UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities
Exchange Act of 1934
For
the month of August, 2024
Commission
File Number 1-15106
PETRÓLEO
BRASILEIRO S.A. – PETROBRAS
(Exact
name of registrant as specified in its charter)
Brazilian
Petroleum Corporation – PETROBRAS
(Translation
of Registrant's name into English)
Avenida
Henrique Valadares, 28 – 19th floor
20241-030 – Rio de Janeiro, RJ
Federative Republic of Brazil
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form
20-F ___X___ Form 40-F _______
Indicate
by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
_______ No___X____
Financial
Information
Jan-Jun/2024
—
|
B3:
PETR3 (ON) | PETR4 (PN)
NYSE:
PBR (ON) | PBRA (PN)
www.petrobras.com.br/ir
petroinvest@petrobras.com.br
+
55 21 3224-1510
Disclaimer
This
presentation contains some financial indicators that are not recognized by GAAP or the IFRS. The indicators presented herein 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 and liquidity; they should not be considered in isolation or as a substitute for
other financial metrics that have been disclosed in accordance with IFRS. See definitions of EBITDA, LTM EBITDA, Adjusted EBITDA, LTM
Adjusted EBITDA, Adjusted Cash and Cash Equivalents, Net Debt, Gross Debt, Free Cash Flow, and Leverage in the Glossary and their reconciliations
in the sections Liquidity and Capital Resources, Reconciliation of LTM Adjusted EBITDA, Gross Debt/LTM Adjusted EBITDA and Net Debt/LTM
Adjusted EBITDA Metrics and Consolidated Debt.
TABLE
OF CONTENTS
| CONSOLIDATED
RESULTS |
|
| Key
Financial Information |
4 |
| Sales
Revenues |
4 |
| Cost
of Sales |
5 |
| Income
(Expenses) |
5 |
| Net
finance (expense) income |
6 |
| Income
tax expenses |
7 |
| Net
Income attributable to shareholders of Petrobras |
7 |
| |
|
| CAPITAL
EXPENDITURES (CAPEX) |
8 |
| |
|
| LIQUIDITY
AND CAPITAL RESOURCES |
9 |
| |
|
| CONSOLIDATED
DEBT |
10 |
RECONCILIATION
OF EBITDA, ADJUSTED EBITDA, LTM EBITDA, LTM ADJUSTED EBITDA, GROSS DEBT/ LTM ADJUSTED EBITDA AND NET DEBT/LTM ADJUSTED EBITDA METRICS |
|
| EBITDA,
Adjusted EBITDA and Net cash provided by operating activities – OCF |
11 |
| LTM
EBITDA, LTM Adjusted EBITDA |
12 |
| Adjusted
Cash and Cash Equivalents, Gross Debt, Net Debt, Net Cash provided by Operating Activities (LTM OCF), LTM Adjusted EBITDA, Gross
Debt Net of Cash and Cash Equivalents/LTM OCF, Gross Debt/LTM Adjusted EBITDA and Net Debt/LTM Adjusted EBITDA Metrics |
13 |
| |
|
| RESULTS
BY OPERATING BUSINESS SEGMENTS |
|
| Exploration
and Production (E&P) |
14 |
| Refining,
Transportation and Marketing |
15 |
| Gas
and Low Carbon Energies |
16 |
| |
|
| GLOSSARY |
17 |
CONSOLIDATED
RESULTS
The main functional
currency of the Petrobras Group (the “Company”) is the Brazilian real, which is the functional currency of the parent company
and its Brazilian subsidiaries. As the presentation currency of the Petrobras Group is the U.S. dollar, the results of operations in
Brazilian reais are translated into U.S. dollars using the average exchange rates prevailing during the period (average exchange rate
of R$/US$ 5.08 in Jan-Jun/2024 compared to R$/US$ 5.07 in Jan-Jun/2023).
Key Financial
Information
| US$ million |
Jan-Jun/2024 |
Jan-Jun/2023
|
Change
(%) |
| Sales
revenues |
47,235 |
49,750 |
(5.1) |
| Cost
of Sales |
(23,251) |
(24,000) |
(3.1) |
| Gross
profit |
23,984 |
25,750 |
(6.9) |
| Income
(expenses) |
(8,295) |
(5,719) |
45.0 |
| Consolidated
net income attributable to the shareholders of Petrobras |
4,438 |
13,169 |
(66.3) |
| Net
cash provided by operating activities |
18,473 |
19,989 |
(7.6) |
| Adjusted
EBITDA |
21,754 |
25,392 |
(14.3) |
| Average
Brent crude (US$/bbl) * |
84.09 |
79.83 |
5.3 |
| Average
Domestic basic oil products price (US$/bbl) |
93.70 |
102.62 |
(8.7) |
* Source:
Refinitiv.
|
|
|
|
| US$ million |
06.30.2024 |
12.31.2023 |
Change
(%) |
| Gross
Debt |
59,630 |
62,600 |
(4.7) |
| Net
Debt |
46,160 |
44,698 |
3.3 |
| Gross
Debt/LTM Adjusted EBITDA ratio |
1.22 |
1.19 |
2.5 |
| Net
Debt/LTM Adjusted EBITDA ratio |
0.95 |
0.85 |
11.8 |
| |
|
|
|
| |
|
|
|
Sales Revenues
| US$
million |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Diesel |
14,055 |
15,387 |
(8.7) |
| Gasoline |
6,278 |
7,469 |
(15.9) |
| Liquefied
petroleum gas (LPG) |
1,551 |
1,880 |
(17.5) |
| Jet
fuel |
2,331 |
2,508 |
(7.1) |
| Naphtha |
910 |
908 |
0.2 |
| Fuel
oil (including bunker fuel) |
577 |
547 |
5.5 |
| Other
oil products |
2,092 |
2,212 |
(5.4) |
| Subtotal
Oil Products |
27,794 |
30,911 |
(10.1) |
| Natural
gas |
2,458 |
2,955 |
(16.8) |
| Crude
oil |
2,278 |
2,715 |
(16.1) |
| Renewables
and nitrogen products |
74 |
46 |
60.9 |
| Breakage |
261 |
438 |
(40.4) |
| Electricity |
232 |
263 |
(11.8) |
| Services,
agency and others |
449 |
525 |
(14.5) |
| Total
domestic market |
33,546 |
37,853 |
(11.4) |
| Exports
|
13,144 |
11,172 |
17.7 |
| Crude
oil |
10,074 |
8,456 |
19.1 |
| Fuel
oil (including bunker fuel) |
2,448 |
2,363 |
3.6 |
| Other
oil products and other products |
622 |
353 |
76.2 |
| Sales
abroad * |
545 |
725 |
(24.8) |
| Total
foreign market |
13,689 |
11,897 |
15.1 |
| Sales
revenues |
47,235 |
49,750 |
(5.1) |
* Sales
revenues from operations outside of Brazil, including trading and excluding exports.
|
|
|
|
Sales
revenues were US$ 47,235 million for the period Jan-Jun/2024, a 5.1% decrease (US$ 2,515 million) when compared to US$ 49,750 million
for the period Jan-Jun/2023, mainly due to:
| (i) | a
US$ 3,117 million decrease in domestic market oil products revenues, of which US$ 2,502
million relates to a decrease in average domestic basic oil products prices following the
reduction in average international prices for diesel and gasoline, and US$ 615 million relates
to a decrease in sales volumes; |
| (ii) | a
US$ 437 million decrease in domestic market crude oil revenues, composed of a US$ 554 million
decrease which relates to a decrease in sales volumes, partially offset by a US$ 117 million
increase which relates to an increase in average crude oil prices in domestic market following
the appreciation of average Brent crude prices; and |
| (iii) | partially
offset by a US$ 1,618 million increase in exported crude oil revenues, of which US$ 1,170
million relates to an increase in sales volumes, and US$ 448 million relates to an increase
in the average price of crude oil exports following the appreciation of average Brent crude
prices. |
Cost of
Sales
| US$ million |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Raw
material, products for resale, materials and third-party services * |
(11,201) |
(12,782) |
(12.4) |
| Depreciation,
depletion and amortization |
(5,072) |
(4,952) |
2.4 |
| Production
taxes |
(5,936) |
(5,477) |
8.4 |
| Employee
compensation |
(1,042) |
(789) |
32.1 |
| Total |
(23,251) |
(24,000) |
(3.1) |
* It includes
short-term leases and inventory turnover.
Cost
of sales was US$ 23,251 million for the period Jan-Jun/2024, a 3.1% decrease (US$ 749 million) when compared to US$ 24,000 million for
the period Jan-Jun/2023, mainly due to lower costs with raw material and products for resale with emphasis on lower acquisition costs
for imported crude oil and oil products.
Income (Expenses)
| US$ million |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Selling
expenses |
(2,601) |
(2,421) |
7.4 |
| General
and administrative expenses |
(996) |
(745) |
33.7 |
| Exploration
costs |
(309) |
(348) |
(11.2) |
| Research
and development expenses |
(376) |
(326) |
15.3
|
| Other
taxes |
(1,088) |
(529) |
105.7
|
| Impairment
of assets |
46 |
(404) |
- |
| Other
income and expenses, net |
(2,971) |
(946) |
214.1
|
| Total |
(8,295) |
(5,719) |
45.0
|
Selling
expenses were US$ 2,601 million for the period Jan-Jun/2024, a 7.4% increase (US$ 180 million) compared to US$ 2,421 million for
the period Jan-Jun/2023, mainly due to higher volumes of crude oil and oil products exports and higher logistical expenses related to
natural gas transportation.
General
and administrative expenses were US$ 996 million for the period Jan-Jun/2024, a 33.7% increase (US$ 251 million) compared to US$
745 million for the period Jan-Jun/2023, mainly due to effects of the 2023 labor agreement and the higher expenses with third-party services.
Other
taxes were US$ 1,088 million for the period Jan-Jun/2024, a 105.7% increase (US$ 559 million) compared to US$ 529 million
for the period Jan-Jun/2023, mainly due to enrollment to the tax settlement program, which allowed the settlement of significant legal
disputes related to discussions on the incidence of taxes on remittances abroad involving chartering of vessels or platforms and their
respective service contracts. Partially offset by a 9.2% extraordinary taxation over exports of crude oil in 2023, pursuant to Provisional
Measure No. 1,163/2023. This extraordinary taxation was temporary and only applicable for the period March to June 2023.
Other
income and expenses, net was a US$ 2,971 million expense in Jan-Jun/2024, a 214.1% increase (US$ 2,025 million) compared to a US$ 946
million expense for the period Jan-Jun/2023, mainly due to (i) effects of the intermediate remeasurement on the health care plan for
retired employees due to the 2023 labor agreement (a US$ 1,000 million expense), and (ii) lower gains from asset divestments (a
US$ 286 million income in Jan-Jun/2024 compared to a US$ 1,187 million income in Jan-Jun/2023).
Net
finance (expense) income
| US$
million |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Finance
income |
1,029 |
981 |
4.9
|
| Income
from investments and marketable securities (Government Bonds) |
812 |
757 |
7.3
|
| Other
finance income |
217 |
224 |
(3.1) |
| Finance
expenses |
(4,004) |
(1,712) |
133.9
|
| Interest
on finance debt |
(1,073) |
(1,053) |
1.9
|
| Unwinding
of discount on lease liability |
(1,104) |
(758) |
45.6
|
| Capitalized
borrowing costs |
759 |
589 |
28.9
|
| Unwinding
of discount on the provision for decommissioning costs |
(530) |
(431) |
23.0
|
| Other
finance expenses * |
(2,056) |
(59) |
3,384.7
|
| Foreign
exchange gains (losses) and indexation charges |
(5,833) |
88 |
- |
| Foreign
exchange gains (losses) |
(4,421) |
2,320 |
- |
| Reclassification
of hedge accounting to the Statement of Income |
(1,297) |
(2,232) |
(41.9) |
Indexation
to the Selic interest rate of anticipated dividends and dividends
Payable |
(388) |
(429) |
(9.6) |
| Recoverable
taxes inflation indexation income |
(96) |
95 |
- |
| Other
foreign exchange gains and indexation charges, net * |
369 |
334 |
10.5
|
| Total |
(8,808) |
(643) |
1,269.8 |
*It includes,
in Jan-Jun/2024, finance expense of US$ 1,930 million and indexation charges of US$ 220 million related to the tax settlement program
- federal taxes.
Net
finance (expense) income was an expense of US$ 8,808 million for the period Jan-Jun/2024, an increase of US$ 8,165 million compared to
an expense of US$ 643 million for the period Jan-Jun/2023, mainly due to:
| · | a
foreign exchange loss of US$ 4,421 million in Jan-Jun/2024, as compared to a US$ 2,320 million
gain in Jan-Jun/2023 reflecting a 14.8% depreciation of the real/US$ exchange rate in Jan-Jun/2024
(06/30/2024: R$ 5.56/US$, 12/31/2023: R$ 4.84/US$) compared to a 7.6% appreciation in Jan-Jun/2023
(06/30/2023: R$ 4.82/US$, 12/31/2022: R$ 5.22/US$), which applied to a higher average net
liability exposure to the US$ during Jan-Jun/2024 than in Jan-Jun/2023. |
| · | other
finance expenses of US$ 2,056 million in Jan-Jun/2024, a 3,384.7% increase (US$ 1,997
million) compared to US$ 59 million for the period Jan-Jun/2023 mainly due to financial
expenses related to the tax settlement program, which were accrued and include indexation
charges. |
| · | partially
offset by lower reclassification of hedge accounting to the Statement of Income of US$ 1,297
million in Jan-Jun/2024, a 41.9% decrease (US$ 935 million) compared to US$ 2,232 million
for the period Jan-Jun/2023. |
Income
tax expenses
Income
tax was an expense of US$ 2,120 million in Jan-Jun/2024, compared to an expense of US$ 6,172 million in Jan-Jun/2023. The decrease was
mainly due to lower net income before income taxes (US$ 6,600 million of income in Jan-Jun/2024 compared to a US$ 19,401 million income
in Jan-Jun/2023), resulting in nominal income taxes computed based on Brazilian statutory corporate tax rates (34%) of US$ 2,243 million
in Jan-Jun/2024 compared to a US$ 6,597 million in Jan-Jun/2023.
Net
Income attributable to shareholders of Petrobras
Net
income attributable to shareholders of Petrobras was US$ 4,438 million for the period Jan-Jun/2024, a US$ 8,731 million decrease
compared to a net income attributable to shareholders of Petrobras of US$ 13,169 million for the period Jan-Jun/2023, as explained above,
mainly due to lower gross profit (US$ 23,984 million in Jan-Jun/2024 compared to US$ 25,750 million in Jan-Jun/2023), higher expenses
(US$ 8,295 million of expenses in Jan-Jun/2024 compared to US$ 5,719 million of expenses in Jan-Jun/2023), higher net finance expenses
(US$ 8,808 million of expenses in Jan-Jun/2024 compared to US$ 643 million of expenses in Jan-Jun/2023) partially offset by lower income
tax expenses (US$ 2,120 million of expenses in Jan-Jun/2024 compared to US$ 6,172 million of expenses in Jan-Jun/2023).
CAPITAL
EXPENDITURES (CAPEX)
| CAPEX
(US$ million) |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Exploration
and Production * |
5,239 |
4,780 |
9.6 |
| Refining,
Transportation and Marketing |
809 |
707 |
14.4
|
| Gas
and Low Carbon Energies |
201 |
76 |
164.5
|
| Corporate
and Other businesses |
187 |
160 |
16.9
|
| Total
|
6,436 |
5,723 |
12.5 |
*
In Jan-Jun/2023, there is US$ 141 million of signature bonuses related to the Sudoeste de Sagitário, Água Marinha and Norte
de Brava Blocks.
In
line with our Strategic Plan, our Capital Expenditures were primarily directed toward investment projects which Management believes are
most profitable, relating to oil and gas production.
In
Jan-Jun/2024, Capital Expenditures in the E&P segment totaled US$ 5,239 million, representing 81.4% of the CAPEX of the Company,
a 9.6% increase when compared to US$ 4,780 million in Jan-Jun/2023, mainly due to the development of large projects, especially
in Búzios and Mero Fields, in the Santos Basin, and in development of production projects in the Campos Basin, partially offset
by the US$ 141 million of signature bonuses related to Sudoeste de Sagitário, Água Marinha and Norte de Brava blocks in
Jan-Jun/2023. CAPEX in Jan-Jun/2024 were mainly concentrated on: (i) the development of production in the pre-salt layer of the Santos
Basin (US$ 2.7 billion); (ii) the development of production in Campos Basin pre- and post-salt layer projects (US$ 1.3 billion);
and (iii) exploratory investments (US$ 0.4 billion).
LIQUIDITY
AND CAPITAL RESOURCES
| US$ million |
Jan-Jun/2024 |
Jan-Jun/2023 |
| Adjusted
Cash and Cash Equivalents at the beginning of the period |
17,902 |
12,283 |
| Government
bonds, bank deposit certificates and time deposits with maturities of more than three months at the beginning of the period |
(5,175) |
(4,287) |
| Cash
and cash equivalents at the beginning of the period |
12,727 |
7,996 |
| Net
cash provided by operating activities |
18,473 |
19,989 |
| Acquisition
of PP&E and intangibles assets |
(5,772) |
(5,335) |
| Acquisition
of equity interests |
(6) |
(17) |
| Proceeds
from disposal of assets – (Divestments) |
766 |
3,461 |
| Financial
compensation from co-participation agreement |
397 |
391 |
| Dividends
received |
64 |
69 |
| Divestment
(Investment) in marketable securities |
(805) |
(468) |
| Net
cash used in investing activities |
(5,356) |
(1,899) |
| (=)
Net cash provided by operating and investing activities |
13,117 |
18,090 |
| Proceeds
from finance debt |
567 |
62 |
| Repayments
of finance debt |
(3,313) |
(2,486) |
| Net
change in finance debt |
(2,746) |
(2,424) |
| Repayment
of lease liability |
(3,883) |
(2,862) |
| Dividends
paid to shareholders of Petrobras |
(10,578) |
(10,397) |
| Dividends
paid to non-controlling interest |
(77) |
(48) |
| Share
repurchase program |
(380) |
0 |
| Changes
in non-controlling interest |
125 |
(50) |
| Net
cash used in financing activities |
(17,539) |
(15,781) |
| Effect
of exchange rate changes on cash and cash equivalents |
(421) |
46 |
| Cash
and cash equivalents at the end of the period |
7,884 |
10,351 |
| Government
bonds, bank deposit certificates and time deposits with maturities of more than three months at the end of the period |
5,586 |
5,443 |
| Adjusted
Cash and Cash Equivalents at the end of the period |
13,470 |
15,794 |
| |
|
|
| Reconciliation
of Free Cash Flow |
|
|
| Net
cash provided by operating activities |
18,473 |
19,989 |
| Acquisition
of PP&E and intangible assets |
(5,772) |
(5,335) |
| Acquisition
of equity interests |
(6) |
(17) |
| Free
Cash Flow * |
12,695 |
14,637 |
*Free Cash Flow
(FCF) is in accordance with the new Shareholder Remuneration Policy (“Policy”), approved in July 2023, which is the result
of the equation: FCF = net cash provided by operating activities less the sum of acquisition of PP&E and intangible assets and acquisition
of equity interests.
As
of June 30, 2024, the balance of Cash and cash equivalents was US$ 7,884 million and Adjusted Cash and Cash Equivalents totaled
US$ 13,470 million.
The
six-month period ended June 30, 2024 had net cash provided by operating activities of US$ 18,473 million and positive Free Cash Flow
of US$ 12,695 million. This level of cash generation, together with proceeds from disposal of assets (divestments) of US$ 766 million,
financial compensation from co-participation agreements of US$ 397 million, dividends received of US$ 64 million and proceeds from finance
debt of US$ 567 million, were allocated to: (a) debt prepayments and payments of principal and interest due in the period of US$ 3,313
million; (b) repayment of lease liability of US$ 3,883 million; (c) dividends paid to shareholders of Petrobras of US$ 10,578 million;
(d) share repurchase program of US$ 380 million; and (e) acquisition of PP&E and intangibles assets of US$ 5,772 million.
In the six-month period ended June 30,2024, the
Company made debt prepayments and payments of principal and interest in the amount of US$ 3,313 million, notably the pre-payment of US$ 250
million of loan in the international banking market.
CONSOLIDATED
DEBT
| Debt
(US$ million) |
06.30.2024 |
12.31.2023 |
Change
(%) |
| Capital
Markets |
16,554 |
17,514 |
(5.5) |
| Banking
Market |
7,327 |
8,565 |
(14.5) |
| Development
banks |
585 |
698 |
(16.2) |
| Export
Credit Agencies |
1,702 |
1,870 |
(9.0) |
| Others |
153 |
154 |
(0.6) |
| Finance
debt |
26,321 |
28,801 |
(8.6) |
| Lease
liability |
33,309 |
33,799 |
(1.4) |
| Gross
Debt |
59,630 |
62,600 |
(4.7) |
| Adjusted
Cash and Cash Equivalents |
13,470 |
17,902 |
(24.8) |
| Net
Debt |
46,160 |
44,698 |
3.3 |
| Leverage:
Net Debt/(Net Debt + Shareholders' Equity) |
41% |
36% |
13.9 |
| Average
interest rate (% p.a.) |
6.6 |
6.4 |
3.1 |
| Weighted
average maturity of outstanding debt (years) |
11.76 |
11.38 |
3.3 |
As
of June 30, 2024, the Company has maintained its liability management strategy to improve the debt profile and to adapt to the maturity
terms of the Company’s long-term investments.
Gross
Debt decreased 4.7% (US$ 2,970 million) to US$ 59,630 million as of June 30, 2024 from US$ 62,600 million as of December 31,
2023, mainly due to lower finance debt (with a US$ 2,480 million decrease in the period) and decreased lease liabilities in the period
(a US$ 490 million decrease). Gross Debt was maintained in the range between US$ 50,000 million and US$ 65,000 million target defined
in the 2024-2028 Strategic Plan, mainly due to debt prepayments and scheduled repayments.
As
of June 30, 2024, Net Debt increased by 3.3% (US$ 1,462 million), reaching US$ 46,160 million, compared to US$ 44,698 million as of December
31, 2023, mainly due to a 24.8% decrease (US$ 4,432 million) in adjusted cash and cash equivalents (US$ 13,470 million as of June 30,2024
compared to US$ 17,902 million as of December 31, 2023).
RECONCILIATION
OF EBITDA, ADJUSTED EBITDA, LTM EBITDA, LTM ADJUSTED EBITDA, GROSS DEBT/LTM ADJUSTED EBITDA AND NET DEBT/LTM ADJUSTED EBITDA METRICS
LTM
Adjusted EBITDA reflects the sum of the last twelve months of Adjusted EBITDA, which is computed by using the EBITDA (net income before
net finance (expense) income, income taxes, depreciation, depletion and amortization) adjusted by items not considered part of the Company’s
primary business, which include results in equity-accounted investments, results on disposal and write-offs of assets, impairment and
results from co-participation agreements in bid areas.
LTM
Adjusted EBITDA represents an alternative to the Company's operating cash generation. This measure is used to calculate the metrics Gross
Debt/LTM Adjusted EBITDA and Net Debt/LTM Adjusted EBITDA, to support management’s assessment of liquidity and leverage.
EBITDA,
Adjusted EBITDA and Net cash provided by operating activities – OCF
| US$
million |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Net
income |
4,480 |
13,229 |
(66.1) |
| Net
finance (expense) income |
8,808 |
643 |
1,269.8 |
| Income
taxes |
2,120 |
6,172 |
(65.7) |
| Depreciation,
depletion and amortization |
6,500 |
6,173 |
5.3 |
| EBITDA |
21,908 |
26,217 |
(16.4) |
| Results
in equity-accounted investments |
281 |
(13) |
- |
| Impairment
of assets (reversals) |
(46) |
404 |
- |
| Results
on disposal/write-offs of assets |
(286) |
(1,188) |
(75.9) |
| Results
from co-participation agreements in bid areas |
(103) |
(28) |
267.9 |
| Adjusted
EBITDA |
21,754 |
25,392 |
(14.3) |
| Allowance
for credit loss on trade and other receivables |
48 |
34 |
41.2 |
| Trade
and other receivables |
1,459 |
1,175 |
24.2 |
| Inventories |
(355) |
1,080 |
- |
| Trade
payables |
242 |
(291) |
- |
| Taxes
payable |
(6,583) |
(7,266) |
(9.4) |
| Others |
1,908 |
(135) |
- |
| Net
cash provided by operating activities – OCF |
18,473 |
19,989 |
(7.6) |
LTM
EBITDA, LTM Adjusted EBITDA, LTM Net cash provided by operating activities – OCF
| |
US$
million |
| |
Last
twelve months (LTM) at |
|
|
|
|
| |
06.30.2024 |
12.31.2023 |
Jul-Sep/2023 |
Oct-Dec/2023 |
Jan-Mar/2024 |
Apr-Jun/2024 |
| Net income
(loss) |
16,246 |
24,995 |
5,484 |
6,282 |
4,805 |
(325) |
| Net
finance (expense) income |
10,498 |
2,333 |
1,985 |
(295) |
1,939 |
6,869 |
| Income taxes |
6,349 |
10,401 |
2,263 |
1,966 |
2,147 |
(27) |
| Depreciation,
depletion and amortization |
13,607 |
13,280 |
3,475 |
3,632 |
3,362 |
3,138 |
| EBITDA |
46,700 |
51,009 |
13,207 |
11,585 |
12,253 |
9,655 |
| Results
in equity-accounted investments |
598 |
304 |
248 |
69 |
93 |
188 |
| Impairment
of assets (reversals) |
2,230 |
2,680 |
78 |
2,198 |
(9) |
(37) |
| Results on
disposal/write-offs of assets |
(394) |
(1,295) |
37 |
(145) |
(162) |
(124) |
| Results from
co-participation agreements in bid areas |
(359) |
(284) |
(19) |
(237) |
(48) |
(55) |
| Adjusted
EBITDA |
48,775 |
52,414 |
13,551 |
13,470 |
12,127 |
9,627 |
| Allowance
(reversals) for credit loss on trade and other receivables |
54 |
40 |
15 |
(9) |
30 |
18 |
| Trade and
other receivables |
372 |
88 |
(588) |
(499) |
604 |
855 |
| Inventories |
129 |
1,564 |
52 |
432 |
(627) |
272 |
| Trade payables |
(421) |
(954) |
(726) |
63 |
407 |
(165) |
| Taxes payable |
(9,780) |
(10,463) |
(819) |
(2,378) |
(3,143) |
(3,440) |
| Others |
2,567 |
523 |
69 |
590 |
(12) |
1,920 |
| Net
cash provided by operating activities - OCF |
41,696 |
43,212 |
11,554 |
11,669 |
9,386 |
9,087 |
Adjusted
Cash and Cash Equivalents, Gross Debt, Net Debt, Net Cash provided by Operating Activities (LTM OCF), LTM Adjusted EBITDA, Gross Debt
Net of Cash and Cash Equivalents/LTM OCF, Gross Debt/LTM Adjusted EBITDA and Net
Debt/LTM Adjusted EBITDA Metrics
The
Gross Debt/LTM Adjusted EBITDA ratio and Net Debt/LTM Adjusted EBITDA metrics are important metrics that support our management in assessing
the liquidity and leverage of Petrobras Group. These ratios are important measures for management to assess the Company’s ability
to pay off its debt, mainly because our Strategic Plan 2024-2028 defines US$ 65 billion as a maximum level for our Gross Debt.
The
following table presents the reconciliation for those metrics to the most directly comparable measure derived from IFRS captions, which
is in this case the Gross Debt Net of Cash and Cash Equivalents/Net Cash provided by operating activities ratio:
| |
US$
million |
| |
|
|
| |
06.30.2024 |
12.31.2023 |
| Cash
and cash equivalents |
7,884 |
12,727 |
| Government
bonds, bank deposit certificates and time deposits (maturity of more than three months) |
5,586 |
5,175 |
| Adjusted
Cash and Cash equivalents |
13,470 |
17,902 |
| Finance debt |
26,321 |
28,801 |
| Lease liability |
33,309 |
33,799 |
| Current
and non-current debt - Gross Debt |
59,630 |
62,600 |
| Net Debt |
46,160 |
44,698 |
| Net cash
provided by operating activities - LTM OCF |
41,696 |
43,212
|
| Allowance
for credit loss on trade and other receivables |
(54) |
(40) |
| Trade and
other receivables |
(372) |
(88) |
| Inventories |
(129) |
(1,564) |
| Trade payables |
421 |
954
|
| Taxes payable |
9,780 |
10,463
|
| Others |
(2,567) |
(523) |
| LTM Adjusted
EBITDA |
48,775 |
52,414
|
| Gross Debt
net of cash and cash equivalents/LTM OCF ratio |
1.24 |
1.15 |
| Gross Debt/LTM
Adjusted EBITDA ratio |
1.22 |
1.19 |
| Net Debt/LTM
Adjusted EBITDA ratio |
0.95 |
0.85 |
| |
|
|
RESULTS
BY OPERATING BUSINESS SEGMENTS
Exploration
and Production (E&P)
Financial information
| US$ million |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Sales
revenues |
31,745 |
30,452 |
4.2
|
| Gross
profit |
18,903 |
17,961 |
5.2
|
| Income
(Expenses) |
(2,181) |
(677) |
222.2
|
| Operating
income |
16,722 |
17,284 |
(3.3) |
| Net
income attributable to the shareholders of Petrobras |
11,083 |
11,443 |
(3.1) |
| Average
Brent crude (US$/bbl) |
84.09 |
79.83 |
5.3
|
| Production
taxes – Brazil |
5,927 |
5,479 |
8.2
|
| Royalties |
3,709 |
3,163 |
17.3
|
| Special
Participation |
2,200 |
2,292 |
(4.0) |
| Retention
of areas |
18 |
24 |
(25.0) |
[1]
In
the period Jan-Jun/2024, gross profit for the E&P segment was US$ 18,903 million, an increase of 5.2% in relation
to the period Jan-Jun/2023, due to higher sales revenues, which reflect mainly increased production, in addition to higher Brent prices.
Operating
income was US$ 16,722 million in the Jan-Jun/2024 period, a decrease of 3.3% compared to the Jan-Jun/2023 period, mainly due
to higher tax expenses resulting from the enrollment in the tax settlement program.
In
the period Jan-Jun/2024, the increase in production taxes was caused primarily by higher Brent prices, in relation to the Jan-Jun/2023
period.
Operational information
| Production
in thousand barrels of oil equivalent per day (mboed) |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Crude
oil, NGL and natural gas – Brazil |
2,703 |
2,621 |
3.1 |
| Crude
oil and NGL (mbbl/d) |
2,196 |
2,121 |
3.5 |
| Natural
gas (mboed) |
507 |
500 |
1.4 |
| Crude
oil, NGL and natural gas – Abroad |
34 |
35 |
(2.9) |
| Total
(mboed) |
2,737 |
2,657 |
3.0 |
Production
of crude oil, NGL and natural gas was 2,737 mboed in the period Jan-Jun/2024, representing an increase of 3.0% compared to Jan-Jun/2023,
mainly due to the ramp up of platforms Almirante Barroso (Búzios field), P-71 (Itapu field), FPSO Anna Nery (Marlim field), FPSO
Anita Garibaldi (Marlim, Voador and Espadim fields) and FPSO Sepetiba (Mero field), in addition to the start of production of new wells
in the Campos and Santos Basins.
Refining, Transportation
and Marketing
Financial information
| US$ million |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Sales
revenues |
44,251 |
45,899 |
(3.6) |
| Gross
profit |
3,711 |
4,703 |
(21.1) |
| Income
(Expenses) |
(1,537) |
(2,329) |
(34.0) |
| Operating
income |
2,174 |
2,374 |
(8.4) |
| Net
income attributable to the shareholders of Petrobras |
1,054 |
1,511 |
(30.2) |
| Average
refining cost (US$ / barrel) – Brazil |
2.63 |
2.18 |
20.6
|
| Average
domestic basic oil products price (US$/bbl) |
93.70 |
102.62 |
(8.7) |
In
the period Jan-Jun/2024, Refining, Transportation and Marketing gross profit was US$ 992 million lower than in the period Jan-Jun/2023
mainly due to a decrease in international margins, especially diesel, and lower volume of sales in domestic market, mainly diesel and
gasoline.
The
operating income for the period Jan-Jun/2024 reflects lower gross profit partially offset by a decrease of expenses, mainly expenses
with impairment related to the 2nd refining unit of RNEST and expenses with compensation for the termination of a vessel charter agreement,
both occurred in Jan-Jun/2023.
The
average refining cost in the period Jan-Jun/2024 was US$ 2.63/bbl, 20.6% higher than in the period Jan-Jun/2023, due to inflationary
effects on personnel and service costs and to an increased scope of maintenance and revitalization activities in our refineries.
Operational information
| Thousand
barrels per day (mbbl/d) |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Total
production volume |
1,748 |
1,730 |
1.0 |
| Domestic
sales volume |
1,674 |
1,709 |
(2.0) |
| Reference
feedstock |
1,813 |
1,846 |
(1.8) |
| Refining
plants utilization factor (%) |
91% |
89% |
2.2 |
| Processed
feedstock (excluding NGL) |
1,622 |
1,602 |
1.2 |
| Processed
feedstock |
1,670 |
1,650 |
1.2 |
| Domestic
crude oil as % of total |
91% |
90% |
1.1 |
Domestic
sales in the period Jan-Jun/2024 were 1,674 mbbl/d, a decrease of 2.0% compared to Jan-Jun/2023.
Gasoline
sales volume decreased 8.3% in Jan-Jun/2024 compared to Jan-Jun/2023 mainly due to the higher competitiveness in price of hydrous ethanol
compared to gasoline. Diesel sales volume decreased 1.9% between periods because of the higher imports from third parties and the increase
in biodiesel content.
Total
production of oil products for the period Jan-Jun/2024 was 1,748 mbbl/d, 1.0% higher than Jan-Jun/2023. In the first half of 2024 the
utilization factor of our refineries was higher than in the same period of the previous year, compensating the effects of the divestment
of the Guamaré Industrial Asset refinery, former RPCC.
Processed
feedstock for the period Jan-Jun/2024 was 1,670 mbbl/d, 1.2% more than Jan-Jun/2023.
Gas and
Low Carbon Energies
Financial information
| US$ million |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Sales
revenues |
4,620 |
5,621 |
(17.8) |
| Gross
profit |
2,347 |
2,528 |
(7.2) |
| Income
(expenses) |
(1,756) |
(1,544) |
13.7
|
| Operating
income (loss) |
591 |
984 |
(39.9) |
| Net
income (loss) attributable to the shareholders of Petrobras |
421 |
635 |
(33.7) |
| Average
natural gas sales price – Brazil (US$/bbl) |
65.88 |
72.13 |
(8.7) |
In
Jan-Jun/2024, the sales revenues reduction in relation to Jan-Jun/2023 was due to the lower volume of natural gas sold to the thermoelectric
and non-thermoelectric markets, as well as reduction of thermoelectric generation and the lower average natural gas sales price.
In
addition, the lower operating income in Jan-Jun/2024 compared to Jan-Jun/2023 is mainly due to the lower gross profit and the increase
in sales expenses.
Operational information
| |
Jan-Jun/2024 |
Jan-Jun/2023 |
Change
(%) |
| Sale
of Thermal Availability at Auction (ACR)- Average MW |
1,186 |
1,655 |
(28.3) |
| Sale of electricity
- average MW |
430
|
556
|
(22.7) |
| National
gas delivered - million m³/day |
30 |
33 |
(9.1) |
| Regasification
of liquefied natural gas - million m³/day |
3 |
1 |
200.0 |
| Import of
natural gas from Bolivia - million m³/day |
14 |
17 |
(17.6) |
| Natural
gas sales and for internal consumption - million m³/day |
46 |
50 |
(8.0) |
In
Jan-Jun/2024, electricity sales by Petrobras decreased 22.7% compared to Jan-Jun/2023, due to the high level of hydroelectric plants’
reservoirs in Brazil and consequently lower demand in the thermoelectric market. In this scenario, power generation was used mainly to
supply Petrobras' internal energy demand, as well as for one-off opportunities to export to Argentina.
There
was also a reduction in the volume of thermal availability at auctions (ACR), due to the expiration of contracts.
The
supply of national gas decreased in Jan-Jun/2024 due to planned maintenance on the Mexilhão Plataform and UTGCA gas processing
unit, in addition to the effect of other operational events.
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, bank deposit certificates and time deposits 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 and uses this measure in the calculation of Net Debt.
Adjusted
EBITDA Net income plus net finance (expense) income; income taxes; depreciation, depletion and amortization; results in equity-accounted
investments; impairment; results on disposal/write-offs of assets; and results from co-participation agreements in bid areas. Adjusted
EBITDA is not a measure defined by 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 and supports leverage management.
ANP
- Brazilian National Petroleum, Natural Gas and Biofuels Agency.
Average
Domestic basic oil products price (US$/bbl) - represents Petrobras' domestic sales revenues per unit of basic oil products, which
are: diesel, gasoline, LPG, jet fuel, naphtha and fuel oil.
Capital
Expenditures – Capital expenditures based on the cost assumptions and financial methodology adopted in our Strategic Plan,
which include acquisition of PP&E and intangible assets, acquisition of equity interests, as well as other items that do not necessarily
qualify as cash flows used in investing activities, comprising geological and geophysical expenses, research and development expenses,
pre-operating charges, purchase of property, plant and equipment on credit and borrowing costs directly attributable to works in progress.
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.
EBITDA
- net income before net finance (expense) income, income taxes, depreciation, depletion and amortization. EBITDA is not a measure defined
by 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 and supports leverage management.
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 the sum of acquisition of PP&E and intangibles
assets and acquisition of equity interests. Free cash flow is not defined under the IFRS and should not be considered
in isolation or as a substitute for cash and cash equivalents calculated in accordance with IFRS. It may not
be comparable to free cash flow of other companies. However, management believes that it is an appropriate supplemental
measure to assess our liquidity and supports leverage management.
Gross
Debt – Sum of current and non-current finance debt and lease liability, this measure is not defined under the IFRS.
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
EBITDA –EBITDA for the last twelve months.
LTM
Adjusted EBITDA – Adjusted EBITDA for the last twelve months.
OCF
- Net Cash provided by (used in) operating activities (operating cash flow)
Operating
income (loss) - Net income (loss) before finance (expense) income, results in equity-accounted investments and income taxes.
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. Management believes that Net Debt is an appropriate supplemental
measure that helps investors assess our liquidity and supports leverage management.
Results
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. |
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
Date: August
23, 2024
PETRÓLEO
BRASILEIRO S.A–PETROBRAS
By: /s/ Fernando Sabbi Melgarejo
______________________________
Fernando
Sabbi Melgarejo
Chief
Financial Officer and Investor Relations Officer
Petroleo Brasileiro ADR (NYSE:PBR.A)
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