6-K 1 pbrrmf2q24usd_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 – 9th floor 
20231-030 – 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 9
Financial results 9
Net profit (loss) attributable to Petrobras shareholders 10
Non-recurring items 11
Capex 12
Liquidity and capital resources 14
Debt indicators 16
Results by segment 17
Exploration and Production 17
Refining, Transportation and Marketing 19
Gas and Low Carbon Energies 20
Reconciliation of Adjusted EBITDA 21
Exhibits 22
Financial statements 22
Financial information by business areas 26
Glossary 37

 

 

  

PETROBRAS | Performance Report | 2Q24

 2
 
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.

 

  

PETROBRAS | Performance Report | 2Q24

 3
 

Highlights – 2Q24

  

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.

 

  

PETROBRAS | Performance Report | 2Q24

 4
 

Highlights – 2Q24

  

Main items *

Table 1 – Main items

            Variation (%)
 US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Sales revenues 23,467 23,768 22,979 47,235 49,750 (1.3) 2.1 (5.1)
Gross profit 11,727 12,257 11,637 23,984 25,750 (4.3) 0.8 (6.9)
Operating expenses (5,022) (3,273) (3,159) (8,295) (5,719) 53.4 59.0 45.0
Consolidated net income (loss) attributable to the shareholders of Petrobras (344) 4,782 5,828 4,438 13,169 − − (66.3)
Recurring consolidated net income (loss) attributable to the shareholders of Petrobras (*) 3,060 4,816 5,958 7,876 13,350 (36.5) (48.6) (41.0)
Net cash provided by operating activities 9,087 9,386 9,642 18,473 19,989 (3.2) (5.8) (7.6)
Free cash flow 6,148 6,547 6,721 12,695 14,637 (6.1) (8.5) (13.3)
Adjusted EBITDA 9,627 12,127 11,436 21,754 25,392 (20.6) (15.8) (14.3)
Recurring adjusted EBITDA (*) 11,967 12,425 11,922 24,392 26,476 (3.7) 0.4 (7.9)
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$/bbl) 84.94 83.24 78.39 84.09 79.83 2.0 8.4 5.3
Price of basic oil products - Domestic Market (US$/bbl) 91.34 96.13 95.91 93.70 102.62 (5.0) (4.8) (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-recurring Items section.

  

PETROBRAS | Performance Report | 2Q24

 5
 

Consolidated Results

  

Consolidated results

Net revenues

Table 2 – Net revenues by products

            Variation (%)
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Diesel 6,979 7,076 7,082 14,055 15,387 (1.4) (1.5) (8.7)
Gasoline 3,073 3,205 3,775 6,278 7,469 (4.1) (18.6) (15.9)
Liquefied petroleum gas (LPG) 793 758 951 1,551 1,880 4.6 (16.6) (17.5)
Jet fuel 1,147 1,184 1,102 2,331 2,508 (3.1) 4.1 (7.1)
Naphtha 483 427 430 910 908 13.1 12.3 0.2
Fuel oil (including bunker fuel) 233 344 261 577 547 (32.3) (10.7) 5.5
Other oil products 1,073 1,019 1,128 2,092 2,212 5.3 (4.9) (5.4)
Subtotal oil products 13,781 14,013 14,729 27,794 30,911 (1.7) (6.4) (10.1)
Natural gas 1,136 1,322 1,429 2,458 2,955 (14.1) (20.5) (16.8)
Crude oil 1,049 1,229 1,365 2,278 2,715 (14.6) (23.2) (16.1)
Renewables and nitrogen products 43 31 25 74 46 38.7 72.0 60.9
Revenues from non-exercised rights 121 140 218 261 438 (13.6) (44.5) (40.4)
Electricity 104 128 153 232 263 (18.8) (32.0) (11.8)
Services, agency and others 202 247 281 449 525 (18.2) (28.1) (14.5)
Total domestic market 16,436 17,110 18,200 33,546 37,853 (3.9) (9.7) (11.4)
Exports 6,746 6,398 4,431 13,144 11,172 5.4 52.2 17.7
Crude oil 5,163 4,911 2,909 10,074 8,456 5.1 77.5 19.1
Fuel oil (including bunker fuel) 1,126 1,322 1,329 2,448 2,363 (14.8) (15.3) 3.6
Other oil products and other products 457 165 193 622 353 177.0 136.8 76.2
Sales abroad (*) 285 260 348 545 725 9.6 (18.1) (24.8)
Total foreign market 7,031 6,658 4,779 13,689 11,897 5.6 47.1 15.1
Total 23,467 23,768 22,979 47,235 49,750 (1.3) 2.1 (5.1)
(*) Sales revenues from operations outside of Brazil, including trading and excluding exports.

 

In 2Q24 net revenue remained at the same level as the previous quarter.

The 6% increase in export revenues is mainly attributed to the growth in revenues from oil exports. This result reflects the 2% appreciation of Brent price in the period.

Revenues from domestic sales of oil products were 2% lower when compared to 1Q24, mainly due to lower prices, partially offset by higher volumes sold, especially diesel, driven by seasonal consumption and increased economic activity.

The lower revenue from domestic oil sales 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

 6
 

Consolidated Results

  

Cost of goods sold (*)

Table 3 – Cost of goods sold

            Variation (%)
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Acquisitions (4,145) (3,508) (4,361) (7,653) (9,246) 18.2 (5.0) (17.2)
Crude oil imports (2,590) (1,881) (2,086) (4,471) (4,754) 37.7 24.2 (6.0)
Oil products imports (1,152) (1,074) (1,568) (2,226) (3,379) 7.3 (26.5) (34.1)
Natural gas imports (403) (553) (707) (956) (1,113) (27.1) (43.0) (14.1)
Production (7,192) (7,570) (6,482) (14,762) (13,637) (5.0) 11.0 8.2
Crude oil (5,857) (6,404) (5,415) (12,261) (11,664) (8.5) 8.2 5.1
Production taxes (2,661) (2,672) (2,481) (5,333) (5,191) (0.4) 7.3 2.7
Other costs (3,196) (3,732) (2,934) (6,928) (6,473) (14.4) 8.9 7.0
Oil products (807) (701) (563) (1,508) (1,003) 15.1 43.3 50.3
Natural gas   (528) (465) (504) (993) (970) 13.5 4.8 2.4
Production taxes (120) (125) (92) (245) (184) (4.0) 30.4 33.2
Other costs (408) (340) (412) (748) (786) 20.0 (1.0) (4.8)
Services, electricity, operations abroad and others (403) (433) (499) (836) (1,117) (6.9) (19.2) (25.2)
Total (11,740) (11,511) (11,342) (23,251) (24,000) 2.0 3.5 (3.1)

 

In 2Q24, the cost of goods sold remained stable when compared to 1Q24. The increase in costs of oil and oil products imports reflects the appreciation of prices in inventory build-up and a higher share of imported products in the refining process and sales mix. This increase was offset by lower production costs and government take, reflecting lower volumes of domestic oil in the refining process, lower volumes of natural gas imports from Bolivia and lower LNG acquisition costs in 2Q24.

 

(* ) Managerial information (non-revised).

  

PETROBRAS | Performance Report | 2Q24

 7
 

Consolidated Results

  

Operating expenses

Table 4 – Operating expenses

            Variation (%)  
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23  
Selling, General and Administrative Expenses (1,817) (1,780) (1,588) (3,597) (3,166) 2.1 14.4 13.6  
Selling expenses (1,268) (1,333) (1,200) (2,601) (2,421) (4.9) 5.7 7.4  
Materials, third-party services, freight, rent and other related costs (1,069) (1,120) (1,022) (2,189) (2,048) (4.6) 4.6 6.9  
Depreciation, depletion and amortization (166) (173) (154) (339) (304) (4.0) 7.8 11.5  
Allowance for expected credit losses 2 (10) 4 (8) (17) − (50.0) (52.9)  
Employee compensation (35) (30) (28) (65) (52) 16.7 25.0 25.0  
General and administrative expenses (549) (447) (388) (996) (745) 22.8 41.5 33.7  
Employee compensation (*) (365) (292) (244) (657) (473) 25.0 49.6 38.9  
Materials, third-party services, rent and other related costs (146) (120) (112) (266) (214) 21.7 30.4 24.3  
Depreciation, depletion and amortization (38) (35) (32) (73) (58) 8.6 18.8 25.9  
Exploration costs (174) (135) (191) (309) (348) 28.9 (8.9) (11.2)  
Research and Development (193) (183) (172) (376) (326) 5.5 12.2 15.3  
Other taxes (948) (140) (329) (1,088) (529) 577.1 188.1 105.7  
Impairment (losses) reversals, net 37 9 (401) 46 (404) 311.1 − −  
Other income and expenses, net (1,927) (1,044) (478) (2,971) (946) 84.6 303.1 214.1  
Total (5,022) (3,273) (3,159) (8,295) (5,719) 53.4 59.0 45.0  
(*) In the 2Q24 and in the 1H24, 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 US$ 78 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 of Araucária Nitrogenados S.A., reflecting the approval of the reactivation of the fertilizer plant.

  

PETROBRAS | Performance Report | 2Q24

 8
 

Consolidated Results

  

Adjusted EBITDA

In 2Q24, Adjusted EBITDA reached US$ 9.6 billion, a decrease of 20,6% 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 export revenues, mainly due to the appreciation of Brent.

 

Financial results

Table 5 – Financial results

            Variation (%)
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Finance income 477 552 516 1,029 981 (13.6) (7.6) 4.9
Income from investments and marketable securities (Government Bonds) 380 432 424 812 757 (12.0) (10.4) 7.3
Other finance income 97 120 92 217 224 (19.2) 5.4 (3.1)
Finance expenses (2,932) (1,072) (868) (4,004) (1,712) 173.5 237.8 133.9
Interest on finance debt (519) (554) (512) (1,073) (1,053) (6.3) 1.4 1.9
Unwinding of discount on lease liability (557) (547) (400) (1,104) (758) 1.8 39.3 45.6
Capitalized borrowing costs 383 376 318 759 589 1.9 20.4 28.9
Unwinding of discount on the provision for decommissioning costs (258) (272) (219) (530) (431) (5.1) 17.8 23.0
Other finance expenses (*) (1,981) (75) (55) (2,056) (59) 2541.3 3501.8 3384.7
Foreign exchange gains (losses) and indexation charges (4,414) (1,419) 331 (5,833) 88 211.1 − −
Foreign exchange gains (losses) (**) (3,540) (881) 1,523 (4,421) 2,320 301.8 − −
Reclassification of hedge accounting to the Statement of Income (600) (697) (1,078) (1,297) (2,232) (13.9) (44.3) (41.9)
Indexation to the Selic interest rate of anticipated dividends and dividends payable (318) (70) (397) (388) (429) 354.3 (19.9) (9.6)
Recoverable taxes inflation indexation income (145) 49 31 (96) 95 − − −
Other foreign exchange gains and indexation charges, net (*) 189 180 252 369 334 5.0 (25.0) 10.5
Total (6,869) (1,939) (21) (8,808) (643) 254.3 32609.5 1269.8

(*) It includes, in the 2Q24 and in the 1H24, finance expense of US$ 1,930 million and indexation charges of US$ 220 million related to the tax settlement program - federal taxes.

(**) Foreign exchange variation of Brazilian Reais x Dollar in the following periods: 2Q24: -US$ 3,536 million; 1Q24: -US$ 913 million; 2Q23: +US$ 1,567 million; 1H24: -US$ 4,449 million; 1H23: +US$ 2,429 million.

 

In 2Q24, the financial result was - US$ 6.9 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 changed 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, primarily the effects of the adherence to the tax transaction and losses related to the 2023 labor agreement, resulted in a loss of US$ 344 million. Excluding the aforementioned items and depreciation of BRL against USD, net income would have reached US$ 5.4 billion, while adjusted EBITDA would have been US$ 12 billion.

  

PETROBRAS | Performance Report | 2Q24

 9
 

Non-recurring Items

  

Non-recurring items

Table 6 – Non-recurring items

            Variation (%)
 US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Net income (loss)   (325) 4,805 5,859 4,480 13,229 − − (66.1)
Non-recurring items (4,271) (62) (196) (4,333) (273) 6788.7 2079.1 1487.2
Non-recurring items that do not affect Adjusted EBITDA (1,931) 236 290 (1,695) 811 − − −
Impairment of assets and investments 39 26 (401) 65 (403) 50.0 − −
Gains and losses on disposal/write-offs of assets 124 162 691 286 1,187 (23.5) (82.1) (75.9)
Results from co-participation agreements in bid areas 55 48 − 103 27 14.6 − 281.5
Effect of the tax transaction on net finance income (expense) (2,149) − − (2,149) − − − −
Other non-recurring items (2,340) (298) (486) (2,638) (1,084) 685.2 381.5 143.4
Voluntary Separation Plan (1) (2) 2 (3) 5 (50.0) − −
Collective bargaining agreement (6) (3) (6) (9) (6) 100.0 − 50.0
Amounts recovered from Lava Jato investigation 2 5 4 7 93 (60.0) (50.0) (92.5)
Gains/(losses) on decommissioning of returned/abandoned areas − (7) (11) (7) (11) − − (36.4)
Gains/(losses) related to legal proceedings (240) (281) (276) (521) (530) (14.6) (13.0) (1.7)
Effect of the tax transaction on other taxes (790) − − (790) − − − −
Equalization of expenses - Production Individualization Agreements (14) (10) (6) (24) (23) 40.0 133.3 4.3
Gains/(losses) arising from actuarial review of health care plan (1,291) − − (1,291) − − − −
Compensation for the termination of a vessel charter agreement − − − − (317) − − −
Export tax on crude oil − − (193) − (295) − − −
Net effect of non-recurring items on IR/CSLL 869 29 66 898 92 2896.6 1216.7 876.1
Recurring net income 3,077 4,838 5,989 7,915 13,410 (36.4) (48.6) (41.0)
Shareholders of Petrobras (*) 3,060 4,816 5,958 7,876 13,350 (36.5) (48.6) (41.0)
Non-controlling interests 17 22 31 39 60 (22.7) (45.2) (35.0)
Adjusted EBITDA 9,627 12,127 11,436 21,754 25,392 (20.6) (15.8) (14.3)
Non-recurring items (2,340) (298) (486) (2,638) (1,084) 685.2 381.5 143.4
Recurring Adjusted EBITDA 11,967 12,425 11,922 24,392 26,476 (3.7) 0.4 (7.9)
(*) Recurring net income excluding foreign exchange variation of Brazilian Reais x Dollar in the following periods: 2Q24: +US$ 5,394 million; 1Q24: +US$ 5,419 million; 2Q23: +US$ 4,924 million; 1H24: +US$ 10,813 million; 1H23: +US$ 11,747 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

 10
 

Capex

  

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

 11
 

Capex

  

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.

  

PETROBRAS | Performance Report | 2Q24

 12
 

Liquidity and Capital Resources

  

Liquidity and capital resources

Table 9 - Liquidity and capital resources

US$ million 2Q24 1Q24 2Q23 1H24 1H23
Adjusted cash and cash equivalents at the beginning of period 18,192 17,902 15,761 17,902 12,283
Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the beginning of period (*) (6,645) (5,175) (5,471) (5,175) (4,287)
Cash and cash equivalents at the beginning of period 11,547 12,727 10,290 12,727 7,996
Net cash provided by operating activities 9,087 9,386 9,642 18,473 19,989
Net cash (used in) provided by investing activities (2,032) (3,324) (795) (5,356) (1,899)
Acquisition of PP&E and intangible assets (2,934) (2,838) (2,912) (5,772) (5,335)
Acquisition of equity interests (5) (1) (9) (6) (17)
Proceeds from disposal of assets - Divestment 197 569 1,606 766 3,461
Financial compensation from co-participation agreements − 397 − 397 391
Divestment (investment) in marketable securities 670 (1,475) 462 (805) (468)
Dividends received 40 24 58 64 69
(=) Net cash provided by operating and investing activities 7,055 6,062 8,847 13,117 18,090
Net cash used in financing activities (10,371) (7,168) (8,808) (17,539) (15,781)
Changes in non-controlling interest 32 93 25 125 (50)
Net financings (1,147) (1,599) (1,155) (2,746) (2,424)
Proceeds from finance debt 565 2 11 567 62
Repayments (1,712) (1,601) (1,166) (3,313) (2,486)
Repayment of lease liability (1,965) (1,918) (1,473) (3,883) (2,862)
Dividends paid to shareholders of Petrobras (7,123) (3,455) (6,205) (10,578) (10,397)
Share repurchase program (148) (232) − (380) −
Dividends paid to non-controlling interests (20) (57) − (77) (48)
Effect of exchange rate changes on cash and cash equivalents (347) (74) 22 (421) 46
Cash and cash equivalents at the end of period 7,884 11,547 10,351 7,884 10,351
Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the end of period (*) 5,586 6,645 5,443 5,586 5,443
Adjusted cash and cash equivalents at the end of period 13,470 18,192 15,794 13,470 15,794
Reconciliation of Free Cash Flow          
Net cash provided by operating activities 9,087 9,386 9,642 18,473 19,989
Acquisition of PP&E and intangible assets (2,934) (2,838) (2,912) (5,772) (5,335)
Acquisition of equity interests (5) (1) (9) (6) (17)
Free cash flow (**) 6,148 6,547 6,721 12,695 14,637

(*) 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.

  

PETROBRAS | Performance Report | 2Q24

 13
 

Liquidity and Capital Resources

  

As of June 30, 2024, cash and cash equivalents totaled US$ 7.9 billion and adjusted cash and cash equivalents totaled US$ 13.5 billion.

In 2Q24, cash generated from operating activities reached US$ 9.1 billion and free cash flow totaled US$ 6.2 billion. In addition to generating cash, this level of cash generation was used to: (a) shareholders remuneration (US$ 7.1 billion), (b) investments (US$ 2.9 billion), (c) lease liabilities amortization (US$ 2.0 billion), and (d) principal and interest due in the period amortization (US$ 1.7 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

 14
 

Debt Indicators

  

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
  

PETROBRAS | Performance Report | 2Q24

 15
 

Results by Segment

  

Results by segment

Exploration and Production

 

Table 11 – E&P results

            Variation (%) (*)
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Sales revenues 15,668 16,077 14,722 31,745 30,452 (2.5) 6.4 4.2
Gross profit 9,440 9,463 8,610 18,903 17,961 (0.2) 9.6 5.2
Operating expenses (1,551) (630) (554) (2,181) (677) 146.2 180.0 222.2
Operating income 7,889 8,833 8,056 16,722 17,284 (10.7) (2.1) (3.3)
Net income (loss) attributable to the shareholders of Petrobras 5,237 5,846 5,335 11,083 11,443 (10.4) (1.8) (3.1)
Adjusted EBITDA of the segment 10,060 11,182 9,876 21,242 20,771 (10.0) 1.9 2.3
EBITDA margin of the segment (%) 64 70 67 67 68 (5.3) (2.9) (1)
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$/bbl) 84.94 83.24 78.39 84.09 79.83 2.0 8.4 5.3
Production taxes Brazil 2,946 2,981 2,695 5,927 5,479 (1.2) 9.3 8.2
     Royalties 1,838 1,871 1,553 3,709 3,163 (1.8) 18.4 17.3
     Special participation 1,099 1,101 1,130 2,200 2,292 (0.2) (2.7) (4.0)
     Retention of areas 9 9 12 18 24 − (25.0) (25.0)
 Lifting cost Brazil (US$/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 US$ 9.4 billion, a small reduction of 0.2% when compared to 1Q24, mainly explained by lower production, partially offset by higher Brent prices.

Operating income in 2Q24 was US$ 7.9 billion, 11% 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 a decrease in the quarterly comparison (2Q24 vs. 1Q24) due to lower production, offset by higher Brent prices.

  

PETROBRAS | Performance Report | 2Q24

 16
 

Results by Segment

  

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

 17
 

Results by Segment

  

Refining, Transportation and Marketing

 

Table 12 – RTM results

            Variation (%) (*)
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Sales revenues 22,061 22,190 21,057 44,251 45,899 (0.6) 4.8 (3.6)
Gross profit 1,504 2,207 1,729 3,711 4,703 (31.9) (13.0) (21.1)
Operating expenses (701) (836) (1,151) (1,537) (2,329) (16.1) (39.1) (34.0)
Operating Income 803 1,371 578 2,174 2,374 (41.4) 38.9 (8.4)
Net income (loss) attributable to the shareholders of Petrobras 279 775 312 1,054 1,511 (64.0) (10.6) (30.2)
Adjusted EBITDA of the segment 1,360 1,994 1,597 3,354 3,978 (31.8) (14.8) (15.7)
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
Price of basic oil products - Domestic Market (US$/bbl) 91.34 96.13 95.91 93.70 102.62 (5.0) (4.8) (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 US$ 541 million in 2Q24 and US$ 435 million in 1Q24, RTM's gross profit would have been US$ 963 million in 2Q24 compared to US$ 1.77 billion 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 was stable when compared to 1Q24, mainly due to the exchange rate effect that offset higher expenses in BRL. Higher expenses in materials and services related to maintenance and conservation were noteworthy.

  

PETROBRAS | Performance Report | 2Q24

 18
 

Results by Segment

  

Gas and Low Carbon Energies

 

Table 13 – G&LCE results

            Variation (%) (*)
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Sales revenues 2,198 2,422 2,767 4,620 5,621 (9.2) (20.6) (17.8)
Gross profit 1,102 1,245 1,141 2,347 2,528 (11.5) (3.4) (7.2)
Operating expenses (867) (889) (765) (1,756) (1,544) (2.5) 13.3 13.7
Operating income 235 356 376 591 984 (34.0) (37.5) (39.9)
Net income (loss) attributable to the shareholders of Petrobras 179 242 247 421 635 (26.0) (27.5) (33.7)
Adjusted EBITDA of the segment 372 490 499 862 1,238 (24.1) (25.5) (30.4)
EBITDA margin of the segment (%) 17 20 18 19 22 (3) (1) (3)
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 (***) 61.45 64.13 86.77 125.58 168.45 (4.2) (29.2) (25.4)
Average electricity sales price (US$/MWh) 25.41 63.28 12.43 39.93 12.14 (59.8) 104.4 229.0
(*) 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 34% lower than in 1Q24, mainly impacted by the lower gross profit.

  

PETROBRAS | Performance Report | 2Q24

 19
 

Reconciliation of Adjusted EBITDA

  

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 (%) (*)
US$ million 2Q24 1Q24 2Q23 1H24 1H23 2Q24 X 1Q24 2Q24 X 2Q23 1H24 X 1H23
Net income (loss) (325) 4,805 5,859 4,480 13,229 − − (66.1)
Net finance income (expense) 6,869 1,939 21 8,808 643 254.3 32609.5 1269.8
Income taxes (27) 2,147 2,576 2,120 6,172 − − (65.7)
Depreciation, depletion and amortization 3,138 3,362 3,249 6,500 6,173 (6.7) (3.4) 5.3
EBITDA 9,655 12,253 11,705 21,908 26,217 (21.2) (17.5) (16.4)
Results of equity-accounted investments 188 93 22 281 (13) 102.2 754.5 −
Impairment of assets (reversals), net (37) (9) 401 (46) 404 311.1 − −
Results on disposal/write-offs of assets (124) (162) (692) (286) (1,188) (23.5) (82.1) (75.9)
Results from co-participation agreements in bid areas (55) (48) − (103) (28) 14.6 − 267.9
Adjusted EBITDA 9,627 12,127 11,436 21,754 25,392 (20.6) (15.8) (14.3)
Adjusted EBITDA margin (%) 41 51 50 46 51 (10.0) (9.0) (5.0)
(*) EBITDA Margin variations in percentage points.
  

PETROBRAS | Performance Report | 2Q24

 20
 

Exhibits

  

Exhibits

Financial statements

 

Table 15 - Income statement - Consolidated

US$ million 2Q24 1Q24 2Q23 1H24 1H23
Sales revenues 23,467 23,768 22,979 47,235 49,750
Cost of sales (11,740) (11,511) (11,342) (23,251) (24,000)
Gross profit 11,727 12,257 11,637 23,984 25,750
Selling expenses (1,268) (1,333) (1,200) (2,601) (2,421)
General and administrative expenses (549) (447) (388) (996) (745)
Exploration costs (174) (135) (191) (309) (348)
Research and development expenses (193) (183) (172) (376) (326)
Other taxes (948) (140) (329) (1,088) (529)
Impairment (losses) reversals, net 37 9 (401) 46 (404)
Other income and expenses, net (1,927) (1,044) (478) (2,971) (946)
  (5,022) (3,273) (3,159) (8,295) (5,719)
Operating income 6,705 8,984 8,478 15,689 20,031
Finance income 477 552 516 1,029 981
Finance expenses (2,932) (1,072) (868) (4,004) (1,712)
Foreign exchange gains (losses) and inflation indexation charges (4,414) (1,419) 331 (5,833) 88
Net finance income (expense) (6,869) (1,939) (21) (8,808) (643)
Results of equity-accounted investments (188) (93) (22) (281) 13
Income (loss) before income taxes (352) 6,952 8,435 6,600 19,401
Income taxes 27 (2,147) (2,576) (2,120) (6,172)
Net Income (loss) (325) 4,805 5,859 4,480 13,229
Net income (loss) attributable to:          
     Shareholders of Petrobras (344) 4,782 5,828 4,438 13,169
     Non-controlling interests 19 23 31 42 60
           
  

PETROBRAS | Performance Report | 2Q24

 21
 

Exhibits

  

Table 16 - Statement of financial position – Consolidated

ASSETS - US$ million 06.30.2024 12.31.2023
Current assets 28,658 32,445
Cash and cash equivalents 7,884 12,727
Marketable securities 4,290 2,819
Trade and other receivables, net 4,405 6,135
Inventories 7,339 7,681
Recoverable taxes 2,800 1,178
Assets classified as held for sale 422 335
Other current assets 1,518 1,570
Non-current assets 161,791 184,622
Long-term receivables 22,166 26,798
Trade and other receivables, net 1,175 1,847
Marketable securities 1,344 2,409
Judicial deposits 12,479 14,746
Deferred income taxes 1,097 965
Other recoverable taxes 3,970 4,516
Other non-current assets 2,101 2,315
Investments 986 1,358
Property, plant and equipment 135,951 153,424
Intangible assets 2,688 3,042
Total assets 190,449 217,067
     
     
LIABILITIES - US$ million 06.30.2024 12.31.2023
Current liabilities 32,016 33,860
Trade payables 4,812 4,813
Finance debt 4,617 4,322
Lease liability 7,437 7,200
Taxes payable 5,593 5,466
Dividends payable 2,295 3,539
Provision for decommissioning costs 1,659 2,032
Employee benefits 2,299 2,932
Liabilities related to assets classified as held for sale 785 541
Other current liabilities 2,519 3,015
Non-current liabilities 90,785 104,232
Finance debt 21,704 24,479
Lease liability 25,872 26,599
Income taxes payable 242 299
Deferred income taxes 6,076 10,910
Employee benefits 13,841 15,579
Provision for legal proceedings 3,125 3,305
Provision for decommissioning costs 18,155 21,171
  

PETROBRAS | Performance Report | 2Q24

 22
 

Exhibits

  

 

Other non-current liabilities 1,770 1,890
Shareholders' equity 67,648 78,975
Attributable to the shareholders of Petrobras 67,185 78,583
Share capital (net of share issuance costs) 107,101 107,101
Capital reserve and capital transactions 29 410
Profit reserves 65,463 72,641
Retained earnings (losses) 1,831 −
Accumulated other comprehensive deficit (107,239) (101,569)
Attributable to non-controlling interests 463 392
Total liabilities and shareholders' equity 190,449 217,067
     

 

Table 17 - Statement of cash flow – Consolidated

US$ million 2Q24 1Q24 2Q23 1H24 1H23
Cash flows from operating activities          
Net income (loss) for the period (325) 4,805 5,859 4,480 13,229
Adjustments for:          
Pension and medical benefits 1,702 433 389 2,135 759
Results of equity-accounted investments 188 93 22 281 (13)
Depreciation, depletion and amortization 3,138 3,362 3,249 6,500 6,173
Impairment of assets (reversals), net (37) (9) 401 (46) 404
Inventory write down (write-back) to net realizable value − (44) 14 (44) 6
Allowance for credit loss on trade and other receivables, net 18 30 10 48 34
Exploratory expenditure write-offs 55 50 6 105 38
Gain on disposal/write-offs of assets (124) (162) (691) (286) (1,187)
Foreign exchange, indexation and finance charges   7,040 1,935 191 8,975 847
Income taxes (27) 2,147 2,576 2,120 6,172
Revision and unwinding of discount on the provision for decommissioning costs 259 280 231 539 443
Results from co-participation agreements in bid areas (55) (48) − (103) (28)
Early termination and cash outflows revision of lease agreements (77) (69) (91) (146) (258)
Losses with legal, administrative and arbitration proceedings, net 240 281 277 521 531
Decrease (Increase) in assets          
Trade and other receivables 855 604 763 1,459 1,175
Inventories 272 (627) 91 (355) 1,080
Judicial deposits 862 (288) (379) 574 (782)
Other assets (105) 34 164 (71) 275
Increase (Decrease) in liabilities          
Trade payables (165) 407 187 242 (291)
Other taxes payable (1,342) (520) (747) (1,862) (964)
Pension and medical benefits (279) (203) (273) (482) (451)
Provisions for legal proceedings (122) (78) (134) (200) (219)
  

PETROBRAS | Performance Report | 2Q24

 23
 

Exhibits

  

 

Other employee benefits (311) (59) (251) (370) (216)
Provision for decommissioning costs (200) (263) (173) (463) (338)
Other liabilities (275) (82) (27) (357) (128)
Income taxes paid (2,098) (2,623) (2,022) (4,721) (6,302)
Net cash provided by operating activities 9,087 9,386 9,642 18,473 19,989
Cash flows from investing activities          
Acquisition of PP&E and intangible assets (2,934) (2,838) (2,912) (5,772) (5,335)
Acquisition of equity interests (5) (1) (9) (6) (17)
Proceeds from disposal of assets - Divestment 197 569 1,606 766 3,461
Financial compensation from co-participation agreements − 397 − 397 391
Divestment (investment) in marketable securities 670 (1,475) 462 (805) (468)
Dividends received 40 24 58 64 69
Net cash (used in) provided by investing activities (2,032) (3,324) (795) (5,356) (1,899)
Cash flows from financing activities          
Changes in non-controlling interest 32 93 25 125 (50)
Financing and loans, net:          
    Proceeds from finance debt 565 2 11 567 62
    Repayment of principal - finance debt (1,311) (1,007) (732) (2,318) (1,482)
    Repayment of interest - finance debt (401) (594) (434) (995) (1,004)
    Repayment of lease liability (1,965) (1,918) (1,473) (3,883) (2,862)
    Dividends paid to Shareholders of Petrobras (7,123) (3,455) (6,205) (10,578) (10,397)
    Share repurchase program  (148) (232) − (380) −
    Dividends paid to non-controlling interests (20) (57) − (77) (48)
Net cash used in financing activities (10,371) (7,168) (8,808) (17,539) (15,781)
Effect of exchange rate changes on cash and cash equivalents (347) (74) 22 (421) 46
Net change in cash and cash equivalents (3,663) (1,180) 61 (4,843) 2,355
Cash and cash equivalents at the beginning of the period 11,547 12,727 10,290 12,727 7,996
Cash and cash equivalents at the end of the period 7,884 11,547 10,351 7,884 10,351
  

PETROBRAS | Performance Report | 2Q24

 24
 

Exhibits

  

Financial information by business areas

 

Table 18 - Consolidated income by segment – 1H24

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Sales revenues 31,745 44,251 4,620 158 (33,539) 47,235
Intersegments 31,565 551 1,419 4 (33,539) −
Third parties 180 43,700 3,201 154 − 47,235
Cost of sales (12,842) (40,540) (2,273) (148) 32,552 (23,251)
Gross profit 18,903 3,711 2,347 10 (987) 23,984
Expenses (2,181) (1,537) (1,756) (2,821) − (8,295)
Selling expenses (1) (1,089) (1,497) (14) − (2,601)
General and administrative expenses (42) (176) (63) (715) − (996)
Exploration costs (309) − − − − (309)
Research and development expenses (288) (2) − (86) − (376)
Other taxes (829) (28) (9) (222) − (1,088)
Impairment (losses) reversals, net (4) 37 − 13 − 46
Other income and expenses, net (708) (279) (187) (1,797) − (2,971)
Operating income (loss) 16,722 2,174 591 (2,811) (987) 15,689
Net finance income (expense) − − − (8,808) − (8,808)
Results of equity-accounted investments 47 (381) 57 (4) − (281)
Income (loss) before income taxes 16,769 1,793 648 (11,623) (987) 6,600
Income taxes (5,687) (739) (200) 4,169 337 (2,120)
Net income (loss) 11,082 1,054 448 (7,454) (650) 4,480
Net income (loss) attributable to:            
   Shareholders of Petrobras 11,083 1,054 421 (7,470) (650) 4,438
   Non-controlling interests (1) − 27 16 − 42

 

  

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 25
 

Exhibits

  

 

Table 19 - Consolidated income by segment – 1H23

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Sales revenues 30,452 45,899 5,621 163 (32,385) 49,750
Intersegments 29,940 840 1,601 4 (32,385) −
Third parties 512 45,059 4,020 159 − 49,750
Cost of sales (12,491) (41,196) (3,093) (164) 32,944 (24,000)
Gross profit 17,961 4,703 2,528 (1) 559 25,750
Expenses (677) (2,329) (1,544) (1,161) (8) (5,719)
Selling expenses (12) (1,044) (1,335) (22) (8) (2,421)
General and administrative expenses (34) (162) (32) (517) − (745)
Exploration costs (348) − − − − (348)
Research and development expenses (251) (14) (1) (60) − (326)
Other taxes (354) (1) (19) (155) − (529)
Impairment (losses) reversals, net (18) (416) − 30 − (404)
Other income and expenses, net 340 (692) (157) (437) − (946)
Operating income (loss) 17,284 2,374 984 (1,162) 551 20,031
Net finance income (expense) − − − (643) − (643)
Results of equity-accounted investments 35 (55) 21 12 − 13
Income (loss) before income taxes 17,319 2,319 1,005 (1,793) 551 19,401
Income taxes (5,878) (808) (333) 1,034 (187) (6,172)
Net income (loss) 11,441 1,511 672 (759) 364 13,229
Net income (loss) attributable to:            
    Shareholders of Petrobras 11,443 1,511 635 (784) 364 13,169
    Non-controlling interests (2) − 37 25 − 60
  

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 26
 

Exhibits

  

Table 20 - Quarterly consolidated income by segment – 2Q24

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Sales revenues 15,668 22,061 2,198 80 (16,540) 23,467
Intersegments 15,591 248 699 2 (16,540) −
Third parties 77 21,813 1,499 78 − 23,467
Cost of sales (6,228) (20,557) (1,096) (74) 16,215 (11,740)
Gross profit 9,440 1,504 1,102 6 (325) 11,727
Expenses (1,551) (701) (867) (1,903) − (5,022)
Selling expenses − (538) (729) (1) − (1,268)
General and administrative expenses (22) (92) (35) (400) − (549)
Exploration costs (174) − − − − (174)
Research and development expenses (149) − − (44) − (193)
Other taxes (809) (21) (4) (114) − (948)
Impairment (losses) reversals, net − 37 − − − 37
Other income and expenses, net (397) (87) (99) (1,344) − (1,927)
Operating income (loss) 7,889 803 235 (1,897) (325) 6,705
Net finance income (expense) − − − (6,869) − (6,869)
Results of equity-accounted investments 30 (251) 36 (3) − (188)
Income (loss) before income taxes 7,919 552 271 (8,769) (325) (352)
Income taxes (2,682) (273) (80) 2,951 111 27
Net income (loss) 5,237 279 191 (5,818) (214) (325)
Net income (loss) attributable to:            
Shareholders of Petrobras 5,237 279 179 (5,825) (214) (344)
Non-controlling interests − − 12 7 − 19
  

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 27
 

Exhibits

  

Table 21 - Quarterly consolidated income by segment – 1Q24

US$ million E&P RTM 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
  

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Exhibits

  

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

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Pension and medical benefits - retirees (*) − − − (1,602) − (1,602)
Stoppages for asset maintenance and pre-operating expenses (1,256) (53) (33) (10) − (1,352)
Losses with legal, administrative and arbitration proceedings (188) (173) (36) (124) − (521)
Profit sharing (140) (68) (18) (85) − (311)
Variable compensation programs (63) (60) (8) (48) − (179)
Operating expenses with thermoelectric power plants − − (119) − − (119)
Institutional relations and cultural projects − (2) − (69) − (71)
Expenses with contractual fines received (22) − (13) − − (35)
Amounts recovered from Lava Jato investigation − − − 7 − 7
Gains (losses) with Commodities Derivatives − 26 (2) − − 24
Ship/take or pay agreements and fines imposed to suppliers 2 25 60 1 − 88
Government grants 1 − 2 92 − 95
Results from co-participation agreements in bid areas 103 − − − − 103
Results of non-core activities 120 (16) 10 8 − 122
Fines imposed on suppliers 99 17 3 6 − 125
Early termination and changes to cash flow estimates of leases 142 5 1 (2) − 146
Reimbursements from E&P partnership operations 269 − − − − 269
Results on disposal/write-offs of assets 237 68 23 (42) − 286
Others (12) (48) (57) 71 − (46)
Total (708) (279) (187) (1,797) − (2,971)
(*) 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 US$ 1,000 million.
  

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Exhibits

  

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

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Pension and medical benefits - retirees − − − (577) − (577)
Stoppages for asset maintenance and pre-operating expenses (1,052) (10) (22) (15) − (1,099)
Gains (losses) with legal, administrative and arbitration proceedings (165) (321) 3 (48) − (531)
Profit sharing (30) (13) (4) (20) − (67)
Variable compensation programs (108) (63) (14) (86) − (271)
Operating expenses with thermoelectric power plants − − (85) − − (85)
Institutional relations and cultural projects − (2) − (45) − (47)
Expenses with contractual fines received (7) 1 (113) (1) − (120)
Amounts recovered from Lava Jato investigation (*) − − − 93 − 93
Gains with Commodities Derivatives − 68 − 1 − 69
Ship/take or pay agreements and fines imposed to suppliers 2 21 46 1 − 70
Government grants 13 − − 163 − 176
Results from co-participation agreements in bid areas 28 − − − − 28
Results of non-core activities 51 (48) 64 13 − 80
Fines imposed on suppliers 86 12 2 9 − 109
Early termination and changes to cash flow estimates of leases 185 75 − (2) − 258
Reimbursements from E&P partnership operations 280 − − − − 280
Results on disposal/write-offs of assets 1,207 (29) − 9 − 1,187
Others (**) (150) (383) (34) 68 − (499)
Total 340 (692) (157) (437) − (946)
(*) The total amount recovered from the Lava Jato Investigation through December 31, 2023 was US$ 1,727 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 US$ 317 million.
  

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 30
 

Exhibits

  

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

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Pension and medical benefits - retirees (*) − − − (1,293) − (1,293)
Stoppages for asset maintenance and pre-operating expenses (649) (27) (18) (6) − (700)
Losses with legal, administrative and arbitration proceedings (104) (77) (32) (27) − (240)
Profit sharing (69) (20) (9) (37) − (135)
Variable compensation programs (30) (40) (4) (26) − (100)
Operating expenses with thermoelectric power plants − − (53) − − (53)
Institutional relations and cultural projects − (1) − (43) − (44)
Expenses with contractual fines received (16) − (2) − − (18)
Amounts recovered from Lava Jato investigation − − − 2 − 2
Government grants − − 1 16 − 17
Gains (losses) with Commodities Derivatives − 21 (2) − − 19
Ship/take or pay agreements and fines imposed to suppliers 1 12 28 − − 41
Results from co-participation agreements in bid areas 55 − − − − 55
Fines imposed on suppliers 50 14 2 3 − 69
Early termination and changes to cash flow estimates of leases 75 3 2 (3) − 77
Results of non-core activities 64 12 4 3 − 83
Reimbursements from E&P partnership operations 113 − − − − 113
Results on disposal/write-offs of assets 100 43 4 (23) − 124
Others 13 (27) (20) 90 − 56
Total (397) (87) (99) (1,344) − (1,927)
(*) 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 US$ 1,000 million.
  

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Exhibits

  

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

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Pension and medical benefits - retirees − − − (309) − (309)
Stoppages for asset maintenance and pre-operating expenses (607) (26) (15) (4) − (652)
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)
Amounts recovered from Lava Jato investigation − − − 5 − 5
Government grants 1 − 1 76 − 78
Gains with Commodities Derivatives − 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
Results of non-core activities 56 (28) 6 5 − 39
Reimbursements from E&P partnership operations 156 − − − − 156
Results on disposal/write-offs of assets 137 25 19 (19) − 162
Others (25) (21) (37) (19) − (102)
Total (311) (192) (88) (453) − (1,044)
  

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Exhibits

  

Table 26 - Consolidated assets by segment – 06.30.2024

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Total assets 122,127 31,492 6,526 35,525 (5,221) 190,449
Current assets 2,534 10,634 399 20,312 (5,221) 28,658
Non-current assets 119,593 20,858 6,127 15,213 − 161,791
Long-term receivables 7,140 2,165 91 12,770 − 22,166
Investments 329 432 168 57 − 986
Property, plant and equipment 109,979 18,136 5,798 2,038 − 135,951
Operating assets 92,904 15,456 3,430 1,539 − 113,329
Assets under construction 17,075 2,680 2,368 499 − 22,622
Intangible assets 2,145 125 70 348 − 2,688

 

Table 27 - Consolidated assets by segment – 12.31.2023

US$ million E&P RTM G&LCE CORP. 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
  

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Exhibits

  

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

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Net income (loss) 11,082 1,054 448 (7,454) (650) 4,480
Net finance income (expense) − − − 8,808 − 8,808
Income taxes 5,687 739 200 (4,169) (337) 2,120
Depreciation, depletion and amortization 4,856 1,285 294 65 − 6,500
EBITDA 21,625 3,078 942 (2,750) (987) 21,908
Results of equity-accounted investments (47) 381 (57) 4 − 281
Impairment of assets (reversals), net 4 (37) − (13) − (46)
Results on disposal/write-offs of assets (237) (68) (23) 42 − (286)
Results from co-participation agreements in bid areas (103) − − − − (103)
Adjusted EBITDA 21,242 3,354 862 (2,717) (987) 21,754

 

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

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Net income (loss) 11,441 1,511 672 (759) 364 13,229
Net finance income (expense) − − − 643 − 643
Income taxes 5,878 808 333 (1,034) 187 6,172
Depreciation, depletion and amortization 4,704 1,159 254 56 − 6,173
EBITDA 22,023 3,478 1,259 (1,094) 551 26,217
Results of equity-accounted investments (35) 55 (21) (12) − (13)
Impairment of assets (reversals), net 18 416 − (30) − 404
Results on disposal/write-offs of assets (1,207) 29 − (10) − (1,188)
Results from co-participation agreements in bid areas (28) − − − − (28)
Adjusted EBITDA 20,771 3,978 1,238 (1,146) 551 25,392
  

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Exhibits

  

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

US$ million E&P RTM G&LCE CORP. ELIMIN. TOTAL
Net income (loss) 5,237 279 191 (5,818) (214) (325)
Net finance income (expense) − − − 6,869 − 6,869
Income taxes 2,682 273 80 (2,951) (111) (27)
Depreciation, depletion and amortization 2,326 637 141 34 − 3,138
EBITDA 10,245 1,189 412 (1,866) (325) 9,655
Results of equity-accounted investments (30) 251 (36) 3 − 188
Impairment of assets (reversals), net − (37) − − − (37)
Results on disposal/write-offs of assets (100) (43) (4) 23 − (124)
Results from co-participation agreements in bid areas (55) − − − − (55)
Adjusted EBITDA 10,060 1,360 372 (1,840) (325) 9,627

 

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

US$ million E&P RTM G&LCE CORP. 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
  

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 35
 

Glossary

  

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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 36
 

Glossary

  

 

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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 37
 

Glossary

  

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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 38
  

 

  
  

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 9, 2024

 

PETRÓLEO BRASILEIRO S.A–PETROBRAS

By: /s/ Fernando Sabbi Melgarejo

______________________________

Fernando Sabbi Melgarejo

Chief Financial Officer and Investor Relations Officer