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 November, 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)

 

Avenida 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____

 

 

 
 

 

 

 
 

 

 

Petrobras financial performance in 3Q22

Rio de Janeiro, November 03, 2022

Message from the CFO

Dear shareholders and investors,

Once again, I am pleased to share with you the excellent results achieved by Petrobras in the third quarter of 2022. The numbers make clear the value that a company can generate for society and shareholders by making the right choices.

Guided by this commitment, we advanced significantly in the procurement of critical facilities to enable the sustained and profitable growth in oil and gas production, focused on the pre-salt. We signed contracts for three new FPSOs (P-80, P-82 and P-83) for the Búzios field, the largest in our portfolio and which will account for about 1/3 of our production in 2026. As a result, only one of the fifteen platforms included in our 2022-2026 Strategic Plan remains to be contracted.

The relevance of these contracts is demonstrated by the fact that, in the absence of this additional capacity, we would not be able to exploit our reserves efficiently and profitably, forsaking the economic benefits. Therefore, we are increasing the levels of confidence in achieving the goals of our plan, which is even more important in a scenario of rising costs and challenges in global supply chains.

From the financial point of view, we brought our cash position to a level more compatible with the financial needs of the company, considering that besides cash balances of US$ 6.8 billion, we have access to revolving credit facilities, resulting in additional liquidity to the company should stress scenarios eventually materialize. We managed to keep the company's capital structure at extremely healthy levels. It is worth highlighting the issuance of R$ 3 billion in commercial notes in September, and the signing of a credit line with sustainability commitments in July, in the amount of US$ 1.25 billion. The relevance of ESG in our business decisions is also reflected in the approval of the first thirteen projects amounting to US$ 76 million to be incorporated in the decarbonization fund. We estimate that these projects can mitigate 1.05 million tCO2e per year. The decarbonization fund was created in the 2022-26 Strategic Plan, with US$ 248 million allocated to develop solutions, studies and implementation of projects to mitigate our carbon emissions.

Our operational cash generation alongside low debt level and solid liquidity perspectives allowed us to return to society and shareholders dividends of R$ 3.35 per common and preferred share in the third quarter of 2022, totaling R$ 13.80 per common and preferred share in 2022. It is important to highlight that Brazilian society receives about 37% of this total, the largest single portion, in addition to benefiting from tax payments, amounting to R$ 73 billion in the third quarter and reaching the record for the first nine months of the year of R$ 222 billion, an amount already surpassing the total collected in 2021 (R$ 203 billion). It is worth noting that our shares went up 1,436%[1] relative to its lowest level in the previous decade, Additionally, R$ 20.91 in shareholder remuneration was declared or paid out in this time span, including the amount approved in 3Q22. In this period, The Federal Government2 received R$ 113.8 billion in cumulative dividends. The fact that on October 21, 2022 Petrobras reached a record market value in reais of R$ 521 billion - reflecting the Company's strategic choices and management - should also not be underestimated since it results in higher wealth for society. We cannot fail to emphasize that our operating cash flow is directly related to management efficiency, our strategic decisions and our exposure and alignment to Brent prices. In a business characterized by long-term projects, that require relevant capital expenditures and investments in state-of-the-art technologies, and that depend on highly trained and motivated professionals, it is impossible to be successful if we deviate from the rationality of market prices. Moreover, it is worth remembering that not only our production taxes are referenced to international prices: our expenditures and investments also correlate to them to the extent that our industry’s inflation reflects pricing contexts and our exploratory risk – a key element in deepwater and ultra-deepwater exploration - is also quantified premised on market prices.

 


[1] PETR4 on 01/26/16 (R$ 2.12, closing price) up to 10/28/22 (R$ 32.57, closing price)

2 Control group includes the Federal Government, BNDES, BNDESPar, Caixa Econômica Federal, and Fundo de Participação Social (FPS).

 

2  
 

 

Additional to these considerations is the fact that, obviously, we must respect the existing legal framework, represented by laws such as the corporate act, the state-owned company act and the oil law, besides the Company's governance - recently strengthened on the matter of pricing policy, through the formalization of pricing guidelines by our BoD, which establishes a set of criteria and procedures for the approval of capital expenditures, with personal liabilities to the executives involved in the decisions.

Furthermore, Petrobras is not alone in the fuel market: nowadays we have in Brazil a dynamic that encompasses private refining capacity and importers that are necessary to meet oil products demand, which exceeds Brazilian production capacity. Without market prices, there is a risk of shortage of products, with obvious negative consequences for society as a whole.

Finally, it is also worth considering another aspect of our strategy that generates social benefits. Petrobras continuously manages its portfolio of assets, holding only to the most accretive to the Company. The ones eventually divested foster a positive economic dynamic not only by diversifying market agents but also because the buyers increase investments, jobs generation and income for society.

I conclude by reiterating our deep conviction that we are building a Petrobras which is more solid, more resilient and healthier and is able to invest, generate jobs, pay taxes, and return value to society and its shareholders.

Rodrigo Araujo Alves

 

Main achievements:

  • Recurring EBITDA of US$ 17.6 billion and free cash flow of US$ 10.1 billion.
  • Recurring net income of US$ 8.8 billion.
  • Value creation and distribution to society and shareholders:
  • R$ 73 billion in tax collections and government take in 3Q22.
  • By the end of 3Q22, R$ 10.45/share in remuneration to shareholders relative to 2022.
  • Optimization of our cash position, which reached US$ 6.8 billion.
  • Growth in ROCE, reaching 15% in 3Q22.
  • Gross debt under control at US$ 54.3 billion.
  • Largest issuance of Commercial Notes ever carried out in Brazil, successfully opening a new alternative for domestic funding for Petrobras, in the total amount of R$ 3.0 billion.

 

 

 

 

 

 

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This report may contain forward-looking statements. Such forward-looking statements only reflect expectations of the Company's managers regarding future economic conditions, as well as the Company's performance, financial performance and results, among others. The terms "anticipates", "believes", "expects", "predicts", "intends", "plans", "projects", "objective", "should", and similar terms, which evidently involve risks and uncertainties that may or may not be anticipated by the Company and therefore are not guarantees of future results of the Company's operations that may differ from current expectations. The readers should not rely exclusively on any forward-looking statement contained herein. The Company does not undertake any responsibility to update the presentations and forecasts in the light of new information or its future developments, and the figures reported for 3Q22 onwards are estimates or targets. These indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by others. We provide these indicators because we use them as measures of company performance; they should not be considered in isolation or as a substitute for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA and Net Indebtedness in the Glossary and their reconciliations in the Liquidity and Capital Resources sections, Reconciliation of Adjusted EBITDA and Net Indebtedness. Consolidated accounting information audited by independent auditors in accordance with international accounting standards (IFRS).

 

Main items

Table 1 - Main items*

            Variation (%)
 R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Sales revenues 170,076 170,960 121,594 482,677 318,478 (0.5) 39.9 51.6
Gross profit 86,836 95,861 59,552 257,463 160,590 (9.4) 45.8 60.3
Operating expenses (12,395) 627 5,385 (22,952) (15,892) 44.4
Consolidated net income (loss) attributable to the shareholders of Petrobras 46,096 54,330 31,142 144,987 75,164 (15.2) 48.0 92.9
Recurring  consolidated net income (loss) attributable to the shareholders of Petrobras * 46,290 44,885 17,374 134,521 59,490 3.1 166.4 126.1
Net cash provided by operating activities 63,207 71,804 55,100 187,835 151,734 (12.0) 14.7 23.8
Free cash flow 52,982 63,421 47,243 156,889 127,006 (16.5) 12.1 23.5
Adjusted EBITDA 91,421 98,260 60,744 267,391 171,631 (7.0) 50.5 55.8
Recurring adjusted EBITDA* 92,268 99,337 63,873 269,819 171,603 (7.1) 44.5 57.2
Gross debt (US$ million) 54,268 53,577 59,588 54,268 59,588 1.3 (8.9) (8.9)
Net debt (US$ million) 47,483 34,435 48,132 47,483 48,132 37.9 (1.3) (1.3)
Net debt/LTM Adjusted EBITDA ratio ** 0.75 0.60 1.17 0.75 1.17 25.0 (35.9) (35.9)
Average commercial selling rate for U.S. dollar 5.25 4.92 5.23 5.13 5.33 6.7 0.4 (3.8)
Brent crude (US$/bbl) 100.85 113.78 73.47 105.35 67.73 (11.4) 37.3 55.5
Domestic basic oil by-products price (R$/bbl) 692.97 665.50 421.97 636.06 393.33 4.1 64.2 61.7
TRI (total recordable injuries per million men-hour frequency rate)       0.58 0.56 - - 3.6
ROCE  (Return on Capital Employed) 15.0% 12.8% 7.0% 15.0% 7.0% 2,2 p.p. 8 p.p. 8 p.p.

 

 


* See reconciliation of Recurring net income and Adjusted EBITDA in the Special Items section.

* *Ratio calculated in USD.

 

 

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Consolidated results

Net revenues

Table 2 – Net revenues by products

            Variation (%)
R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Diesel 61,343 52,603 35,722 152,821 92,983 16.6 71.7 64.4
Gasoline 21,575 21,187 17,690 62,166 43,197 1.8 22.0 43.9
Liquefied petroleum gas (LPG) 7,108 7,074 6,747 20,354 17,673 0.5 5.4 15.2
Jet fuel 8,058 6,899 3,292 20,133 7,727 16.8 144.8 160.6
Naphtha 3,305 3,555 2,749 10,042 6,450 (7.0) 20.2 55.7
Fuel oil (including bunker fuel) 2,003 1,734 2,852 5,648 6,708 15.5 (29.8) (15.8)
Other oil products 7,780 7,949 6,265 22,379 16,399 (2.1) 24.2 36.5
Oil Products 111,172 101,001 75,317 293,543 191,137 10.1 47.6 53.6
Natural gas 10,522 9,649 8,974 29,199 21,659 9.0 17.2 34.8
Crude oil 10,379 13,251 137 32,777 427 (21.7) 7475.9 7576.1
Renewables and nitrogen products 364 466 63 1,173 184 (21.9) 477.8 537.5
Revenues from non-exercised rights 988 834 204 2,361 1,069 18.5 384.3 120.9
Electricity 740 534 5,433 2,827 11,495 38.6 (86.4) (75.4)
Services, agency and others 1,333 1,508 1,243 4,080 3,019 (11.6) 7.2 35.1
Total domestic market 135,498 127,243 91,371 365,960 228,990 6.5 48.3 59.8
Exports 29,859 40,401 29,308 105,370 85,675 (26.1) 1.9 23.0
Crude oil 19,031 27,589 21,582 71,663 61,803 (31.0) (11.8) 16.0
Fuel oil (including bunker fuel) 9,182 11,224 6,115 30,271 19,396 (18.2) 50.2 56.1
Other oil products and other products 1,646 1,588 1,611 3,436 4,476 3.7 2.2 (23.2)
Sales abroad (*) 4,719 3,316 915 11,347 3,813 42.3 415.7 197.6
Total foreign market 34,578 43,717 30,223 116,717 89,488 (20.9) 14.4 30.4
Total 170,076 170,960 121,594 482,677 318,478 (0.5) 39.9 51.6
(*) Sales revenues from operations outside of Brazil, including trading and excluding exports

In 3Q22, revenues remained roughly stable compared to 2Q22. Revenues from oil products in the domestic market grew 10% compared to 2Q22 - despite the drop in international prices - due to higher sales volumes of all products in 3Q22. Crude oil revenues in the domestic market fell 22% due to lower sales to Acelen and the drop in Brent prices.

Exports fell 26% in 3Q22 compared to 2Q22. In addition to the global depreciation of Brent and oil products prices, there were lower volumes of oil and fuel oil exports, mostly explained by exports that remained in progress for 4Q22.

In terms of revenue composition in the domestic market, diesel and gasoline remained the main products, accounting for 74% of the oil products revenue in 3Q22.

Graph 1 – Oil products sales revenues 3Q22 – domestic market

 

 

 

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As the conflict in Ukraine persists, we maintained the strategy of diversifying oil flows carried out in 1H22. Russian exports, which previously supplied Europe, were diverted to Asian markets, mainly India and China. Throughout the years Petrobras has been implementing a constant search for global opportunities and the development of new clients, which was decisive for the company to change the flow of its exports as well, taking advantage of new arbitrages and maximizing value generation in its sales. In 3Q22, we continued to work on market development for pre-salt oils, focusing on Atapu and Sépia, which were the last streams added to Petrobras' export basket. In this quarter, four new clients were added, spread among Asia, Europe and South America.

In 3Q22, we had the following distribution of export destinations by volume:

Table 3 – Destination of oil exports

Country 3Q22 2Q22 3Q21
China 29% 15% 39%
Europe 29% 39% 29%
Latam 21% 24% 10%
USA 10% 8% 9%
Asia (Ex China) 9% 12% 11%
Caribbean 2% 2% 2%

Table 4 – Destination of exports of oil products

Country 3Q22 2Q22 3Q21
Singapore 57% 55% 63%
USA 17% 26% 22%
Europe 9% 7% 0%
Caribbean 13% 9% 8%
Others 3% 3% 6%

Cost of goods sold

Table 5 – Cost of goods sold

            Variation (%)
R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Acquisitions (35,902) (26,649) (24,095) (86,760) (55,933) 34.7 49.0 55.1
Crude oil imports (16,724) (12,930) (7,772) (38,463) (21,544) 29.3 115.2 78.5
Oil products imports (14,771) (8,901) (9,418) (30,685) (19,965) 65.9 56.8 53.7
Natural gas imports (4,407) (4,818) (6,905) (17,612) (14,424) (8.5) (36.2) 22.1
Production (41,234) (44,117) (33,722) (124,461) (93,468) (6.5) 22.3 33.2
Crude oil (34,079) (37,139) (28,044) (103,417) (75,730) (8.2) 21.5 36.6
Production taxes (17,773) (20,327) (13,229) (54,662) (35,344) (12.6) 34.3 54.7
Other costs (16,306) (16,812) (14,815) (48,755) (40,386) (3.0) 10.1 20.7
Oil products (3,448) (3,152) (3,402) (9,859) (10,399) 9.4 1.4 (5.2)
Natural gas   (3,707) (3,826) (2,276) (11,185) (7,339) (3.1) 62.9 52.4
Production taxes (1,150) (1,282) (738) (3,641) (2,218) (10.3) 55.8 64.2
Other costs (2,557) (2,544) (1,538) (7,544) (5,121) 0.5 66.3 47.3
Services, electricity, operations abroad and others (6,104) (4,333) (4,225) (13,993) (8,487) 40.9 44.5 64.9
Total (83,240) (75,099) (62,042) (225,214) (157,888) 10.8 34.2 42.6

In 3Q22, cost of goods sold grew 11% compared to 2Q22, mainly reflecting higher purchases and imports of crude and oil products. The depreciation of Brent prices contributed to the drop in government participation.

It is worth noting the continued decline of LNG in the composition of natural gas purchases, with a reduction of 2 MMm³/day in regasification volumes, reaching 5 MM m3/day in 3Q22, essentially explained by the low demand for gas for thermoelectric plants due to the positive hydrological scenario

 

 

 

 

6  
 

 

 

Operating expenses

Table 6 – Operating expenses

            Variation (%)
R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Selling, General and Administrative Expenses (8,110) (7,725) (7,529) (23,553) (21,336) 5.0 7.7 10.4
Selling expenses (6,358) (6,136) (5,766) (18,653) (16,706) 3.6 10.3 11.7
Materials, third-party services, freight, rent and other related costs (5,102) (4,922) (4,831) (14,991) (14,020) 3.7 5.6 6.9
Depreciation, depletion and amortization (1,020) (1,066) (831) (3,124) (2,384) (4.3) 22.7 31.0
Allowance for expected credit losses (107) (30) 37 (177) 71 256.7
Employee compensation (129) (118) (141) (361) (373) 9.3 (8.5) (3.2)
General and administrative expenses (1,752) (1,589) (1,763) (4,900) (4,630) 10.3 (0.6) 5.8
Employee compensation (1,171) (1,060) (1,364) (3,267) (3,390) 10.5 (14.1) (3.6)
Materials, third-party services, rent and other related costs (446) (411) (294) (1,260) (894) 8.5 51.7 40.9
Depreciation, depletion and amortization (135) (118) (105) (373) (346) 14.4 28.6 7.8
Exploration costs (565) (196) (696) (1,169) (2,897) 188.3 (18.8) (59.6)
Research and Development (984) (1,080) (792) (3,145) (2,206) (8.9) 24.2 42.6
Other taxes (489) (455) (1,141) (1,255) (1,983) 7.5 (57.1) (36.7)
Impairment of assets (1,336) (847) 16,358 (2,179) 15,353 57.7
Other income and expenses, net (911) 10,930 (815) 8,349 (2,823) 11.8
Total (12,395) 627 5,385 (22,952) (15,892) 44.4

In 3Q22, selling expenses grew 4% compared to 2Q22, mainly due to higher logistics expenses related to offshore trading operations.

General and Administrative expenses rose 10% compared to 2Q22, mainly reflecting wage adjustments under the Collective Bargaining Agreement.

The increase in exploration expenses is explained mostly by the reversal of expenses in 2Q22, due to the approval of the execution of a Conduct Adjustment Agreement (TAC) with the National Petroleum Agency to offset local content fines. The TAC provides for the conversion of fines into investment commitments in Exploration and Production with local content, and, under the terms of the agreement, Petrobras commits to invest in local content until 2026. In addition, there were higher expenses with geology and geophysics. The signature of the TAC does not alter the investments foreseen in the Strategic Plan 2022-26, disclosed by Petrobras on November 24, 2021, and is in line with the strategy of generating value by managing the Company's liabilities and improving its capital allocation.

In 3Q22, other expenses totaled R$ 911 million against revenues of R$ 10.9 billion in 2Q22. This variation is mainly explained by capital gain of R$ 14.2 billion in 2Q22 related to the co-participation agreements in the Sepia and Atapu fields.

Adjusted EBITDA

In 3Q22, Adjusted EBITDA reached R$ 91.4 billion, a 7% decrease compared to 2Q22, mainly due to the depreciation of Brent prices in the period and lower sales in the foreign market due to the increase in ongoing exports.

 

 

 

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Financial results

Table 7 – Financial results

            Variation (%)
R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Finance income 2,713 3,054 1,188 7,127 2,973 (11.2) 128.4 139.7
Income from investments and marketable securities (Government Bonds) 1,783 1,821 519 4,448 921 (2.1) 243.5 383.0
Other income, net 930 1,233 669 2,679 2,052 (24.6) 39.0 30.6
Finance expenses (4,157) (4,691) (6,237) (12,817) (22,721) (11.4) (33.3) (43.6)
Interest on finance debt (2,963) (3,396) (3,499) (9,143) (12,415) (12.8) (15.3) (26.4)
Unwinding of discount on lease liabilities (1,773) (1,644) (1,579) (4,943) (4,768) 7.8 12.3 3.7
Discount and premium on repurchase of debt securities (54) (404) (1,309) (592) (5,813) (86.6) (95.9) (89.8)
Capitalized borrowing costs 1,364 1,464 1,406 4,072 3,970 (6.8) (3.0) 2.6
Unwinding of discount on the provision for decommissioning costs (668) (675) (1,017) (2,025) (3,071) (1.0) (34.3) (34.1)
Other finance expenses and income, net (63) (36) (239) (186) (624) 75.0 (73.6) (70.2)
Foreign exchange gains (losses) and indexation charges (6,529) (14,120) (20,431) (15,057) (25,704) (53.8) (68.0) (41.4)
Foreign exchange gains (losses) (4,073) (8,184) (15,507) 278 (10,659) (50.2) (73.7)
Reclassification of hedge accounting to the Statement of Income (5,813) (5,442) (5,396) (18,476) (17,823) 6.8 7.7 3.7
Monetary restatement of anticipated dividends and dividends payable  (*) 2,085 (1,335) 104 749 32 1904.8 2240.6
Recoverable taxes inflation indexation income (**) 155 119 79 382 2,587 30.3 96.2 (85.2)
Other foreign exchange gains (losses) and indexation charges, net 1,117 722 289 2,010 159 54.7 286.5 1164.2
Total (7,973) (15,757) (25,480) (20,747) (45,452) (49.4) (68.7) (54.4)

(*) In 2022, it refers to the income on the monetary restatement of paid anticipated dividends, in the amount of R$ 2.180 (R$ 105, in 2021) , and to the expense on the indexation charges on dividends payable, in the amount of R$ 1.431(R$ 73, in 2021)

(**) In 2021, includes PIS and Cofins inflation indexation income - exclusion of ICMS (VAT tax) from the basis of calculation.

The financial result in 3Q22 was negative by R$ 8 billion, a 49% improvement over 2Q22 (R$ 15.8 billion), mainly reflecting the weaker depreciation of the BRL against USD (3% in 3Q22 against 11% in 2Q22). In addition, there was an improvement in monetary variations mainly due to the monetary restatement of anticipated dividends for the fiscal year 2022. In 3Q22, we also observed lower transaction costs in the repurchase of securities and a lower goodwill compared to 2Q22, when we carried out a tender offer of US$ 2.0 billion in April 2022.

Net profit (loss) attributable to Petrobras shareholders

Net income in 3Q22 was R$ 46.1 billion, compared to R$ 54.3 billion in 2Q22. This result is mainly explained by the depreciation of Brent prices, as well as capital gain of R$ 14.2 billion related to the co-participation agreements in Sepia and Atapu in 2Q22. These factors were partially offset by the improved financial result (R$ 7.8 billion) reflecting the lower depreciation of the BRL versus the USD in 3Q22 compared to 2Q22. With the lower pre-tax income, there was a lower income tax and social contribution expense of R$ 5.8 billion.

Recurring net income attributable to Petrobras shareholders and recurring Adjusted EBITDA

In 3Q22, net income was negatively impacted by R$ 0.2 billion and would have summed up to R$ 46.3 billion without the non-recurring items. Adjusted EBITDA was negatively impacted by R$ 0.8 billion and would have summed up to R$ 92.3 billion without the non-recurring items.

 

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Special items

Table 8 – Special items

            Variation (%)
 R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Net income 46,236 54,484 31,224 145,503 75,541 (15.1) 48.1 92.6
Non-recurring items (299) 14,318 20,752 15,881 23,834 (33.4)
Non-recurring items that do not affect Adjusted EBITDA 548 15,395 23,881 18,309 23,805 (96.4) (97.7) (23.1)
Impairment of assets and investments (1,324) (860) 16,313 (2,224) 17,256 54.0
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments (1) (35) (1) (220) (97.1) (99.5)
Gains and losses on disposal / write-offs of assets 1,550 1,828 613 5,850 1,235 (15.2) 152.9 373.7
Results from co-participation agreements in bid areas (50) 14,243 3,519 14,193 3,519 303.3
Agreements signed for the electricity sector 436
Pis and Cofins inflation indexation charges -  exclusion of ICMS (VAT tax) from the basis of calculation (2) 2,402
Discount and premium on repurchase of debt securities 373 184 (1,294) 491 (5,798) 102.7
Non-incidence of income taxes on indexation charges (SELIC interest rate) over undue paid taxes 4,767 4,767
Financial updating on state amnesty programs 208
Other non-recurring items (847) (1,077) (3,129) (2,428) 28 (21.4) (72.9)
Voluntary Separation Plan (4) (9) 9 (33) 52 (55.6)
Amounts recovered from Lava Jato investigation 115 132 175 1,197 (12.9) (85.4)
Gains / (losses) on decommissioning of returned/abandoned areas (7) (15) (22) (147) (60) (53.3) (68.2) 145.0
State amnesty programs 137 796
Gains (losses) related to legal proceedings (950) (866) (545) (2,373) (1,271) 9.7 74.3 86.7
Equalization of expenses - Production Individualization Agreements (1) (187) 98 (50) (190) (99.5) (73.7)
PIS and COFINS over inflation indexation charges -  exclusion of ICMS (VAT tax) from the basis of calculation 1 (111)
PIS and COFINS recovered - exclusion of ICMS (VAT tax) from the basis of calculation 61 2,554
Gains/(losses) arising from actuarial review of health care plan (4,518) (4,518)
Gains/(losses) with the transfer of rights on concession agreements 1,518 1,579
Net effect of non-recurring items on IR / CSLL 105 (4,873) (6,984) (5,415) (8,159) (33.6)
Recurring net income 46,430 45,039 17,456 135,037 59,867 3.1 166.0 125.6
Shareholders of Petrobras 46,290 44,885 17,374 134,521 59,490 3.1 166.4 126.1
Non-controlling interests 140 154 82 516 377 (9.1) 70.7 36.9
Adjusted EBITDA 91,421 98,260 60,744 267,391 171,631 (7.0) 50.5 55.8
Non-recurring items (847) (1,077) (3,129) (2,428) 28 (21.4) (72.9)
Recurring Adjusted EBITDA 92,268 99,337 63,873 269,819 171,603 (7.1) 44.5 57.2

In management's opinion, the special items presented above, although related to the Company's business, were highlighted as complementary information for a better understanding and evaluation of the result. Such items do not necessarily occur in all periods and are disclosed when relevant.

 

9  
 

 

Capex

Investment (Capex) encompasses acquisition of property, plant and equipment, including costs with leasing, intangible assets, investments in subsidiaries and affiliates, costs with geology and geophysics and pre-operating costs.

Table 9 - Capex

            Variation (%)
US$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Exploration and Production 1,685 1,674 1,456 4,734 5,030 0.7 15.8 (5.9)
Refining, Transportation and Marketing 295 274 226 821 673 7.6 30.2 21.9
Gas and Power 65 92 94 251 252 (29.3) (31.2) (0.3)
Others 86 141 86 274 186 (39.1) (0.4) 47.7
Subtotal 2,131 2,181 1,863 6,080 6,140 (2.3) 14.4 (1.0)
Signature bonus 892 892
Total 2,131 3,073 1,863 6,972 6,140 (30.6) 14.4 13.5

In 3Q22, capex totaled US$ 2.1 billion, 31% below 2Q22, mainly due to the impact of the signature bonus of the Sépia and Atapu fields that occurred in 2Q22. In the first nine months of the year, capex totaled US$ 7.0 billion, an increase of 14% compared to 9M21, reaching 59% of the US$ 11.9 billion initially estimated for 2022, in the Strategic Plan 2022-26, including the $0.9 billion signing bonus.

Considering: (i) adjustments to the schedule of activities, (ii) optimization of exploratory expenses, and (iii) non-replacement of pipelines affected by SCC-CO2 in Búzios and Tupi, which when inspected indicated a longer useful life, we project investments between US$ 9 and US$ 10 billion for the year, with no impact on the 2022 production target.

Investments in growth correspond to 48% of total capex in 3Q22.

Growth capex are those with the primary objective of increasing the capacity of existing assets, deploying new production, offloading, and storage assets, increasing asset efficiency or profitability, and deploying essential infrastructure to enable other growth projects. It includes acquisitions of assets/companies and remaining investments in systems that started up as of 2020 and exploratory investments.

Sustaining capex, on the other hand, has the main objective of maintaining the operation of existing assets. It does not aim at increasing the capacity of the facilities. It includes investments in safety and reliability of facilities, replacement well projects, complementary development, remaining investments in systems that started up before 2020, scheduled stoppages and revitalizations (without new systems), 4D seismic, health, environment, and safety (HSE) projects, subsea line exchanges, operational infrastructure and information technology (IT).

In 3Q22, capex in the Exploration & Production segment totaled US$ 1.7 billion, in line with 2Q22. Investments in growth corresponded to 57% and were mainly concentrated on: (i) the development of ultra-deepwater production in the Santos Basin pre-salt (US$ 0.6 billion); (ii) development of new deepwater projects (US$ 0.2 billion); and (iii) exploratory investments in the pre-salt and post-salt (US$ 0.1 billion).

In the Refining, Transportation and Marketing segment, capex totaled US$ 0.3 billion in 3Q22, of which approximately 18% was related to growth. In Gas & Power, capex totaled US$ 0.1 billion in 3Q22, with approximately 10% related to growth.

 

10  
 

 

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

Table 10 – Main projects

Unit Start-up FPSO capacity (bbl/day)

CAPEX Petrobras Actual

US$ bn

CAPEX Petrobras Total

US$ bn1

Petrobras Stake Status

Búzios 5

FPSO Alm. Barroso (Chartered unit)

2023 150,000 0.93 2.0 92,66%2 Project in phase of execution with production system under commisioning. 10 wells drilled and 7 completed.

Marlim 1

FPSO Anita Garibaldi

(Chartered unit)

2023 80,000 0.15 1.7 100% Project in phase of execution. Production system is sailing to Brazil.

Marlim 2

FPSO Anna Nery (Chartered unit)

2023 70,000 0.15 1.3 100% Project in phase of execution with production system under commisioning.  2 wells drilled and completed.4

Mero 2

FPSO Sepetiba (Chartered unit)

2023 180,000 0.22 0.8 38,6%3 Project in phase of execution with production system under construction. 11 wells drilled and 4 completed

Itapu

P-71 (Owned unit)

20235 150,000 2.11 3.4 100% Project in phase of execution. Production system arrived in Itapu field. 4 wells drilled and 2 completed

Mero 3

FPSO Marechal Duque de Caxias (Chartered unit)

2024 180,000 0.07 0.8 38,6%3 Project in phase of execution with production system under construction. 4 wells drilled and 1 completed

Integrado Parque das Baleias (IPB)

FPSO Maria Quitéria

(Chartered unit)

2024 100,000 0.30 1.7 100% Project in phase of execution with production system under construction. 3 wells drilled and 1 completed4

Búzios 7

FPSO Almirante Tamandaré (Chartered unit)

2024 225,000 0.11 2.1 92,66%2

Project in phase of execution with production system under construction.

3 wells drilled and 1 completed

Búzios 6

P-78 (Owned unit)

2025 180,000 0.37 4.1 92,66%2 Project in phase of execution with production system under construction.

Búzios 8

P-79 (Owned unit)

2025 180,000 0.29 4.2 92,66%2 Project in phase of execution with production system under construction. 3 wells drilled and 1 completed

Mero 4

FPSO Alexandre de Gusmão

(Chartered unit)

2025 180,000 0.05 0.8 38,6%3

Project in phase of execution with production system under construction.

6 wells drilled and 2 completed

Búzios 9

P-80 (Owned unit)

2026 225,000 0.04 4.8 92,66%2

Project in phase of execution. Production system construction contract signed on August 2022.

2 wells drilled and completed

Búzios 10

P-82 (Owned unit)

2026 225,000 0.03 5.1 92,66%2

Project in phase of execution. Production system construction contract signed on October 2022.

1 well drilled

Búzios 11

P-83 (Owned unit)

2027 225,000 0.02 4.8 92,66%2

Project in phase of execution. Production system construction contract signed on September 2022.

2 wells drilled

1 Total CAPEX with the Strategic Plan 2022-26 assumptions and Petrobras work interest (WI). Chartered units leases are not included.

2 In March 2022, Petrobras has signed the contract with the partner CNOOC Petroleum Brasil Ltda. (CPBL) for the assignment of 5% of its interest in the Production Sharing Contract of the Transfer of Rights Surplus for the Buzios field. Petrobras stake will be adjusted after the transaction's approval by the regulatory agencies.

3 Petrobras stake updated after the approval of the Production Individualization Agreement (AIP) of the Mero accumulation. As the compensation relative to the non-contracted area expenses will be paid in oil to the consortium, the work interest (WI) of the CAPEX reported will not change.

4 Production Unit for revitalization project. Refers only to new wells. The scope of the project also includes the relocation of some wells of the units being decommissioned.

5 Anticipation to 2022 expected

 

11  
 

 

Portfolio management

In 3Q22, cash inflows from divestments totaled US$ 537 million, including the payment for the sale of Gaspetro, in the amount of US$ 392 million. In the first nine months of the year, we received US$3.9 billion from asset sales, including deferred payments from the sales of NTS (US$1.0 billion) in 2Q22 and Bacalhau (US$950 million) in 1Q22.

From January 1, 2022, to November 02, 2022, we concluded the sale of the Alagoas and Recôncavo Clusters, exploratory blocks in Parana and Potiguar Basins and our equity interests in Deten Química and Gaspetro. Additionally, we signed the contracts for the sale of the Potiguar, Norte Capixaba, Golfinho and Camarupim Clusters, the Albacora East field and LUBNOR Refinery.

Table 11 – Main transactions by November 02nd, 2022 and respective transaction amounts (excluding deferred payments)

Assets

Amount received

(US$ million)

Transaction amount1

(US$ million)

Bloco PAR-T-198_Paraná Basin 0.031 0.0316
Bloco PAR-T-218_Paraná Basin 0.032 0.0326
Bloco POT-T-794_Potiguar Basin 0.525 0.5256
East Albacora field 293 2,201
Papa-Terra field 6 105.66
Deten Química 101.2² 117²
Gaspetro 392.32 3946
Alagoas cluster 300 3006
Carmópolis cluster 275 1,1006
Fazenda Belém cluster 13.4 355
Golfinho e Camarupim clusters 3 75
Norte cluster 35.85 544
Peroá cluster 13.07 556
Pescada cluster - 25
Potiguar cluster 110 1,380
Recôncavo cluster 256 2505
LUBNOR refinery 3.4 34
REMAN refinery 28.4 189.56
SIX 3 336
Total amount 1,834 6,816

¹ Amounts agreed in the signing date, subject to adjustments upon closing

² Original amounts in BRL, converted to US$ at the PTAX rate on the day of the SPA signing or of the cash inflow

3Transaction signed in 2018 4Transaction signed in 2019 5Transaction signed in 2020 6Transaction signed in 2021

 

 

12  
 

 

Liquidity and capital resources[2]

Table 12 - Liquidity and Capital Resources

R$ million 3Q22 2Q22 3Q21 9M22 9M21
Adjusted cash and cash equivalents at the beginning of period 100,268 87,568 52,139 62,040 64,280
Government bonds and time deposits with maturities of more than 3 months at the beginning of period* (14,957) (5,967) (3,013) (3,630) (3,424)
Cash and cash equivalents in companies classified as held for sale at the beginning of the period 37 40 4 72 74
Cash and cash equivalents at the beginning of period 85,348 81,641 49,130 58,482 60,930
Net cash provided by operating activities 63,207 71,804 55,100 187,835 151,734
Net cash provided by (used in) investing activities (3,823) 16,727 20,579 7,921 7,965
Acquisition of PP&E and intangibles assets (10,225) (8,383) (7,857) (30,946) (24,728)
Investments in investees (3) (49) (20) (101) (80)
Proceeds from disposal of assets - Divestment 2,872 7,800 12,325 19,927 15,053
Financial compensation from co-participation agreements 650 24,512 15,510 25,481 15,510
Dividends received 402 938 484 1,615 1,581
Divestment (Investment) in marketable securities 2,481 (8,091) 137 (8,055) 629
(=) Net cash provided by operating and investing activities 59,384 88,531 75,679 195,756 159,699
Net cash used in financing activities (121,013) (89,705) (68,216) (227,173) (164,565)
Net financings (3,297) (20,212) (39,404) (33,432) (109,620)
     Proceeds from  financing 11,677 863 452 13,322 8,921
     Repayments (14,974) (21,075) (39,856) (46,754) (118,541)
Repayment of lease liability (6,954) (6,697) (7,750) (20,567) (23,323)
Dividends paid to shareholders of Petrobras (111,046) (62,027) (20,895) (173,075) (31,177)
Dividends paid to non-controlling interest (50) (264) (184) (340) (396)
Investments by non-controlling interest 334 (505) 17 241 (49)
Effect of exchange rate changes on cash and cash equivalents (69) 4,881 2,833 (3,415) 3,362
Cash and cash equivalents at the end of period 23,650 85,348 59,426 23,650 59,426
Government bonds and time deposits with maturities of more than 3 months at the end of period* 13,038 14,957 2,920 13,038 2,920
Cash and cash equivalents in companies classified as held for sale at the end of the period (37) (32) (32)
Adjusted cash and cash equivalents at the end of period 36,688 100,268 62,314 36,688 62,314
Reconciliation of Free Cash Flow          
Net cash provided by operating activities 63,207 71,804 55,100 187,835 151,734
Acquisition of PP&E and intangibles assets (10,225) (8,383) (7,857) (30,946) (24,728)
Free cash flow** 52,982 63,421 47,243 156,889 127,006

As of September 30, 2022, cash and cash equivalents totaled R$ 23.6 billion and adjusted cash and cash equivalents totaled R$ 36.7 billion, optimizing the company’s cash level.

In 3Q22, cash generated from operating activities reached R$ 63.2 billion and positive free cash flow totaled R$ 53.0 billion. This level of cash generation, along with our cash balances and the inflow of funds from the divestments of R$ 2.9 billion were used to: (a) pay remuneration to shareholders (R$ 111.0 billion) (b) prepay debt and amortize principal and interest due in the period (R$ 15.0 billion), (c) amortize lease liabilities (R$ 7.0 billion) and (d) make investments of R$ 10.2 billion.


* Includes short-term government bonds and time deposits and cash and cash equivalents of companies classified as held for sale.

** Free cash flow (FCF) is in accordance with the Shareholder Remuneration Policy, which is the result of the equation: FCF = net cash provided by operating activities less acquisitions of PP&E and intangible assets.

 

13  
 

 

In 3Q22, the company settled several loans and financial debt, in the amount of R$ 15.0 billion, notably the repurchase and redemption of R$ 5.2 billion of securities in the international capital market. The company raised R$ 11.7 billion, of which (i) R$ 6.7 billion through a credit line with sustainability commitments (Sustainability-Linked Loan) in the international banking market due in 2027, and (ii) R$ 3.0 billion through the issuance of commercial notes in the domestic capital market due in 2030 and 2032.

The current level of gross debt, high cash generation and solid liquidity allowed the company to approve a shareholder remuneration payment in the amount of R$ 3.35 per common and preferred share.

 

14  
 

 

Debt

As of September 30, 2022, gross debt reached US$ 54.3 billion, a variation of 1.3% compared to June 30, 2022.

Average maturity shifted from 13 years on June 30, 2022, to 12 years on September 30, 2022, mainly because of the repurchase of long-term bonds in the international market, taking advantage of falling prices.

The gross debt/EBITDA ratio reached 0.85x on September 30, 2022, compared to 0.93x on June 30, 2022.

On September 30, 2022, net debt reached US$ 47.5 billion, as a result of the cash level optimization during 3Q22. The net debt/adjusted EBITDA ratio increased from 0.60x on June 30, 2022 to 0.75x on September 30, 2022.

Table 13 – Debt indicators

US$ million 09.30.2022 06.30.2022 Δ % 09.30.2021
Financial Debt 30,855 31,051 (0.6) 36,716
Capital Markets 16,800 18,261 (8.0) 22,213
Banking Market 10,713 9,158 17.0 10,524
Development banks 721 770 (6.4) 813
Export Credit Agencies 2,452 2,688 (8.8) 2,972
Others 169 174 (2.9) 194
Finance leases 23,413 22,526 3.9 22,872
Gross debt 54,268 53,577 1.3 59,588
Adjusted cash and cash equivalents 6,785 19,142 (64.6) 11,456
Net debt 47,483 34,435 37.9 48,132
Net Debt/(Net Debt + Market Cap) - Leverage 38% 32% 18.8 42%
Average interest rate (% p.a.) 6.4 6.3 1.6 6.0
Weighted average maturity of outstanding debt (years) 12.04 13.04 (7.7) 13.50
Net debt / LTM Adjusted EBITDA ratio 0.75 0.60 25.0 1.17
Gross debt / LTM Adjusted EBITDA ratio 0.85 0.93 (7.9) 1.45
R$ million        
Financial Debt 166,818 162,644 2.6 199,713
Finance Lease 126,585 117,993 7.3 124,411
Adjusted cash and cash equivalents 36,688 100,268 (63.4) 62,314
Net Debt 256,715 180,369 42.3 261,810

 

 

 

 

15  
 

 

Results by segment

Exploration and Production

Table 14 – E&P results

      Variation (%) (*)
R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Sales revenues 101,391 108,041 76,472 311,999 211,864 (6.2) 32.6 47.3
Gross profit 62,342 67,813 43,489 192,610 120,578 (8.1) 43.4 59.7
Operating expenses (2,316) 12,551 19,572 9,983 14,276 (30.1)
Operating income (loss) 60,026 80,364 63,061 202,593 134,854 (25.3) (4.8) 50.2
Net income (loss) attributable to the shareholders of Petrobras 39,860 53,327 41,778 134,504 89,473 (25.3) (4.6) 50.3
Adjusted EBITDA of the segment 73,152 78,534 54,508 224,661 149,828 (6.9) 34.2 49.9
EBITDA margin of the segment (%) 72 73 71 72 71 (1) 1 1
ROCE (Return on Capital Employed) (%) 19.7 17.4 8.8 19.7 8.8 2.3 10.9 10.9
Average Brent crude (US$/bbl) 100.85 113.78 73.47 105.35 67.73 (11.4) 37.3 55.5
Internal Transfer Price to RTM - Crude oil (US$/bbl) 98.81 106.90 69.54 99.79 64.19 (7.6) 42.1 55.5
 Lifting cost - Brazil (US$/boe)                
     excluding production taxes and leases 5.85 5.98 5.02 5.68 4.95 (2.2) 16.5 14.8
     excluding production taxes 7.53 7.68 6.66 7.39 6.56 (1.9) 13.2 12.6
Onshore and shallow waters                
           with leases 15.44 17.23 14.27 16.39 13.35 (10.4) 8.2 22.8
           excluding leases 15.44 17.23 14.27 16.39 13.35 (10.4) 8.2 22.8
       Deep and ultra-deep post-salt                
           with leases 13.66 14.47 12.16 13.10 11.48 (5.6) 12.3 14.1
           excluding leases 12.52 13.06 10.72 11.68 10.07 (4.2) 16.8 16.0
        Pre-salt                
           with leases 5.36 5.19 4.35 5.22 4.39 3.2 23.3 18.9
           excluding leases 3.44 3.31 2.53 3.33 2.58 3.8 35.8 29.1
     including production taxes and excluding leases 23.48 25.95 18.50 24.59 17.24 (9.5) 27.0 42.6
     including production taxes and leases 25.16 27.64 20.13 26.30 18.86 (9.0) 25.0 39.5
Production taxes - Brazil 18,925 19,848 15,590 59,938 42,455 (4.7) 21.4 41.2
     Royalties 10,692 11,062 8,021 32,905 21,722 (3.3) 33.3 51.5
     Special participation 8,168 8,725 7,513 26,846 20,580 (6.4) 8.7 30.4
     Retention of areas 65 61 56 187 153 6.6 16.1 22.2
(*) EBITDA margin and ROCE variations in percentage points

In 3Q22, E&P gross profit was R$ 62.3 billion, a reduction of 8.1% when compared to 2Q22, mainly due to the lower Brent prices. Operating income was 25.3% lower, reflecting the drop in gross profit and the fact that the compensation from the co-participation agreements of Sépia and Atapu fields took place in 2Q22. We recorded a 2% reduction in the lifting cost without leasing and government take when compared to 2Q22 due to the 7% BRL depreciation against the USD, partially offset by higher expenses related to project integrity, mainly subsea inspections in the Tupi field.

In the pre-salt, there was a slight increase of 4% in lifting cost, mainly driven by the higher expenses related to the subsea inspections, partially offset by the BRL depreciation.

In the post-salt, there was a 4% reduction in the same indicator when compared to 2Q22, mainly due to the aforementioned FX effect in the period.

In onshore and shallow water assets, we observed lower lifting costs due to the effect of the BRL depreciation against USD and to the stoppage of production in Sergipe-Alagoas fields, with higher lifting costs, for operational safety procedures.

The reduction in government take per barrel in 3Q22 reflects the lower Brent prices in the period.

 

16  
 

 

Refining, Transportation and Marketing

Table 15 - RTM results

            Variation (%) (*)
R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Sales revenues 154,035 157,429 107,188 439,940 284,257 (2.2) 43.7 54.8
Gross profit (loss) 14,428 25,532 11,642 56,271 35,490 (43.5) 23.9 58.6
Operating expenses (3,519) (4,163) (5,396) (10,463) (10,334) (15.5) (34.8) 1.2
Operating Income (loss) 10,909 21,369 6,246 45,808 25,156 (48.9) 74.7 82.1
Net income (loss) attributable to the shareholders of Petrobras 7,082 13,629 5,465 31,056 21,298 (48.0) 29.6 45.8
Adjusted EBITDA of the segment 14,962 24,308 9,438 55,492 33,941 (38.4) 58.5 63.5
EBITDA margin of the segment (%) 10 15 9 13 12 (6) 1 1
ROCE (Return on Capital Employed) (%) 12.3 11.0 4.7 12.3 4.7 1.3 7.6 7.6
Refining cost (US$/barrel) - Brazil 2.17 1.84 1.69 1.93 1.64 18.1 28.4 17.7
Refining cost (R$/barrel) - Brazil 11.48 9.19 8.91 9.95 8.77 24.9 28.8 13.5
Domestic basic oil by-products price (R$/bbl) 692.97 665.50 421.97 636.06 393.33 4.1 64.2 61.7
(*) EBITDA margin and ROCE variations in percentage points

In 3Q22, gross profit from the Refining, Transportation and Marketing (RTM) segment was R$ 14.4 billion, a decrease of 43% when compared to 2Q22, due to the negative effect of inventories turnover, because of the decline in Brent prices, in contrast to the positive effect in 2Q22. Excluding the effect of inventory turnover (-R$ 8.4 billion in 3Q22 and +R$ 5.7 billion in 2Q22) gross profit would have been R$ 22.8 billion in 3Q22 and R$ 19.9 billion in 2Q22.

There were higher margins for oil products in the domestic market, mainly diesel, due to the high international margins, besides higher sales volumes for diesel, due to the typical seasonality, and gasoline, due to higher attractiveness compared to ethanol.

In 3Q22, the operating income was lower than in 2Q22, due to the lower gross profit, partially offset by lower expenses with lawsuits.

In 3Q22, refining cost per barrel in BRL increased by 25% when compared to 2Q22, due to the increase in expenses with inputs and maintenance for the upkeep and revitalization of the refineries, in addition to readjustments in personnel costs.

 

17  
 

 

Gas and Power

Table 16 – G&P results

            Variation (%) (*)
R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Sales revenues 21,747 18,390 18,014 57,792 44,061 18.3 20.7 31.2
Gross profit 7,898 6,713 4,076 16,994 14,104 17.7 93.8 20.5
Operating expenses (3,078) (4,008) (4,043) (11,702) (11,645) (23.2) (23.9) 0.5
Operating income (loss) 4,820 2,705 33 5,292 2,459 78.2 14506.1 115.2
Net income (loss) attributable to the shareholders of Petrobras 3,148 1,796 20 3,483 1,752 75.3 15640.0 98.8
Adjusted EBITDA of the segment 4,610 3,219 1,022 6,159 4,820 43.2 351.1 27.8
EBITDA margin of the segment (%) 21 18 6 11 11 3.0 15.0
ROCE (Return on Capital Employed) (%) (0.6) (3.9) 2.6 (0.6) 2.6 3.3 (3.2) (3.2)
Natural gas sales price - Brazil (US$/bbl) 75.74 71.16 46.98 67.02 41.43 6.4 61.2 61.8
Fixed revenues from power auctions 532 514 575 1,546 1,691 3.5 (7.5) (8.6)
Average price for power generation (R$/MWh) 72.78 90.75 504.97 216.15 434.73 (19.8) (85.6) (50.3)
(*) EBITDA margin and ROCE variations in percentage points

In 3Q22, gross profit was R$ 7.9 billion, an increase of 17.7% when compared to 2Q22, mainly reflecting the recovery in commercialization margins, resulting from: (a) the improvement in the natural gas sales portfolio, and; (b) the lower need for regasified LNG with the resumption of stoppages in production platforms throughout 2Q22.

In 3Q22, operating income was R$ 4.8 billion, 78.2% higher than in 2Q22, due to higher gross profit and lower operating expenses due to the capital gain related to the sale of Gaspetro.

 

18  
 

 

Reconciliation of Adjusted EBITDA

EBITDA is an indicator calculated as the net income for the period plus taxes on profit, net financial result, depreciation and amortization. Petrobras announces EBITDA, as authorized by CVM Resolution 156 of June 2022.

In order to reflect the management view regarding the formation of the company's current business results, EBITDA is also presented adjusted (Adjusted EBITDA) as a result of: results in equity-accounted investments; impairment, reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments, results with co-participation agreement in production fields and gains/losses on disposal/write-offs of assets.

Adjusted EBITDA, reflecting the sum of the last twelve months (Last Twelve Months), also represents an alternative to the company's operating cash generation. This measure is used to calculate the Gross Debt and Net Debt to Adjusted EBITDA metric, helping to evaluate the company's leverage and liquidity.

EBITDA and adjusted EBITDA are not provided for in International Financial Reporting Standards (IFRS) and should not serve as a basis for comparison with those disclosed by other companies and should not be considered as a substitute for any other measure calculated in accordance with IFRS. These measures should be considered in conjunction with other measures and indicators for a better understanding of the company's performance and financial condition.

Table 17 - Reconciliation of Adjusted EBITDA

            Variation (%) (*)
R$ million 3Q22 2Q22 3Q21 9M22 9M21 3Q22 X 2Q22 3Q22 X 3Q21 9M22 X 9M21
Net income (loss) 46,236 54,484 31,224 145,503 75,541 (15.1) 48.1 92.6
Net finance income (expense) 7,973 15,757 25,480 20,747 45,452 (49.4) (68.7) (54.4)
Income taxes 20,403 26,193 9,753 70,194 31,549 (22.1) 109.2 122.5
Depreciation, depletion and amortization 17,143 16,996 16,262 50,743 46,820 0.9 5.4 8.4
EBITDA 91,755 113,430 82,719 287,187 199,362 (19.1) 10.9 44.1
Results in equity-accounted investments (171) 54 (1,520) (1,933) (7,844) (88.8) (75.4)
Impairment 1,336 847 (16,358) 2,179 (15,353) 57.7
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments 1 35 1 220 (97.1) (99.5)
Results from co-participation agreements in bid areas 50 (14,243) (3,519) (14,193) (3,519) 303.3
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control (1,550) (1,828) (613) (5,850) (1,235) (15.2) 152.9 373.7
Adjusted EBITDA 91,421 98,260 60,744 267,391 171,631 (7.0) 50.5 55.8
                 
Adjusted EBITDA margin (%) 54 57 50 55 54 (3.0) 4.0 1.0
(*) EBITDA Margin variations in percentage points

 

19  
 

 

Financial statements

Table 18 - Income statement - Consolidated

R$ million 3Q22 2Q22 3Q21 9M22 9M21
Sales revenues 170,076 170,960 121,594 482,677 318,478
Cost of sales (83,240) (75,099) (62,042) (225,214) (157,888)
Gross profit 86,836 95,861 59,552 257,463 160,590
Selling expenses (6,358) (6,136) (5,766) (18,653) (16,706)
General and administrative expenses (1,752) (1,589) (1,763) (4,900) (4,630)
Exploration costs (565) (196) (696) (1,169) (2,897)
Research and development expenses (984) (1,080) (792) (3,145) (2,206)
Other taxes (489) (455) (1,141) (1,255) (1,983)
Impairment of assets (1,336) (847) 16,358 (2,179) 15,353
Other income and expenses (911) 10,930 (815) 8,349 (2,823)
  (12,395) 627 5,385 (22,952) (15,892)
Operating income (loss) 74,441 96,488 64,937 234,511 144,698
Finance income 2,713 3,054 1,188 7,127 2,973
Finance expenses (4,157) (4,691) (6,237) (12,817) (22,721)
Foreign exchange gains (losses) and inflation indexation charges (6,529) (14,120) (20,431) (15,057) (25,704)
Net finance income (expense) (7,973) (15,757) (25,480) (20,747) (45,452)
Results in equity-accounted investments 171 (54) 1,520 1,933 7,844
Income (loss) before income taxes 66,639 80,677 40,977 215,697 107,090
Income taxes (20,403) (26,193) (9,753) (70,194) (31,549)
Net Income (loss) 46,236 54,484 31,224 145,503 75,541
Net income (loss) attributable to:          
Shareholders of Petrobras 46,096 54,330 31,142 144,987 75,164
Non-controlling interests 140 154 82 516 377
           

 

20  
 

 

Table 19 - Statement of financial position – Consolidated

ASSETS - R$ million 09.30.2022 12.31.2021
Current assets 159,327 168,247
Cash and cash equivalents 23,650 58,410
Marketable securities 13,038 3,630
Trade and other receivables, net 22,026 35,538
Inventories 52,825 40,486
Recoverable taxes 7,763 7,511
Assets classified as held for sale 28,684 13,895
Other current assets 11,341 8,777
Non-current assets 788,247 804,704
Long-term receivables 92,717 79,992
Trade and other receivables, net 10,516 10,603
Marketable securities 264 247
Judicial deposits 54,317 44,858
Deferred taxes 2,673 3,371
Other tax assets 19,871 18,197
Other non-current assets 5,076 2,716
Investments 9,041 8,427
Property, plant and equipment 671,067 699,406
Intangible assets 15,422 16,879
Total assets 947,574 972,951
     
     
LIABILITIES - R$ million 09.30.2022 12.31.2021
Current liabilities 135,807 134,913
Trade payables 28,164 30,597
Finance debt 17,873 20,316
Lease liability 28,855 30,315
Taxes payable 24,063 26,414
Short-term employee benefits 11,924 11,967
Liabilities related to assets classified as held for sale 8,963 4,840
Other current liabilities 15,965 10,464
Non-current liabilities 437,662 448,457
Finance debt 148,945 178,908
Lease liability 97,730 98,279
Income taxes payable 1,604 1,676
Deferred taxes 35,472 6,857
Employee benefits 47,260 52,310
Provision for legal and administrative proceedings 13,621 11,263
Provision for decommissioning costs 80,502 87,160
Other non-current liabilities 12,528 12,004
Shareholders' equity 374,105 389,581
Share capital (net of share issuance costs) 205,432 205,432
Profit reserves and others 167,066 181,897
Non-controlling interests 1,607 2,252
Total liabilities and shareholders´ equity 947,574 972,951

 

21  
 

 

Table 20 - Statement of cash flow – Consolidated

R$ million 3Q22 2Q22 3Q21 9M22 9M21
Cash flow from operating activities          
Net income (loss) for the period 46,236 54,484 31,224 145,503 75,541
Adjustments for:          
Pension and medical benefits (actuarial expense) 1,605 1,605 6,152 4,815 9,586
Results of equity-accounted investments (171) 54 (1,520) (1,933) (7,844)
Depreciation, depletion and amortization 17,143 16,996 16,262 50,743 46,820
Impairment of assets (reversal) 1,336 847 (16,358) 2,179 (15,353)
Inventory write-down (write-back) to net realizable value 19 49 34 (5)
Allowance (reversals) for credit loss on trade and other receivables 18 90 (54) 213 (100)
Exploratory expenditures write-offs 177 341 142 632 1,178
Disposal/write-offs of assets and remeasurement of investment retained with loss of control (1,550) (1,828) (578) (5,850) (1,015)
Foreign exchange, indexation and finance charges   9,698 16,618 24,001 23,876 44,143
Deferred income taxes, net 1,222 136 620 11,493 21,247
Revision and unwinding of discount on the provision for decommissioning costs 675 691 1,040 2,172 3,131
PIS and COFINS recovery - exclusion of ICMS (VAT tax) from the basis of calculation 18 (18) (57) (4,955)
Results from co-participation agreements in bid areas 50 (14,243) (3,519) (14,193) (3,519)
Assumption of interest in concessions (520) (520)
Early termination and cash outflows revision of lease agreements (826) (882) (632) (2,848) (1,846)
Gains (losses) with legal, administrative and arbitration proceedings 1,377 1,485 1,416 4,169 2,797
Decrease (Increase) in assets          
Trade and other receivables, net 3,576 (2,876) (3,922) 3,823 (7,504)
Inventories (3,007) (489) (3,052) (13,259) (11,764)
Judicial deposits (2,392) (2,248) (1,839) (6,760) (4,454)
Other assets (518) (3,214) 292 (3,483) (836)
Increase (Decrease) in liabilities          
Trade payables (1,048) 175 2,621 (2,140) 4,459
Other taxes payable 11,572 20,429 10,459 46,022 23,128
Income taxes paid (19,412) (17,522) (4,346) (44,861) (4,998)
Pension and medical benefits (945) (1,044) (2,062) (9,666) (10,821)
Provision for legal proceedings (412) (610) (460) (1,292) (1,923)
Short-term benefits 1,591 (1,006) 481 (184) (795)
Provision for decommissioning costs (861) (722) (1,055) (2,285) (2,798)
Other liabilities (1,964) 4,506 364 915 754
Net cash provided by operating activities 63,207 71,804 55,100 187,835 151,734
Cash flows from Investing activities          
Acquisition of PP&E and intangible assets (10,225) (8,383) (7,857) (30,946) (24,728)
Investments in investees (3) (49) (20) (101) (80)
Proceeds from disposal of assets - Divestment 2,872 7,800 12,325 19,927 15,053
Financial compensation from co-participation agreements 650 24,512 15,510 25,481 15,510
Divestment (Investment) in marketable securities 2,481 (8,091) 137 (8,055) 629
Dividends received 402 938 484 1,615 1,581
Net cash provided (used) by investing activities (3,823) 16,727 20,579 7,921 7,965
Cash flows from Financing activities          
Changes in non-controlling interest 334 (505) 17 241 (49)
Financing and loans, net:          
Proceeds from financing 11,677 863 452 13,322 8,921
Repayment of principal - finance debt (12,215) (19,357) (36,501) (39,255) (108,399)
Repayment of interest - finance debt (2,759) (1,718) (3,355) (7,499) (10,142)
Repayment of lease liability (6,954) (6,697) (7,750) (20,567) (23,323)
Dividends paid to Shareholders of Petrobras (111,046) (62,027) (20,895) (173,075) (31,177)
Dividends paid to non-controlling interests (50) (264) (184) (340) (396)
Net cash provided (used) by financing activities (121,013) (89,705) (68,216) (227,173) (164,565)
Effect of exchange rate changes on cash and cash equivalents (69) 4,881 2,833 (3,415) 3,362
Net change in cash and cash equivalents (61,698) 3,707 10,296 (34,832) (1,504)
Cash and cash equivalents at the beginning of the period 85,348 81,641 49,130 58,482 60,930
Cash and cash equivalents at the end of the period 23,650 85,348 59,426 23,650 59,426

 

22  
 

 

Financial information by business areas

Table 21 - Consolidated income by segment – 9M22

R$ million E&P RTM GAS & POWER CORP. ELIMIN. TOTAL
Sales revenues 311,999 439,940 57,792 2,058 (329,112) 482,677
Intersegments 306,890 7,480 14,723 19 (329,112)
Third parties 5,109 432,460 43,069 2,039 482,677
Cost of sales (119,389) (383,669) (40,798) (2,089) 320,731 (225,214)
Gross profit 192,610 56,271 16,994 (31) (8,381) 257,463
Expenses 9,983 (10,463) (11,702) (10,710) (60) (22,952)
Selling expenses (65) (6,703) (11,778) (47) (60) (18,653)
General and administrative expenses (163) (657) (247) (3,833) (4,900)
Exploration costs (1,169) (1,169)
Research and development expenses (2,676) (31) (24) (414) (3,145)
Other taxes (240) (76) (177) (762) (1,255)
Impairment of assets (642) (1,535) 4 (6) (2,179)
Other income and expenses 14,938 (1,461) 520 (5,648) 8,349
Operating income (loss) 202,593 45,808 5,292 (10,741) (8,441) 234,511
Net finance income (expense) (20,747) (20,747)
Results in equity-accounted investments 776 823 354 (20) 1,933
Income (loss) before income taxes 203,369 46,631 5,646 (31,508) (8,441) 215,697
Income taxes (68,882) (15,575) (1,799) 13,192 2,870 (70,194)
Net income (loss) 134,487 31,056 3,847 (18,316) (5,571) 145,503
Net income (loss) attributable to:            
Shareholders of Petrobras 134,504 31,056 3,483 (18,485) (5,571) 144,987
Non-controlling interests (17) 364 169 516

 

Table 22 - Consolidated income by segment – 9M21

R$ million E&P RTM GAS & POWER CORP. ELIMIN. TOTAL
Sales revenues 211,864 284,257 44,061 1,929 (223,633) 318,478
Intersegments 207,677 5,349 9,755 852 (223,633)
Third parties 4,187 278,908 34,306 1,077 318,478
Cost of sales (91,286) (248,767) (29,957) (1,906) 214,028 (157,888)
Gross profit 120,578 35,490 14,104 23 (9,605) 160,590
Expenses 14,276 (10,334) (11,645) (8,103) (86) (15,892)
Selling expenses (4) (6,146) (10,410) (60) (86) (16,706)
General and administrative expenses (597) (574) (275) (3,184) (4,630)
Exploration costs (2,897) (2,897)
Research and development expenses (1,631) (28) (101) (446) (2,206)
Other taxes (616) (543) (530) (294) (1,983)
Impairment of assets 16,329 (69) (914) 7 15,353
Other income and expenses 3,692 (2,974) 585 (4,126) (2,823)
Operating income (loss) 134,854 25,156 2,459 (8,080) (9,691) 144,698
Net finance income (expense) (45,452) (45,452)
Results in equity-accounted investments 451 4,695 450 2,248 7,844
Income (loss) before income taxes 135,305 29,851 2,909 (51,284) (9,691) 107,090
Income taxes (45,850) (8,553) (836) 20,395 3,295 (31,549)
Net income (loss) 89,455 21,298 2,073 (30,889) (6,396) 75,541
Net income (loss) attributable to:            
Shareholders of Petrobras 89,473 21,298 1,752 (30,963) (6,396) 75,164
Non-controlling interests (18) 321 74 377

 

23  
 

 

 

Table 23 - Quarterly consolidated income by segment – 3Q22

R$ million E&P RTM GAS & POWER CORP. ELIMIN. TOTAL
Sales revenues 101,391 154,035 21,747 657 (107,754) 170,076
Intersegments 99,712 2,773 5,262 7 (107,754)
Third parties 1,679 151,262 16,485 650 170,076
Cost of sales (39,049) (139,607) (13,849) (711) 109,976 (83,240)
Gross profit 62,342 14,428 7,898 (54) 2,222 86,836
Expenses (2,316) (3,519) (3,078) (3,463) (19) (12,395)
Selling expenses (36) (2,297) (3,989) (17) (19) (6,358)
General and administrative expenses (34) (253) (78) (1,387) (1,752)
Exploration costs (565) (565)
Research and development expenses (828) (8) (7) (141) (984)
Other taxes (47) 53 (83) (412) (489)
Impairment of assets (24) (1,313) 1 (1,336)
Other income and expenses (782) 299 1,078 (1,506) (911)
Operating income (loss) 60,026 10,909 4,820 (3,517) 2,203 74,441
Net finance income (expense) (7,973) (7,973)
Results in equity-accounted investments 237 (118) 62 (10) 171
Income (loss) before income taxes 60,263 10,791 4,882 (11,500) 2,203 66,639
Income taxes (20,409) (3,709) (1,639) 6,103 (749) (20,403)
Net income (loss) 39,854 7,082 3,243 (5,397) 1,454 46,236
Net income (loss) attributable to:            
Shareholders of Petrobras 39,860 7,082 3,148 (5,448) 1,454 46,096
Non-controlling interests (6) 95 51 140

 

Table 24 - Quarterly consolidated income by segment – 2Q22

R$ million E&P RTM GAS & POWER CORP. ELIMIN. TOTAL
Sales revenues 108,041 157,429 18,390 743 (113,643) 170,960
Intersegments 106,229 2,449 4,971 (6) (113,643)
Third parties 1,812 154,980 13,419 749 170,960
Cost of sales (40,228) (131,897) (11,677) (729) 109,432 (75,099)
Gross profit 67,813 25,532 6,713 14 (4,211) 95,861
Expenses 12,551 (4,163) (4,008) (3,732) (21) 627
Selling expenses (19) (2,267) (3,815) (14) (21) (6,136)
General and administrative expenses (61) (208) (85) (1,235) (1,589)
Exploration costs (196) (196)
Research and development expenses (939) (10) (3) (128) (1,080)
Other taxes (117) (90) (42) (206) (455)
Impairment of assets (625) (222) (847)
Other income and expenses 14,508 (1,366) (63) (2,149) 10,930
Operating income (loss) 80,364 21,369 2,705 (3,718) (4,232) 96,488
Net finance income (expense) (15,757) (15,757)
Results in equity-accounted investments 282 (474) 143 (5) (54)
Income (loss) before income taxes 80,646 20,895 2,848 (19,480) (4,232) 80,677
Income taxes (27,324) (7,266) (919) 7,877 1,439 (26,193)
Net income (loss) 53,322 13,629 1,929 (11,603) (2,793) 54,484
Net income (loss) attributable to:            
Shareholders of Petrobras 53,327 13,629 1,796 (11,629) (2,793) 54,330
Non-controlling interests (5) 133 26 154

 

24  
 

 

Table 25 - Other income and expenses by segment – 9M22

R$ million E&P RTM GAS & POWER CORP. ELIMIN. TOTAL
Unscheduled stoppages and pre-operating expenses (6,508) (88) (114) (152) (6,862)
Losses with legal, administrative and arbitration proceedings (1,980) (948) (302) (939) (4,169)
Pension and medical benefits - retirees (*) (4,083) (4,083)
Performance award program (838) (438) (101) (684) (2,061)
Losses with Commodities Derivatives (627) (627)
Operating expenses with thermoelectric power plants (555) (555)
Profit sharing (220) (130) (25) (155) (530)
Transfer of rights on concession agreements
Amounts recovered from Lava Jato investigation 90 85 175
Recovery of taxes 45 1 224 270
Fines imposed on suppliers 634 80 171 19 904
Government grants 18 1,669 1,687
Expenses/Reimbursements from E&P partnership operations 2,314 2,314
Early termination and changes to cash flow estimates of leases 2,602 244 86 (84) 2,848
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control 4,458 534 839 19 5,850
Results from the compensation of investments in bid areas (**) 14,193 14,193
Others 175 (760) 520 (940) (1,005)
  14,938 (1,461) 520 (5,648) 8,349
(*)  In 2022, it includes R$ 352 referring to the payment of a contribution as provided for in the Pre-70 Term of Financial Commitment (TFC) for the administrative funding of the PPSP-R pre-70 and PPSP-NR pre-70 plans.
(**) It refers to the gain related to the Co-participation Agreements of Atapu and Sépia.

Table 26 - Other income and expenses by segment – 9M21

R$ million E&P RTM GAS & POWER CORP. ELIMIN. TOTAL
Unscheduled stoppages and pre-operating expenses (5,073) (56) (104) (48) (5,281)
Losses with legal, administrative and arbitration proceedings (972) (2,201) (10) 386 (2,797)
Pension and medical benefits - retirees (6,663) (6,663)
Performance award program (743) (407) (90) (617) (1,857)
Losses with Commodities Derivatives (294) (294)
Operating expenses with thermoelectric power plants (334) (334)
Profit sharing (202) (131) (19) (144) (496)
Transfer of rights on concession agreements 1,579 1,579
Amounts recovered from Lava Jato investigation (*) 39 1,158 1,197
Recovery of taxes (**) 49 169 2,635 2,853
Fines imposed on suppliers 517 82 33 32 664
Government grants 15 6 137 158
Expenses/Reimbursements from E&P partnership operations 2,254 2,254
Early termination and changes to cash flow estimates of leases 1,864 156 (123) (51) 1,846
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control 817 21 296 101 1,235
Results from the compensation of investments in bid areas 3,519 3,519
Others 78 (493) 767 (758) (406)
  3,692 (2,974) 585 (4,126) (2,823)
(*) The total amount recovered from Lava Jato Investigation through December 31, 2021 was R$ 6,220 million, recognized through collaboration and leniency agreements entered into with individuals and legal entities.
(**) In the nine-month period ended September 30, 2021, 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.

 

 

25  
 

 

 

Table 27 - Other income and expenses by segment – 3Q22

R$ million E&P RTM GAS & POWER CORP. ELIMIN. TOTAL
Unscheduled stoppages and pre-operating expenses (2,220) (32) (62) (76) (2,390)
Gains / (losses) related to legal, administrative and arbitration proceedings (1,296) 288 (7) (362) (1,377)
Pension and medical benefits - retirees (*) (1,596) (1,596)
Variable compensation program (322) (178) (35) (270) (805)
Gains/(losses) with Commodities Derivatives 464 464
Operating expenses with thermoelectric power plants (196) (196)
Profit Share (84) (50) (9) (58) (201)
Transfer of rights on concession agreements
Amounts recovered from Lava Jato investigation 90 25 115
PIS and Cofins recovered - VAT tax exclusion from PIS and Cofins tax basis 12 51 63
Fines imposed on suppliers 196 15 114 (15) 310
Government grants 10 640 650
Expenses/Reimbursements from E&P partnership operations 1,538 1,538
Early Contract Terminations 713 93 70 (50) 826
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control 383 290 876 1 1,550
Results from the compensation of investments in bid areas (**) (50) (50)
Others 260 (139) 327 (260) 188
  (782) 299 1,078 (1,506) (911)
(*)  In 2022, it includes R$ 352 referring to the payment of a contribution as provided for in the Pre-70 Term of Financial Commitment (TFC) for the administrative funding of the PPSP-R pre-70 and PPSP-NR pre-70 plans.
(**) It refers to the gain related to the Co-participation Agreements of Atapu and Sépia.

 

Table 28 - Other income and expenses by segment – 2Q22

R$ million E&P RTM GAS & POWER CORP. ELIMIN. TOTAL
Unscheduled stoppages and pre-operating expenses (2,428) (34) (16) (42) (2,520)
Gains / (losses) related to legal, administrative and arbitration proceedings (365) (894) (21) (205) (1,485)
Pension and medical benefits - retirees (1,245) (1,245)
Variable compensation program (266) (134) (34) (204) (638)
Gains/(losses) with Commodities Derivatives (809) (809)
Operating expenses with thermoelectric power plants (194) (1) (195)
Profit Share (69) (40) (8) (51) (168)
Transfer of rights on concession agreements
Amounts recovered from Lava Jato investigation
PIS and Cofins recovered - VAT tax exclusion from PIS and Cofins tax basis 30 1 87 118
Fines imposed on suppliers 196 17 4 22 239
Government grants 4 648 652
Expenses/Reimbursements from E&P partnership operations 638 638
Early Contract Terminations 869 46 (33) 882
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control 1,913 (55) (33) 3 1,828
Results from the compensation of investments in bid areas (*) 14,243 14,243
Others (227) (302) 238 (319) (610)
  14,508 (1,366) (63) (2,149) 10,930
(*) It refers to the gain related to the Co-participation Agreements of Atapu and Sépia.

 

 

26  
 

 

Table 29 - Consolidated assets by segment – 09.30.2022

R$ million E&P RTM GAS & POWER CORP. AND OTHERS ELIMIN. TOTAL
Total assets 620,045 215,766 59,969 103,285 (51,491) 947,574
             
Current assets 45,211 94,689 19,688 51,231 (51,492) 159,327
Non-current assets 574,834 121,077 40,281 52,054 1 788,247
Long-term receivables 33,526 15,124 3,240 40,826 1 92,717
Investments 2,160 5,815 893 173 9,041
Property, plant and equipment 526,147 99,567 35,763 9,590 671,067
Operating assets 471,372 85,864 25,152 7,762 590,150
Assets under construction 54,775 13,703 10,611 1,828 80,917
Intangible assets 13,001 571 385 1,465 15,422

 

Table 30 - Consolidated assets by segment – 12.31.2021

R$ million E&P RTM GAS & POWER CORP. AND OTHERS ELIMIN. TOTAL
Total assets 631,412 191,898 59,087 122,215 (31,661) 972,951
             
Current assets 33,672 70,822 21,418 73,995 (31,660) 168,247
Non-current assets 597,740 121,076 37,669 48,220 (1) 804,704
Long-term receivables 28,136 12,342 1,795 37,720 (1) 79,992
Investments 2,194 5,412 662 159 8,427
Property, plant and equipment 552,654 102,788 34,829 9,135 699,406
Operating assets 486,676 89,770 20,868 7,662 604,976
Assets under construction 65,978 13,018 13,961 1,473 94,430
Intangible assets 14,756 534 383 1,206 16,879

 

27  
 

 

Table 31 - Reconciliation of Adjusted EBITDA by segment – 9M22

R$ million E&P RTM GAS & POWER CORP. AND OTHERS ELIMIN. TOTAL
Net income (loss) 134,487 31,056 3,847 (18,316) (5,571) 145,503
Net finance income (expense) 20,747 20,747
Income taxes 68,882 15,575 1,799 (13,192) (2,870) 70,194
Depreciation, depletion and amortization 40,077 8,682 1,710 274 50,743
EBITDA 243,446 55,313 7,356 (10,487) (8,441) 287,187
Results in equity-accounted investments (776) (823) (354) 20 (1,933)
Impairment 642 1,535 (4) 6 2,179
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments 1 1
Results from co-participation agreements in bid areas (14,193) (14,193)
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control (4,458) (534) (839) (19) (5,850)
Adjusted EBITDA 224,661 55,492 6,159 (10,480) (8,441) 267,391

 

Table 32 - Reconciliation of Adjusted EBITDA by segment – 9M21

R$ million E&P RTM GAS & POWER CORP. AND OTHERS ELIMIN. TOTAL
Net income (loss) 89,455 21,298 2,073 (30,889) (6,396) 75,541
Net finance income (expense) 45,452 45,452
Income taxes 45,850 8,553 836 (20,395) (3,295) 31,549
Depreciation, depletion and amortization 35,639 8,737 1,743 701 46,820
EBITDA 170,944 38,588 4,652 (5,131) (9,691) 199,362
Results in equity-accounted investments (451) (4,695) (450) (2,248) (7,844)
Impairment losses / (reversals) (16,329) 69 914 (7) (15,353)
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments 220 220
Results from co-participation agreements in bid areas (3,519) (3,519)
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control (817) (21) (296) (101) (1,235)
Adjusted EBITDA 149,828 33,941 4,820 (7,267) (9,691) 171,631

 

Table 33 - Reconciliation of Adjusted EBITDA by segment – 3Q22

R$ million E&P RTM GAS & POWER CORP. AND OTHERS ELIMIN. TOTAL
Net income (loss) 39,854 7,082 3,243 (5,397) 1,454 46,236
Net finance income (expense) 7,973 7,973
Income taxes 20,409 3,709 1,639 (6,103) 749 20,403
Depreciation, depletion and amortization 13,435 3,029 667 12 17,143
EBITDA 73,698 13,820 5,549 (3,515) 2,203 91,755
Results in equity-accounted investments (237) 118 (62) 10 (171)
Impairment 24 1,313 (1) 1,336
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments 1 1
Results from co-participation agreements in bid areas 50 50
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control (383) (290) (876) (1) (1,550)
Adjusted EBITDA 73,152 14,962 4,610 (3,506) 2,203 91,421

 

 

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Table 34 - Reconciliation of Adjusted EBITDA by segment – 2Q22

R$ million E&P RTM GAS & POWER CORP. AND OTHERS ELIMIN. TOTAL
Net income (loss) 53,322 13,629 1,929 (11,603) (2,793) 54,484
Net finance income (expense) 15,757 15,757
Income taxes 27,324 7,266 919 (7,877) (1,439) 26,193
Depreciation, depletion and amortization 13,701 2,662 481 152 16,996
EBITDA 94,347 23,557 3,329 (3,571) (4,232) 113,430
Results in equity-accounted investments (282) 474 (143) 5 54
Impairment 625 222 847
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments
Results from co-participation agreements in bid areas (14,243) (14,243)
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control (1,913) 55 33 (3) (1,828)
Adjusted EBITDA 78,534 24,308 3,219 (3,569) (4,232) 98,260

 

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Glossary

ACL - Ambiente de Contratação Livre (Free contracting market) in the electricity system.

ACR - Ambiente de Contratação Regulada (Regulated contracting market) in the electricity system.

Adjusted cash and cash equivalents - Sum of cash and cash equivalents, government bonds and time deposits from highly rated financial institutions abroad with maturities of more than 3 months from the date of acquisition, considering the expected realization of those financial investments in the short-term. This measure is not defined under the International Financial Reporting Standards – IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents computed in accordance with IFRS. It may not be comparable to adjusted cash and cash equivalents of other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity and supports leverage management.

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

Adjusted EBITDA margin - Adjusted EBITDA divided by sales revenues.

Basic and diluted earnings (losses) per share - Calculated based on the weighted average number of shares.

Consolidated Structured Entities – Entities that have been designated so that voting rights or the like are not the determining factor in deciding who controls the entity. Petrobras has no equity interest in certain structured entities that are consolidated in the Company's financial statements, but control is determined by the power it has over its relevant operating activities. As there is no equity interest, the income from certain consolidated structured entities is attributable to non-controlling shareholders in the income statement, and disregarding the profit or loss attributable to Petrobras shareholders.

CTA – Cumulative translation adjustment – The cumulative amount of exchange variation arising on translation of foreign operations that is recognized in Shareholders’ Equity and will be transferred to profit or loss on the disposal of the investment.

Effect of average cost in the Cost of Sales – In view of the average inventory term of 60 days, the crude oil and oil products international prices movement, as well as foreign exchange effect over imports, production taxes and other factors that impact costs, do not entirely influence the cost of sales in the current period, having their total effects only in the following period.

Free cash flow - Net cash provided by operating activities less acquisition of PP&E and intangibles assets (except for signature bonus) and, investments in investees. Free cash flow is not defined under the IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents calculated in accordance with IFRS. It may not be comparable to free cash flow of other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity and supports leverage management.

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

 

 

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

Lifting Cost - Crude oil and natural gas lifting cost indicator, which considers expenditures occurred in the period.

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

OCF - Net Cash provided by (used in) operating activities (operating cash flow)

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

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

PLD (differences settlement price) - Electricity price in the spot market. Weekly weighed prices per output level (light, medium and heavy), number of hours and related market capacity.

Refining - includes crude oil refining, logistics, transportation, acquisition and export activities, as well as the purchase and sale of petroleum and ethanol products in Brazil and abroad. Additionally, this segment includes the petrochemical area, which includes investments in companies in the petrochemical sector, shale exploration and processing.

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

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

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

Sales Price of Petroleum in Brazil - Average internal transfer prices from the E&P segment to the Refining segment.

Total net liabilities - Total liability less adjusted cash and cash equivalents.

 

 

 

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: November 3, 2022

 

PETRÓLEO BRASILEIRO S.A–PETROBRAS

By: /s/ Rodrigo Araujo Alves

______________________________

Rodrigo Araujo Alves

Chief Financial Officer and Investor Relations Officer

 

 

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