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
March, 2024
Commission File Number
1-15106
PETRÓLEO BRASILEIRO
S.A. – PETROBRAS
(Exact name of registrant
as specified in its charter)
Brazilian Petroleum
Corporation – PETROBRAS
(Translation of Registrant's
name into English)
Avenida Henrique Valadares, 28 – 19th floor
20241-030 – Rio de Janeiro, RJ
Federative Republic of Brazil
(Address of principal
executive office)
Indicate by check mark
whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form
40-F _______
Indicate by check mark
whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
Petrobras financial performance in 4Q23
Rio de Janeiro, March 07, 2024
Dear shareholders and investors,
I am very proud to address you today, not only in
light of the excellent economic and financial results we are disclosing, but especially because I am convinced that we are building a
Petrobras which is more solid, more resilient and able to generate long-term value to its partners and to society at large, facing the
countless challenges imposed by a world in transition.
Since present management took the helm, we have
been underscoring the need to adapt Petrobras to a new energy context where the decarbonization of operations and energy sources is a
must – and a result of society’s legitimate demands – and requires strategic shifts and novel solutions that take into
account the inevitable reduction in fossil fuel demand. Aware of this challenge, we have built a new strategic plan, which, besides consistency,
was based on realism, responsibility and transparency. We acknowledge that the energy transition will unfold gradually and, therefore,
we will continue to invest in oil and gas exploration, the segment where we generate the highest returns, and in the integration with
the downstream. We will also generate value with the just and responsible transition, diversifying our operations into profitable low
carbon businesses, always prioritizing partnerships. And we shall accomplish all this maintaining the focus on capital discipline, our
solid governance and rationality in all decision-making processes. This rationality, I must insist, was part and parcel of the changes
implemented in our commercial strategy – through which we increased our competitiveness, with more flexibility to the decision makers
and more stability to consumers – and our dividend policy, enhanced to consider both higher investments and the absolute need to
keep our financial health.
In this regard, it is worth highlighting the proposal
of dividends relative to 2023 – R$ 72.4 billion, an amount which mainly benefits the Brazilian society, through its 37% ownership
of Petrobras, and, who, as a matter of fact, has also received R$ 240 billion in taxes – and the successive records in market capitalization
since we took over. Thus, in 2023, our total shareholder return, relative to our preferred shares in NYSE, reached 112%, outpacing the
highest return delivered by the majors (20%), an evidence of how correct was the decision to keep dividends at reasonable levels, while
increasing investments to deliver profitable growth, which is being reflected in higher market values.
These accomplishments were only possible because
we have prioritized our most important asset: people. For them, we have approved our Diversity, Equity and Inclusion Policy and our Racial
Equity Program. Because they are the ones who strive to build our future. They were responsible, when we celebrate 15 years of the pre-salt,
for the record in oil and gas production: we produced more with less emissions; for the start-up of four new production platforms; for
the daily records in refining, with high utilization factors and the best result ever in energy efficiency; for the higher thermoelectric
generation, with reliability; for the progress in biorefining, either through capacity expansion, or for the historical landmark of processing
100% of soybean oil in an industrial refining unit; for the records in carbon efficiency, which allowed the reduction of 1.8 million tons
of CO2e in absolute emissions; for the main award of the global offshore industry: the OTC Distinguished Achievement Award
2024, in recognition of the contribution of Campos Basin Revitalization Program for the global industry; for the record in patents filings,
among other countless accomplishments which would allow me to write a lengthy book instead of a brief letter.
This is why I always say, my dear shareholders and
investors, that Petrobras is back. Back to prosperity, to generate long-term value and to help building a better world. We will face the
challenges taking advantage the synergies with our businesses and leveraged in our expertises, and never neglecting economic value generation,
as must be the case for a company that wishes to remain competitive and perpetuate value for future generations.
Jean Paul Prates, CEO
Main highlights for 2023:
| • | Second
highest annual EBITDA in history: US$ 52.4 billion |
| • | Cash
generation: Operating Cash Flow (OCF) of US$ 43.2 billion, the second highest in history |
| • | Gross
debt under control at US$ 62.6 billion, even after the US$ 10.0 billion increase in debt related to leases, including US$ 8.7 billion
related to the leasing of the four new production platforms that started production in 2023 |
| • | Financial
debt reduced by US$ 1.2 billion |
| • | Return
to society with payment of R$ R$ 240.2 billion in taxes in 2023 |
| • | Annual
production records: Total own production in the pre-salt reaches 2.17 MMboed (10% more than in 2022), representing 78% of the total |
| • | Start-up
of 4 new production systems: FPSOs Anna Nery and Anita Garibaldi, in Marlim and Voador revitalization projects, FPSO Almirante Barroso,
the fifth unit to start up in Búzios field, and FPSO Sepetiba, the second definitive production system in Mero |
| • | A
new record in the pre-salt, the Almirante Barroso FPSO's peak production in less than 5 months |
| • | OTC
Distinguished Achievement Award 2024 for technologies for the renovation of Campos Basin |
| • | Sustainable
disposal: P-32 and P-33 will go through a recycling process in line with best ESG practices |
| • | Equatorial
Margin: Drilling of Pitu Oeste well, in Potiguar Basin, marking the resumption of oil and gas exploration in the region |
| • | Proved
Reserves: Maintenance of the trajectory of reserve replenishment (1.5 billion boe), with a focus on profitable assets |
| • | High
utilization of the refining facilities with value generation: annual FUT of 92%, 4p.p. higher than 2022, with a strong yield of diesel,
gasoline and jetfuel in total production |
| • | Lower
environmental impact fuels: Expansion of Diesel R sales, new bunker + bio test and launch of Cap Pro W asphalt |
| • | Record
processing of Pre-Salt oils: Pre-Salt oils accounted for 65% of the feedstock processed in Refining, 3 p.p above the volume in 2022 |
| • | Record
annual production and sales of S-10 diesel: Production of 428 Mbpd and sales of 463 Mbpd |
Disclaimer
This report may contain forward-looking
statements. Such forward-looking statements only reflect expectations of the Company's managers regarding future economic conditions,
as well as the Company's performance, financial performance and results, among others. The terms "anticipates", "believes",
"expects", "predicts", "intends", "plans", "projects", "objective", "should",
and similar terms, which evidently involve risks and uncertainties that may or may not be anticipated by the Company and therefore are
not guarantees of future results of the Company's operations that may differ from current expectations. The readers should not rely exclusively
on any forward-looking statement contained herein. The Company does not undertake any responsibility to update the presentations and forecasts
in the light of new information or its future developments, and the figures reported for 4Q23 onwards are estimates or targets. These
indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by others. We provide
these indicators because we use them as measures of company performance; they should not be considered in isolation or as a substitute
for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA
and Net Indebtedness in the Glossary and their reconciliations in the Liquidity and Capital Resources sections, Reconciliation of Adjusted
EBITDA and Net Indebtedness. Consolidated accounting information in accordance with International Accounting Standard IAS 34 - Interim
Financial Reporting, issued by the International Accounting Standards Board (IASB) and revised by independent auditors.
Main items *
Table 1 – Main items
| |
|
|
|
|
|
Variation (%) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Sales revenues |
27,107 |
25,552 |
30,171 |
102,409 |
124,474 |
6.1 |
(10.2) |
(17.7) |
| Gross profit |
14,654 |
13,570 |
14,579 |
53,974 |
64,988 |
8.0 |
0.5 |
(16.9) |
| Operating expenses |
(6,632) |
(3,590) |
(3,460) |
(15,941) |
(7,874) |
84.7 |
91.7 |
102.5 |
| Consolidated net income (loss) attributable to the shareholders of Petrobras |
6,259 |
5,456 |
8,245 |
24,884 |
36,623 |
14.7 |
(24.1) |
(32.1) |
| Recurring consolidated net income (loss) attributable to the shareholders of Petrobras * |
8,288 |
5,577 |
8,322 |
27,215 |
34,834 |
48.6 |
(0.4) |
(21.9) |
| Net cash provided by operating activities |
11,669 |
11,554 |
12,848 |
43,212 |
49,717 |
1.0 |
(9.2) |
(13.1) |
| Free cash flow |
8,073 |
8,364 |
9,280 |
31,074 |
40,109 |
(3.5) |
(13.0) |
(22.5) |
| Adjusted EBITDA |
13,470 |
13,551 |
13,903 |
52,414 |
66,217 |
(0.6) |
(3.1) |
(20.8) |
| Recurring adjusted EBITDA * |
14,985 |
13,691 |
14,603 |
55,158 |
67,749 |
9.5 |
2.6 |
(18.6) |
| Gross debt (US$ million) |
62,600 |
60,997 |
53,799 |
62,600 |
53,799 |
2.6 |
16.4 |
16.4 |
| Net debt (US$ million) |
44,698 |
43,725 |
41,516 |
44,698 |
41,516 |
2.2 |
7.7 |
7.7 |
| Net debt/LTM Adjusted EBITDA ratio |
0.85 |
0.83 |
0.63 |
0.85 |
0.63 |
2.4 |
34.9 |
34.9 |
| Average commercial selling rate for U.S. dollar |
4.95 |
4.88 |
5.26 |
4.99 |
5.16 |
1.4 |
(5.9) |
(3.3) |
| Brent crude (US$/bbl) |
84.05 |
86.76 |
88.71 |
82.62 |
101.19 |
(3.1) |
(5.3) |
(18.4) |
| Domestic basic oil by-products price (US$/bbl) |
104.30 |
95.04 |
118.20 |
101.05 |
122.66 |
9.7 |
(11.8) |
(17.6) |
| TRI (total recordable injuries per million men-hour frequency rate) |
- |
- |
- |
0.80 |
0.68 |
- |
- |
17.6 |
| ROCE (Return on Capital Employed) |
11.2% |
11.5% |
15.8% |
11.2% |
15.8% |
-0,3 p.p. |
-4,6 p.p. |
-4,6 p.p. |
* See reconciliation of Recurring net income and Adjusted
EBITDA in the Special Items section.
Consolidated results
Net revenues
Table 2 – Net revenues by products
| |
|
|
|
|
|
Variation (%) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Diesel |
8,685 |
8,188 |
10,300 |
32,260 |
40,149 |
6.1 |
(15.7) |
(19.6) |
| Gasoline |
3,428 |
3,412 |
4,032 |
14,309 |
16,175 |
0.5 |
(15.0) |
(11.5) |
| Liquefied petroleum gas (LPG) |
784 |
842 |
1,143 |
3,506 |
5,121 |
(6.9) |
(31.4) |
(31.5) |
| Jet fuel |
1,338 |
1,169 |
1,498 |
5,015 |
5,423 |
14.5 |
(10.7) |
(7.5) |
| Naphtha |
480 |
449 |
432 |
1,837 |
2,396 |
6.9 |
11.1 |
(23.3) |
| Fuel oil (including bunker fuel) |
324 |
287 |
312 |
1,158 |
1,411 |
12.9 |
3.8 |
(17.9) |
| Other oil products |
1,064 |
1,152 |
1,163 |
4,428 |
5,536 |
(7.6) |
(8.5) |
(20.0) |
| Subtotal oil products |
16,103 |
15,499 |
18,880 |
62,513 |
76,211 |
3.9 |
(14.7) |
(18.0) |
| Natural gas |
1,325 |
1,352 |
1,982 |
5,632 |
7,673 |
(2.0) |
(33.1) |
(26.6) |
| Crude oil |
1,478 |
1,282 |
1,301 |
5,475 |
7,719 |
15.3 |
13.6 |
(29.1) |
| Renewables and nitrogen products |
32 |
16 |
53 |
94 |
283 |
100.0 |
(39.6) |
(66.8) |
| Revenues from non-exercised rights |
215 |
207 |
207 |
860 |
669 |
3.9 |
3.9 |
28.6 |
| Electricity |
234 |
160 |
151 |
657 |
694 |
46.3 |
55.0 |
(5.3) |
| Services, agency and others |
262 |
272 |
244 |
1,059 |
1,043 |
(3.7) |
7.4 |
1.5 |
| Total domestic market |
19,649 |
18,788 |
22,818 |
76,290 |
94,292 |
4.6 |
(13.9) |
(19.1) |
| Exports |
7,260 |
6,581 |
6,877 |
25,012 |
27,497 |
10.3 |
5.6 |
(9.0) |
| Crude oil |
5,202 |
4,789 |
5,290 |
18,447 |
19,332 |
8.6 |
(1.7) |
(4.6) |
| Fuel oil (including bunker fuel) |
1,380 |
1,371 |
1,495 |
5,114 |
7,399 |
0.7 |
(7.7) |
(30.9) |
| Other oil products and other products |
678 |
421 |
92 |
1,451 |
766 |
61.0 |
637.0 |
89.4 |
| Sales abroad (*) |
198 |
183 |
476 |
1,107 |
2,685 |
8.2 |
(58.4) |
(58.8) |
| Total foreign market |
7,458 |
6,764 |
7,353 |
26,119 |
30,182 |
10.3 |
1.4 |
(13.5) |
| Total |
27,107 |
25,552 |
30,171 |
102,409 |
124,474 |
6.1 |
(10.2) |
(17.7) |
| (*) Sales revenues from operations outside of Brazil, including trading and excluding exports. |
The global oil and gas market started 2023 in
a downward trend, influenced by concerns about global economic dynamics and the recovery of oil demand in China. During the first half
of the year, oil supply disruptions were observed, along with voluntary OPEC+ cuts. As of the 3Q23, despite persistent economic concerns,
oil prices have recovered due to supply restrictions and robust demand.
In this context, net revenue in 2023 was lower
compared to 2022, mainly due to the 18% drop in Brent prices and crack spreads, especially diesel.
Despite these challenges, it is worth noting
that these negative impacts were partially mitigated by the increase in the volume of oil sold over the period, and the highlight was
the growth in exports.
The lower natural gas revenue is the result
of: (i) lower demand in the non-thermoelectric sector, reflecting the effect of the natural gas market opening and lower consumption in
industrial segments; (ii) lower demand in thermoelectric sector, due to lower dispatches, reflecting better hydrological conditions in
Brazil; and (iii) lower prices, especially for the non-thermoelectric sector, largely influenced by the depreciation of Brent. The fall
in oil revenues on the domestic market was due to lower sales volumes to Acelen, associated with the aforementioned decline in Brent prices.
In 2023, the main products sold continued to
be diesel and gasoline, equivalent to approximately 74% of revenue from the sale of oil products in the domestic market.
In 4Q23, despite lower sales volumes in the
domestic market, impacted by the seasonality of diesel, whose demand is usually higher in the third quarter, revenues were up compared
to 3Q23, which can be explained by the higher average prices of oil products during 4Q23.
The increase in electricity revenues in 4Q23
compared to 3Q23 was due to higher thermoelectric dispatch in the quarter.
In 4Q23, the increase in the volume of exports,
mainly oil, also contributed to the growth in revenues between the quarters.
Cost of goods sold *
Table 3 – Cost of goods sold
| |
|
|
|
|
|
Variation (%) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Acquisitions |
(4,042) |
(4,110) |
(6,891) |
(17,398) |
(23,771) |
(1.7) |
(41.3) |
(26.8) |
| Crude oil imports |
(2,328) |
(2,231) |
(2,991) |
(9,313) |
(10,483) |
4.3 |
(22.2) |
(11.2) |
| Oil products imports |
(1,200) |
(1,565) |
(3,036) |
(6,144) |
(9,019) |
(23.3) |
(60.5) |
(31.9) |
| Natural gas imports |
(514) |
(314) |
(864) |
(1,941) |
(4,269) |
63.7 |
(40.5) |
(54.5) |
| Production |
(7,961) |
(7,429) |
(7,796) |
(29,027) |
(32,093) |
7.2 |
2.1 |
(9.6) |
| Crude oil |
(6,568) |
(6,132) |
(6,363) |
(24,364) |
(26,553) |
7.1 |
3.2 |
(8.2) |
| Production taxes |
(3,338) |
(2,735) |
(3,146) |
(11,264) |
(13,840) |
22.0 |
6.1 |
(18.6) |
| Other costs |
(3,230) |
(3,397) |
(3,217) |
(13,100) |
(12,713) |
(4.9) |
0.4 |
3.0 |
| Oil products |
(832) |
(734) |
(746) |
(2,569) |
(2,668) |
13.4 |
11.5 |
(3.7) |
| Natural gas |
(561) |
(563) |
(687) |
(2,094) |
(2,872) |
(0.4) |
(18.3) |
(27.1) |
| Production taxes |
(121) |
(111) |
(171) |
(416) |
(883) |
9.0 |
(29.2) |
(52.9) |
| Other costs |
(440) |
(452) |
(516) |
(1,678) |
(1,989) |
(2.7) |
(14.7) |
(15.6) |
| Services, electricity, operations abroad and others |
(450) |
(443) |
(905) |
(2,010) |
(3,622) |
1.6 |
(50.3) |
(44.5) |
| Total |
(12,453) |
(11,982) |
(15,592) |
(48,435) |
(59,486) |
3.9 |
(20.1) |
(18.6) |
In 2023, cost of goods sold decreased compared
to 2022, mainly reflecting the reduction in the cost of importing oil, natural gas and oil products, due to the decrease in both prices
and volumes imported. In addition, government take also reduced due to the depreciation of Brent and natural gas prices. Also contributing
to this reduction were lower volumes sold on the domestic market, the lower costs of operations overseas and the lower volumes of electricity
sales.
In 4Q23, the increase in the cost of goods sold
compared to 3Q23 reflects the higher costs of government take, the increase in volumes of oil and oil products exported, the higher volume
of oil sold in the domestic market, as well as the higher share of Bolivian gas and LNG in the sales mix. These factors were partially
offset by the lower sales volume of oil products in the domestic market, especially diesel.
* Managerial information (non-revised).
Operating expenses
Table 4 – Operating expenses
| |
|
|
|
|
|
Variation (%) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Selling, General and Administrative Expenses |
(1,783) |
(1,683) |
(1,669) |
(6,632) |
(6,263) |
5.9 |
6.8 |
5.9 |
| Selling expenses |
(1,329) |
(1,288) |
(1,293) |
(5,038) |
(4,931) |
3.2 |
2.8 |
2.2 |
| Materials, third-party services, freight, rent and other related costs |
(1,146) |
(1,102) |
(1,066) |
(4,296) |
(3,987) |
4.0 |
7.5 |
7.8 |
| Depreciation, depletion and amortization |
(143) |
(162) |
(178) |
(609) |
(789) |
(11.7) |
(19.7) |
(22.8) |
| Allowance for expected credit losses |
(8) |
3 |
(24) |
(22) |
(58) |
− |
(66.7) |
(62.1) |
| Employee compensation |
(32) |
(27) |
(25) |
(111) |
(97) |
18.5 |
28.0 |
14.4 |
| General and administrative expenses |
(454) |
(395) |
(376) |
(1,594) |
(1,332) |
14.9 |
20.7 |
19.7 |
| Employee compensation |
(289) |
(274) |
(228) |
(1,036) |
(865) |
5.5 |
26.8 |
19.8 |
| Materials, third-party services, rent and other related costs |
(129) |
(92) |
(116) |
(435) |
(362) |
40.2 |
11.2 |
20.2 |
| Depreciation, depletion and amortization |
(36) |
(29) |
(32) |
(123) |
(105) |
24.1 |
12.5 |
17.1 |
| Exploration costs |
(154) |
(480) |
(657) |
(982) |
(887) |
(67.9) |
(76.6) |
10.7 |
| Research and Development |
(214) |
(186) |
(179) |
(726) |
(792) |
15.1 |
19.6 |
(8.3) |
| Other taxes |
(247) |
(114) |
(194) |
(890) |
(439) |
116.7 |
27.3 |
102.7 |
| Impairment (losses) reversals, net |
(2,198) |
(78) |
(893) |
(2,680) |
(1,315) |
2717.9 |
146.1 |
103.8 |
| Other income and expenses, net |
(2,036) |
(1,049) |
132 |
(4,031) |
1,822 |
94.1 |
− |
− |
| Total |
(6,632) |
(3,590) |
(3,460) |
(15,941) |
(7,874) |
84.7 |
91.7 |
102.5 |
In 2023 there was an increase in operating expenses
compared to 2022, mainly due to the increase in tax expenses, impairment and other operating expenses.
The increase in sales expenses is due to higher
logistics costs associated with the growth in exports of oil and oil products and the rise in freight rates. These effects were partially
offset by lower logistics costs related to the transportation of natural gas due to the reduction in volumes sold.
The growth in general and administrative expenses
is largely due to higher personnel costs as a result of wage increases and the hiring of new employees and third-party services.
Exploration expenses increased in 2023 due
to higher spending on geology and geophysics, mainly in the Equatorial Margin and the Aram Block. These increases were partially offset
by a reduction in expenses for projects that are not economically viable.
The increase in tax expenses is explained by
the effect of the oil export tax from March to June 2023.
The higher impairment expenses in 2023 reflect
the update of the economic assumptions, as well as the portfolio of projects and estimates of reserves. Further details can be found in
note 26 of our Financial Statements.
The increase in other operating expenses in
2023 is mainly due to lower capital gains related to the co-participation agreements in Sépia and Atapu fields and an additional
5% stake in Buzios Surplus Transfer of Rights in 2022. In addition there was an increase in expenses with abandonment of areas due to
higher provisions in fields relinquished in 2023, mainly in SEAL, Campos and RNCE basins. Lower expenses with legal contingencies partially
offset the growth in operating expenses.
In 4Q23, the increase in operating expenses
compared to 3Q23 is mainly due to higher impairment expenses, especially losses in oil and gas production fields in Brazil, notably the
Roncador field, due to the revision of the production curve. In addition, there was an increase in expenses with the abandonment provision
in fields in return, mainly in SEAL, Campos and RNCE basins.
The increase observed in 4Q23 compared to 3Q23
was partly offset by lower exploration costs, gains from earnouts at Sépia and Atapu and gains related to price adjustments provided
for in contractual clauses, especially related to the variation in Brent on sales related to E&P assets.
Adjusted EBITDA
In 2023, Adjusted EBITDA reached US$ 52.4 billion,
21% lower compared to 2022, mainly influenced by the depreciation of Brent (-18%) and lower oil products margins, partly offset by the
higher volume of oil exported.
In 4Q23, Adjusted EBITDA reached US$ 13.5 billion,
a drop of 1% compared to 3Q23, influenced by higher abandonment expenses, offset by higher oil products margins and higher oil volumes
in the result.
Financial results
Table 5 – Financial results
| |
|
|
|
|
|
Variation (%) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Finance income |
588 |
600 |
436 |
2,169 |
1,832 |
(2.0) |
34.9 |
18.4 |
| Income from investments and marketable securities (Government Bonds) |
446 |
454 |
287 |
1,657 |
1,159 |
(1.8) |
55.4 |
43.0 |
| Other finance income |
142 |
146 |
149 |
512 |
673 |
(2.7) |
(4.7) |
(23.9) |
| Finance expenses |
(1,047) |
(1,163) |
(994) |
(3,922) |
(3,500) |
(10.0) |
5.3 |
12.1 |
| Interest on finance debt |
(549) |
(662) |
(577) |
(2,264) |
(2,363) |
(17.1) |
(4.9) |
(4.2) |
| Unwinding of discount on lease liability |
(532) |
(495) |
(379) |
(1,785) |
(1,340) |
7.5 |
40.4 |
33.2 |
| Discount and premium on repurchase of debt securities |
(2) |
(2) |
(1) |
(4) |
(121) |
− |
100.0 |
(96.7) |
| Capitalized borrowing costs |
363 |
338 |
237 |
1,290 |
1,032 |
7.4 |
53.2 |
25.0 |
| Unwinding of discount on the provision for decommissioning costs |
(210) |
(216) |
(125) |
(857) |
(519) |
(2.8) |
68.0 |
65.1 |
| Other finance expenses |
(117) |
(126) |
(149) |
(302) |
(189) |
(7.1) |
(21.5) |
59.8 |
| Foreign exchange gains (losses) and indexation charges |
754 |
(1,422) |
844 |
(580) |
(2,172) |
− |
(10.7) |
(73.3) |
| Foreign exchange gains (losses) |
880 |
(932) |
1,023 |
2,268 |
1,022 |
− |
(14.0) |
121.9 |
| Reclassification of hedge accounting to the Statement of Income |
(773) |
(758) |
(1,274) |
(3,763) |
(4,871) |
2.0 |
(39.3) |
(22.7) |
| Inflation indexation of anticipated dividends and dividends payable (*) |
129 |
1 |
876 |
(299) |
994 |
12800.0 |
(85.3) |
− |
| Legal agreement with Eletrobras - compulsory loans |
236 |
− |
− |
236 |
− |
− |
− |
− |
| Recoverable taxes inflation indexation income |
91 |
18 |
12 |
204 |
86 |
405.6 |
658.3 |
137.2 |
| Other foreign exchange gains (losses) and indexation charges, net |
191 |
249 |
207 |
774 |
597 |
(23.3) |
(7.7) |
29.6 |
| Total |
295 |
(1,985) |
286 |
(2,333) |
(3,840) |
− |
3.1 |
(39.2) |
| (*) In 2023, it refers to the income on the monetary restatement of paid anticipated dividends, in the amount of US$ 215 million (US$ 1,293 million in 2022), and to the expense on the indexation charges on dividends payable, in the amount of US$ 514 million (US$ 299 million in 2022). |
In 2023, the improvement in the financial result
compared to 2022 is mainly attributable to the gain from the FX variation of the BRL against the USD, driven by the 7.2% appreciation
of the BRL in 2023 (from R$5.22/US$ on
12/31/22 to R$4.84/US$ on 12/31/23), compared to 6.5% in 2022. Other factors include lower realization
of hedge accounting, higher gains on financial investments and securities due to the increase in the Selic and CDI rates and the higher
average volume invested, as well as income from monetary restatement of the legal settlement with Eletrobras. These gains were partially
offset by higher interest expenses on financing and leases, and by lower results from monetary restatement by the Selic rate of anticipated
dividends.
In 3Q23, the financial result was mainly impacted
by the gain from the FX variation of the BRL against the USD, which depreciated 3.9% in 3Q23 (from R$ 4.82/US$ on 06/30/23 to R$ 5.01/US$
on 09/30/23) and appreciated 3.3% in 4Q23 (from R$ 5.01/US$ on 09/30/23 to R$ 4.84/US$ on 12/31/23). In addition, we recorded higher revenues
from monetary restatement, both related to the legal agreement with Eletrobras and to the anticipated dividends, while interest expenses
on financing decreased.
Net profit (loss) attributable
to Petrobras shareholders
In 2023, net profit
reached US$ 24.9 billion, compared to US$ 36.6 billion in 2022. This variation is mainly attributed to the depreciation of Brent (-18%)
and lower oil products margins, although partially offset by the increase in the volume of oil exported. In addition, the result was impacted
by the increase in operating expenses, including lower capital gains from the co-participation agreements in the Sépia and Atapu
fields, higher impairment, abandonment and tax expenses. These effects were partially offset by improved financial results and lower income
tax.
Net income in 4Q23 was
US$ 6.3 billion, compared to US$ 5.5 billion in 3Q23. This result is mainly explained by the increase in oil products margins and oil
volumes. On the other hand, operating expenses increased, mainly due to higher impairment and abandonment charges. We also observed a
more favorable financial result, mainly due to the appreciation of the BRL against the USD. In addition, income tax was lower.
Recurring
net income attributable to Petrobras shareholders and recurring Adjusted EBITDA
In 2023, net income was US$ 24.9 billion, impacted
by non-recurring items, mainly impairment expenses, abandonment of areas and legal contingencies. Excluding the non-recurring effects,
net income would have been US$ 27.2 billion. Adjusted EBITDA was negatively impacted by US$ 2.7 billion, mainly due to the abandonment
of areas, legal contingencies, compensation for the termination of vessel leasing contracts, oil export tax, and would have amounted to
US$ 55.2 billion without the effect of non-recurring items in 2022.
In 4Q23, net income was negatively impacted
by US$ 2.0 billion, mainly due to impairment expenses and abandonment of areas, although partially offset by the net effect on income
tax calculation. Excluding non-recurring items, net income would have been US$ 8.3 billion. Meanwhile, Adjusted EBITDA suffered a negative
impact of US$ 1.5 billion, mainly due to area abandonment expenses. Excluding this effect, it would have reached US$ 15.0 billion in
4Q23.
Special items
Table 6 – Special items
| |
|
|
|
|
|
Variation (%) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Net income |
6,282 |
5,484 |
8,276 |
24,995 |
36,755 |
14.6 |
(24.1) |
(32.0) |
| Non-recurring items |
(3,071) |
(187) |
(116) |
(3,535) |
2,714 |
1542.2 |
2547.4 |
− |
| Non-recurring items that do not affect Adjusted EBITDA |
(1,556) |
(47) |
584 |
(791) |
4,246 |
3210.6 |
− |
− |
| Impairment of assets and investments |
(2,208) |
(71) |
(890) |
(2,682) |
(1,321) |
3009.9 |
148.1 |
103.0 |
| Gains and losses on disposal / write-offs of assets |
145 |
(37) |
7 |
1,295 |
1,146 |
− |
1971.4 |
13.0 |
| Results from co-participation agreements in bid areas |
237 |
19 |
1,424 |
284 |
4,286 |
1147.4 |
(83.4) |
(93.4) |
| Discount and premium on repurchase of debt securities |
34 |
42 |
43 |
76 |
135 |
(19.0) |
(20.9) |
(43.7) |
| Legal agreement with Eletrobras - compulsory loans |
236 |
− |
− |
236 |
− |
− |
− |
− |
| Other non-recurring items |
(1,515) |
(140) |
(700) |
(2,744) |
(1,532) |
982.1 |
116.4 |
79.1 |
| Voluntary Separation Plan |
2 |
1 |
(11) |
8 |
(18) |
100.0 |
− |
− |
| Collective bargaining agreement |
(211) |
− |
− |
(217) |
− |
− |
− |
− |
| Amounts recovered from Lava Jato investigation |
10 |
6 |
62 |
109 |
96 |
66.7 |
(83.9) |
13.5 |
| Gains / (losses) on decommissioning of returned/abandoned areas |
(1,179) |
(2) |
(196) |
(1,195) |
(225) |
58850.0 |
501.5 |
431.1 |
| Gains / (losses) related to legal proceedings |
(125) |
(140) |
(541) |
(797) |
(1,362) |
(10.7) |
(76.9) |
(41.5) |
| Equalization of expenses - Production Individualization Agreements |
(12) |
(15) |
(14) |
(50) |
(23) |
(20.0) |
(14.3) |
117.4 |
| Compensation for the termination of a vessel charter agreement |
− |
− |
− |
(317) |
− |
− |
− |
− |
| Export tax on crude oil |
− |
10 |
− |
(285) |
− |
− |
− |
− |
| Net effect of non-recurring items on IR / CSLL |
1,042 |
67 |
40 |
1,205 |
(924) |
1455.2 |
2505.0 |
− |
| Recurring net income |
8,311 |
5,604 |
8,352 |
27,325 |
34,965 |
48.3 |
(0.5) |
(21.9) |
| Shareholders of Petrobras |
8,288 |
5,577 |
8,322 |
27,215 |
34,834 |
48.6 |
(0.4) |
(21.9) |
| Non-controlling interests |
23 |
27 |
30 |
110 |
131 |
(14.8) |
(23.3) |
(16.0) |
| Adjusted EBITDA |
13,470 |
13,551 |
13,903 |
52,414 |
66,217 |
(0.6) |
(3.1) |
(20.8) |
| Non-recurring items |
(1,515) |
(140) |
(700) |
(2,744) |
(1,532) |
982.1 |
116.4 |
79.1 |
| Recurring Adjusted EBITDA |
14,985 |
13,691 |
14,603 |
55,158 |
67,749 |
9.5 |
2.6 |
(18.6) |
In management's opinion, the special items presented
above, although related to the Company's business, were highlighted as complementary information for a better understanding and evaluation
of the result. Such items do not necessarily occur in all periods and are disclosed when relevant.
Capex
Table 7 - Capex
| |
|
|
|
|
|
Variation (%) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Exploration and Production |
2,752 |
2,892 |
2,218 |
10,283 |
6,952 |
(4.8) |
24.1 |
47.9 |
| Refining, Transportation and Marketing |
530 |
322 |
372 |
1,559 |
1,193 |
64.4 |
42.3 |
30.6 |
| Gas and Low Carbon Energies |
134 |
67 |
99 |
277 |
350 |
99.7 |
35.7 |
(20.8) |
| Others |
142 |
111 |
187 |
413 |
461 |
27.8 |
(24.1) |
(10.4) |
| Subtotal |
3,558 |
3,392 |
2,876 |
12,532 |
8,956 |
4.9 |
23.7 |
39.9 |
| Signature bonus |
− |
− |
− |
141 |
892 |
− |
− |
(84.2) |
| Total |
3,558 |
3,392 |
2,876 |
12,673 |
9,848 |
4.9 |
23.7 |
28.7 |
In 2023, investments totaled US$12.7 billion,
representing an increase of 29% compared to 2022, mainly due to the increase in investments in major pre-salt projects, especially the
new production systems at the Búzios field and the revitalization of the Marlim field, as well as higher investments in scheduled
refining stoppages.
Capex for 2023 was 21% lower than planned for
the year in the 2023-27 Strategic Plan, in line with the guidance revision announced in November 2023, influenced by the following factors:
(a) postponement of well activities due to lower availability of rigs and materials, (b) replanning of project milestones for new production
units; and (c) postponement of exploratory wells due to environmental licensing.
In 4Q23, capex totaled US$ 3.6 billion, 5% higher
than in 3Q23, mainly due to higher investments in scheduled refining stoppages.
In the Exploration and Production segment, capex
totaled US$ 2.8 billion in 4Q23, 5% lower than in 3Q23, mainly as a result of postponements of milestones for the new owned production
units in Búzios. Investments in 4Q23 remained focused on large pre-salt projects, concentrated mainly in: (a) the development of
pre-salt production in the Santos Basin (US$ 1.4 billion); (b) the development of deep-water production in the post-salt (US$ 0.4 billion);
and (c) exploratory investments (US$ 0.2 billion).
In the Refining, Transportation and Marketing
segment, capex totaled US$ 0.5 billion in 4Q23, an increase of 64% compared to 3Q23. This increase was mainly due to higher investments
in scheduled refining stoppages, especially the Lubricants unit at REDUC; Cracking, Distillation and HDTs at REGAP; as well as pre-stoppage
expenses at REPAR and REPLAN, scheduled for February and March 2024, respectively.
In the Gas and Low Carbon Energies segment, capex
totaled US$ 0.1 billion in 4Q23, a 100% increase compared to 3Q23. The increase was mainly due to higher investments in scheduled stoppages
of thermal units and progress on the Route 3 Natural Gas Processing Unit project, in line with the schedule for commercial start-up.
In addition, it is worth highlighting the entry
into operation in 4Q23 of the leased FPSO Sepetiba (Mero 2), whose lease contract amount totaled US$ 1.1 billion (Petrobras' stake). In
2023, the start-up of the leased FPSOs Sepetiba (Mero 2), Anna Nery (Marlim 2,) Almirante Barroso (Búzios 5) and Anita Garibaldi
(Marlim 1) resulted in total lease amounts of US$ 8.7 billion. Just like owned units, leased FPSOs are recognized in the Company's assets
and constitute an investment effort to expand production capacity with new units, but are not considered under Capex.
The following table presents the main information about the new oil and
gas production systems, already contracted.
Table 8 – Main projects
| Unit |
Start-up |
FPSO capacity (bbl/day) |
Petrobras Actual Investment
US$ bn |
Petrobras Total Investment
US$ bn1 |
Petrobras Stake |
Status |
|
Mero 3
FPSO Marechal Duque de Caxias (Chartered unit) |
2024 |
180,000 |
0.28 |
0.9 |
38.6% |
Project in phase of execution with production system in transit to Brazil. 10 wells drilled and 8 completed. |
|
Integrado Parque das Baleias (IPB)
FPSO Maria Quitéria
(Chartered unit) |
2025 |
100,000 |
0.55 |
1.9 |
100% |
Project in phase of execution with production system under construction. 3 wells drilled and 2 completed.2 |
|
Búzios 7
FPSO Almirante Tamandaré (Chartered unit) |
2025 |
225,000 |
0.48 |
2.1 |
88.99% |
Project in phase of execution with production system under construction.
6 wells drilled and 3 completed. |
|
Búzios 6
P-78 (Owned unit) |
2025 |
180,000 |
1.30 |
4.8 |
88.99% |
Project in phase of execution with production system under construction. 4 wells drilled and 2 completed. |
|
Mero 4
FPSO Alexandre de Gusmão
(Chartered unit) |
2025 |
180,000 |
0.06 |
1.3 |
38.60% |
Project in phase of execution with production system under construction.
6 wells drilled and 2 completed. |
|
Búzios 8
P-79 (Owned unit) |
2026 |
180,000 |
1.17 |
5.1 |
88.99% |
Project in phase of execution with production system under construction. 7 wells drilled and 2 completed. |
|
Búzios 9
P-80 (Owned unit) |
2026 |
225,000 |
0.51 |
5.4 |
88.99% |
Project in phase of execution with production system under construction.
2 wells drilled and 2 completed. |
|
Búzios 10
P-82 (Owned unit) |
2027 |
225,000 |
0.33 |
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 |
0.29 |
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 |
0.29 |
2,5 ³ |
30% |
Project in phase of execution. |
|
1 Total investment with the Strategic Plan 2024-28 assumptions and
Petrobras work interest (WI). Chartered units leases are not included.
2 Production Unit for revitalization project. Refers only to new
wells. The scope of the project also includes the relocation of some wells of the units being decommissioned.
3 It is included investment in the FPSO, contracted on a lump
sum turnkey modality, which includes engineering, procurement, construction and installation for the unit. The contractor will also provide
FPSO operation and maintenance services during the first year from the start of production. |
Liquidity and capital resources[1]
Table 9 - Liquidity and capital resources
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
| Adjusted cash and cash equivalents at the beginning of period |
17,272 |
15,794 |
6,785 |
12,283 |
11,117 |
| Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the beginning of period * |
(5,162) |
(5,443) |
(2,411) |
(4,287) |
(650) |
| Cash and cash equivalents in companies classified as held for sale at the beginning of the period |
− |
− |
− |
− |
13 |
| Cash and cash equivalents at the beginning of period |
12,110 |
10,351 |
4,374 |
7,996 |
10,480 |
| Net cash provided by operating activities |
11,669 |
11,554 |
12,848 |
43,212 |
49,717 |
| Net cash (used in) provided by investing activities |
(3,228) |
(2,828) |
(2,345) |
(7,955) |
(432) |
| Acquisition of PP&E and intangible assets |
(3,594) |
(3,185) |
(3,561) |
(12,114) |
(9,581) |
| Acquisition of equity interests |
(2) |
(5) |
(7) |
(24) |
(27) |
| Proceeds from disposal of assets - Divestment |
42 |
103 |
931 |
3,606 |
4,846 |
| Financial compensation from co-participation agreements |
− |
− |
1,950 |
391 |
7,284 |
| Divestment (investment) in marketable securities |
313 |
253 |
(1,713) |
98 |
(3,328) |
| Dividends received |
13 |
6 |
55 |
88 |
374 |
| (=) Net cash provided by operating and investing activities |
8,441 |
8,726 |
10,503 |
35,257 |
49,285 |
| Net cash used in financing activities |
(7,871) |
(7,048) |
(7,047) |
(30,700) |
(51,453) |
| Changes in non-controlling interest |
103 |
(52) |
20 |
1 |
63 |
| Net financings |
(1,207) |
(330) |
(1,600) |
(3,961) |
(8,304) |
| Proceeds from finance debt |
910 |
1,238 |
350 |
2,210 |
2,880 |
| Repayments |
(2,117) |
(1,568) |
(1,950) |
(6,171) |
(11,184) |
| Repayment of lease liability |
(1,792) |
(1,632) |
(1,424) |
(6,286) |
(5,430) |
| Dividends paid to shareholders of Petrobras |
(4,436) |
(4,837) |
(4,030) |
(19,670) |
(37,701) |
| Share repurchase program |
(538) |
(197) |
− |
(735) |
− |
| Dividends paid to non-controlling interests |
(1) |
− |
(13) |
(49) |
(81) |
| Effect of exchange rate changes on cash and cash equivalents |
47 |
81 |
166 |
174 |
(316) |
| Cash and cash equivalents at the end of period |
12,727 |
12,110 |
7,996 |
12,727 |
7,996 |
| Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the end of period * |
5,175 |
5,162 |
4,287 |
5,175 |
4,287 |
| Cash and cash equivalents in companies classified as held for sale at the end of the period |
− |
− |
− |
− |
− |
| Adjusted cash and cash equivalents at the end of period |
17,902 |
17,272 |
12,283 |
17,902 |
12,283 |
| Reconciliation of Free Cash Flow |
|
|
|
|
|
| Net cash provided by operating activities |
11,669 |
11,554 |
12,848 |
43,212 |
49,717 |
| Acquisition of PP&E and intangible assets |
(3,594) |
(3,185) |
(3,561) |
(12,114) |
(9,581) |
| Acquisition of equity interests |
(2) |
(5) |
(7) |
(24) |
(27) |
| Free cash flow** |
8,073 |
8,364 |
9,280 |
31,074 |
40,109 |
As of December 31, 2023, cash and cash equivalents
totaled US$ 12.7 billion and adjusted cash and cash equivalents totaled US$ 17.9 billion.
In 3Q23, cash generated from operating activities
reached US$ 43.2 billion and positive free cash flow totaled US$ 31.1 billion. This level of cash generation was used to: (a) shareholders
remuneration (US$ 20.4 billion), (b) investments (US$ 12.1 billion), (c) lease liabilities amortization (US$ 6.3 billion), and (d) principal
and interest due in the period amortization (US$ 6.2 billion).
In 2023, the company raised US$ 2.2 billion,
including (i) a US$ 1.2 billion bond offering on the international capital market (Global Notes) maturing in 2033 and (ii) US$ 0.9 billion
raised on the domestic banking market.
* 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.
Debt indicators
As of 12/31/2023, gross debt reached US$ 62.6
billion, an increase of 16.4% compared to 12/31/2022, mainly due to the increase in leases in the period with the start-up of the chartered
FPSOs Anna Nery and Almirante Barroso (2Q23), Anita Garibaldi (3Q23) and Sepetiba (4Q23), which added US$ 8.7 billion to the company's
lease liabilities compared to 12/31/2022. On the other hand, financial debt fell by 3.8% compared to 12/31/2022, reaching US$ 28.8 billion
on 12/31/2023.
Average maturity went from 12.07 years on 31/12/2022
to 11.38 years on 31/12/2023 and its average cost varied from 6.5% p.a. to 6.4% p.a. over the same period.
The gross debt/adjusted EBITDA ratio reached
1.19x on 12/31/2023 compared to 0.81x on 12/31/2022.
On 12/31/2023, net debt reached US$44.7 billion,
an increase of 7.7% compared to 12/31/2022, mainly due to the increase in leases in the period.
Table 10 – Debt indicators
| US$ million |
12.31.2023 |
09.30.2023 |
Δ % |
12.31.2022 |
| Financial Debt |
28,801 |
29,462 |
(2.2) |
29,954 |
| Capital Markets |
17,514 |
17,769 |
(1.4) |
16,957 |
| Banking Market |
8,565 |
8,863 |
(3.4) |
9,672 |
| Development banks |
698 |
690 |
1.2 |
723 |
| Export Credit Agencies |
1,870 |
1,978 |
(5.5) |
2,443 |
| Others |
154 |
162 |
(4.9) |
159 |
| Finance leases |
33,799 |
31,535 |
7.2 |
23,845 |
| Gross debt |
62,600 |
60,997 |
2.6 |
53,799 |
| Adjusted cash and cash equivalents |
17,902 |
17,272 |
3.6 |
12,283 |
| Net debt |
44,698 |
43,725 |
2.2 |
41,516 |
| Net Debt/(Net Debt + Market Cap) - Leverage |
30% |
32% |
(6.3) |
39% |
| Average interest rate (% p.a.) |
6.4 |
6.5 |
(1.5) |
6.5 |
| Weighted average maturity of outstanding debt (years) |
11.38 |
11.43 |
(0.4) |
12.07 |
| Net debt/LTM Adjusted EBITDA ratio |
0.85 |
0.83 |
2.4 |
0.63 |
| Gross debt/LTM Adjusted EBITDA ratio |
1.19 |
1.15 |
3.5 |
0.81 |
Results by segment
Exploration and Production
Table 11 – E&P results
| |
|
|
|
|
|
Variation (%) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Sales revenues |
18,506 |
17,922 |
16,973 |
66,880 |
77,890 |
3.3 |
9.0 |
(14.1) |
| Gross profit |
10,909 |
10,771 |
9,787 |
39,641 |
47,425 |
1.3 |
11.5 |
(16.4) |
| Operating expenses |
(3,778) |
(1,161) |
(1,099) |
(5,615) |
907 |
225.4 |
243.8 |
− |
| Operating income |
7,131 |
9,610 |
8,688 |
34,026 |
48,332 |
(25.8) |
(17.9) |
(29.6) |
| Net income (loss) attributable to the shareholders of Petrobras |
4,734 |
6,275 |
5,751 |
22,453 |
32,073 |
(24.6) |
(17.7) |
(30.0) |
| Adjusted EBITDA of the segment |
11,575 |
12,360 |
10,964 |
44,707 |
54,811 |
(6.4) |
5.6 |
(18.4) |
| EBITDA margin of the segment (%)* |
63 |
69 |
65 |
67 |
70 |
(6) |
(2) |
(4) |
| ROCE (Return on Capital Employed) (%)* |
14.5 |
14.5 |
19.8 |
14.5 |
19.8 |
− |
(5.3) |
(5.3) |
| Average Brent crude (US$/bbl) |
84.05 |
86.76 |
88.71 |
82.62 |
101.19 |
(3.1) |
(5.3) |
(18.4) |
| Production taxes Brazil |
3,255 |
3,377 |
3,085 |
12,111 |
14,789 |
(3.6) |
5.5 |
(18.1) |
| Royalties |
1,942 |
1,981 |
1,751 |
7,086 |
8,175 |
(2.0) |
10.9 |
(13.3) |
| Special participation |
1,304 |
1,385 |
1,322 |
4,981 |
6,566 |
(5.8) |
(1.4) |
(24.1) |
| Retention of areas |
9 |
11 |
12 |
44 |
49 |
(18.2) |
(25.0) |
(9.3) |
| Lifting cost Brazil (US$/boe) |
5.52 |
5.39 |
6.07 |
5.59 |
5.78 |
2.6 |
(9.0) |
(3.3) |
| Pre-salt |
3.78 |
3.49 |
3.89 |
3.67 |
3.47 |
8.4 |
(2.8) |
5.8 |
| Deep and ultra-deep post-salt |
12.12 |
12.18 |
11.94 |
12.52 |
11.74 |
(0.5) |
1.5 |
6.7 |
| Onshore and shallow waters |
16.15 |
16.22 |
18.77 |
15.67 |
16.96 |
(0.4) |
(14.0) |
(7.6) |
| Lifting cost + Leases |
7.79 |
7.64 |
7.81 |
7.66 |
7.49 |
2.0 |
(0.2) |
2.2 |
| Pre-salt |
6.13 |
5.61 |
5.70 |
5.77 |
5.35 |
9.3 |
7.5 |
8.0 |
| Deep and ultra-deep post-salt |
14.37 |
15.35 |
13.72 |
14.84 |
13.25 |
(6.4) |
4.7 |
12.0 |
| Onshore and shallow waters |
16.15 |
16.22 |
18.77 |
15.67 |
16.96 |
(0.4) |
(14.0) |
(7.6) |
| Lifting cost + Production taxes |
19.78 |
20.40 |
21.12 |
19.69 |
23.73 |
(3.0) |
(6.3) |
(17.0) |
| Lifting cost + Production taxes + Leases |
22.05 |
22.65 |
22.85 |
21.76 |
25.44 |
(2.6) |
(3.5) |
(14.5) |
| (*) EBITDA margin and ROCE variations in percentage points. |
In 2023, E&P gross profit was US$ 39.6 billion,
16% lower than in 2022. This reduction was mainly due to lower Brent prices, which were partially offset by higher production.
Operating income was US$ 34.0 billion, 30% lower
when compared to 2022, due to the receipt, in 2022, of the compensation related to co-participation agreements in Búzios, Sépia
and Atapu, and, in 2023, higher impairment losses, abandonment provisions and an increase in tax expenses, due to the export tax on oil
operations.
In 4Q23, E&P gross profit was US$ 10.9 billion,
slightly higher than the US$ 10.8 billion in 3Q23. This increase was mainly due to higher production in the period.
Operating income in 4Q23 was US$ 7.1 billion,
26% lower than in 3Q23, reflecting higher impairment losses and provisions for abandonment.
Regarding government take, there was a reduction
both in the annual comparison (2023 x 2022) and in the quarterly comparison (4Q23 x 3Q23), explained mainly by the lower Brent prices.
Lifting costs in 2023, without government take
and leasing, were US$ 5.59/boe, 3.3% lower when compared to 2022 (US$ 5.78/boe). This reduction was the result of active portfolio management,
including divestments and the production start-up of new platforms in 2022 and 2023 (FPSO Guanabara, P-71, FPSO Almirante Barroso, FPSO
Anna Nery and FPSO Anita Garibaldi). Also contributed to this reduction the continuity of P-68 ramp-up (Berbigão-Sururu) and the
start-up of new wells in complementary projects in the Campos and Santos Basins, associated with better operational performance and a
reduction in the volume of losses due to downtime and maintenance. These effects were partially offset by higher integrity costs, such
as platform maintenance and subsea inspections, as well as the appreciation of the BRL against the USD.
In 4Q23, there was a 2.6% increase in lifting
costs when compared to 3Q23, mainly due to the intensification of pre-salt well interventions in the Campos Basin.
In the pre-salt lifting costs of 4Q23 there was
an increase of 8.4%, impacted mainly by the intensification of interventions in the Campos Basin pre-salt, as previously mentioned.
In the post-salt and onshore and shallow water
assets, lifting costs remained stable in relation to 3Q23.
Refining, Transportation and Marketing
Table 12 – RTM results
| |
|
|
|
|
|
Variation (%) (*) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Sales revenues |
25,278 |
23,691 |
27,542 |
94,868 |
113,531 |
6.7 |
(8.2) |
(16.4) |
| Gross profit (loss) |
2,175 |
2,291 |
3,329 |
9,169 |
14,377 |
(5.1) |
(34.7) |
(36.2) |
| Operating expenses |
(966) |
(791) |
(869) |
(4,086) |
(3,132) |
22.1 |
11.2 |
30.5 |
| Operating Income |
1,209 |
1,500 |
2,460 |
5,083 |
11,245 |
(19.4) |
(50.9) |
(54.8) |
| Net income (loss) attributable to the shareholders of Petrobras |
711 |
814 |
1,474 |
3,036 |
7,426 |
(12.7) |
(51.8) |
(59.1) |
| Adjusted EBITDA of the segment |
1,963 |
2,111 |
2,816 |
8,052 |
13,491 |
(7.0) |
(30.3) |
(40.3) |
| EBITDA margin of the segment (%) |
8 |
9 |
10 |
8 |
12 |
(1) |
(2) |
(3) |
| ROCE (Return on Capital Employed) (%) |
5.6 |
6.7 |
12.6 |
5.6 |
12.6 |
(1.1) |
(7.0) |
(7.0) |
| Refining cost (US$ / barrel) - Brazil |
2.75 |
2.38 |
1.98 |
2.38 |
1.94 |
15.5 |
38.9 |
22.7 |
| Domestic basic oil by-products price (US$/bbl) |
104.30 |
95.04 |
118.20 |
101.05 |
122.66 |
9.7 |
(11.8) |
(17.6) |
| (*) EBITDA margin and ROCE variations in percentage points. |
In 2023, gross profit was US$ 9.2 billion, US$
5.2 billion lower than 2022, mainly due to the reduction in international margins, especially diesel, which were atypically high throughout
2022. In 2023 there was a negative inventory turnover effect, as opposed to the positive effect in 2022. Excluding this effect (US$ -
0.5 billion in 2023 and US$ 0.4 billion in 2022), gross profit would have been US$ 9.6 billion in 2023 and US$ 14.0 billion in 2022.
There were lower margins on oil products in
the domestic market, mainly diesel, due to the reduction in international margins, which were higher in 2022 because of geopolitical conflicts.
These effects also affected fuel oil and oil export margins, which were lower in 2023 when compared to 2022.
Operating income in 2023 was lower than in
2022, as a result of lower gross profit and higher sales and impairment expenses.
In 4Q23, RTM's gross profit was lower than
in 3Q23, mainly due to inventory turnover: while in 3Q23 there was a positive variation in Brent (US$ 87/bbl against US$ 78/bbl in 2Q23),
in 4Q23 there was a negative variation in Brent (US$ 84/bbl against US$ 87/bbl in 3Q23). This effect in 4Q23 was -US$ 0.2 billion versus
US$ 1.36 billion in 3Q23. Excluding this effect, gross profit would have been US$ 2.39 billion in 4Q23 versus US$ 0.94 billion
in 3Q23.
In addition, there were lower sales volumes
of oil products on the domestic market, mainly diesel, due to demand seasonality, and gasoline, due to the competition with ethanol in
the quarter. There was also a higher volume of oil exports as a result of higher production.
In 4Q23, operating income was lower than in
3Q23, reflecting lower gross profit and higher operating expenses, mainly due to higher impairment expenses.
The refining cost per barrel in USD in 2023
was 22.7% higher than in 2022, mainly due to the increase in scope in maintenance and upkeep of refining utilities, as well as higher
personnel costs. The higher FX in 2023 had an additional contribution to the higher cost per barrel. These effects were partially offset
by the higher utilization of the refining park in 2023.
In 4Q23, the refining cost per barrel in USD
was 15.5% higher than in 3Q23, mainly due to the increase in absolute costs for personnel and materials and services for the upkeep and
maintenance of refining utilities. The feedstock was 1.5% lower in 4Q23 when compared to 3Q23, contributing to the increase oh this indicator.
Gas and Low Carbon Energies
Table 13 – G&LCE results
| |
|
|
|
|
|
Variation (%) (*) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Sales revenues |
2,859 |
2,629 |
3,821 |
11,109 |
15,068 |
8.7 |
(25.2) |
(26.3) |
| Gross profit |
1,433 |
1,463 |
1,200 |
5,424 |
4,550 |
(2.1) |
19.4 |
19.2 |
| Operating expenses |
(934) |
(906) |
(707) |
(3,384) |
(2,965) |
3.1 |
32.1 |
14.1 |
| Operating income |
499 |
557 |
493 |
2,040 |
1,585 |
(10.4) |
1.2 |
28.7 |
| Net income (loss) attributable to the shareholders of Petrobras |
308 |
344 |
319 |
1,286 |
1,038 |
(10.5) |
(3.4) |
23.9 |
| Adjusted EBITDA of the segment |
715 |
741 |
599 |
2,694 |
1,868 |
(3.5) |
19.4 |
44.2 |
| EBITDA margin of the segment (%) |
25 |
28 |
16 |
24 |
12 |
(3) |
9 |
12 |
| ROCE (Return on Capital Employed) (%) |
10.4 |
9.5 |
5.6 |
10.4 |
5.6 |
0.9 |
4.8 |
4.8 |
| Natural gas sales price - Brazil (US$/bbl) |
62.60 |
66.20 |
76.83 |
68.22 |
69.26 |
(5.4) |
(18.5) |
(1.5) |
| Natural gas sales price - Brazil (US$/MMBtu) |
10.56 |
11.16 |
12.95 |
11.50 |
11.68 |
(5.4) |
(18.5) |
(1.5) |
| Fixed revenues from power auctions (**) |
89.00 |
89.15 |
103.48 |
346.59 |
405.23 |
(0.2) |
(14.0) |
(14.5) |
| Average price of electricity (US$/MWh) |
66.95 |
18.63 |
13.29 |
34.87 |
42.43 |
259.4 |
403.8 |
(17.8) |
| (*) EBITDA margin and ROCE variations in percentage points. |
| (**) The fixed revenue from auctions takes into account the remuneration for thermal availability and inflexible electricity committed in auctions. |
In 2023, gross profit was 19.2% higher than in
2022, mainly due to the reduction in the average cost of natural gas purchases.
Operating income increased 28.7% when compared
to 2022 due to the higher gross profit, which was partially offset by higher operating expenses with impairment and contractual charges.
In 4Q23, gross profit was 2.1% lower than in
3Q23, due to the greater regasification of LNG in the period, due to operational issues and the higher energy generation to supply peak
demand, complementary to generation from renewable sources.
Operating income was impacted by the lower gross
profit and the increase in expenses in 4Q23, due to the accounting of impairment expenses as a result of the termination of operations
at the Pecém LNG regasification terminal.
Reconciliation of Adjusted EBITDA
EBITDA is an indicator calculated as the net
income for the period plus taxes on profit, net financial result, depreciation and amortization. Petrobras announces EBITDA, as authorized
by CVM Resolution 156 of June 2022.
In order to reflect the management view regarding
the formation of the company's current business results, EBITDA is also presented adjusted (Adjusted EBITDA) as a result of: results in
equity-accounted investments; impairment, reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments,
results with co-participation agreement in production fields and gains/losses on disposal/write-offs of assets.
Adjusted EBITDA, reflecting the sum of the
last twelve months (Last Twelve Months), also represents an alternative to the company's operating cash generation. This measure is used
to calculate the Gross Debt and Net Debt to Adjusted EBITDA metric, helping to evaluate the company's leverage and liquidity.
EBITDA and adjusted EBITDA are not provided
for in International Financial Reporting Standards (IFRS) and should not serve as a basis for comparison with those disclosed by other
companies and should not be considered as a substitute for any other measure calculated in accordance with IFRS. These measures should
be considered in conjunction with other measures and indicators for a better understanding of the company's performance and financial
condition.
Table 14 - Reconciliation of Adjusted EBITDA
| |
|
|
|
|
|
Variation (%) (*) |
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
4Q23 X 3Q23 |
4Q23 X 4Q22 |
2023 X 2022 |
| Net income |
6,282 |
5,484 |
8,276 |
24,995 |
36,755 |
14.6 |
(24.1) |
(32.0) |
| Net finance income (expense) |
(295) |
1,985 |
(286) |
2,333 |
3,840 |
− |
3.1 |
(39.2) |
| Income taxes |
1,966 |
2,263 |
3,007 |
10,401 |
16,770 |
(13.1) |
(34.6) |
(38.0) |
| Depreciation, depletion and amortization |
3,632 |
3,475 |
3,321 |
13,280 |
13,218 |
4.5 |
9.4 |
0.5 |
| EBITDA |
11,585 |
13,207 |
14,318 |
51,009 |
70,583 |
(12.3) |
(19.1) |
(27.7) |
| Results of equity-accounted investments |
69 |
248 |
122 |
304 |
(251) |
(72.2) |
(43.4) |
− |
| Impairment of assets (reversals), net |
2,198 |
78 |
893 |
2,680 |
1,315 |
2717.9 |
146.1 |
103.8 |
| Results on disposal/write-offs of assets |
(145) |
37 |
(6) |
(1,295) |
(1,144) |
− |
2316.7 |
13.2 |
| Results from co-participation agreements in bid areas |
(237) |
(19) |
(1,424) |
(284) |
(4,286) |
1147.4 |
(83.4) |
(93.4) |
| Adjusted EBITDA |
13,470 |
13,551 |
13,903 |
52,414 |
66,217 |
(0.6) |
(3.1) |
(20.8) |
| Adjusted EBITDA margin (%) |
50 |
53 |
46 |
51 |
53 |
(3.0) |
4.0 |
(2.0) |
| (*) EBITDA Margin variations in percentage points. |
|
|
|
|
|
|
|
|
Financial statements
Table
15 - Income statement - Consolidated
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
| Sales revenues |
27,107 |
25,552 |
30,171 |
102,409 |
124,474 |
| Cost of sales |
(12,453) |
(11,982) |
(15,592) |
(48,435) |
(59,486) |
| Gross profit |
14,654 |
13,570 |
14,579 |
53,974 |
64,988 |
| Selling expenses |
(1,329) |
(1,288) |
(1,293) |
(5,038) |
(4,931) |
| General and administrative expenses |
(454) |
(395) |
(376) |
(1,594) |
(1,332) |
| Exploration costs |
(154) |
(480) |
(657) |
(982) |
(887) |
| Research and development expenses |
(214) |
(186) |
(179) |
(726) |
(792) |
| Other taxes |
(247) |
(114) |
(194) |
(890) |
(439) |
| Impairment (losses) reversals, net |
(2,198) |
(78) |
(893) |
(2,680) |
(1,315) |
| Other income and expenses, net |
(2,036) |
(1,049) |
132 |
(4,031) |
1,822 |
| |
(6,632) |
(3,590) |
(3,460) |
(15,941) |
(7,874) |
| Operating income |
8,022 |
9,980 |
11,119 |
38,033 |
57,114 |
| Finance income |
588 |
600 |
436 |
2,169 |
1,832 |
| Finance expenses |
(1,047) |
(1,163) |
(994) |
(3,922) |
(3,500) |
| Foreign exchange gains (losses) and inflation indexation charges |
754 |
(1,422) |
844 |
(580) |
(2,172) |
| Net finance income (expense) |
295 |
(1,985) |
286 |
(2,333) |
(3,840) |
| Results of equity-accounted investments |
(69) |
(248) |
(122) |
(304) |
251 |
| Income before income taxes |
8,248 |
7,747 |
11,283 |
35,396 |
53,525 |
| Income taxes |
(1,966) |
(2,263) |
(3,007) |
(10,401) |
(16,770) |
| Net Income |
6,282 |
5,484 |
8,276 |
24,995 |
36,755 |
| Net income attributable to: |
|
|
|
|
|
| Shareholders of Petrobras |
6,259 |
5,456 |
8,245 |
24,884 |
36,623 |
| Non-controlling interests |
23 |
28 |
31 |
111 |
132 |
| |
|
|
|
|
|
Table 16 - Statement
of financial position – Consolidated
| ASSETS - US$ million |
12.31.2023 |
12.31.2022 |
| Current assets |
32,445 |
31,250 |
| Cash and cash equivalents |
12,727 |
7,996 |
| Marketable securities |
2,819 |
2,773 |
| Trade and other receivables |
6,135 |
5,010 |
| Inventories |
7,681 |
8,779 |
| Recoverable taxes |
1,178 |
1,307 |
| Assets classified as held for sale |
335 |
3,608 |
| Other current assets |
1,570 |
1,777 |
| Non-current assets |
184,622 |
155,941 |
| Long-term receivables |
26,798 |
21,220 |
| Trade and other receivables |
1,847 |
2,440 |
| Marketable securities |
2,409 |
1,564 |
| Judicial deposits |
14,746 |
11,053 |
| Deferred income taxes |
965 |
832 |
| Other recoverable taxes |
4,516 |
3,778 |
| Other non-current assets |
2,315 |
1,553 |
| Investments |
1,358 |
1,566 |
| Property, plant and equipment |
153,424 |
130,169 |
| Intangible assets |
3,042 |
2,986 |
| Total assets |
217,067 |
187,191 |
| |
|
|
| |
|
|
| LIABILITIES - US$ million |
12.31.2023 |
12.31.2022 |
| Current liabilities |
33,860 |
31,380 |
| Trade payables |
4,813 |
5,464 |
| Finance debt |
4,322 |
3,576 |
| Lease liability |
7,200 |
5,557 |
| Taxes payable |
5,466 |
5,931 |
| Dividends payable |
3,539 |
4,171 |
| Provision for decommissioning costs |
2,032 |
− |
| Employee benefits |
2,932 |
2,215 |
| Liabilities related to assets classified as held for sale |
541 |
1,465 |
| Other current liabilities |
3,015 |
3,001 |
| Non-current liabilities |
104,232 |
85,975 |
| Finance debt |
24,479 |
26,378 |
| Lease liability |
26,599 |
18,288 |
| Income taxes payable |
299 |
302 |
| Deferred income taxes |
10,910 |
6,750 |
| Employee benefits |
15,579 |
10,675 |
| Provision for legal proceedings |
3,305 |
3,010 |
| Provision for decommissioning costs |
21,171 |
18,600 |
| Other non-current liabilities |
1,890 |
1,972 |
| Shareholders' equity |
78,975 |
69,836 |
| Share capital (net of share issuance costs) |
107,101 |
107,101 |
| Capital reserve and capital transactions |
410 |
1,144 |
| Profit reserves |
72,641 |
66,434 |
| Accumulated other comprehensive deficit |
(101,569) |
(105,187) |
| Non-controlling interests |
392 |
344 |
| Total liabilities and shareholders´ equity |
217,067 |
187,191 |
| |
|
|
Table 17 - Statement
of cash flow – Consolidated
| US$ million |
4Q23 |
3Q23 |
4Q22 |
2023 |
2022 |
| Cash flows from operating activities |
|
|
|
|
|
| Net income for the period |
6,282 |
5,484 |
8,276 |
24,995 |
36,755 |
| Adjustments for: |
|
|
|
|
|
| Pension and medical benefits |
389 |
394 |
289 |
1,542 |
1,228 |
| Results of equity-accounted investments |
69 |
248 |
122 |
304 |
(251) |
| Depreciation, depletion and amortization |
3,632 |
3,475 |
3,321 |
13,280 |
13,218 |
| Impairment of assets |
2,198 |
78 |
893 |
2,680 |
1,315 |
| Inventory write down (write-back) to net realizable value |
(3) |
(10) |
4 |
(7) |
11 |
| Allowance (reversals) for credit loss on trade and other receivables, net |
(9) |
15 |
23 |
40 |
65 |
| Exploratory expenditure write-offs |
11 |
372 |
563 |
421 |
691 |
| Gain on disposal/write-offs of assets |
(145) |
37 |
(6) |
(1,295) |
(1,144) |
| Foreign exchange, indexation and finance charges |
(316) |
1,967 |
(178) |
2,498 |
4,557 |
| Income taxes |
1,966 |
2,263 |
3,007 |
10,401 |
16,770 |
| Revision and unwinding of discount on the provision for decommissioning costs |
1,390 |
219 |
321 |
2,052 |
745 |
| PIS and COFINS recovery - exclusion of ICMS (VAT tax) from the basis of calculation |
− |
− |
− |
− |
(1) |
| Results from co-participation agreements in bid areas |
(237) |
(19) |
(1,424) |
(284) |
(4,286) |
| Early termination and cash outflows revision of lease agreements |
(54) |
(103) |
(71) |
(415) |
(629) |
| Losses with legal, administrative and arbitration proceedings, net |
125 |
141 |
541 |
797 |
1,362 |
| Decrease (Increase) in assets |
|
|
|
|
|
| Trade and other receivables |
(499) |
(588) |
(374) |
88 |
355 |
| Inventories |
432 |
52 |
1,378 |
1,564 |
(1,217) |
| Judicial deposits |
(623) |
(318) |
(397) |
(1,723) |
(1,709) |
| Other assets |
155 |
(106) |
343 |
324 |
(413) |
| Increase (Decrease) in liabilities |
|
|
|
|
|
| Trade payables |
63 |
(726) |
(18) |
(954) |
(359) |
| Other taxes payable |
(10) |
543 |
(46) |
(431) |
(2,441) |
| Pension and medical benefits |
(244) |
(232) |
(261) |
(927) |
(2,130) |
| Provisions for legal proceedings |
(225) |
(147) |
(126) |
(591) |
(380) |
| Other employee benefits |
193 |
379 |
(119) |
356 |
(182) |
| Provision for decommissioning costs |
(305) |
(259) |
(160) |
(902) |
(602) |
| Other liabilities |
(198) |
(243) |
(338) |
(569) |
(95) |
| Income taxes paid |
(2,368) |
(1,362) |
(2,715) |
(10,032) |
(11,516) |
| Net cash provided by operating activities |
11,669 |
11,554 |
12,848 |
43,212 |
49,717 |
| Cash flows from investing activities |
|
|
|
|
|
| Acquisition of PP&E and intangible assets |
(3,594) |
(3,185) |
(3,561) |
(12,114) |
(9,581) |
| Acquisition of equity interests |
(2) |
(5) |
(7) |
(24) |
(27) |
| Proceeds from disposal of assets - Divestment |
42 |
103 |
931 |
3,606 |
4,846 |
| Financial compensation from co-participation agreements |
− |
− |
1,950 |
391 |
7,284 |
| Divestment (investment) in marketable securities |
313 |
253 |
(1,713) |
98 |
(3,328) |
| Dividends received |
13 |
6 |
55 |
88 |
374 |
| Net cash (used in) provided by investing activities |
(3,228) |
(2,828) |
(2,345) |
(7,955) |
(432) |
| Cash flows from financing activities |
|
|
|
|
|
| Changes in non-controlling interest |
103 |
(52) |
20 |
1 |
63 |
| Financing and loans, net: |
|
|
|
|
|
| Proceeds from finance debt |
910 |
1,238 |
350 |
2,210 |
2,880 |
| Repayment of principal - finance debt |
(1,711) |
(1,000) |
(1,538) |
(4,193) |
(9,334) |
| Repayment of interest - finance debt |
(406) |
(568) |
(412) |
(1,978) |
(1,850) |
| Repayment of lease liability |
(1,792) |
(1,632) |
(1,424) |
(6,286) |
(5,430) |
| Dividends paid to Shareholders of Petrobras |
(4,436) |
(4,837) |
(4,030) |
(19,670) |
(37,701) |
| Share repurchase program |
(538) |
(197) |
− |
(735) |
− |
| Dividends paid to non-controlling interests |
(1) |
− |
(13) |
(49) |
(81) |
| Net cash used in financing activities |
(7,871) |
(7,048) |
(7,047) |
(30,700) |
(51,453) |
| Effect of exchange rate changes on cash and cash equivalents |
47 |
81 |
166 |
174 |
(316) |
| Net change in cash and cash equivalents |
617 |
1,759 |
3,622 |
4,731 |
(2,484) |
| Cash and cash equivalents at the beginning of the period |
12,110 |
10,351 |
4,374 |
7,996 |
10,480 |
| Cash and cash equivalents at the end of the period |
12,727 |
12,110 |
7,996 |
12,727 |
7,996 |
| |
Financial information by business
areas
Table 18 - Consolidated
income by segment – 2023
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. |
ELIMIN. |
TOTAL |
| Sales revenues |
66,880 |
94,868 |
11,109 |
365 |
(70,813) |
102,409 |
| Intersegments |
66,113 |
1,404 |
3,285 |
11 |
(70,813) |
− |
| Third parties |
767 |
93,464 |
7,824 |
354 |
− |
102,409 |
| Cost of sales |
(27,239) |
(85,699) |
(5,685) |
(370) |
70,558 |
(48,435) |
| Gross profit |
39,641 |
9,169 |
5,424 |
(5) |
(255) |
53,974 |
| Expenses |
(5,615) |
(4,086) |
(3,384) |
(2,857) |
1 |
(15,941) |
| Selling expenses |
(12) |
(2,156) |
(2,838) |
(33) |
1 |
(5,038) |
| General and administrative expenses |
(74) |
(327) |
(80) |
(1,113) |
− |
(1,594) |
| Exploration costs |
(982) |
− |
− |
− |
− |
(982) |
| Research and development expenses |
(569) |
(16) |
(3) |
(138) |
− |
(726) |
| Other taxes |
(454) |
(27) |
(49) |
(360) |
− |
(890) |
| Impairment (losses) reversals, net |
(2,105) |
(524) |
(81) |
30 |
− |
(2,680) |
| Other income and expenses, net |
(1,419) |
(1,036) |
(333) |
(1,243) |
− |
(4,031) |
| Operating income (loss) |
34,026 |
5,083 |
2,040 |
(2,862) |
(254) |
38,033 |
| Net finance income (expense) |
− |
− |
− |
(2,333) |
− |
(2,333) |
| Results of equity-accounted investments |
(7) |
(318) |
10 |
11 |
− |
(304) |
| Income (loss) before income taxes |
34,019 |
4,765 |
2,050 |
(5,184) |
(254) |
35,396 |
| Income taxes |
(11,571) |
(1,729) |
(693) |
3,506 |
86 |
(10,401) |
| Net income (loss) |
22,448 |
3,036 |
1,357 |
(1,678) |
(168) |
24,995 |
| Net income (loss) attributable to: |
|
|
|
|
|
|
| Shareholders of Petrobras |
22,453 |
3,036 |
1,286 |
(1,723) |
(168) |
24,884 |
| Non-controlling interests |
(5) |
− |
71 |
45 |
− |
111 |
Table 19 - Consolidated income by segment – 2022
|
US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. |
ELIMIN. |
TOTAL |
| Sales revenues |
77,890 |
113,531 |
15,068 |
511 |
(82,526) |
124,474 |
| Intersegments |
76,579 |
1,950 |
3,991 |
6 |
(82,526) |
− |
| Third parties |
1,311 |
111,581 |
11,077 |
505 |
− |
124,474 |
| Cost of sales |
(30,465) |
(99,154) |
(10,518) |
(522) |
81,173 |
(59,486) |
| Gross profit |
47,425 |
14,377 |
4,550 |
(11) |
(1,353) |
64,988 |
| Expenses |
907 |
(3,132) |
(2,965) |
(2,671) |
(13) |
(7,874) |
| Selling expenses |
(22) |
(1,841) |
(2,979) |
(76) |
(13) |
(4,931) |
| General and administrative expenses |
(46) |
(275) |
(62) |
(949) |
− |
(1,332) |
| Exploration costs |
(887) |
− |
− |
− |
− |
(887) |
| Research and development expenses |
(678) |
(6) |
(5) |
(103) |
− |
(792) |
| Other taxes |
(79) |
(31) |
(44) |
(285) |
− |
(439) |
| Impairment (losses) reversals, net |
(1,218) |
(97) |
1 |
(1) |
− |
(1,315) |
| Other income and expenses, net |
3,837 |
(882) |
124 |
(1,257) |
− |
1,822 |
| Operating income (loss) |
48,332 |
11,245 |
1,585 |
(2,682) |
(1,366) |
57,114 |
| Net finance income (expense) |
− |
− |
− |
(3,840) |
− |
(3,840) |
| Results of equity-accounted investments |
170 |
3 |
83 |
(5) |
− |
251 |
| Income (loss) before income taxes |
48,502 |
11,248 |
1,668 |
(6,527) |
(1,366) |
53,525 |
| Income taxes |
(16,433) |
(3,822) |
(540) |
3,559 |
466 |
(16,770) |
| Net income (loss) |
32,069 |
7,426 |
1,128 |
(2,968) |
(900) |
36,755 |
| Net income (loss) attributable to: |
|
|
|
|
|
|
| Shareholders of Petrobras |
32,073 |
7,426 |
1,038 |
(3,014) |
(900) |
36,623 |
| Non-controlling interests |
(4) |
− |
90 |
46 |
− |
132 |
Table 20 - Quarterly consolidated
income by segment – 4Q23
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. |
ELIMIN. |
TOTAL |
| Sales revenues |
18,506 |
25,278 |
2,859 |
112 |
(19,648) |
27,107 |
| Intersegments |
18,381 |
339 |
924 |
4 |
(19,648) |
− |
| Third parties |
125 |
24,939 |
1,935 |
108 |
− |
27,107 |
| Cost of sales |
(7,597) |
(23,103) |
(1,426) |
(115) |
19,788 |
(12,453) |
| Gross profit |
10,909 |
2,175 |
1,433 |
(3) |
140 |
14,654 |
| Expenses |
(3,778) |
(966) |
(934) |
(954) |
− |
(6,632) |
| Selling expenses |
(1) |
(577) |
(739) |
(12) |
− |
(1,329) |
| General and administrative expenses |
(34) |
(85) |
(28) |
(307) |
− |
(454) |
| Exploration costs |
(154) |
− |
− |
− |
− |
(154) |
| Research and development expenses |
(168) |
− |
(1) |
(45) |
− |
(214) |
| Other taxes |
(84) |
(15) |
(20) |
(128) |
− |
(247) |
| Impairment (losses) reversals, net |
(2,009) |
(108) |
(81) |
− |
− |
(2,198) |
| Other income and expenses, net |
(1,328) |
(181) |
(65) |
(462) |
− |
(2,036) |
| Operating income (loss) |
7,131 |
1,209 |
499 |
(957) |
140 |
8,022 |
| Net finance income (expense) |
− |
− |
− |
295 |
− |
295 |
| Results of equity-accounted investments |
26 |
(87) |
(7) |
(1) |
− |
(69) |
| Income (loss) before income taxes |
7,157 |
1,122 |
492 |
(663) |
140 |
8,248 |
| Income taxes |
(2,425) |
(411) |
(170) |
1,088 |
(48) |
(1,966) |
| Net income (loss) |
4,732 |
711 |
322 |
425 |
92 |
6,282 |
| Net income (loss) attributable to: |
|
|
|
|
|
|
| Shareholders of Petrobras |
4,734 |
711 |
308 |
414 |
92 |
6,259 |
| Non-controlling interests |
(2) |
− |
14 |
11 |
− |
23 |
Table
21 - Quarterly consolidated income by segment – 3Q23
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. |
ELIMIN. |
TOTAL |
| Sales revenues |
17,922 |
23,691 |
2,629 |
90 |
(18,780) |
25,552 |
| Intersegments |
17,792 |
225 |
760 |
3 |
(18,780) |
− |
| Third parties |
130 |
23,466 |
1,869 |
87 |
− |
25,552 |
| Cost of sales |
(7,151) |
(21,400) |
(1,166) |
(91) |
17,826 |
(11,982) |
| Gross profit |
10,771 |
2,291 |
1,463 |
(1) |
(954) |
13,570 |
| Expenses |
(1,161) |
(791) |
(906) |
(741) |
9 |
(3,590) |
| Selling expenses |
− |
(535) |
(764) |
2 |
9 |
(1,288) |
| General and administrative expenses |
(6) |
(80) |
(20) |
(289) |
− |
(395) |
| Exploration costs |
(480) |
− |
− |
− |
− |
(480) |
| Research and development expenses |
(150) |
(2) |
(1) |
(33) |
− |
(186) |
| Other taxes |
(16) |
(11) |
(10) |
(77) |
− |
(114) |
| Impairment (losses) reversals, net |
(78) |
− |
− |
− |
− |
(78) |
| Other income and expenses, net |
(431) |
(163) |
(111) |
(344) |
− |
(1,049) |
| Operating income (loss) |
9,610 |
1,500 |
557 |
(742) |
(945) |
9,980 |
| Net finance income (expense) |
− |
− |
− |
(1,985) |
− |
(1,985) |
| Results of equity-accounted investments |
(68) |
(176) |
(4) |
− |
− |
(248) |
| Income (loss) before income taxes |
9,542 |
1,324 |
553 |
(2,727) |
(945) |
7,747 |
| Income taxes |
(3,268) |
(510) |
(190) |
1,384 |
321 |
(2,263) |
| Net income (loss) |
6,274 |
814 |
363 |
(1,343) |
(624) |
5,484 |
| Net income (loss) attributable to: |
|
|
|
|
|
|
| Shareholders of Petrobras |
6,275 |
814 |
344 |
(1,353) |
(624) |
5,456 |
| Non-controlling interests |
(1) |
− |
19 |
10 |
− |
28 |
Table 22 - Other
income and expenses by segment – 2023
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. |
ELIMIN. |
TOTAL |
| Stoppages for asset maintenance and pre-operating expenses |
(2,105) |
(21) |
(52) |
(27) |
− |
(2,205) |
| Losses on decommissioning of returned/abandoned areas |
(1,195) |
− |
− |
− |
− |
(1,195) |
| Pension and medical benefits - retirees |
− |
− |
− |
(1,172) |
− |
(1,172) |
| Losses with legal, administrative and arbitration proceedings |
(300) |
(391) |
(9) |
(97) |
− |
(797) |
| Profit sharing |
(269) |
(129) |
(33) |
(164) |
− |
(595) |
| Variable compensation programs |
(147) |
(139) |
(20) |
(110) |
− |
(416) |
| Compensation for the termination of vessel charter agreements (*) |
− |
(327) |
(4) |
− |
− |
(331) |
| Collective bargaining agreement |
(94) |
(43) |
(8) |
(72) |
− |
(217) |
| Expenses with contractual fines received |
(18) |
(1) |
(179) |
(1) |
− |
(199) |
| Operating expenses with thermoelectric power plants |
− |
− |
(189) |
− |
− |
(189) |
| Institutional relations and cultural projects |
− |
(4) |
− |
(152) |
− |
(156) |
| Gains with Commodities Derivatives |
− |
10 |
− |
1 |
− |
11 |
| Amounts recovered from Lava Jato investigation |
10 |
− |
− |
99 |
− |
109 |
| Results of non-core activities |
150 |
(92) |
83 |
29 |
− |
170 |
| Ship/take or pay agreements and fines imposed to suppliers |
4 |
40 |
192 |
2 |
− |
238 |
| Fines imposed on suppliers |
183 |
27 |
6 |
23 |
− |
239 |
| Results from co-participation agreements in bid areas |
284 |
− |
− |
− |
− |
284 |
| Government grants |
15 |
− |
− |
300 |
− |
315 |
| Early termination and changes to cash flow estimates of leases |
319 |
98 |
1 |
(3) |
− |
415 |
| Reimbursements from E&P partnership operations |
571 |
− |
− |
− |
− |
571 |
| Results on disposal/write-offs of assets |
1,370 |
(35) |
(48) |
8 |
− |
1,295 |
| Others |
(197) |
(29) |
(73) |
93 |
− |
(206) |
| |
(1,419) |
(1,036) |
(333) |
(1,243) |
− |
(4,031) |
| (*) It includes, in 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of US$ 317. |
| |
|
|
|
|
|
|
Table 23 - Other income
and expenses by segment – 2022
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. |
ELIMIN. |
TOTAL |
| Stoppages for asset maintenance and pre-operating expenses |
(1,743) |
(23) |
(31) |
(37) |
− |
(1,834) |
| Losses on decommissioning of returned/abandoned areas |
(225) |
− |
− |
− |
− |
(225) |
| Pension and medical benefits - retirees (*) |
− |
− |
− |
(1,015) |
− |
(1,015) |
| Losses with legal, administrative and arbitration proceedings |
(461) |
(428) |
(72) |
(401) |
− |
(1,362) |
| Profit sharing |
(56) |
(29) |
(8) |
(38) |
− |
(131) |
| Variable compensation programs |
(223) |
(115) |
(28) |
(181) |
− |
(547) |
| Compensation for the termination of vessel charter agreements |
− |
(9) |
(4) |
− |
− |
(13) |
| Collective bargaining agreement |
− |
− |
− |
− |
− |
− |
| Expenses with contractual fines received |
(24) |
(3) |
(64) |
− |
− |
(91) |
| Operating expenses with thermoelectric power plants |
− |
− |
(150) |
− |
− |
(150) |
| Institutional relations and cultural projects |
− |
(2) |
− |
(101) |
− |
(103) |
| Losses with Commodities Derivatives |
− |
(251) |
− |
(5) |
− |
(256) |
| Amounts recovered from Lava Jato investigation |
17 |
− |
− |
79 |
− |
96 |
| Results of non-core activities |
116 |
(61) |
91 |
22 |
− |
168 |
| Ship/take or pay agreements and fines imposed to suppliers |
2 |
32 |
70 |
1 |
− |
105 |
| Fines imposed on suppliers |
178 |
21 |
18 |
11 |
− |
228 |
| Results from co-participation agreements in bid areas (**) |
4,286 |
− |
− |
− |
− |
4,286 |
| Government grants |
5 |
− |
− |
466 |
− |
471 |
| Early termination and changes to cash flow estimates of leases |
577 |
63 |
7 |
(18) |
− |
629 |
| Reimbursements from E&P partnership operations |
683 |
− |
− |
− |
− |
683 |
| Results on disposal/write-offs of assets |
868 |
100 |
164 |
12 |
− |
1,144 |
| Others |
(163) |
(177) |
131 |
(52) |
− |
(261) |
| |
3,837 |
(882) |
124 |
(1,257) |
− |
1,822 |
| (*) In 2022, this includes US$ 67 million referring to the payment of a contribution as provided for in the Pre-70 Term of Financial Commitment (TFC) for the administrative funding of the PPSP-R Pre-70 and PPSP-NR Pre-70 pension plans. |
| (**) In 2022, it mainly refers to income with the results of the co-participation agreements related to the transfer of rights surplus of Sépia and Atapu. |
| |
|
|
|
|
|
|
Table 24 - Other income
and expenses by segment – 4Q23
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. |
ELIMIN. |
TOTAL |
| Losses on decommissioning of returned/abandoned areas |
(1,179) |
− |
− |
− |
− |
(1,179) |
| Stoppages for asset maintenance and pre-operating expenses |
(518) |
(6) |
(15) |
(5) |
− |
(544) |
| Profit sharing |
(221) |
(103) |
(27) |
(136) |
− |
(487) |
| Pension and medical benefits - retirees |
− |
− |
− |
(295) |
− |
(295) |
| Collective bargaining agreement |
(94) |
(36) |
(8) |
(73) |
− |
(211) |
| Losses with legal, administrative and arbitration proceedings |
(41) |
(63) |
(8) |
(13) |
− |
(125) |
| Institutional relations and cultural projects |
− |
(1) |
− |
(66) |
− |
(67) |
| Operating expenses with thermoelectric power plants |
− |
− |
(55) |
− |
− |
(55) |
| Expenses with contractual fines received |
(4) |
(2) |
(35) |
− |
− |
(41) |
| Compensation for the termination of vessel charter agreements |
− |
(3) |
(1) |
− |
− |
(4) |
| Amounts recovered from Lava Jato investigation |
10 |
− |
− |
− |
− |
10 |
| Gains with Commodities Derivatives |
− |
31 |
− |
− |
− |
31 |
| Results of non-core activities |
49 |
(15) |
9 |
5 |
− |
48 |
| Early termination and changes to cash flow estimates of leases |
46 |
7 |
1 |
− |
− |
54 |
| Variable compensation programs |
34 |
(1) |
5 |
17 |
− |
55 |
| Government grants |
1 |
− |
− |
57 |
− |
58 |
| Fines imposed on suppliers |
44 |
7 |
3 |
7 |
− |
61 |
| Ship/take or pay agreements and fines imposed to suppliers |
1 |
10 |
88 |
1 |
− |
100 |
| Reimbursements from E&P partnership operations |
141 |
− |
− |
− |
− |
141 |
| Results on disposal/write-offs of assets |
167 |
(24) |
4 |
(2) |
− |
145 |
| Results from co-participation agreements in bid areas |
237 |
− |
− |
− |
− |
237 |
| Others |
(1) |
18 |
(26) |
41 |
− |
32 |
| |
(1,328) |
(181) |
(65) |
(462) |
− |
(2,036) |
| |
|
|
|
|
|
|
Table 25 - Other income
and expenses by segment – 3Q23
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. |
ELIMIN. |
TOTAL |
| Losses on decommissioning of returned/abandoned areas |
(3) |
− |
− |
− |
− |
(3) |
| Stoppages for asset maintenance and pre-operating expenses |
(535) |
(5) |
(15) |
(7) |
− |
(562) |
| Profit sharing |
(18) |
(13) |
(2) |
(8) |
− |
(41) |
| Pension and medical benefits - retirees |
− |
− |
− |
(300) |
− |
(300) |
| Collective bargaining agreement |
− |
(1) |
− |
1 |
− |
− |
| Losses with legal, administrative and arbitration proceedings |
(94) |
(7) |
(4) |
(36) |
− |
(141) |
| Institutional relations and cultural projects |
− |
(1) |
− |
(40) |
− |
(41) |
| Operating expenses with thermoelectric power plants |
− |
− |
(49) |
− |
− |
(49) |
| Expenses with contractual fines received |
(7) |
− |
(31) |
− |
− |
(38) |
| Compensation for the termination of vessel charter agreements |
− |
(3) |
(1) |
− |
− |
(4) |
| Amounts recovered from Lava Jato investigation |
− |
− |
− |
6 |
− |
6 |
| Losses with Commodities Derivatives |
− |
(89) |
− |
− |
− |
(89) |
| Results of non-core activities |
50 |
(29) |
10 |
11 |
− |
42 |
| Early termination and changes to cash flow estimates of leases |
88 |
16 |
− |
(1) |
− |
103 |
| Variable compensation programs |
(73) |
(75) |
(11) |
(41) |
− |
(200) |
| Government grants |
1 |
− |
− |
80 |
− |
81 |
| Fines imposed on suppliers |
53 |
8 |
1 |
7 |
− |
69 |
| Ship/take or pay agreements and fines imposed to suppliers |
1 |
9 |
57 |
− |
− |
67 |
| Reimbursements from E&P partnership operations |
150 |
− |
− |
− |
− |
150 |
| Results on disposal/write-offs of assets |
(4) |
18 |
(52) |
1 |
− |
(37) |
| Results from co-participation agreements in bid areas |
19 |
− |
− |
− |
− |
19 |
| Others |
(59) |
9 |
(14) |
(17) |
− |
(81) |
| |
(431) |
(163) |
(111) |
(344) |
− |
(1,049) |
| |
|
|
|
|
|
|
Table 26 - Consolidated
assets by segment – 12.31.2023
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. AND OTHERS |
ELIMIN. |
TOTAL |
| Total assets |
138,868 |
34,802 |
6,776 |
41,899 |
(5,278) |
217,067 |
| |
|
|
|
|
|
|
| Current assets |
2,804 |
11,002 |
370 |
23,547 |
(5,278) |
32,445 |
| Non-current assets |
136,064 |
23,800 |
6,406 |
18,352 |
− |
184,622 |
| Long-term receivables |
9,028 |
2,068 |
83 |
15,619 |
− |
26,798 |
| Investments |
344 |
811 |
145 |
58 |
− |
1,358 |
| Property, plant and equipment |
124,254 |
20,786 |
6,101 |
2,283 |
− |
153,424 |
| Operating assets |
108,405 |
18,128 |
3,605 |
1,770 |
− |
131,908 |
| Assets under construction |
15,849 |
2,658 |
2,496 |
513 |
− |
21,516 |
| Intangible assets |
2,438 |
135 |
77 |
392 |
− |
3,042 |
Table 27 - Consolidated
assets by segment – 12.31.2022
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. AND OTHERS |
ELIMIN. |
TOTAL |
| Total assets |
116,334 |
34,431 |
7,584 |
34,106 |
(5,264) |
187,191 |
| |
|
|
|
|
|
|
| Current assets |
5,224 |
12,035 |
391 |
18,864 |
(5,264) |
31,250 |
| Non-current assets |
111,110 |
22,396 |
7,193 |
15,242 |
− |
155,941 |
| Long-term receivables |
6,351 |
1,811 |
94 |
12,964 |
− |
21,220 |
| Investments |
379 |
977 |
173 |
37 |
− |
1,566 |
| Property, plant and equipment |
101,875 |
19,496 |
6,851 |
1,947 |
− |
130,169 |
| Operating assets |
92,087 |
16,851 |
4,808 |
1,585 |
− |
115,331 |
| Assets under construction |
9,788 |
2,645 |
2,043 |
362 |
− |
14,838 |
| Intangible assets |
2,505 |
112 |
75 |
294 |
− |
2,986 |
Table 28 -
Reconciliation of Adjusted EBITDA by segment – 2023
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. AND OTHERS |
ELIMIN. |
TOTAL |
| Net income (loss) |
22,448 |
3,036 |
1,357 |
(1,678) |
(168) |
24,995 |
| Net finance income (expense) |
− |
− |
− |
2,333 |
− |
2,333 |
| Income taxes |
11,571 |
1,729 |
693 |
(3,506) |
(86) |
10,401 |
| Depreciation, depletion and amortization |
10,230 |
2,410 |
525 |
115 |
− |
13,280 |
| EBITDA |
44,249 |
7,175 |
2,575 |
(2,736) |
(254) |
51,009 |
| Results of equity-accounted investments |
7 |
318 |
(10) |
(11) |
− |
304 |
| Impairment of assets (reversals), net |
2,105 |
524 |
81 |
(30) |
− |
2,680 |
| Results on disposal/write-offs of assets |
(1,370) |
35 |
48 |
(8) |
− |
(1,295) |
| Results from co-participation agreements in bid areas |
(284) |
− |
− |
− |
− |
(284) |
| Adjusted EBITDA |
44,707 |
8,052 |
2,694 |
(2,785) |
(254) |
52,414 |
Table 29
- Reconciliation of Adjusted EBITDA by segment – 2022
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. AND OTHERS |
ELIMIN. |
TOTAL |
| Net income (loss) |
32,069 |
7,426 |
1,128 |
(2,968) |
(900) |
36,755 |
| Net finance income (expense) |
− |
− |
− |
3,840 |
− |
3,840 |
| Income taxes |
16,433 |
3,822 |
540 |
(3,559) |
(466) |
16,770 |
| Depreciation, depletion and amortization |
10,415 |
2,248 |
448 |
107 |
− |
13,218 |
| EBITDA |
58,917 |
13,496 |
2,116 |
(2,580) |
(1,366) |
70,583 |
| Results of equity-accounted investments |
(170) |
(3) |
(83) |
5 |
− |
(251) |
| Impairment of assets (reversals), net |
1,218 |
97 |
(1) |
1 |
− |
1,315 |
| Results on disposal/write-offs of assets |
(868) |
(99) |
(164) |
(13) |
− |
(1,144) |
| Results from co-participation agreements in bid areas |
(4,286) |
− |
− |
− |
− |
(4,286) |
| Adjusted EBITDA |
54,811 |
13,491 |
1,868 |
(2,587) |
(1,366) |
66,217 |
Table 30
- Reconciliation of Adjusted EBITDA by segment – 4Q23
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. AND OTHERS |
ELIMIN. |
TOTAL |
| Net income (loss) |
4,732 |
711 |
322 |
425 |
92 |
6,282 |
| Net finance income (expense) |
− |
− |
− |
(295) |
− |
(295) |
| Income taxes |
2,425 |
411 |
170 |
(1,088) |
48 |
1,966 |
| Depreciation, depletion and amortization |
2,839 |
622 |
139 |
32 |
− |
3,632 |
| EBITDA |
9,996 |
1,744 |
631 |
(926) |
140 |
11,585 |
| Results of equity-accounted investments |
(26) |
87 |
7 |
1 |
− |
69 |
| Impairment of assets (reversals), net |
2,009 |
108 |
81 |
− |
− |
2,198 |
| Results on disposal/write-offs of assets |
(167) |
24 |
(4) |
2 |
− |
(145) |
| Results from co-participation agreements in bid areas |
(237) |
− |
− |
− |
− |
(237) |
| Adjusted EBITDA |
11,575 |
1,963 |
715 |
(923) |
140 |
13,470 |
Table 31
- Reconciliation of Adjusted EBITDA by segment – 3Q23
| US$ million |
E&P |
RTM |
Gas & Low Carbon Energies (G&LCE) |
CORP. AND OTHERS |
ELIMIN. |
TOTAL |
| Net income (loss) |
6,274 |
814 |
363 |
(1,343) |
(624) |
5,484 |
| Net finance income (expense) |
− |
− |
− |
1,985 |
− |
1,985 |
| Income taxes |
3,268 |
510 |
190 |
(1,384) |
(321) |
2,263 |
| Depreciation, depletion and amortization |
2,687 |
629 |
132 |
27 |
− |
3,475 |
| EBITDA |
12,229 |
1,953 |
685 |
(715) |
(945) |
13,207 |
| Results of equity-accounted investments |
68 |
176 |
4 |
− |
− |
248 |
| Impairment of assets (reversals), net |
78 |
− |
− |
− |
− |
78 |
| Results on disposal/write-offs of assets |
4 |
(18) |
52 |
(1) |
− |
37 |
| Results from co-participation agreements in bid areas |
(19) |
− |
− |
− |
− |
(19) |
| Adjusted EBITDA |
12,360 |
2,111 |
741 |
(716) |
(945) |
13,551 |
Glossary
ACL - Ambiente de Contratação
Livre (Free contracting market) in the electricity system.
ACR - Ambiente de Contratação
Regulada (Regulated contracting market) in the electricity system.
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.
Basic and diluted earnings (losses) per share
- Calculated based on the weighted average number of shares.
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.
Consolidated Structured Entities – Entities
that have been designated so that voting rights or the like are not the determining factor in deciding who controls the entity. Petrobras
has no equity interest in certain structured entities that are consolidated in the Company's financial statements, but control is determined
by the power it has over its relevant operating activities. As there is no equity interest, the income from certain consolidated structured
entities is attributable to non-controlling shareholders in the income statement, and disregarding the profit or loss attributable to
Petrobras shareholders.
CTA – Cumulative translation adjustment
– The cumulative amount of exchange variation arising on translation of foreign operations that is recognized in Shareholders’
Equity and will be transferred to profit or loss on the disposal of the investment.
Effect of average cost in the Cost of Sales
– In view of the average inventory term of 60 days, the crude oil and oil products international prices movement, as well as foreign
exchange effect over imports, production taxes and other factors that impact costs, do not entirely influence the cost of sales in the
current period, having their total effects only in the following period.
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.
Investments – Capital expenditures based on
the cost assumptions and financial methodology adopted in our Business and Management 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.
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.
OCF - Net Cash provided by (used in) operating
activities (operating cash flow), presented in the consolidated cash flow statement.
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.
PLD (differences settlement price) - Electricity
price in the spot market. Weekly weighed prices per output level (light, medium and heavy), number of hours and related market capacity.
Refining - includes crude oil refining, logistics,
transportation, acquisition and export activities, as well as the purchase and sale of petroleum and ethanol products in Brazil and abroad.
Additionally, this segment includes the petrochemical area, which includes investments in companies in the petrochemical sector, shale
exploration and processing.
ROCE - operating profit after taxes / average capital
employed, both measured in US$ on a LTM basis
Operating profit after taxes: Adjusted EBITDA, minus DD&A
of assets booked at historical exchange rates and 34% income tax rate.
Average capital employed: quarterly average considering
inventories, intangibles and fixed assets at historical exchange rates.
Sales Price of Petroleum in Brazil - Average
internal transfer prices from the E&P segment to the Refining segment.
Total net liabilities - Total liability less
adjusted cash and cash equivalents. |
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: March 7, 2024
PETRÓLEO BRASILEIRO S.A–PETROBRAS
By: /s/ Sergio Caetano Leite
______________________________
Sergio Caetano Leite
Chief Financial Officer and Investor Relations
Officer
Petroleo Brasileiro ADR (NYSE:PBR.A)
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