264) 2,814 98,699
Income taxes (29,879) (4,163) (1,702) 5,245 (957) (31,456)
Net income (loss) 58,187 7,808 3,410 (4,019) 1,857 67,243
Net income (loss) attributable to:            
Shareholders of Petrobras 58,198 7,808 3,222 (4,147) 1,857 66,938
Non-controlling interests (11) − 188 128 − 305
  

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Table 20 - Quarterly consolidated income by segment – 2Q24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Sales revenues 81,779 114,935 11,449 418 (86,323) 122,258
Intersegments 81,381 1,293 3,642 7 (86,323) −
Third parties 398 113,642 7,807 411 − 122,258
Cost of sales (32,560) (107,110) (5,721) (382) 84,562 (61,211)
Gross profit 49,219 7,825 5,728 36 (1,761) 61,047
Expenses (8,200) (3,660) (4,531) (10,117) − (26,508)
Selling expenses (2) (2,803) (3,802) (5) − (6,612)
General and administrative expenses (113) (484) (182) (2,095) − (2,874)
Exploration costs (913) − − − − (913)
Research and development expenses (765) (5) (5) (233) − (1,008)
Other taxes (4,355) (111) (17) (596) − (5,079)
Impairment (losses) reversals, net − 201 − − − 201
Other income and expenses, net (2,052) (458) (525) (7,188) − (10,223)
Operating income (loss) 41,019 4,165 1,197 (10,081) (1,761) 34,539
Net finance income (expense) − − − (36,396) − (36,396)
Results of equity-accounted investments 150 (1,323) 190 (13) − (996)
Income (loss) before income taxes 41,169 2,842 1,387 (46,490) (1,761) (2,853)
Income taxes (13,946) (1,416) (407) 15,508 599 338
Net income (loss) 27,223 1,426 980 (30,982) (1,162) (2,515)
Net income (loss) attributable to:            
Shareholders of Petrobras 27,227 1,426 920 (31,016) (1,162) (2,605)
Non-controlling interests (4) − 60 34 − 90

 

 

  

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Table 21 - Quarterly consolidated income by segment – 1Q24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Sales revenues 79,644 109,905 11,989 379 (84,196) 117,721
Intersegments 79,124 1,499 3,564 9 (84,196) −
Third parties 520 108,406 8,425 370 − 117,721
Cost of sales (32,760) (98,971) (5,838) (362) 80,911 (57,020)
Gross profit 46,884 10,934 6,151 17 (3,285) 60,701
Expenses (3,117) (4,143) (4,406) (4,551) − (16,217)
Selling expenses (4) (2,732) (3,806) (64) − (6,606)
General and administrative expenses (101) (417) (139) (1,559) − (2,216)
Exploration costs (670) − − − − (670)
Research and development expenses (690) (8) (3) (207) − (908)
Other taxes (98) (34) (25) (538) − (695)
Impairment (losses) reversals, net (21) − − 66 − 45
Other income and expenses, net (1,533) (952) (433) (2,249) − (5,167)
Operating income (loss) 43,767 6,791 1,745 (4,534) (3,285) 44,484
Net finance income (expense) − − − (9,579) − (9,579)
Results of equity-accounted investments 85 (645) 107 (4) − (457)
Income (loss) before income taxes 43,852 6,146 1,852 (14,117) (3,285) 34,448
Income taxes (14,881) (2,309) (593) 6,028 1,117 (10,638)
Net income (loss) 28,971 3,837 1,259 (8,089) (2,168) 23,810
Net income (loss) attributable to:            
Shareholders of Petrobras 28,975 3,837 1,191 (8,135) (2,168) 23,700
Non-controlling interests (4) − 68 46 − 110

 

 

 

 

 

 

  

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Table 22 - Other income and expenses by segment – 1H24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Pension and medical benefits - retirees (*) − − − (8,449) − (8,449)
Stoppages for asset maintenance and pre-operating expenses (6,400) (268) (165) (56) − (6,889)
Gains (losses) with legal, administrative and arbitration proceedings (962) (891) (190) (632) − (2,675)
Profit sharing (713) (343) (95) (426) − (1,577)
Variable compensation programs (316) (307) (45) (244) − (912)
Operating expenses with thermoelectric power plants − − (603) − − (603)
Institutional relations and cultural projects − (9) − (355) − (364)
Expenses with contractual fines received (113) (1) (63) − − (177)
Amounts recovered from Lava Jato investigation − − − 34 − 34
Gains (losses) with Commodities Derivatives − 130 (8) − − 122
Ship/take or pay agreements and fines imposed to suppliers 14 124 304 7 − 449
Government grants 4 − 6 457 − 467
Results from co-participation agreements in bid areas 533 − − − − 533
Results of non-core activities 615 (75) 48 36 − 624
Fines imposed on suppliers 505 88 12 31 − 636
Early termination and changes to cash flow estimates of leases 740 26 4 (11) − 759
Reimbursements from E&P partnership operations 1,356 − − − − 1,356
Results on disposal/write-offs of assets 1,215 354 118 (218) − 1,469
Others (63) (238) (281) 389 − (193)
Total (3,585) (1,410) (958) (9,437) − (15,390)
(*) In the second quarter of 2024, it mainly refers to the actuarial revision of the Saúde Petrobras - AMS health care plan, reflecting the change in the benefit, in the amount of R$ 5,389 million.

 

  

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Table 23 - Other income and expenses by segment – 1H23

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Pension and medical benefits - retirees − − − (2,925) − (2,925)
Stoppages for asset maintenance and pre-operating expenses (5,320) (54) (113) (78) − (5,565)
Gains (losses) with legal, administrative and arbitration proceedings (835) (1,633) 17 (229) − (2,680)
Profit sharing (153) (65) (18) (102) − (338)
Variable compensation programs (548) (320) (69) (437) − (1,374)
Operating expenses with thermoelectric power plants − − (432) − − (432)
Institutional relations and cultural projects − (7) − (232) − (239)
Expenses with contractual fines received (36) 4 (574) (5) − (611)
Amounts recovered from Lava Jato investigation (*) − − − 483 − 483
Gains (losses) with Commodities Derivatives − 363 (1) 1 − 363
Ship/take or pay agreements and fines imposed to suppliers 6 107 240 6 − 359
Government grants 63 − − 833 − 896
Results from co-participation agreements in bid areas 143 − − − − 143
Results of non-core activities 260 (248) 322 70 − 404
Fines imposed on suppliers 437 63 10 41 − 551
Early termination and changes to cash flow estimates of leases 934 393 (2) (12) − 1,313
Reimbursements from E&P partnership operations 1,423 − − − − 1,423
Results on disposal/write-offs of assets 6,094 (146) (6) 51 − 5,993
Others (**) (752) (1,984) (178) 363 − (2,551)
Total 1,716 (3,527) (804) (2,172) − (4,787)
(*) The total amount recovered from the Lava Jato Investigation through December 31, 2023 was R$ 7,281 million, recognized through collaboration and leniency agreements entered into with individuals and legal entities.
(**) It includes, in the first half of 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of R$ 1,654 million.

 

 

 

  

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Table 24 - Other income and expenses by segment – 2Q24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Pension and medical benefits - retirees (*) − − − (6,918) − (6,918)
Stoppages for asset maintenance and pre-operating expenses (3,392) (139) (92) (33) − (3,656)
Gains (losses) with legal, administrative and arbitration proceedings (545) (415) (170) (147) − (1,277)
Profit sharing (359) (107) (49) (189) − (704)
Variable compensation programs (158) (207) (23) (134) − (522)
Operating expenses with thermoelectric power plants − − (277) − − (277)
Institutional relations and cultural projects − (5) − (223) − (228)
Expenses with contractual fines received (83) (1) (10) − − (94)
Amounts recovered from Lava Jato investigation − − − 8 − 8
Government grants − 107 (10) − − 97
Gains (losses) with Commodities Derivatives 7 61 146 2 − 216
Ship/take or pay agreements and fines imposed to suppliers − − 3 79 − 82
Results from co-participation agreements in bid areas 296 − − − − 296
Fines imposed on suppliers 335 63 20 13 − 431
Early termination and changes to cash flow estimates of leases 263 74 9 14 − 360
Results of non-core activities 409 17 9 (18) − 417
Reimbursements from E&P partnership operations 582 − − − − 582
Results on disposal/write-offs of assets 532 231 22 (122) − 663
Others 61 (137) (103) 480 − 301
Total (2,052) (458) (525) (7,188) − (10,223)
(*) In the second quarter of 2024, it mainly refers to the actuarial revision of the Saúde Petrobras - AMS health care plan, reflecting the change in the benefit, in the amount of R$ 5,389 million.

 

 

  

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Table 25 - Other income and expenses by segment – 1Q24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Pension and medical benefits - retirees − − − (1,531) − (1,531)
Stoppages for asset maintenance and pre-operating expenses (3,008) (129) (73) (23) − (3,233)
Gains (losses) with legal, administrative and arbitration proceedings (417) (476) (20) (485) − (1,398)
Profit sharing (354) (236) (46) (237) − (873)
Variable compensation programs (158) (100) (22) (110) − (390)
Operating expenses with thermoelectric power plants − − (326) − − (326)
Institutional relations and cultural projects − (4) − (132) − (136)
Expenses with contractual fines received (30) − (53) − − (83)
Amounts recovered from Lava Jato investigation − − − 26 − 26
Government grants − 23 2 − − 25
Gains (losses) with Commodities Derivatives 7 63 158 5 − 233
Ship/take or pay agreements and fines imposed to suppliers 4 − 3 378 − 385
Results from co-participation agreements in bid areas 237 − − − − 237
Fines imposed on suppliers 280 (138) 28 23 − 193
Early termination and changes to cash flow estimates of leases 242 14 3 17 − 276
Results of non-core activities 331 9 (5) 7 − 342
Reimbursements from E&P partnership operations 774 − − − − 774
Results on disposal/write-offs of assets 683 123 96 (96) − 806
Others (124) (101) (178) (91) − (494)
Total (1,533) (952) (433) (2,249) − (5,167)
  

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Table 26 - Consolidated assets by segment – 06.30.2024

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Total assets 678,896 175,066 36,272 197,475 (29,021) 1,058,688
Current assets 14,089 59,116 2,217 112,909 (29,021) 159,310
Non-current assets 664,807 115,950 34,055 84,566 − 899,378
Long-term receivables 39,692 12,034 505 70,985 − 123,216
Investments 1,828 2,401 934 317 − 5,480
Property, plant and equipment 611,365 100,818 32,229 11,327 − 755,739
Operating assets 516,446 85,918 19,064 8,553 − 629,981
Assets under construction 94,919 14,900 13,165 2,774 − 125,758
Intangible assets 11,922 697 387 1,937 − 14,943

 

Table 27 - Consolidated assets by segment – 12.31.2023

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Total assets 672,303 168,489 32,806 202,840 (25,550) 1,050,888
Current assets 13,574 53,265 1,793 113,997 (25,550) 157,079
Non-current assets 658,729 115,224 31,013 88,843 − 893,809
Long-term receivables 43,705 10,014 400 75,616 − 129,735
Investments 1,667 3,926 703 278 − 6,574
Property, plant and equipment 601,553 100,629 29,539 11,053 − 742,774
Operating assets 524,822 87,762 17,454 8,570 − 638,608
Assets under construction 76,731 12,867 12,085 2,483 − 104,166
Intangible assets 11,804 655 371 1,896 − 14,726
  

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Table 28 - Reconciliation of Adjusted EBITDA by segment – 1H24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Net income (loss) 56,194 5,263 2,239 (39,071) (3,330) 21,295
Net finance income (expense) − − − 45,975 − 45,975
Income taxes 28,827 3,725 1,000 (21,536) (1,716) 10,300
Depreciation, depletion and amortization 24,656 6,527 1,492 334 − 33,009
EBITDA 109,677 15,515 4,731 (14,298) (5,046) 110,579
Results in equity-accounted investments (235) 1,968 (297) 17 − 1,453
Impairment of assets (reversals), net 21 (201) − (66) − (246)
Results on disposal/write-offs of assets (1,215) (354) (118) 218 − (1,469)
Results from co-participation agreements in bid areas (533) − − − − (533)
Adjusted EBITDA 107,715 16,928 4,316 (14,129) (5,046) 109,784

 

Table 29 - Reconciliation of Adjusted EBITDA by segment – 1H23

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Net income (loss) 58,187 7,808 3,410 (4,019) 1,857 67,243
Net finance income (expense) − − − 3,469 − 3,469
Income taxes 29,879 4,163 1,702 (5,245) 957 31,456
Depreciation, depletion and amortization 23,821 5,871 1,288 288 − 31,268
EBITDA 111,887 17,842 6,400 (5,507) 2,814 133,436
Results in equity-accounted investments (186) 274 (106) (57) − (75)
Impairment of assets (reversals), net 78 2,029 − (145) − 1,962
Results on disposal/write-offs of assets (6,094) 146 6 (51) − (5,993)
Results from co-participation agreements in bid areas (143) − − − − (143)
Adjusted EBITDA 105,542 20,291 6,300 (5,760) 2,814 129,187

 

 

  

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Table 30 - Reconciliation of Adjusted EBITDA by segment – 2Q24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Net income (loss) 27,223 1,426 980 (30,982) (1,162) (2,515)
Net finance income (expense) − − − 36,396 − 36,396
Income taxes 13,946 1,416 407 (15,508) (599) (338)
Depreciation, depletion and amortization 12,128 3,320 736 177 − 16,361
EBITDA 53,297 6,162 2,123 (9,917) (1,761) 49,904
Results in equity-accounted investments (150) 1,323 (190) 13 − 996
Impairment of assets (reversals), net − (201) − − − (201)
Results on disposal/write-offs of assets (532) (231) (22) 122 − (663)
Results from co-participation agreements in bid areas (296) − − − − (296)
Adjusted EBITDA 52,319 7,053 1,911 (9,782) (1,761) 49,740

 

Table 31 - Reconciliation of Adjusted EBITDA by segment – 1Q24

R$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Net income (loss) 28,971 3,837 1,259 (8,089) (2,168) 23,810
Net finance income (expense) − − − 9,579 − 9,579
Income taxes 14,881 2,309 593 (6,028) (1,117) 10,638
Depreciation, depletion and amortization 12,528 3,207 756 157 − 16,648
EBITDA 56,380 9,353 2,608 (4,381) (3,285) 60,675
Results in equity-accounted investments (85) 645 (107) 4 − 457
Impairment of assets (reversals), net 21 − − (66) − (45)
Results on disposal/write-offs of assets (683) (123) (96) 96 − (806)
Results from co-participation agreements in bid areas (237) − − − − (237)
Adjusted EBITDA 55,396 9,875 2,405 (4,347) (3,285) 60,044
  

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Glossary

 

A

Adjusted cash and cash equivalents: Sum of cash and cash equivalents and investments in securities in domestic and international markets that have high liquidity, i.e., convertible into cash within 3 months, even if maturity is longer than 12 months, held for the purpose of complying with cash commitments. This measure is not defined under the International Financial Reporting Standards – IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents computed in accordance with IFRS. It may not be comparable to adjusted cash and cash equivalents of other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity and supports leverage management.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP measure defined as net income plus net finance income (expense); income taxes; depreciation, depletion and amortization; results in equity-accounted investments; impairment of assets (reversals); results on disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA; and results from co-participation agreements in bid areas).

Adjusted EBITDA margin: Adjusted EBITDA divided by sales revenues.

Average capital employed: quarterly average considering inventories, intangibles and fixed assets at historical exchange rates.

 

C

CAPEX – Capital Expenditure: investments that encompasses acquisition of property, plant, and equipment, including costs with leasing, intangible assets, investments in subsidiaries and affiliates, costs with geology and geophysics and pre-operating costs.

 

E

Exploration & Production (E&P): The segment covers the exploration, development and production of crude oil, NGL and natural gas in Brazil and abroad, with the main aim of supplying our domestic refineries. This segment also operates through partnerships with other companies, including interests in foreign companies in this segment.

 

F

Free cash flow: Corresponds to operating cash flow minus acquisitions of property, plant and equipment, intangible assets and equity interests. Free cash flow is not defined under the IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents calculated in accordance with IFRS. It may not be comparable to free cash flow of other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity and supports leverage management.

 

 

 

 

 

  

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G

Gas & Low Carbon Energy (G&LCE): The segment covers the logistics and commercialization of natural gas and electricity, the transportation and commercialization of LNG, the generation of electricity through thermoelectric plants, as well as the processing of natural gas. It also includes renewable energy businesses, low carbon services (carbon capture, utilization and storage) and the production of biodiesel and its products.

 

I

Investments: Capital expenditures based on the cost assumptions and financial methodology adopted in our Strategic Plan, which include acquisition of PP&E, including expenses with leasing, intangibles assets, investment in investees and other items that do not necessarily qualify as cash flows used in investing activities, primarily geological and geophysical expenses, pre-operating charges, purchase of property, plant and equipment on credit and borrowing costs directly attributable to works in progress.

 

L

Leverage: Ratio between the Net Debt and the sum of Net Debt and Shareholders’ Equity. Leverage is not a measure defined in the IFRS and it is possible that it may not be comparable to similar measures reported by other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity.

Lifting Cost: An indicator that represents the lifting cost per barrel of oil equivalent, considering the ratio between production and costs. It includes expenses for the execution and maintenance of production. Costs related to the leasing of third-party platforms, production taxes, and depreciation, depletion, and amortization are not considered in this indicator.

Lifting Cost + Leases: An indicator that includes costs related to the leasing of third-party platforms in the calculation of Lifting Cost. Costs related to production taxes and depreciation, depletion, and amortization are not considered.

Lifting Cost + Production Taxes: An indicator that includes costs related to production taxes in the calculation of Lifting Cost. Costs related to the leasing of third-party platforms and depreciation, depletion, and amortization are not considered.

Lifting Cost + Production Taxes + Leases: An indicator that includes costs related to the leasing of third-party platforms and production taxes in the calculation of Lifting Cost. Costs related to depreciation, depletion, and amortization are not considered.

LTM Adjusted EBITDA: Sum of the last 12 months (Last Twelve Months) of Adjusted EBITDA. This metric is not foreseen in the international accounting standards - IFRS and it is possible that it is not comparable with similar indexes reported by other companies, however Management believes that it is supplementary information to assess liquidity and helps manage leverage. Adjusted EBITDA should be considered in conjunction with other metrics to better understand the Company's liquidity.

 

N

Net Debt: Gross debt less adjusted cash and cash equivalents. Net debt is not a measure defined in the IFRS and should not be considered in isolation or as a substitute for total long-term debt calculated in accordance with IFRS. Our calculation of net debt may not be comparable to the calculation of net debt by other companies, however our management believes that net debt is an appropriate supplemental measure that helps investors assess our liquidity and supports leverage management.

Net Income by Business Segment: The information by the company's business segment is prepared based on available financial information that is directly attributable to the segment or that can be allocated on a reasonable basis, being presented by business activities used by the Executive Board to make resource allocation decisions. and performance evaluation. When calculating segmented results, transactions with third parties, including jointly controlled and associated companies, and transfers between business segments are considered. Transactions between business segments are valued at internal transfer prices calculated based on methodologies that take into account market parameters, and these transactions are eliminated, outside the business segments, for the purpose of reconciling the segmented information with the consolidated financial statements of the company. company.

 

  

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O

Operating profit after taxes: Adjusted EBITDA, minus DD&A of assets booked at historical exchange rates and 34% income tax rate.

 

R

Refining, Transportation and Marketing (RTM): The segment covers refining, logistics, transportation, acquisition and export of crude oil, as well as trading in oil products in Brazil and abroad. This segment also includes petrochemical operations (involving interests in petrochemical companies in Brazil) and fertilizer production.

ROCE: operating profit after taxes / average capital employed, both measured in US$ on a LTM basis

 

 

 

  

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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: August 8, 2024

 

PETRÓLEO BRASILEIRO S.A–PETROBRAS

By: /s/ Fernando Sabbi Melgarejo

______________________________

Fernando Sabbi Melgarejo

Chief Financial Officer and Investor Relations Officer