UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

For the month of May, 2022

 

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)

 

Av. Henrique Valadares, 28 – 19th floor
20231-030 – Rio de Janeiro, RJ
Federative Republic of Brazil

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____

 

 
 

 

 

Quarterly Information- ITR

 

At March 31, 2022 and report on review of Quarterly Information

 

 

 

 

 

 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 
 

INDEX

PETROBRAS

 

 

Parent Company Interim Accounting Information / Statement of Financial Position - Assets 3
Parent Company Interim Accounting Information / Statement of Financial Position - Liabilities 4
Parent Company Interim Accounting Information / Statement of Income 5
Parent Company Interim Accounting Information / Statement of Comprehensive Income 6
Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2022 to 03/31/2022 7
Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021 8
Parent Company Interim Accounting Information / Statement of Cash Flows – Indirect Method 9
Parent Company Interim Accounting Information / Statement of Added Value 10
Consolidated Interim Accounting Information / Statement of Financial Position - Assets 11
Consolidated Interim Accounting Information / Statement of Financial Position - Liabilities 12
Consolidated Interim Accounting Information / Statement of Income 13
Consolidated Interim Accounting Information / Statement of Comprehensive Income 14
Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2022 to 03/31/2022 15
Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021 16
Consolidated Interim Accounting Information / Statement of Cash Flows – Indirect Method 17
Consolidated Interim Accounting Information / Statement of Added Value 18
1.   Basis of preparation 19
2.   Summary of significant accounting policies 19
3.   Cash and cash equivalents and Marketable securities 19
4.   Sales revenues 21
5.   Costs and expenses by nature 21
6.   Other income and expenses 22
7.   Net finance income (expense) 22
8.   Net  income by operating segment 23
9.   Trade and other receivables 24
10.   Inventories 25
11.   Taxes 26
12.   Employee benefits 28
13.   Provisions for legal proceedings 32
14.   Provision for decommissioning costs 36
15.   Property, plant and equipment 37
16   Intangible assets 39
17   Impairment 40
18   Exploration and evaluation of oil and gas reserves 40
19   Collateral for crude oil exploration concession agreements 41
20   Investments 41
21   Assets by operating segment 42
22   Disposal of assets and other changes in organizational structure 42
23   Finance debt 46
24   Lease liabilities 48
25   Equity 49
26   Fair value of financial assets and liabilities 50
27   Risk management 51
28   Related-party transactions 56
29   Supplemental information on statement of cash flows 59
30   Subsequent events 59
31.   Correlation between the explanatory notes of December 31, 2021 and the ones of March 31, 2022 62
Statement of directors on interim accounting information and report on the review of quarterly information 63
Independent Auditors' Report 64
 
2  

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Financial Position - Assets

(R$ Thousand)

   
     

 

Account Code Account Description 03.31.2022 12.31.2021
1 Total Assets 1,219,204,000 1,248,196,000
1.01 Current Assets 181,908,000 170,555,000
1.01.01 Cash and Cash Equivalents 2,876,000 2,930,000
1.01.02 Marketable Securities 3,482,000 3,630,000
1.01.03 Trade and Other Receivables 95,267,000 100,110,000
1.01.04 Inventories 42,885,000 33,906,000
1.01.06 Recoverable Taxes 5,344,000 6,368,000
1.01.06.01 Current Recoverable Taxes 5,344,000 6,368,000
1.01.06.01.01 Recoverable Income Taxes 576,000 526,000
1.01.06.01.02 Other Recoverable Taxes 4,768,000 5,842,000
1.01.08 Other Current Assets 32,054,000 23,611,000
1.01.08.01 Non-Current Assets Held for Sale 20,163,000 13,142,000
1.01.08.03 Others 11,891,000 10,469,000
1.01.08.03.03 Others 11,891,000 10,469,000
1.02 Non-Current Assets 1,037,296,000 1,077,641,000
1.02.01 Long-Term Receivables 80,279,000 73,779,000
1.02.01.03 Marketable Securities Measured at Amortized Cost 257,000 247,000
1.02.01.04 Trade and Other Receivables 7,661,000 8,450,000
1.02.01.07 Deferred Taxes 18,114,000 17,845,000
1.02.01.07.02 Deferred Taxes and Contributions 18,114,000 17,845,000
1.02.01.10 Other Non-Current Assets 54,247,000 47,237,000
1.02.01.10.04 Judicial Deposits 47,226,000 44,543,000
1.02.01.10.05 Other Long-Term Assets 7,021,000 2,694,000
1.02.02 Investments 234,740,000 269,825,000
1.02.03 Property, Plant and Equipment 705,494,000 717,355,000
1.02.04 Intangible Assets 16,783,000 16,682,000
 
3  

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Financial Position - Liabilities

(R$ Thousand)

   
     

 

Account Code Account Description 03.31.2022 12.31.2021
2 Total Liabilities 1,219,204,000 1,248,196,000
2.01 Current Liabilities 246,463,000 269,989,000
2.01.01 Payroll, Profit Sharing and Related Charges 7,087,000 7,655,000
2.01.02 Trade Payables 32,626,000 32,734,000
2.01.03 Taxes Obligations 4,135,000 3,599,000
2.01.03.01 Federal Taxes Obligations 4,135,000 3,599,000
2.01.03.01.01 Income Tax and Social Contribution Payable 4,135,000 3,599,000
2.01.04 Current Debt and Finance Lease Obligations 158,442,000 187,005,000
2.01.04.01 Current Debt 132,020,000 155,461,000
2.01.04.03 Lease Obligations 26,422,000 31,544,000
2.01.05 Other Liabilities 33,318,000 30,767,000
2.01.05.02 Others 33,318,000 30,767,000
2.01.05.02.04 Other Taxes Payable 22,320,000 22,022,000
2.01.05.02.06 Other liabilities 10,998,000 8,745,000
2.01.06 Provisions 3,686,000 3,578,000
2.01.06.02 Other Provisions 3,686,000 3,578,000
2.01.06.02.04 Pension and Medical Benefits 3,686,000 3,578,000
2.01.07 Liabilities Associated with Non-Current Assets Held for Sale and Discontinued 7,169,000 4,651,000
2.01.07.01 Liabilities Associated with Non-Current Assets Held for Sale 7,169,000 4,651,000
2.02 Non-Current Liabilities 538,547,000 590,878,000
2.02.01 Non-Current Debt and Finance Lease Obligations 335,492,000 413,637,000
2.02.01.01 Non-Current Debt 243,959,000 306,944,000
2.02.01.03 Lease Obligations 91,533,000 106,693,000
2.02.02 Other Liabilities 1,609,000 1,637,000
2.02.02.02 Others 1,609,000 1,637,000
2.02.02.02.03 Income Tax and Social Contribution 1,609,000 1,637,000
2.02.03 Deferred Taxes 51,150,000 14,807,000
2.02.03.01 Deferred Taxes 51,150,000 14,807,000
2.02.04 Provisions 150,296,000 160,797,000
2.02.04.01 Provisions for Tax Social Security, Labor and Civil Lawsuits 11,193,000 10,382,000
2.02.04.02 Other Provisions 139,103,000 150,415,000
2.02.04.02.04 Pension and Medical Benefits 44,563,000 50,773,000
2.02.04.02.05 Provision for Decommissioning Costs 83,301,000 86,713,000
2.02.04.02.06 Employee Benefits 605,000 803,000
2.02.04.02.07 Other Provisions 10,634,000 12,126,000
2.03 Shareholders' Equity 434,194,000 387,329,000
2.03.01 Share Capital 205,432,000 205,432,000
2.03.02 Capital Reserves 3,313,000 3,313,000
2.03.04 Profit Reserves 208,589,000 164,028,000
2.03.08 Other Comprehensive Income 16,860,000 14,556,000
 
4  

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Income

(R$ Thousand)

   
     

 

Account Code Account Description Accumulated of the Current Year 01/01/2022 to 03/31/2022 Accumulated of the Previous Year 01/01/2021 to 03/31/2021
3.01 Sales Revenues 134,448,000 88,816,000
3.02 Cost of Sales (65,837,000) (46,030,000)
3.03 Gross Profit 68,611,000 42,786,000
3.04 Operating Expenses / Income (3,110,000) (7,852,000)
3.04.01 Selling Expenses (6,517,000) (5,415,000)
3.04.02 General and Administrative Expenses (1,242,000) (1,220,000)
3.04.05 Other Operating Expenses (2,564,000) (4,112,000)
3.04.05.01 Other Taxes (271,000) (468,000)
3.04.05.02 Research and Development Expenses (1,081,000) (639,000)
3.04.05.03 Exploration Costs (406,000) (1,193,000)
3.04.05.05 Other Operating Expenses, Net (816,000) (1,123,000)
3.04.05.07 Impairment of Assets Charges / Reversals 10,000 (689,000)
3.04.06 Share of Profit / Gains on Interest in Equity-Accounted Investments 7,213,000 2,895,000
3.05 Net Income Before Financial Results and Income Taxes 65,501,000 34,934,000
3.06 Finance Income (Expenses), Net 1,361,000 (32,476,000)
3.06.01 Finance Income 1,631,000 467,000
3.06.01.01 Finance Income 1,631,000 467,000
3.06.02 Finance Expenses (270,000) (32,943,000)
3.06.02.01 Finance Expenses (6,741,000) (7,655,000)
3.06.02.02 Foreign Exchange and Inflation Indexation Charges, Net 6,471,000 (25,288,000)
3.07 Net Income Before Income Taxes 66,862,000 2,458,000
3.08 Income Tax and Social Contribution (22,301,000) (1,291,000)
3.08.01 Current (12,514,000)
3.08.02 Deferred (9,787,000) (1,291,000)
3.09 Net Income 44,561,000 1,167,000
3.11 Income / (Loss) for the Period 44,561,000 1,167,000
3.99 Income per Share      
3.99.01 Income per Share      
3.99.01.01 Ordinary Shares 3.42 0.09
3.99.01.02 Preferred Shares 3.42 0.09
3.99.02 Diluted Income per Share    
3.99.02.01 Ordinary Shares 3.42 0.09
3.99.02.02 Preferred Shares 3.42 0.09

 

 

 
5  

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Comprehensive Income

(R$ Thousand)

   
     

 

Account Code Account Description Accumulated of the Current Year 01/01/2022 to 03/31/2022 Accumulated of the Previous Year 01/01/2021 to 03/31/2021
4.01 Net Income for the Period 44,561,000 1,167,000
4.02 Other Comprehensive Income 2,304,000 7,534,000
4.02.03 Cumulative Translation Adjustments (43,296,000) 24,285,000
4.02.07 Unrealized Gains / (Losses) on Cash Flow Hedge  - Recognized in Shareholders' Equity 59,908,000 (30,521,000)
4.02.08 Unrealized Gains / (Losses) on Cash Flow Hedge  - Reclassified to Profit and Loss 7,221,000 5,903,000
4.02.09 Deferred Income Tax and Social Contribution on Cash Flow Hedge (22,824,000) 8,370,000
4.02.10 Share of Other Comprehensive Income of Equity-Accounted Investments 1,295,000 (503,000)
4.03 Total Comprehensive Income for the Period 46,865,000 8,701,000

 

 
6  

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2022 to 03/31/2022

(R$ Thousand)

   
     

 

Account Code Account Description Share Capital Capital Reserves, Granted Options and Treasury Shares Profit Reserves Retained Earnings / Accumulated Losses Other Comprehensive Income Shareholders' Equity
5.01 Balance at the Beginning of the Period 205,432,000 3,313,000 164,028,000 14,556,000 387,329,000
5.03 Adjusted Opening Balance 205,432,000 3,313,000 164,028,000 14,556,000 387,329,000
5.05 Total of Comprehensive Income 44,561,000 2,304,000 46,865,000
5.05.01 Net Income for the Period 44,561,000 44,561,000
5.05.02 Other Comprehensive Income 2,304,000 2,304,000
5.07 Balance at the End of the Period 205,432,000 3,313,000 164,028,000 44,561,000 16,860,000 434,194,000
 
7  

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021

(R$ Thousand)

   
     

 

Account Code Account Description Share Capital Capital Reserves, Granted Options and Treasury Shares Profit Reserves Retained Earnings / Accumulated Losses Other Comprehensive Income Shareholders' Equity
5.01 Balance at the Beginning of the Period 205,432,000 2,665,000 127,296,000 (26,983,000) 308,410,000
5.03 Adjusted Opening Balance 205,432,000 2,665,000 127,296,000 (26,983,000) 308,410,000
5.04 Capital Transactions with Owners (3,716,000) (3,716,000)
5.04.08 Change in Interest in Subsidiaries (3,716,000) (3,716,000)
5.05 Total of Comprehensive Income 1,167,000 7,534,000 8,701,000
5.05.01 Net Income for the Period 1,167,000 1,167,000
5.05.02 Other Comprehensive Income 7,534,000 7,534,000
5.07 Balance at the End of the Period 205,432,000 (1,051,000) 127,296,000 1,167,000 (19,449,000) 313,395,000

b

 
8  

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Cash Flows – Indirect Method

(R$ Thousand)

   
     

 

Account Code Account Description Accumulated of the Current Year 01/01/2022 to 03/31/2022 Accumulated of the Previous Year 01/01/2021 to 03/31/2021
6.01 Net cash provided by operating activities 28,674,000 28,067,000
6.01.01 Cash provided by operating activities 62,021,000 50,986,000
6.01.01.01 Net Income for the period 44,561,000 1,167,000
6.01.01.02 Pension and medical benefits (actuarial expense) 1,568,000 1,661,000
6.01.01.03 Results in equity-accounted investments (7,213,000) (2,895,000)
6.01.01.04 Depreciation, depletion and amortization 17,402,000 16,905,000
6.01.01.05 Impairment of assets (reversal) (10,000) 689,000
6.01.01.06 Exploratory expenditures write-offs 114,000 740,000
6.01.01.08 Foreign exchange, indexation and finance charges (1,297,000) 31,680,000
6.01.01.09 Deferred income taxes, net 9,787,000 1,291,000
6.01.01.10 Allowance for expected credit losses 115,000 (52,000)
6.01.01.13 Revision and unwinding of discount on the provision for decommissioning costs 801,000 1,055,000
6.01.01.17 Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA (2,682,000) (856,000)
6.01.01.19 Early termination and cash outflows revision of lease agreements (1,125,000) (399,000)
6.01.02 Decrease / (increase) in assets / increase/ (decrease) in liabilities (33,347,000) (22,919,000)
6.01.02.01 Trade and other receivables, net (18,817,000) (3,112,000)
6.01.02.02 Inventories (9,022,000) (7,824,000)
6.01.02.03 Judicial deposits (1,941,000) (825,000)
6.01.02.05 Other assets (191,000) (801,000)
6.01.02.06 Trade payables 1,000,000 (8,683,000)
6.01.02.07 Other taxes payable 13,144,000 5,465,000
6.01.02.08 Pension and medical benefits (7,673,000) (5,252,000)
6.01.02.09 Provisions for legal proceedings 811,000 (742,000)
6.01.02.10 Short-term benefits (763,000) (455,000)
6.01.02.11 Income tax and social contribution paid (7,659,000) (34,000)
6.01.02.12 Provision for Decommissioning Costs (702,000) (885,000)
6.01.02.14 Other liabilities (1,534,000) 229,000
6.02 Net cash used in investing activities (3,980,000) (54,511,000)
6.02.01 Acquisition of PP&E and intangibles assets (11,899,000) (41,328,000)
6.02.02 Decrease (increase) in investments in investees (45,000)
6.02.03 Proceeds from disposal of assets – Divestment 9,185,000 1,365,000
6.02.04 Divestment (investment) in marketable securities (1,631,000) (15,539,000)
6.02.05 Dividends received 91,000 991,000
6.02.08 Financial compensation for the Búzios Co-participation Agreement 319,000
6.03 Net cash used in financing activities (24,748,000) 25,585,000
6.03.02 Proceeds from financing 3,184,000 63,976,000
6.03.03 Repayment of principal - finance debt (15,565,000) (22,151,000)
6.03.04 Repayment of interest - finance debt (5,136,000) (7,774,000)
6.03.05 Dividends paid to shareholders of Petrobras (2,000)
6.03.08 Settlement of lease liabilities (7,229,000) (8,466,000)
6.05 Net increase/ (decrease) in cash and cash equivalents (54,000) (859,000)
6.05.01 Cash and cash equivalents at the beginning of the period 2,930,000 5,180,000
6.05.02 Cash and cash equivalents at the end of the period 2,876,000 4,321,000
 
9  

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Added Value

(R$ Thousand)

   
     

 

Account Code Account Description Accumulated of the Current Year 01/01/2022 to 03/31/2022 Accumulated of the Previous Year 01/01/2021 to 03/31/2021
7.01 Sales Revenues 176,913,000 120,559,000
7.01.01 Sales of Goods and Services 165,040,000 110,642,000
7.01.02 Other Revenues 3,949,000 2,740,000
7.01.03 Revenues Related to the Construction of Assets to be Used in Own Operations 8,039,000 7,125,000
7.01.04 Allowance for expected credit losses (115,000) 52,000
7.02 Inputs Acquired from Third Parties (49,192,000) (34,815,000)
7.02.01 Cost of Sales (30,792,000) (20,466,000)
7.02.02 Materials, Power, Third-Party Services and Other Operating Expenses (7,706,000) (5,305,000)
7.02.03 Impairment Charges / Reversals of Assets 10,000 (689,000)
7.02.04 Others (10,704,000) (8,355,000)
7.02.04.01 Tax Credits on Inputs Acquired from Third Parties (10,704,000) (8,355,000)
7.03 Gross Added Value 127,721,000 85,744,000
7.04 Retentions (19,301,000) (18,081,000)
7.04.01 Depreciation, Amortization and Depletion (19,301,000) (18,081,000)
7.05 Net Added Value Produced 108,420,000 67,663,000
7.06 Transferred Added Value 10,149,000 3,783,000
7.06.01 Share of Profit of Equity-Accounted Investments 7,213,000 2,895,000
7.06.02 Finance Income 1,631,000 467,000
7.06.03 Others 1,305,000 421,000
7.06.03.01 Rentals, royalties and others 1,305,000 421,000
7.07 Total Added Value to be Distributed 118,569,000 71,446,000
7.08 Distribution of Added Value 118,569,000 71,446,000
7.08.01 Employee Compensation 6,165,000 6,092,000
7.08.01.01 Salaries 3,850,000 3,776,000
7.08.01.02 Fringe Benefits 2,074,000 2,090,000
7.08.01.03 Unemployment Benefits (FGTS) 241,000 226,000
7.08.02 Taxes and Contributions 64,754,000 28,795,000
7.08.02.01 Federal 52,636,000 21,731,000
7.08.02.02 State 12,003,000 7,025,000
7.08.02.03 Municipal 115,000 39,000
7.08.03 Return on Third-Party Capital 3,089,000 35,392,000
7.08.03.01 Interest 1,477,000 34,086,000
7.08.03.02 Rental Expenses 1,612,000 1,306,000
7.08.04 Return on Shareholders' Equity 44,561,000 1,167,000
7.08.04.03 Retained Earnings / (Losses) for the Period 44,561,000 1,167,000

 

 

 

 

 
10  

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Financial Position - Assets

(R$ Thousand)

   
     

 

Account Code Account Description 03.31.2022 12.31.2021
1 Total Assets 998,662,000 972,951,000
1.01 Current Assets 199,512,000 168,247,000
1.01.01 Cash and Cash Equivalents 81,601,000 58,410,000
1.01.02 Marketable Securities 5,967,000 3,630,000
1.01.03 Trade and Other Receivables 26,849,000 35,538,000
1.01.04 Inventories 48,351,000 40,486,000
1.01.06 Recoverable Taxes 6,175,000 7,511,000
1.01.06.01 Current Recoverable Taxes 6,175,000 7,511,000
1.01.06.01.01 Recoverable Income Taxes 893,000 911,000
1.01.06.01.02 Other Recoverable Taxes 5,282,000 6,600,000
1.01.08 Other Current Assets 30,569,000 22,672,000
1.01.08.01 Non-Current Assets Held for Sale 20,910,000 13,895,000
1.01.08.03 Others 9,659,000 8,777,000
1.01.08.03.03 Others 9,659,000 8,777,000
1.02 Non-Current Assets 799,150,000 804,704,000
1.02.01 Long-Term Receivables 85,532,000 79,992,000
1.02.01.03 Marketable Securities measured at amortized cost 257,000 247,000
1.02.01.04 Trade and Other Receivables 9,289,000 10,603,000
1.02.01.07 Deferred Taxes 21,509,000 21,568,000
1.02.01.07.01 Deferred Income Tax and Social Contribution 2,962,000 3,371,000
1.02.01.07.02 Deferred Taxes and Contributions 18,547,000 18,197,000
1.02.01.10 Other Non-Current Assets 54,477,000 47,574,000
1.02.01.10.04 Judicial Deposits 47,602,000 44,858,000
1.02.01.10.05 Other Long-Term Assets 6,875,000 2,716,000
1.02.02 Investments 9,601,000 8,427,000
1.02.03 Property, Plant and Equipment 687,051,000 699,406,000
1.02.04 Intangible Assets 16,966,000 16,879,000

 

 
11  

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Financial Position - Liabilities

(R$ Thousand)

   
     

 

Account Code Account Description 03.31.2022 12.31.2021
2 Total Liabilities 998,662,000 972,951,000
2.01 Current Liabilities 130,222,000 134,913,000
2.01.01 Payroll, Profit Sharing and Related Charges 7,743,000 8,335,000
2.01.02 Trade Payables 28,029,000 30,597,000
2.01.03 Taxes Obligations 4,895,000 4,089,000
2.01.03.01 Federal Taxes Obligations 4,895,000 4,089,000
2.01.03.01.01 Income Tax and Social Contribution Payable 4,895,000 4,089,000
2.01.04 Current Debt and Lease Obligations 43,318,000 50,631,000
2.01.04.01 Current Debt 17,957,000 20,316,000
2.01.04.03 Lease Obligations 25,361,000 30,315,000
2.01.05 Other Liabilities 35,181,000 32,789,000
2.01.05.02 Others 35,181,000 32,789,000
2.01.05.02.04 Other Taxes Payable 22,673,000 22,325,000
2.01.05.02.06 Other liabilities 12,508,000 10,464,000
2.01.06 Provisions 3,687,000 3,632,000
2.01.06.02 Other Provisions 3,687,000 3,632,000
2.01.06.02.04 Pension and Medical Benefits 3,687,000 3,632,000
2.01.07 Liabilities Associated with Non-Current Assets Held for Sale and Discontinued 7,369,000 4,840,000
2.01.07.01 Liabilities Associated with Non-Current Assets Held for Sale 7,369,000 4,840,000
2.02 Non-Current Liabilities 431,379,000 448,457,000
2.02.01 Non-Current Debt and Finance Lease Obligations 234,100,000 277,187,000
2.02.01.01 Non-Current Debt 149,862,000 178,908,000
2.02.01.03 Lease Obligations 84,238,000 98,279,000
2.02.02 Other Liabilities 1,646,000 1,676,000
2.02.02.02 Others 1,646,000 1,676,000
2.02.02.02.03 Income Tax and Social Contribution 1,646,000 1,676,000
2.02.03 Deferred Taxes 43,185,000 6,857,000
2.02.03.01 Deferred Taxes 43,185,000 6,857,000
2.02.04 Provisions 152,448,000 162,737,000
2.02.04.01 Provisions for Tax Social Security, Labor and Civil Lawsuits 12,107,000 11,263,000
2.02.04.02 Other Provisions 140,341,000 151,474,000
2.02.04.02.04 Pension and Medical Benefits 45,319,000 51,498,000
2.02.04.02.05 Provision for Decommissioning Costs 83,737,000 87,160,000
2.02.04.02.06 Employee Benefits 617,000 812,000
2.02.04.02.07 Other Provisions 10,668,000 12,004,000
2.03 Shareholders' Equity 437,061,000 389,581,000
2.03.01 Share Capital 205,432,000 205,432,000
2.03.02 Capital Reserves 3,097,000 3,097,000
2.03.04 Profit Reserves 208,805,000 164,244,000
2.03.08 Other Comprehensive Income 16,860,000 14,556,000
2.03.09 Non-controlling interests 2,867,000 2,252,000

 

 

 
12  

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Income

(R$ Thousand)

   
     

 

Account Code Account Description Accumulated of the Current Year 01/01/2022 to 03/31/2022 Accumulated of the Previous Year 01/01/2021 to 03/31/2021
3.01 Sales Revenues 141,641,000 86,174,000
3.02 Cost of Sales (66,875,000) (42,141,000)
3.03 Gross Profit 74,766,000 44,033,000
3.04 Operating Expenses / Income (9,368,000) (10,129,000)
3.04.01 Selling Expenses (6,159,000) (5,198,000)
3.04.02 General and Administrative Expenses (1,559,000) (1,496,000)
3.04.05 Other Operating Expenses (3,466,000) (4,454,000)
3.04.05.01 Other Taxes (311,000) (581,000)
3.04.05.02 Research and Development Expenses (1,081,000) (639,000)
3.04.05.03 Exploration Costs (408,000) (1,196,000)
3.04.05.05 Other Operating Expenses, Net (1,670,000) (1,530,000)
3.04.05.07 Impairment of Assets Charges / Reversals 4,000 (508,000)
3.04.06 Share of Profit / Gains on Interest in Equity-Accounted Investments 1,816,000 1,019,000
3.05 Net Income Before Financial Results and Income Taxes 65,398,000 33,904,000
3.06 Finance Income (Expenses), Net 2,983,000 (30,748,000)
3.06.01 Finance Income 1,360,000 676,000
3.06.01.01 Finance Income 1,360,000 676,000
3.06.02 Finance Expenses 1,623,000 (31,424,000)
3.06.02.01 Finance Expenses (3,969,000) (6,613,000)
3.06.02.02 Foreign Exchange and Inflation Indexation Charges, Net 5,592,000 (24,811,000)
3.07 Net Income Before Income Taxes 68,381,000 3,156,000
3.08 Income Tax and Social Contribution (23,598,000) (1,880,000)
3.08.01 Current (13,463,000) (649,000)
3.08.02 Deferred (10,135,000) (1,231,000)
3.09 Net Income 44,783,000 1,276,000
3.11 Income / (Loss) for the Period 44,783,000 1,276,000
3.11.01 Attributable to Shareholders of Petrobras 44,561,000 1,167,000
3.11.02 Attributable to Non-Controlling Interests 222,000 109,000
3.99 Income per Share      
3.99.01 Income per Share      
3.99.01.01 Ordinary Shares 3.42 0.09
3.99.01.02 Preferred Shares 3.42 0.09
3.99.02 Diluted Income per Share    
3.99.02.01 Ordinary Shares 3.42 0.09
3.99.02.02 Preferred Shares 3.42 0.09

 

 

 

 
13  

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Comprehensive Income

(R$ Thousand)

   
     

 

Account Code Account Description Accumulated of the Current Year 01/01/2022 to 03/31/2022 Accumulated of the Previous Year 01/01/2021 to 03/31/2021
4.01 Net Income for the Period 44,783,000 1,276,000
4.02 Other Comprehensive Income 2,300,000 7,925,000
4.02.01 Actuarial Losses on Post-employment Defined Benefits Plans (15,000)
4.02.03 Cumulative Translation Adjustments (43,300,000) 24,676,000
4.02.07 Unrealized Gains / (Losses) on Cash Flow Hedge  - Recognized in Shareholders' Equity 59,908,000 (30,521,000)
4.02.08 Unrealized Gains / (Losses) on Cash Flow Hedge  - Reclassified to Profit and Loss 7,221,000 6,094,000
4.02.09 Deferred Income Tax and Social Contribution on Cash Flow Hedge (22,824,000) 8,305,000
4.02.10 Share of Other Comprehensive Income of Equity-Accounted Investments 1,295,000 (614,000)
4.03 Total Comprehensive Income for the Period 47,083,000 9,201,000
4.03.01 Attributable to Shareholders of Petrobras 46,865,000 8,701,000
4.03.02 Attributable to Non-controlling Interests 218,000 500,000

 

 

 
14  

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2022 to 03/31/2022

(R$ Thousand)

   
     

 

Account Code Account Description Share Capital

Capital Reserves,

Granted Options

and Treasury Shares

Profit Reserves

Retained Earnings /

Accumulated Losses

Other

Comprehensive

Income

Shareholders' Equity

Non-controlling

interest

Shareholders' Equity

Consolidated

5.01 Balance at the Beginning of the Period 205,432,000 3,313,000 164,028,000 14,556,000 387,329,000 2,252,000 389,581,000
5.03 Adjusted Opening Balance 205,432,000 3,313,000 164,028,000 14,556,000 387,329,000 2,252,000 389,581,000
5.04 Capital Transactions with Owners 397,000 397,000
5.04.06 Dividends (12,000) (12,000)
5.04.08 Change of interest in controlled companies 409,000 409,000
5.05 Total Comprehensive income 44,561,000 2,304,000 46,865,000 218,000 47,083,000
5.05.01 Net Income for the Period 44,561,000 44,561,000 222,000 44,783,000
5.05.02 Other Comprehensive Income 2,304,000 2,304,000 (4,000) 2,300,000
5.07 Balance at the End of the Period 205,432,000 3,313,000 164,028,000 44,561,000 16,860,000 434,194,000 2,867,000 437,061,000

 

 
15  

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021

(R$ Thousand)

   
     

 

Account Code Account Description Share Capital

Capital Reserves,

Granted Options

and Treasury Shares

Profit Reserves

Retained Earnings /

Accumulated Losses

Other

Comprehensive

Income

Shareholders' Equity

Non-controlling

interest

Shareholders' Equity

Consolidated

5.01 Balance at the Beginning of the Period 205,432,000 2,665,000 127,296,000 (26,983,000) 308,410,000 2,740,000 311,150,000
5.03 Adjusted Opening Balance 205,432,000 2,665,000 127,296,000 (26,983,000) 308,410,000 2,740,000 311,150,000
5.04 Capital Transactions with Owners (3,716,000) (3,716,000) 3,610,000 (106,000)
5.04.01 Capital Increases 11,000 11,000
5.04.06 Dividends (14,000) (14,000)
5.04.08 Change of interest in controlled companies (3,716,000) (3,716,000) 3,613,000 (103,000)
5.05 Total of Comprehensive Income 1,167,000 7,534,000 8,701,000 500,000 9,201,000
5.05.01 Net Income for the Period 1,167,000 1,167,000 109,000 1,276,000
5.05.02 Other Comprehensive Income 7,534,000 7,534,000 391,000 7,925,000
5.07 Balance at the End of the Period 205,432,000 (1,051,000) 127,296,000 1,167,000 (19,449,000) 313,395,000 6,850,000 320,245,000
 
16  

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Cash Flows – Indirect Method

(R$ Thousand)

   
     

 

Account Code Account Description Accumulated of the Current Year 01/01/2022 to 03/31/2022 Accumulated of the Previous Year 01/01/2021 to 03/31/2021
6.01 Net cash provided by operating activities 52,824,000 40,070,000
6.01.01 Cash provided by operating activities 66,246,000 50,837,000
6.01.01.01 Net Income for the period 44,783,000 1,276,000
6.01.01.02 Pension and medical benefits (actuarial expense) 1,605,000 1,726,000
6.01.01.03 Results of equity-accounted investments (1,816,000) (1,019,000)
6.01.01.04 Depreciation, depletion and amortization 16,604,000 15,630,000
6.01.01.05 Impairment of assets (reversal) (4,000) 508,000
6.01.01.06 Exploratory expenditures write-offs 114,000 740,000
6.01.01.08 Foreign exchange, indexation and finance charges (2,440,000) 30,244,000
6.01.01.09 Deferred income taxes, net 10,135,000 1,231,000
6.01.01.10 Allowance for expected credit losses 105,000 (86,000)
6.01.01.11 Inventory write-down (write-back) to net realizable value (34,000) (6,000)
6.01.01.13 Revision and unwinding of discount on the provision for decommissioning costs 806,000 1,062,000
6.01.01.17 Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA (2,472,000) (74,000)
6.01.01.19 Early termination and cash outflows revision of lease agreements (1,140,000) (395,000)
6.01.02 Decrease / (increase) in assets / increase/ (decrease) in liabilities (13,422,000) (10,767,000)
6.01.02.01 Trade and other receivables, net 3,123,000 (479,000)
6.01.02.02 Inventories (9,763,000) (10,793,000)
6.01.02.03 Judicial deposits (2,002,000) (839,000)
6.01.02.05 Other assets 249,000 137,000
6.01.02.06 Trade payables (1,267,000) 3,375,000
6.01.02.07 Other taxes payable 14,021,000 6,106,000
6.01.02.08 Pension and medical benefits (7,677,000) (5,253,000)
6.01.02.09 Provisions for legal proceedings 919,000 (1,159,000)
6.01.02.10 Short-term benefits (769,000) (468,000)
6.01.02.11 Income tax and social contribution paid (7,927,000) (710,000)
6.01.02.12 Provision for Decommissioning Costs (702,000) (887,000)
6.01.02.14 Other liabilities (1,627,000) 203,000
6.02 Net cash used in investing activities (4,983,000) (7,427,000)
6.02.01 Acquisition of PP&E and intangibles assets (12,338,000) (8,981,000)
6.02.02 Decrease (increase) in investments in assets (49,000) (4,000)
6.02.03 Proceeds from disposal of assets – Divestment 9,255,000 1,054,000
6.02.04 Divestment (investment) in marketable securities (2,445,000) 138,000
6.02.05 Dividends received 275,000 366,000
6.02.08 Financial compensation for the Búzios Co-participation Agreement 319,000
6.03 Net cash used in financing activities (16,455,000) (30,822,000)
6.03.01 Changes in non-controlling interest 412,000 (102,000)
6.03.02 Proceeds from financing 782,000 299,000
6.03.03 Repayment of principal - finance debt (7,683,000) (17,080,000)
6.03.04 Repayment of interest - finance debt (3,022,000) (5,898,000)
6.03.05 Dividends paid to shareholders of Petrobras (2,000)
6.03.06 Dividends paid to non-controlling interests (26,000) (1,000)
6.03.08 Settlement of lease liabilities (6,916,000) (8,040,000)
6.04 Effect of exchange rate changes on cash and cash equivalents (8,227,000) 5,408,000
6.05 Net increase/ (decrease) in cash and cash equivalents 23,159,000 7,229,000
6.05.01 Cash and cash equivalents at the beginning of the period 58,482,000 60,930,000
6.05.02 Cash and cash equivalents at the end of the period 81,641,000 68,159,000

 

 

 
17  

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Added Value

(R$ Thousand)

   
     

 

Account Code Account Description Accumulated of the Current Year 01/01/2022 to 03/31/2022 Accumulated of the Previous Year 01/01/2021 to 03/31/2021
7.01 Sales Revenues 185,271,000 121,529,000
7.01.01 Sales of Goods and Services 172,383,000 108,137,000
7.01.02 Other Revenues 4,652,000 4,225,000
7.01.03 Revenues Related to the Construction of Assets to be Used in Own Operations 8,341,000 9,081,000
7.01.04 Allowance for expected credit losses (105,000) 86,000
7.02 Inputs Acquired from Third Parties (50,911,000) (34,614,000)
7.02.01 Cost of Sales (32,760,000) (20,262,000)
7.02.02 Materials, Power, Third-Party Services and Other Operating Expenses (8,007,000) (5,988,000)
7.02.03 Impairment Charges / Reversals of Assets 4,000 (508,000)
7.02.04 Others (10,148,000) (7,856,000)
7.02.04.01 Tax Credits on Inputs Acquired from Third Parties (10,182,000) (7,862,000)
7.02.04.02 Inventory Write-Down to Net Realizable Value 34,000 6,000
7.03 Gross Added Value 134,360,000 86,915,000
7.04 Retentions (18,502,000) (16,805,000)
7.04.01 Depreciation, Amortization and Depletion (18,502,000) (16,805,000)
7.05 Net Added Value Produced 115,858,000 70,110,000
7.06 Transferred Added Value 3,845,000 1,877,000
7.06.01 Share of Profit of Equity-Accounted Investments 1,816,000 1,019,000
7.06.02 Finance Income 1,360,000 676,000
7.06.03 Others 669,000 182,000
7.06.03.01 Rentals, royalties and others 669,000 182,000
7.07 Total Added Value to be Distributed 119,703,000 71,987,000
7.08 Distribution of Added Value 119,703,000 71,987,000
7.08.01 Employee Compensation 6,776,000 6,763,000
7.08.01.01 Salaries 4,323,000 4,283,000
7.08.01.02 Fringe Benefits 2,189,000 2,227,000
7.08.01.03 Unemployment Benefits (FGTS) 264,000 253,000
7.08.02 Taxes and Contributions 66,883,000 30,229,000
7.08.02.01 Federal 54,447,000 22,910,000
7.08.02.02 State 12,203,000 7,171,000
7.08.02.03 Municipal 233,000 148,000
7.08.03 Return on Third-Party Capital 1,261,000 33,719,000
7.08.03.01 Interest (400,000) 32,582,000
7.08.03.02 Rental Expenses 1,661,000 1,137,000
7.08.04 Return on Shareholders' Equity 44,783,000 1,276,000
7.08.04.03 Retained Earnings / (Losses) for the Period 44,561,000 1,167,000
7.08.04.04 Non-controlling Interests on Retained Earnings / (Losses) 222,000 109,000

 

 
18  
Table of Contents 
 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 
1. Basis of preparation

These interim financial statements present the significant changes in the period, avoiding repetition of certain notes to the financial statements previously reported, and present the consolidated information, considering Management’s understanding that it provides a comprehensive view of the Company’s financial position and operational performance, complemented by certain information of the Parent Company. Hence, this interim financial information should be read together with the Company’s audited annual financial statements for the year ended December 31, 2021, which include the full set of notes.

The Company’s consolidated and individual interim financial information was prepared and presented in accordance with IAS 34 Interim Financial Reporting (Technical Pronouncement – CPC 21 (R1) – Interim Statements), in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and also in accordance with accounting practices adopted in Brazil by the Accounting Pronouncements Committee (CPC), approved by the Brazilian Securities Commission (CVM). All relevant information specific to the financial statements, and only them, are being highlighted, and corresponds to the ones used by the Company’s Management.

These interim financial statements were approved and authorized for issue by the Company’s Board of Directors in a meeting held on May 5, 2022.

 

2. Summary of significant accounting policies

The same accounting policies and methods of computation were followed in these consolidated interim financial statements as those followed in the preparation of the annual financial statements of the Company for the year ended December 31, 2021.

The accounting standards that came into effect on January 1st, 2022 did not have a material effect on these individual and consolidated quarterly information.

Regarding the reform of the reference interest rates (IBOR Reform), the Company continues to monitor the pronouncements of the regulatory authorities, as well as the measures that have been adopted, aimed at adapting the various financial instruments to the new benchmarks. Petrobras and its subsidiaries have debts indexed to Libor (London Interbank Offered Rate), the amount of which corresponds to approximately 32% of their financings. Debts indexed to Libor are presented in Note 23.3.

3. Cash and cash equivalents and Marketable securities
3.1. Cash and cash equivalents

They include cash, available bank deposits and short-term financial investments with high liquidity, which meet the definition of cash and cash equivalents recommended in accounting practice.

  Consolidated
  03.31.2022 12.31.2021
Cash at bank and in hand 1,222 1,666
Short-term financial investments    
   - In Brazil    
         Brazilian interbank deposit rate investment funds and other short-term deposits 27,974 10,885
         Other investment funds 928 911
  28,902 11,796
   - Abroad    
 Time deposits 33,633 24,050
Automatic investing accounts and interest checking accounts 17,700 20,826
 Other financial investments 144 72
  51,477 44,948
Total short-term financial investments 80,379 56,744
Total cash and cash equivalents 81,601 58,410

 

 

Short-term financial investments in Brazil primarily consist of investments in funds holding Brazilian Federal Government Bonds that can be redeemed immediately, as well as reverse repurchase agreements that mature within three months as of the date of their acquisition. Short-term financial investments abroad comprise time deposits that mature in three months or less from the date of their acquisition, highly-liquid automatic investment accounts, interest checking accounts and other short-term fixed income instruments.

These investments were substantially provided by an operating cash generation of R$52,824, receipts from the sale of assets and interests of R$ 9,255, with emphasis on the receipt of the sale of the interest in the BM-S-8 exploratory block in the amount of R$ 5,066 and proceeds from financing in the amount of R$782.

 
19  
Table of Contents 
 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

The main use of these funds in the period ended March 31, 2022 were for debt service, repurchase and redemption of securities in the international capital market and lease payments totaling R$ 17,621, as well as for realization of investments in the amount of R$ 12,338 and the exchange effect on the balances of cash and cash equivalents arising from investments abroad in the amount of R$ 8,227.

3.2. Marketable securities
    Consolidated
  03.31.2022 12.31.2021
Fair value through profit or loss 3,595 3,630
Amortized cost 2,629 247
Total 6,224 3,877
Current 5,967 3,630
Non-current 257 247
 

Marketable securities classified as fair value through profit or loss refer mainly to investments in Brazilian Federal Government Bonds. These financial investments have maturities of more than three months and are generally classified as current assets due to their maturity or the expectation of their realization in the short term. Securities classified as amortized cost mainly refer to investments abroad in time deposits with maturities exceeding three months from the contracting date.

 
20  
Table of Contents 
 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 
4. Sales revenues
  Consolidated
  2022 2021
  Jan-Mar Jan-Mar
Gross sales 172,383 108,137
Sales taxes (*) (30,742) (21,963)
Sales revenues 141,641 86,174
Diesel 38,875 25,161
Gasoline 19,404 11,068
Liquefied petroleum gas 6,172 5,018
Jet fuel 5,176 2,328
Naphtha 3,182 1,812
Fuel oil (including bunker fuel) 1,911 1,829
Other oil products 6,650 4,815
Subtotal oil products 81,370 52,031
Natural gas 9,028 5,678
Crude oil 9,147 290
Nitrogen products and renewables 343 74
Breakage 539 365
Electricity 1,553 2,970
Services, agency and others 1,239 876
Domestic market 103,219 62,284
Exports 35,110 22,800
    Crude oil 25,043 15,462
     Fuel oil (including bunker fuel) 9,865 6,598
    Other oil products and other products 202 740
Sales abroad (**) 3,312 1,090
Foreign Market 38,422 23,890
Sales revenues 141,641 86,174
 (*) Includes, mainly, CIDE, PIS, COFINS and ICMS (VAT).
(**) Sales revenues from operations outside of Brazil, including trading and excluding exports.
 

 

 

In the period from January to March 2022 and 2021, Vibra Energia, formerly BR Distribuidora, represents more than 10% of the company's total sales, mainly impacting the Refining, Transportation and Marketing (RTM) segment.

 

5. Costs and expenses by nature

 

5.1. Cost of sales
  Consolidated
  2022 2021
  Jan-Mar Jan-Mar
Raw material, products for resale, materials and third-party services (*) (30,257) (14,593)
Depreciation, depletion and amortization (13,416) (12,242)
Production taxes (21,146) (12,911)
Employee compensation (2,056) (2,395)
Total (66,875) (42,141)
(*) It Includes short-term leases and inventory turnover.

 

5.2. Selling expenses
  Consolidated
  2022 2021
  Jan-Mar Jan-Mar
Materials, third-party services, freight, rent and other related costs (4,967) (4,299)
Depreciation, depletion and amortization (1,038) (814)
Allowance for expected credit losses (40) 31
Employee compensation (114) (116)
Total (6,159) (5,198)
 

 

 

 

5.3. General and administrative expenses
  Consolidated
  2022 2021
  Jan-Mar Jan-Mar
Employee compensation (1,036) (1,013)
Materials, third-party services, rent and other related costs (403) (351)
Depreciation, depletion and amortization (120) (132)
Total (1,559) (1,496)
 

 

 
21  
Table of Contents 
 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 
6. Other income and expenses
  Consolidated
  2022 2021
  Jan-Mar Jan-Mar
Unscheduled stoppages and pre-operating expenses (1,952) (1,641)
Gains / (losses) related to legal, administrative and arbitration proceedings (1,307) 294
Pension and medical benefits – retirees (1,242) (1,189)
Variable compensation program (618) (528)
Gains/(losses) with Commodities Derivatives (282) (126)
Profit Sharing (161) (157)
Gains / (losses) on decommissioning of returned/abandoned areas (125) (35)
Amounts recovered from Lava Jato investigation (**) 60 790
Tax recovery (*) 89 116
Equalization of expenses – Production Individualization Agreements 138 (244)
Expenses/Reimbursements from E&P partnership operations 138 552
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments (183)
Fines imposed on suppliers 355 160
Early termination and cash outflows revision of lease agreements 1,140 395
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control 2,472 257
Others (375) 9
Total (1,670) (1,530)
(*) It Includes the effects of the exclusion of ICMS (VAT tax) from the basis of calculation of sales taxes PIS and COFINS, except for the effects of inflation indexation, as set out in note 11.
(**) The total amount recovered from Lava Jato Investigation through December 31, 2021 was R$ 6,220, recognized through collaboration and leniency agreements entered into with individuals and legal entities.

 

7. Net finance income (expense)

 

  Consolidated
  2022 2021
  Jan-Mar Jan-Mar
Finance income 1,360 676
Income from investments  and marketable securities (Government Bonds) 844 160
Others 516 516
Finance expenses (3,969) (6,613)
Interest on finance debt (2,784) (4,119)
Unwinding of discount on lease liabilities (1,526) (1,607)
Discount and premium on repurchase of debt securities (134) (1,013)
Capitalized borrowing costs 1,244 1,154
Unwinding of discount on the provision for decommissioning costs (682) (1,027)
Other finance expenses and income, net (87) (1)
Foreign exchange gains (losses) and indexation charges 5,592 (24,811)
Foreign Exchange (*) 12,535 (18,727)
Reclassification of hedge accounting to the Statement of Income (*) (7,221) (6,094)
Recoverable taxes inflation indexation income 108 71
Others 170 (61)
Total 2,983 (30,748)

(*) For more information, see notes 27.3.a and 27.3.c.

 

 

 

 
22  
Table of Contents 
 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

8. Net income by operating segment

Consolidated Statement of Income by operating segment – Jan-Mar/2022

 

  Exploration and Production Refining, Transportation & Marketing

Gas

&

Power

Corporate and ther business Eliminations Total
Sales revenues 102,567 128,476 17,655 658 (107,715) 141,641
     Intersegments 100,949 2,258 4,490 18 (107,715)
     Third parties 1,618 126,218 13,165 640 141,641
Cost of sales (40,112) (112,165) (15,272) (649) 101,323 (66,875)
Gross profit 62,455 16,311 2,383 9 (6,392) 74,766
Expenses (252) (2,781) (4,616) (3,515) (20) (11,184)
    Selling (10) (2,139) (3,974) (16) (20) (6,159)
    General and administrative (68) (196) (84) (1,211) (1,559)
    Exploration costs (408) (408)
    Research and development (909) (13) (14) (145) (1,081)
    Other taxes (76) (39) (52) (144) (311)
    Impairment 7 3 (6) 4
    Other income and expenses 1,212 (394) (495) (1,993) (1,670)
Net income (loss) before financial results and income taxes 62,203 13,530 (2,233) (3,506) (6,412) 63,582
    Net finance income (expenses) 2,983 2,983
    Results in equity-accounted investments 257 1,415 149 (5) 1,816
Net Income (loss) before income taxes 62,460 14,945 (2,084) (528) (6,412) 68,381
    Income taxes (21,149) (4,600) 759 (788) 2,180 (23,598)
Net income (loss) of the period 41,311 10,345 (1,325) (1,316) (4,232) 44,783
Attributable to:            
Shareholders of Petrobras 41,317 10,345 (1,461) (1,408) (4,232) 44,561
Non-controlling interests (6) 136 92 222
  41,311 10,345 (1,325) (1,316) (4,232) 44,783
 
23  
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

Consolidated Statement of Income by operating segment – Jan-Mar/2021

  Exploration and Production Refining, Transportation & Marketing

Gas

&

Power

Corporate and ther business Eliminations Total
Sales revenues 63,952 76,741 12,087 836 (67,442) 86,174
     Intersegments 62,783 1,282 3,026 351 (67,442)
     Third parties 1,169 75,459 9,061 485 86,174
Cost of sales (28,636) (64,975) (7,271) (823) 59,564 (42,141)
Gross profit 35,316 11,766 4,816 13 (7,878) 44,033
Expenses (2,888) (2,186) (4,103) (1,943) (28) (11,148)
    Selling (1) (1,839) (3,301) (29) (28) (5,198)
    General and administrative (178) (180) (94) (1,044) (1,496)
    Exploration costs (1,196) (1,196)
    Research and development (467) (11) (27) (134) (639)
    Other taxes (91) (220) (127) (143) (581)
    Impairment (538) 30 (508)
    Other income and expenses (417) 64 (554) (623) (1,530)
Net income (loss) before financial results and income taxes 32,428 9,580 713 (1,930) (7,906) 32,885
    Net finance income (expenses) (30,748) (30,748)
    Results in equity-accounted investments 126 616 215 62 1,019
Net Income (loss) before income taxes 32,554 10,196 928 (32,616) (7,906) 3,156
    Income taxes (11,025) (3,257) (242) 9,956 2,688 (1,880)
Net income (loss) of the period 21,529 6,939 686 (22,660) (5,218) 1,276
Attributable to:            
Shareholders of Petrobras 21,533 6,939 558 (22,645) (5,218) 1,167
Non-controlling interests (4) 128 (15) 109
  21,529 6,939 686 (22,660) (5,218) 1,276

 

 

 

 

The balance of depreciation, depletion and amortization by business segment is set forth as follows:

           
  Exploration and Production Refining, Transportation & Marketing

Gas

&

Power

Corporate and other business Total
Jan-Mar/2022 12,941 2,991 562 110 16,604
Jan-Mar/2021 11,872 2,950 582 226 15,630
           
9. Trade and other receivables
9.1. Trade and other receivables, net
  Consolidated
  03.31.2022 12.31.2021
Receivables from contracts with customers
Third parties 24,294 27,005
Related parties    
Investees (note 28.4) 1,771 2,152
Subtotal 26,065 29,157
Other trade receivables    
 Third parties    
Receivables from divestments (*) 8,684 14,951
Lease receivables 2,038 2,428
Other receivables 3,999 4,866
Related parties    
Petroleum and alcohol accounts – receivables from Brazilian Government 2,919 2,822
Subtotal 17,640 25,067
Total trade receivables 43,705 54,224
Expected credit losses (ECL) – Third parties (7,431) (7,971)
Expected credit losses (ECL) – Related parties (136) (112)
Total trade receivables, net 36,138 46,141
Current 26,849 35,538
Non-current 9,289 10,603

(*)Refers mainly to the amount receivable for the divestment in Nova Transportadora do Sudeste (NTS), received in April 2022, as per explanatory note 30, in addition to Rio Ventura, Roncador, Pampo Enchova, Baúna, Miranga and Maromba.

 

 

 

Accounts receivable are classified in the amortized cost category, except for certain receivables with final price formation after the transfer of control of products that depend on the variation in the value of the commodity, classified in the category fair value through profit or loss, whose value on March 31, 2022 totaled R$3,343 (R$6,445 as of December 31, 2021).

 

 
24  
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

In the first quarter of 2022, the average term for receiving receivables from contracts from third-party customers, referring to the sale of derivatives in the domestic market, is approximately 1.9 days (1.6 days in 2021). Fuel oil and petroleum exports have an average term of receipt of approximately 11.6 days and 7 days, respectively (15 days and 6.5 days in 2021).

The balance of receivables from divestments was reduced mainly by the receipt of US$ 950 million (R$ 5,066), from the sale of its interest in the exploration block BM-S-8, as per explanatory note 31.4 of the financial statements of December 31, 2021.

9.2. Aging of trade and other receivables – third parties
    Consolidated
  03.31.2022 12.31.2021
  Trade receivables Expected credit losses (ECL) Trade receivables Expected credit losses (ECL)
Current 29,819 (381) 39,392 (428)
Overdue:        
Until 3 months 1,303 (177) 1,214 (144)
3 – 6 months 149 (105) 221 (36)
6 – 12 months 287 (183) 286 (164)
More than 12 months 7,457 (6,585) 8,137 (7,199)
Total 39,015 (7,431) 49,250 (7,971)

 

9.3. Changes in provision for expected credit losses
  Consolidated
  03.31.2022 12.31.2021
Opening balance 8,083 8,293
Additions 215 374
Reversals (133) (611)
Write-offs (24) (213)
Transfer of assets held for sale (42)
Cumulative translation adjustment (574) 282
Closing balance 7,567 8,083
Current 990 880
Non-current 6,577 7,203
10. Inventories
  Consolidated
  03.31.2022 12.31.2021
Crude oil 22,163 17,012
Oil products 14,611 13,922
Intermediate products 3,336 2,967
Natural gas and LNG (*) 3,216 1,946
Biofuels 94 106
Fertilizers 47 43
Total products 43,467 35,996
Materials, supplies and others 4,884 4,490
Total 48,351 40,486
(*) Liquefied Natural Gas

 

Consolidated inventories are presented net of losses for adjustment to their net realizable value, these adjustments being mainly due to fluctuations in international oil prices and their derivatives and, they are recognized in the statement of income for the period as cost of sales. In the period from January to March 2022, there was a reversal of the provision of R$34 (reversal of R$6 in the period from January to March 2021).

On March 31, 2022, the company had a volume of oil and/or oil product inventory given as guarantee of the Financial Commitment Terms - TCF, signed in 2008 with Petros, in the amount of R$ 14,891. This amount of guarantee is in the process of adjustment due to the partial early settlement of the TCF Pension Difference and TCF Pre-70, carried out in February 2022, which seeks to converge with the current value of the debt, which on March 31, 2022 is R$ 3,027.

 
25  
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

11.       Taxes

 

11.1.      Income tax and social contribution

Current taxes

 

Income tax and social contribution

Consolidated
  Current assets Current liabilities Non-current liabilities
  03.31.2022 12.31.2021 03.31.2022 12.31.2021 03.31.2022 12.31.2021
Taxes in Brazil
Income taxes 748 745 4,123 3,803
Income taxes – Tax settlement programs 245 241 1,646 1,676
  748 745 4,368 4,044 1,646 1,676
Taxes abroad 145 166 527 45
Total 893 911 4,895 4,089 1,646 1,676

 

Reconciliation between statutory tax rate and effective tax expense rate

The reconciliation of taxes calculated according to nominal rates and the amount of registered taxes are shown below:

  Consolidated
  2022 2021
  Jan-Mar Jan-Mar
Net income before income taxes 68,381 3,156
Nominal income taxes computed based on Brazilian statutory corporate tax rates (34%) (23,250) (1,073)
Adjustments to arrive at the effective tax rate:    
Different jurisdictional tax rates for companies abroad 1,034 115
Brazilian income taxes on income of companies incorporated outside Brazil (*) (1,542) (1,156)
Tax loss carryforwards (unrecognized tax losses) 12 (166)
Non-taxable income (non-deductible expenses), net (**) 134 229
Post-retirement benefit (722) (242)
Results of equity-accounted investments in Brazil and abroad 633 413
Others 103
Income tax expenses (23,598) (1,880)
Deferred income taxes (10,135) (1,231)
Current income taxes (13,463) (649)
Income tax expenses (23,598) (1,880)
Effective tax rate of income taxes 34.5% 59.6%
(*) Income tax and social contribution in Brazil referring to income earned in the years by investees abroad, according to provisions provided for in Law No. 12,973 / 2014.

(**) Includes effect on judicial agreements.

 

Deferred income taxes - non-current

    Consolidated
      2022 2021
Balance at January 1st     (3,486) 32,509
Recognized in the statement of income for the period     (10,135) (21,644)
Recognized in shareholders’ equity     (22,824) (8,235)
Cumulative translation adjustment     (30) 20
Use of tax credits     (3,767) (6,350)
Others     19 214
Balance at the end of the period     (40,223) (3,486)
Deferred tax assets     2,962 3,371
Deferred tax liabilities (*)     (43,185) (6,857)
Balance at the end of the period     (40,223) (3,486)
(*) The balance of deferred tax liabilities increased in the period, mainly due to the offsetting of tax losses and negative basis of social contribution, the use of the benefit of accelerated tax depreciation and the appreciation of the Real against the U.S. Dollar.

 

 

The table below shows the composition and basis for realization of deferred tax assets and liabilities:

 

 
26  
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

Nature Basis for realization 03.31.2022 12.31.2021
Property, plant and equipment - Cost of prospecting and dismantling areas

 

Depreciation, Amortization and Write-off of Assets

(6,461) (7,601)
Property, plant and equipment - Impairment Amortization, Write-off of Assets and Impairment Reversal 23,730 24,455
Property, plant and equipment – Depreciation, accelerated and linear x unit produced and capitalized charges Depreciation, Amortization and Write-off of Assets (76,102) (72,123)
Loans, accounts receivable / payable and financing Payments, Receipts and Consideration (789) 19,475
Leases Appropriation of consideration (61) 6,942
Provision for lawsuits Payment and reversal of the provision 3,674 3,378
Tax losses Compensation of 30% of taxable income 5,951 10,193
Inventories Sale, Write-Off and Loss 1,343 1,271
Employee benefits, mainly pension plan Payment and reversal of the provision 6,620 6,976
Others   1,872 3,548
Total           (40,223) (3,486)
               

 

11.2. Other taxes

Consolidated

Other taxes Current assets Non-current assets Current liabilities Non-current liabilities (*)
  03.31.2022 12.31.2021 03.31.2022 12.31.2021 03.31.2022 12.31.2021 03.31.2022 12.31.2021
Taxes in Brazil:  
Current / Deferred VAT Rate (VAT) 2,926 3,712 2,094 2,114 4,445 5,554
Current / Deferred PIS and COFINS (**) 1,878 2,330 11,683 11,329 1,963 2,786 303 251
PIS and COFINS - Law 9,718/98 3,337 3,313
CIDE 10 31 204 235
Production taxes/Royalties   14,502 11,984 117 117
Withholding income taxes 486 481
Tax settlement programs 299 374 36 36
Others 238 272 1,390 1,393 660 781 392 392
Total in Brazil 5,052 6,345 18,504 18,149 22,559 22,195 848 796
Taxes abroad 230 255 43 48 114 130
Total 5,282 6,600 18,547 18,197 22,673 22,325 848 796
(*) Other non-current liabilities are classified as other liabilities.
(**) As of March 31, 2022, includes R$443 (R$576 as of December 31, 2021) in current assets, referring to the exclusion of VAT tax in the PIS and COFINS calculation basis.

 

PIS and COFINS Law 9,718/98

The company filed common actions against the Federal Government referring to the recovery of amounts paid as PIS/COFINS on financial income and active exchange variations, considering the unconstitutionality of §1 of art. 3 of Law 9,718/98, in the periods between February 1999 and January 2004.

All actions were upheld with a final and unappealable decision. Currently, two actions are in the precatory stage, with values ​​as claimed by the company. Regarding the two remaining cases, both have favorable reports, and in one of them, the Union has already expressed its agreement.

As of March 31, 2022, the amount monetarily restated is R$3,337 (R$3,313 as of December 31, 2021).

12. Employee benefits

Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees or for the termination of employment. It also includes expenses with directors and other managers. Such benefits include salaries, post-employment benefits, termination benefits and other benefits.

  Consolidated
  03.31.2022 12.31.2021
Liabilities    
Short-term employee benefits 7,066 7,197
Termination benefits 1,294 1,950
Post-retirement benefits 49,006 55,130
Total 57,366 64,277
Current 11,430 11,967
Non-current 45,936 52,310
Total 57,366 64,277

 

12.1.      Short-term benefits

 
27  
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

Short-term benefits are employee benefits (other than termination benefits) that are expected to be settled wholly before twelve months after the end of the reporting period in which the employees render the related service.

    Consolidated
      03.31.2022 12.31.2021
Variable compensation program - PPP     2,549 2,574
Accrued vacation and Christmas bonus     2,713 2,453
Salaries and related charges and other provisions     1,183 1,505
Profit sharing     621 665
Total     7,066 7,197
Current     7,048 7,178
Non-current     18 19
Total     7,066 7,197

 

In the period from January to March, in relation to short-term benefits, the company recognized the following amounts in the income statement:

    Consolidated
      Jan-Mar/2022 Jan-Mar/2021
Costs/Expenses in the statement of income        
Salaries, vacation, christmas bonus, charges over provisions and others     3,529 3,579
Variable compensation program     618 528
Profit sharing     161 157
Manager compensations and charges     15 19
Total     4,323 4,283
 

 

12.1.1Variable compensation program

Performance award program (PPP)

On September 17, 2021, the Company’s Board of Directors approved changes in the criteria for granting PPP 2021 to employees.

 

The PPP 2021 model presents, for the activation of the program, in addition to the net income for the year, the declaration and payment of remuneration to shareholders for the year in question approved by the Board of Directors.

The company paid the PPP 2021 to employees in the amount of R$ 640 in March 2022 and R$ 1,755 (R$ 1,641 in the parent company) in April 2022, totaling R$ 2,395, considering compliance with the company's performance metrics company and the individual performance of all employees.

On December 15, 2021, the Board of Directors approved the PPP 2022 for employees. The criteria of the PPP21 model for activating the program were maintained.

In the period from January to March 2022, the company provisioned R$618 (R$581 in the parent company) referring to the employees' variable compensation for the year 2022, recorded in other operating expenses.

Profit Sharing (PLR)

On December 29, 2020, the 17 labor unions representing employees of onshore bases signed the agreement for PLR 2021/2022, within the period determined by the Collective Bargaining Agreement (ACT). Among the maritime bases, three labor union entities signed the agreement within the deadline defined by the ACT.

The PLR ​​2021/2022 regulation, approved by the Secretariat for Coordination and Governance of State-owned Companies (Sest), of the Federal Government, covers employees who do not occupy remunerated functions and provides for individual limits according to the participants' remuneration. In order for the PLR ​​to be activated in 2021 and 2022, in addition to the PLR ​​agreement having been signed, the following triggers/requirements must be met: i) approval of the distribution of dividends by the Annual General Meeting (AGO); ii) calculation of net income in the reference year; and iii) achievement of the average percentage, weighted by weight, of the set of indicators' targets of at least 80%.

The maximum amount of PLR to be distributed is limited to 5% of Adjusted EBITDA, to 6.25% of net income and to 25% of dividends distributed to shareholders, in each year, whichever is lower.

 
28  
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

In January 2022, the company advanced part of the PLR ​​2021 amount to employees with an estimated discharge for May 30, 2022, in the amount of R$209 (R$191 in the parent company).

In the period from January to March 2022, the company provisioned R$ 161 (R$ 147 in the parent company) referring to the employees' participation in the net income for the year 2022, recorded in other operating expenses.

12.2.      Termination benefits

Termination benefits are those provided in exchange for the termination of labor contract as a result of either: i) an entity’s decision to terminate the labor contract before the employee’s normal retirement date; or ii) an employee’s decision to accept an offer of benefits in exchange for the termination of its employment.

The company has voluntary termination programs (PDV), incentive retirement programs (PAI), specific termination programs for the corporate segment and for employees assigned to units in the process of divestment, which basically provide for the same legal and indemnity advantages whose enrollment deadlines have already been closed, totaling 11,431 adhesions accumulated until March 31, 2022 (11,418 adhesions until December 31, 2021).

The change in the provision as of March 31, 2022 is shown below:

  Consolidated
  03.31.2022 12.31.2021
Opening Balance 1,950 4,678
Effects in the statement of income 20 (62)
Enrollments 23 168
Revision of provisions (3) (230)
Effect in cash and cash equivalents (676) (2,666)
Use due to termination (676) (2,666)
Saldo final 1,294 1,950
Current 695 1,157
Non Current 599 793

 

 

 

The recognition of the provision for expenses with the retirement programs occurs as the employees join.

The company deferred the payment of indemnities in two installments, the first at the time of termination, together with the legal severance payments, and the second, when applicable, 12 months after the payment of the first installment.

As of March 31, 2022, of the total provisioned, the amount of R$284 corresponds to the second installment of 947 terminated employees and the amount of R$1,010 corresponds to 1,842 employees enrolled in the voluntary termination programs scheduled to leave by December 2023.

12.3.      Post-employment benefits

The Company maintains a health care plan for its employees in Brazil (active and retiree) and their dependents, and five other major types of post-retirement pension benefits (collectively referred to as “pension plans”).

The balances related to post-employment benefits granted to employees are shown below:

    Consolidated
      03.31.2022 12.31.2021
Liabilities        
Health Care Plan: Saúde Petrobras     25,392 25,029
Petros Pension Plan - Renegotiated (PPSP-R)     16,214 18,042
Petros Pension Plan - Non-renegotiated (PPSP-NR)     3,704 3,672
Petros Pension Plan - Renegotiated - Pre-70 (PPSP-R Pré 70)     1,477 4,557
Petros Pension Plan - Non-renegotiated - Pre-70 (PPSP-NR Pré 70)     1,250 2,851
Petros 2 Pension Plan (PP-2)     960 918
Other plans     9 61
 
29  
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

Total     49,006 55,130
Current     3,687 3,632
Non-current     45,319 51,498
 

Health Care Plan

The health care plan, named “Saúde Petrobras” by the beneficiaries, is managed by the Petrobras Health Association (APS), a non-profit civil association and includes prevention and health care programs.

Benefits are paid by the Company based on the costs incurred by the participants. The financial participation of the Company and the beneficiaries on the expenses is established in the collective bargaining agreement (ACT), being 60% (sixty percent) by the company and 40% (forty percent) by the participants.

Pension plans

The Company’s post-retirement plans are managed by Petros Foundation (Fundação Petrobras de Seguridade Social), a nonprofit legal entity governed by private law with administrative and financial autonomy.

The net obligation with pension plans recorded by the company has a different recognition methodology than that applicable to pension funds, regulated by the Conselho Nacional de Previdência Complementar.

The main differences in accounting practices adopted in Brazil (CNPC and CVM) between the Pension Fund and the Sponsor for calculating the actuarial commitment are shown below:

  12.31.2021
  PPSP-R PPSP-NR
Accumulated deficit according to CNPC – Petros Foundation 7,746 776
Financial assumptions (interest rate and inflation) (6,252) (2,033)
Ordinary and extraordinary sponsor contributions 12,223 3,636
Changes in value of plan assets (*) 8,074 3,029
Others (calculation methodology, etc.) 808 1,115
Net actuarial liability according to CVM - Sponsor Company 22,599 6,523
(*) Includes balance of accounts receivable arising from the Financial Commitment Term - TCF signed with Petrobras, which Petros recognizes as equity.

On March 28, 2022, the Petros Deliberative Council approved the financial statements of the pension plans for the year 2021, sponsored by the company.

12.3.1. Amounts in the financial statements related to defined benefit plans

Represents the company's obligation, net of collateral assets when applicable, discounted to present value and calculated annually by an independent actuary, in accordance with the methodology established in IAS 39/CPC 33 (R1) - Employee Benefits, approved by CVM Deliberation No. 695/2012.

The movement of obligations with pension and health plans with a defined benefit feature is shown below:

  Consolidated
  2022
  Pension plans Health Care Plan Other plans  
  PPSP-R (*) PPSP-NR (*) PP2 Saúde Petrobras   Total
Balance on January 1st   22,599 6,523 918 25,029 61 55,130
Recognized in income – cost and expenses 591 187 42 785 1,605
Current service cost 12 2 17 135 166
Interest cost, net 579 185 25 650 1,439
Cash effects (5,499) (1,756) (422) (7,677)
Contributions paid (284) (89) (422) (795)
Payments related to Term of financial commitment (TFC) (5,215) (1,667) (6,882)
Other changes (52) (52)
Balance of actuarial liability as of March 31 17,691 4,954 960 25,392 9 49,006
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.
  Consolidated
  2021
  Pension plans Health Care Plan Other plans  
  PPSP-R (*) PPSP-NR (*) PP2 Saúde Petrobras   Total
Balance on January 1st  (**) 39,102 14,012 2,477 27,836 76 83,503
Recognized in income – cost and expenses 2,510 947 383 7,420 (45) 11,215
Past service cost (5) (1) 4,518 4,512
Current service cost 72 5 198 844 (50) 1,069
Interest cost, net 2,345 914 185 2,058 5 5,507
 
30  
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

Interest on the obligations with contribution for the revision of the lump sum death benefit 98 29 127
Recognized in Equity - other comprehensive income (11,929) (5,308) (1,942) (8,590) 34 (27,735)
Remeasurement: actuarial (gains)/losses (11,929) (5,308) (1,942) (8,590) 34 (27,735)
Cash effects (7,084) (3,128) (1,633) (3) (11,848)
Contributions paid  (***) (2,514) (453) (1,633) (3) (4,603)
Payments of obligations with contribution for the revision of the lump sum death benefit (1,797) (536) (2,333)
Payments related to Term of financial commitment (TFC) (2,773) (2,139) (4,912)
Other changes (4) (1) (5)
Balance of actuarial liability as of December 31 22,599 6,523 918 25,029 61 55,130
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.
(**)Includes obligation with contributory contribution for reviewing the lump sum death benefit.
(***) Includes the payment of the contribution for migration to the defined contribution plan PP3 of R$ 1,274.

 

The net expense with pension and health plans is presented below:

 

  Pension Plans Health Care Plan Other                           Plans  
  PPSP-R (*) PPSP-NR (*) PP2

Saúde

Petrobras

  Total
Related to active employees (cost and expenses) 45 7 24 287 363
Related to retired employees (other income and expenses) 546 180 18 498 1,242
Expense in the statement of income - Jan-Mar/2022 591 187 42 785 1,605
Related to active employees (cost and expenses) 72 13 80 371 1 537
Related to retired employees (other income and expenses) 551 210 19 341 1,121
Obligations with contribution for the revision of the lump sum death benefit 52 16 68
Expense in the statement of income - Jan-Mar/2021 675 239 99 712 1 1,726
(*) It includes amounts of PPSP-R pre-70 and PPSP-NR pre-70

 

12.3.2. Contributions

In the period from January to March 2022, the company contributed a total of R$7,677 to the defined benefit plans, which reduced the balance of obligations, as shown in Note 12.3.1. Of this amount, it includes the partial early settlement of the Financial Commitment Term, in the amount of R$6,882, carried out on February 25, 2022.

Additionally, there was a contribution of R$ 242 (R$ 217 for the period from January to March 2021) to the defined contribution portion of the PP2 plan and R$ 2 of the PP3 plan, which were recognized in costs and income for the year.

The collection of contributions to the PP3 plan began in August 2021.

13. Provisions for legal proceedings

13.1  Provisions for legal proceedings, judicial deposits and contingent liabilities

The Company recognizes provisions based on the best estimate of the costs of proceedings for which it is probable that an outflow of resources embodying economic benefits will be required and that can be reliably estimated. These proceedings mainly include:

· Labor claims, in particular: (i) opt-out claims related to a review of the methodology by which the minimum compensation based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime - RMNR) is calculated; and (ii) actions of outsourced employees;
· Tax claims including: (i) claims relating to Brazilian federal tax credits applied that were disallowed; (ii) non-payment of social security contributions on bonuses;
· Civil claims, in particular: (i) lawsuits related to contracts; (ii) royalties and production taxes, including royalties over shale extraction; and (iii) penalties applied by ANP relating to measurement systems.
· Environmental claims, specially: (i) compensation and fines relating to an environmental accident in the State of Paraná in 2000; (ii) fines relating to the Company’s offshore operation; and (iii) public civil action for oil spill in 2004 in Serra do Mar State of São Paulo Park.

Provisions for legal proceedings are set out as follows:

 
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

  Consolidated
Current and Non-current liabilities 03.31.2022 12.31.2021
Labor claims 4,093 3,995
Tax claims 1,903 1,705
Civil claims 5,026 4,581
Environmental claims 1,085 982
Total 12,107 11,263

 

  Consolidated
  03.31.2022 12.31.2021
Opening Balance 11,263 11,427
Additions, net of reversals 1,070 2,864
Use of provision (421) (3,894)
Accruals and charges 253 809
Others (58) 57
Closing balance 12,107 11,263
 

 

 

In the preparation of the interim financial information for the period ended on March 31, 2022, the Company considered all available information concerning legal proceedings in which the Company is a defendant, in order to estimate the amounts of obligations and probability that outflows of resources will be required.

In the period from January to March 2022, the increase in liabilities is mainly due to changes in the following cases: (i) R$268 for the transfer to probable loss in a lawsuit that discusses the state monopoly of piped gas services; (ii) R$262 in the provision for civil litigation involving contractual matters; and (iii) R$123 in the provision for fines for non-compliance with ancillary obligations.

13.2  Judicial deposits

Judicial deposits made in connection with legal proceedings are set out in the table below according to the nature of the corresponding lawsuits:

  Consolidated
Non-current assets 03.31.2022 12.31.2021
Tax 34,257 32,310
Labor 4,501 4,443
Civil 7,939 7,113
Environmental 564 566
Others 341 426
Total 47,602 44,858
 

 

 

  Consolidated
  03.31.2022 12.31.2021
Opening Balance 44,858 37,838
Additions 2,117 6,160
Use (119) (593)
Accruals and charges 833 1,428
Others (87) 25
Closing balance 47,602 44,858

In the period from January to March 2022, the company made judicial deposits in the amount of R$2,117, including: (i) R$650 referring to the unification of fields (Cernambi, Tupi, Tartaruga Verde and Tartaruga Mestiça); (ii) R$395 referring to Corporate Income Tax and Social Contribution for not adding the income of subsidiaries and affiliates domiciled abroad to the parent company's Corporate Income Tax and Social Contribution calculation basis; (iii) R$ 323 referring to the levy of CIDE and PIS/COFINS, related to the charter of platforms; (iv) R$ 172 referring to Corporate Income Tax and Social Contribution in the deduction of expenses with Petros; (v) R$152 referring to tax regularization on municipal tax credits; and (vi) R$232 referring to several judicial deposits of a tax nature.

13.3  Contingent liabilities

As of March 31, 2022, the contingent liabilities plus interest and monetary restatement, estimated for legal proceedings, whose probability of loss is considered possible, are presented in the following table:

  Consolidated
Nature 03.31.2022 12.31.2021
Tax 154,116 138,312
Labor 41,061 40,022
Civil – General 32,907 31,921
Civil – Environmental 6,851 6,652
Total 234,935 216,907
 

 

 

The main contingent liabilities are:

 
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 
· Tax matters comprising: i) withholding income tax (IRRF), Contribution of Intervention in the Economic Domain (CIDE), Social Integration Program (PIS) and Contribution to Social Security Financing (COFINS) on remittances for payments of vessel charters; (ii) income from foreign subsidiaries and associates located outside Brazil not included in the computation of taxable income (Corporate Income Tax and Social Contribution); (iii) tax on services provided offshore (ISS); (iv) requests to compensate federal taxes disallowed by the Brazilian Federal Tax Authority; (v) collection and crediting of ICMS VAT tax by several states; (vi) collection of social security contributions over payments of bonuses, and (vii) collection of custom duties and fines related to imports under the Repetro regime in the Frade consortium.
· Labor matters comprising collective actions requiring a review of the methodology by which the minimum compensation based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime - RMNR) is calculated;
· Civil lawsuits, highlighting: (i) administrative and legal proceedings that discuss differences in special participations and royalties in different fields; (ii) fines from regulatory agencies; and (iii) claims involving contracts;
· Environmental matters with emphasis on indemnities and reparations for environmental damages and fines related to the company's operation.

In the period from January to March 2022, the increase in liabilities arises mainly from: (i) R$ 11,612 referring to the notice of infraction, for the collection, by joint liability, of customs taxes and fines arising from the importation of goods under the Repetro regime, for use in the Frade consortium; (ii) R$1,866 referring to administrative and judicial proceedings that discuss the difference in special participation and royalties in different fields, including unification of fields; (iii) R$1,036 referring to lawsuits involving VAT Tax collection on imports in operations with liquefied petroleum gas derived from natural gas; (iv) R$952 referring to class actions that require a review of the methodology used to calculate the Minimum Remuneration by Level and Regime (RMNR); (v) R$ 673 related to the collection of Service Tax (ISS) on services in maritime waters; (vi) R$ 516 referring to the levy of CIDE and PIS/COFINS related to the chartering of platforms; (vii) R$436 referring to actions involving the collection of VAT Tax on state funds; (viii) R$378 referring to lawsuits involving the levy of PIS and COFINS on ship or pay contracts and charters of aircraft and vessels; (ix) R$452 referring to civil litigation involving contractual matters. These effects were partially offset by: (x) R$1,576 for the review of amounts and transfer to probable loss and remote loss in lawsuits that discuss the state monopoly of piped gas services.

13.4  RMNR - Minimum Remuneration by Level and Work Regime

There are several lawsuits related to the Minimum Remuneration by Level and Work Regime (RMNR), with the objective of revising its calculation criteria.

The RMNR consists of a guaranteed minimum remuneration for employees, based on salary level, working conditions and geographic location. This compensation policy was created and implemented by Petrobras in 2007 through collective bargaining with union representatives, and approved at employee meetings, being questioned only three years after its implementation.

In 2018, the Superior Labor Court (TST) ruled against the Company, which filed extraordinary appeals against its decision. However, the Federal Supreme Court (STF) suspended the effects of the decision rendered by the TST and determined the national suspension of the ongoing processes related to the RMNR.

On July 29, 2021, a monocratic decision was published in which the Reporting Justice granted the Extraordinary Appeal filed in one of the proceedings to reestablish the judgment that dismissed the copyright requests, accepting the Company's thesis and recognizing the validity of the collective bargaining agreement freely signed between Petrobras and the labor unions, reversing the decision of the TST.

In February 2022, the judgment of the grievances filed by the plaintiff and several amici curiae began. The judgment is currently underway in the First Panel of the Federal Supreme Court, with 3 votes in favor of the company, confirming that the prevailing understanding is in the sense of recognizing the validity of the collective bargaining agreement freely signed between Petrobras and the unions. Considering that the last minister to speak up requested a view, the trial was suspended pending the presentation of the vote by Minister Vistor.

As of March 31, 2022, there are several lawsuits related to the Minimum Remuneration by Level and Work Regime (RMNR) reflected in the company's interim financial information, R$ 798 of which classified as probable loss, recognized in liabilities as a provision for legal and administrative proceedings , and R$33,957 classified as possible loss.

 
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

13.5  Class action and related proceedings

On May 26, 2021, the District Court of Rotterdam ruled that the class action against Petróleo Brasileiro S.A. – Petrobras, Petrobras International Braspetro B.V. (PIB BV), Petrobras Global Finance B.V. (PGF), Petrobras Oil & Gas B.V. (PO&G) and some former Petrobras managers must proceed and that the arbitration clause in Petrobras' Bylaws does not prevent the company's shareholders from having access to the Dutch Judiciary and being represented by the Stichting Petrobras Compensation Foundation. However, investors who have already initiated arbitration against Petrobras or who are parties to legal proceedings in which the applicability of the arbitration clause has been definitively recognized are excluded from the action.

The collective action moved to the phase of discussion of the merits issues. For more information, see explanatory note 18.4.1 to the financial statements for the year ended December 31, 2021.

In the Argentine arbitration, in which Petrobras is held liable for an alleged loss of market value of Petrobras' shares in Argentina, due to the unfolding of Lava Jato Operation, detailed in item 18.5 of the financial statements for the year ended on December 2021, the appeal presented by the Association has not yet been judged by the Argentine Supreme Court.

As for the criminal actions in Argentina, detailed in item 18.6 of the financial statements for the year ended December 31, 2021, with regard to the criminal action related to an alleged fraudulent offer of securities, aggravated by the fact that Petrobras allegedly declared false data in its pre-2015 financial statements, on October 21, 2021, after an appeal by the Association, the Court of Appeals overturned the lower court decision that had recognized Petrobras' immunity from jurisdiction and recommended that the lower court take some steps to certify whether the company could be considered criminally immune in Argentina for a later reassessment of the matter. Petrobras appealed against this decision, but the appeal was not admitted by the Court of Cassation on April 20, 2022, so immunity from jurisdiction will be reassessed by the lower court. On that same occasion, the Court of Appeals recognized that the Association could not act as a representative of financial consumers, due to the loss of its registration with the competent Argentine bodies, which was also the subject of an appeal, still pending judgment. Petrobras presented other procedural defenses, which are still subject to appeals before the Argentine Court of Appeal. This criminal action is being processed before the Economic Criminal Court No. 2 of the City of Buenos Aires.

Regarding the other criminal action for alleged non-compliance with the obligation to publish as a “material fact” in the Argentine market the existence of a class action brought by Consumidores Financieros Asociación Civil para su Defensa before the Commercial Court, there were no relevant events in the period from January to March of 2022.

13.6Arbitrations in Brazil

In the period from January to March 2022, there were no events that changed the assessment and information about arbitrations in Brazil.

For more information, see note 18.4.2 to the financial statements for the year ended December 31, 2021.

13.7Tax recoveries under dispute

13.7.1. Compulsory Loan – Eletrobrás

During the period from January to March 2022, there were no events that modified the evaluation of this process. For more information, see explanatory note 18.7.2 to the financial statements for the year ended December 31, 2021.

13.7.2. Lawsuits brought by Natural Gas Distributors and others

During the period from January to March 2022, Petrobras obtained, in the Superior Court of Justice, the suspension of the preliminary decision obtained by CEGÁS, which granted the extension of its contract for 6 months. For more information, see explanatory note 18.7.3 to the financial statements for the year ended December 31, 2021.

14. Provision for decommissioning costs
  Consolidated
  03.31.2022 12.31.2021
Opening balance 87,160 97,595
Adjustment to provision 179 (6,628)
Transfers related to liabilities held for sale (*) (3,125) (3,804)
Payments made (1,041) (3,935)
Interest accrued 635 3,902
Others (71) 30
Total 83,737 87,160

 

 

 
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

(*) In the period from January to March 2022, refers to transfers of R$ 165 related to the North Capixaba Pole, in Espírito Santo, and R$ 2,960 related to the Potiguar Pole, in Rio Grande do Norte, as per explanatory note 22 . In 2021, it mainly refers to concessions in Sergipe-Alagoas, in the Campos Basin and in Espírito Santo, as per explanatory note 31.

15. Property, plant and equipment
15.1 By class of assets
  Consolidated Parent
 

Land, buildings

and

improvement

Equipment and other assets (*)

Assets under

construction (**)

Exploration and development costs (oil and gas producing properties) (***) Right-of-use assets Total Total
Balance at January 1,2021 15,812 304,940 80,255 161,958 82,469 645,434 670,088
Additions 8,914 31,073 22 37,179 77,188 77,702
Additions to / review of estimates of decommissioning costs (6,046) (6,046) (6,056)
Capitalized borrowing costs 2 5,217 5,219 5,145
Signing bonus transfer 61,395 61,395 61,395
Write-offs               (214) (3,082) (3,217) (8,692) (1,506) (16,711) (16,706)
Transfers (1,472) 16,039 (16,967) 9,382 11 6,993 (179)
Transfers to assets held for sale (292) (15,451) (3,046) (4,406) (84) (23,279) (17,423)
Depreciation, amortization and depletion (532) (22,833) (23,472) (23,070) (69,907) (74,558)
Impairment recognition (2,089) (9) (152) (23) (2,273) (2,272)
Impairment reversal 9,623 615 9,953 180 20,371 20,219
Cumulative  translation adjustment (2) 410 509 104 1 1,022
Balance at December 31, 2021 13,302 296,471 94,430 200,046 95,157 699,406 717,355
Accumulated cost 22,770 547,365 144,831 345,470 147,222 1,207,658 1,154,481
Accumulated depreciation, amortization, depletion and impairment  (****) (9,468) (250,894) (50,401) (145,424) (52,065) (508,252) (437,126)
Balance at December 31, 2021 13,302 296,471 94,430 200,046 95,157 699,406 717,355
Additions 991 8,043 5 5,142 14,181 13,888
Additions to / review of estimates of decommissioning costs 54 54
Capitalized borrowing costs 1,236 1,236 1,221
Write-offs               (1) (142) (344) (20) (176) (683) (349)
Transfers 282 5,502 (11,804) 6,161 (6) 135 117
Transfers to assets held for sale (50) (3,001) (910) (3,439) 2 (7,398) (7,400)
Depreciation, amortization and depletion (111) (6,093) (6,640) (5,713) (18,557) (19,342)
Impairment reversal (note 17) 4 4 4
Cumulative  translation adjustment (4) (47) (1,077) (195) (4) (1,327)
Balance at March 31, 2022 13,418 293,685 89,574 195,972 94,402 687,051 705,494
Accumulated cost 22,651 544,277 138,040 340,629 146,902 1,192,499 1,141,885
Accumulated depreciation, amortization, depletion and impairment (****) (9,233) (250,592) (48,466) (144,657) (52,500) (505,448) (436,391)
Balance at March 31, 2022 13,418 293,685 89,574 195,972 94,402 687,051 705,494
Weighted average useful life in years

40

(25 to 50)

(except land)

20

(3 to 31)

 

  Units of production method

8

(2 to 47)

 

(*) Composed of production platforms, refineries, thermoelectric plants, gas treatment units, pipelines and other operating, storage and production facilities, including subsea production equipment and flow of oil and gas depreciated by the method of the units produced.

(**) Balances by business segment are presented in note 21.

(***) Composed of exploration and production assets related to wells, abandonment of areas, signature bonuses associated with proven reserves and other expenses directly linked to exploration and production, except production platforms.

(****) In the case of lands and assets under construction, it refers only to impairment losses.

 

 

 

The rights-of-use comprise the following underlying assets:

  Consolidated Parent Company
  Platforms Vessels Buildings and others Total Total
2021          
Accumulated cost 74,562 62,875 9,785 147,222 160,538
Accumulated depreciation, amortization, depletion and impairment (19,652) (29,410) (3,003) (52,065) (54,117)
Balance at December 31, 2021 54,910 33,465 6,782 95,157 106,421
2022          
Accumulated cost 73,730 64,397 8,775 146,902 160,212
Accumulated depreciation, amortization, depletion and impairment (20,024) (29,979) (2,497) (52,500) (54,822)
Balance at March 31, 2022 53,706 34,418 6,278 94,402 105,390
           
 
             

15.2Production Individualization Agreements

Petrobras has Production Individualization Agreements (AIP) signed in Brazil with partner companies in E&P consortia, as well as contracts resulting from divestment operations and strategic partnerships linked to these consortia. These agreements will result in equalizations payable or receivable of expenses and production volumes related to the Atapu, Berbigão, Sururu, Albacora Leste, Tartaruga Verde and others.

 
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

The change in the amount payable, classified in trade payables, is shown below:

  Consolidated
  03.31.2022 12.31.2021
Initial balance 2,033 1,925
Additions/write-offs in Property, Plant and Equipment (169) (359)
Other operating (income) expenses (138) 467
Final balance 1,726 2,033
 

 

As of March 31, 2022, Petrobras has an estimate of amounts payable for the execution of the AIP submitted for approval by the ANP of R$1,726 (R$2,033 as of December 31, 2021). In the period from January to March 2022, these agreements resulted in the recognition of additions and write-offs to property, plant and equipment, in addition to other net income of R$138 (R$244 in other operating expenses in the same period in 2021), reflecting the best estimate available of the assumptions used in the estimation of the calculation basis and the sharing of relevant assets in areas to be equalized.

15.3Capitalization rate used to determine the amount of borrowing costs eligible for capitalization

The weighted average rate of financial charges used to determine the amount of borrowing costs without a specific destination, to be capitalized as an integral part of assets under construction, was 6.01% p.a. in the period from January to March 2022 (5.55% p.a. in the period from January to March 2021).

 

16 Intangible assets
16.1 By class of assets
  Consolidated Parent Company
  Rights and Concessions (*) Software Goodwill Total Total
Balance at January 1st, 2021 76,464 1,089 125 77,678 77,258
Addition 568 893 1,461 1,357
Capitalized borrowing costs 25 25 25
Write-offs (63) (19) (2) (84) (62)
Transfers (513) 17 (496) (206)
Signature Bonuses Transfers  (61,395) (61,395) (61,395)
Amortization (29) (292) (321) (295)
Impairment reversal 6 6
Cumulative  translation adjustment 5 5
Balance at December 31, 2021 15,037 1,719 123 16,879 16,682
Accumulated Cost 15,312 7,373 123 22,808 21,769
Accumulated amortization and impairment (275) (5,654) (5,929) (5,087)
Balance at December 31, 2021 15,037 1,719 123 16,879 16,682
Addition 20 192 212 186
Capitalized borrowing costs 8 8 8
Write-offs (4) (4) (8) (4)
Transfers (17) 1 (16)
Amortization (5) (89) (94) (89)
Impairment accrual (6) (6)
Cumulative  translation adjustment (7) (1) (1) (9)
Balance at March 31, 2022 15,024 1,820 122 16,966 16,783
Accumulated Cost 15,301 7,484 122 22,907 21,957
Accumulated amortization and impairment (277) (5,664) (5,941) (5,174)
Balance at March 31, 2022 15,024 1,820 122 16,966 16,783
Estimated useful life in years (**) 5 Indefinite

 

 

(*) Comprised mainly of signature bonuses, paid in concession contracts for oil or natural gas exploration and production sharing, in addition to public service concessions, trademarks and patents and others.

(**) Comprised mainly of assets with an indefinite useful life whose valuation is reviewed annually to determine whether it remains justifiable.

 
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 
16.2 Surpluses from Transfer of Rights

Búzios

The expenses incurred by Petrobras in the ordinary operations of the area bid for the benefit of the consortium, carried out prior to the start of the Agreement, and not included in the total amount of compensation, in the updated amount of R$ 319, were reimbursed to Petrobras by the partners CNODC and CNOOC in February 2022.

Additionally, on March 4, 2022, Petrobras signed an agreement with its partner CNOOC Petroleum Brasil Ltda. (CPBL) for the transfer of 5% of its interest in the Production Sharing Contract for the Surplus Volume of the Assignment Agreement in the Búzios field, in the pre-salt layer of the Santos basin. The agreement results from the share purchase option exercised by CPBL on September 29, 2021.

The amount to be received in cash by Petrobras at the closing of the transaction is US$ 2,120 million, referring to the compensation and reimbursement of the signing bonus for the additional participation of CPBL, subject to the usual adjustments in this type of contract between the base date and the date of closing and compliance with conditions precedent, such as authorization by the Administrative Council for Economic Defense (CADE), recommendation for approval of the Assignment by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and approval by the Ministry of Mines and Energy (MME ).

After the completion of the transaction, Petrobras will hold an 85% interest in the Production Sharing Agreement for the Excess Volume of the Assignment Agreement for the Búzios field, CPBL will hold a 10% interest and CNODC Brasil Petróleo e Gás Ltda., 5 %. The total interest in this Búzios Co-participation Agreement, including the installments of the Assignment Agreement and the BS-500 Concession Agreement (100% of Petrobras) will be 88.99% of Petrobras, 7.34% of CPBL and 3, 67% of CNODC.

As of March 31, 2022, the assets related to these operations are classified as assets held for sale. For more information, see explanatory note 31 to the financial statements for the year ended December 31, 2021.

17 Impairment

The company assesses the recoverability of assets annually, or when there is an indication of devaluation. In the period from January to March 2022, net reversals due to devaluation of property, plant and equipment were recognized in the income statement, in the amount of R$ 4, mainly due to the sale of drilling rigs that were out of operation and leased by UTE Termocaçari.

In the period from January to March 2021, net losses due to devaluation of property, plant and equipment were recognized in the income statement for the period, in the amount of R$ 508:

· Equipment and facilities linked to production activity – Brazil: the company decided to permanently stop the P-33 platform in the Marlim field, which led to its exclusion from the CGU Polo Norte and classification as an isolated asset, with the recognition of losses for devaluation in the amount of R$689; and
· Equipment and facilities linked to production activities – Abroad: the company decided to relocate equipment from platforms P-72 and P-73 to producing fields in the Santos Basin. As a result, considering the expectation of future cash generation, it recognized a reversal of impairment losses in the amount of R$151.
18 Exploration and evaluation of oil and gas reserves

Changes in capitalized costs related to exploratory wells and the balances of amounts paid for obtaining rights and concessions for oil and natural gas exploration, both directly related to exploratory activities in unproved reserves, are presented in the following table:

  Consolidated
Capitalized Exploratory Well Costs / Capitalized Acquisition Costs (*) 03.31.2022 12.31.2021
Property plant and equipment
Opening Balance 11,127 15,716
    Additions 344 2,492
Write-offs (68) (1,025)
Transfers (48) (6,099)
Cumulative translation adjustment (97) 43
Closing Balance 11,258 11,127
Intangible Assets 14,376 14,376
Capitalized Exploratory Well Costs / Capitalized Acquisition Costs 25,634 25,503
(*) Amounts capitalized and subsequently expensed in the same period have been excluded from this table.
 

 

 

Exploration costs recognized in the statement of income and cash flows used related to oil and gas exploration and evaluation activities are set out in the following table:

 
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NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

  Consolidated
  2022 2021
Exploration costs recognized in the statement of income Jan-Mar Jan-Mar
Geological and geophysical expenses 278 369
Exploration expenditures written off (includes dry wells and signature bonuses) 114 740
Contractual penalties 9 84
Other exploration expenses 7 3
  408 1,196
     
Cash used in:    
Operating activities 285 372
Investment activities 395 628
  680 1,000
 

 

19 Collateral for crude oil exploration concession agreements

The Company has granted collateral to ANP in connection with the performance of the Minimum Exploration Programs established in the concession agreements for petroleum exploration areas in the total amount of R$ 8,818 of which R$ 8,818 were still in force, net of commitments undertaken. The collateral comprises crude oil from previously identified producing fields, pledged as collateral, amounting to R$ 6,933 and bank guarantees of R$ 1,885.

20 Investments
20.1 Changes in investment (Parent Company)
  Balance at 12.31.2021 Investments Restructuring, capital decrease and others Results in equity-accounted investments Cumulative translation adjustments (CTA) Other comprehensive income Dividends Balance at 03.31.2022
Subsidiaries 264,102 (295) 5,725 (42,024) 1 227,509
Joint operations 180 13 193
Joint ventures 109 45 30 (1) (6) 177
Associates (*) 5,416 1,403 (1,272) 1,296 6,843
Total 269,807 45 (295) 7,171 (43,296) 1,295 (5) 234,722
Other investments 18 18
Total 269,825 45 (295) 7,171 (43,296) 1,295 (5) 234,740
Results of companies classified as held for sale       42      
        7,213   1,295