Holding

Access the information about our Quarterly Results.

View presentations, audios and transcripts of the webcasts. Check out Financial Reports, Financial Statements and other information about our Quarterly Results.

Rio de Janeiro - August 10, 2017 - SECOND QUARTER OF 2017 RESULTS - Derived from consolidated interim financial information reviewed by independent auditors, prepared in accordance with International Financial Reporting Standards - IFRS.

Net income
R$ 0,316 billion

Production
2.791 Mbbl/d

Adjusted EBITDA
R$ 44,348 million

Main highlights

Main financial highlights

  • Net Income of R$ 4,765 million in 1H-2017, compared to a loss of R$ 876 million in 1H-2016, as a result of:
    • Increase of R$ 9,554 million in export revenues due to higher volume and oil prices;
    • Gain of R$ 6,977 million due to the sale of participation in Nova Transportadora do Sudeste (NTS);
    • Reduction of 68% in exploratory costs and 16% in sales, general and administrative expenses;
    • Reduction of 7% in oil products sales in the domestic market and lower import expenses;
    • Expenses with adherence to Tax Settlement Programs (R$ 6,234 million);
    • Higher production taxes due to a higher oil price
    • Provision for losses with receivables related to Vitória 10.000 drillship (R$ 818 million).
  • Net income of 2Q-2017 remained in the same level in relation to 2Q-2016, reflecting the lower oil products margins, the reduction in the sales volume and the lower operating expenses.
  • Rise of 6% of the Adjusted EBITDA* to R$ 44,348 million in 1H-2017, reflecting lower operational expenses and import costs. Adjusted EBITDA Margin* was 33% in 1H-2017
  • In 1H-2017, Free Cash Flow* reached R$ 22,722 million, 70% higher than 1H-2016. This result reflects the combination of improvement in generation and reduction in investments. Free Cash Flow* in 2Q-2017 was positive for the ninth quarter in a row.
  • Gross debt decreased 2%, from R$ 385,784 million as of December 31, 2016 to R$ 376,587 million and Net Debt* decreased 6%, from R$ 314,120 million as of December 31, 2016 to R$ 295,300 million as of June 30, 2017.
  • In dollars, the decrease was of 7% (US$ 7,118 million) in Net Debt*, from US$ 96,381 million as of December 31, 2016 to US$ 89.263 million as of June 30, 2017. In addition, the liquidity management led to a weighted average maturity of outstanding debt to increase from 7.46 years as of December 31, 2016 to 7.88 years as of June 30, 2017.
  • Reduction of the ratio between Net Debt* and LTM Adjusted EBITDA*, from 3.54 as of December 31, 2016 to 3.23 as of June 30, 2017. During the same period, Leverage* decreased from 55% to 53%.
  • Petrobras employees as of June 30, 2017 were 63,152, a decrease of 18% compared to June 30, 2016, due to the voluntary separation incentive plan.

 

Main operating highlights

  • Total crude oil and natural gas production reached 2,791 thousand boed in 1S-2017, being 2,671 thousand boed in Brazil, 6% higher than 1H-2016.
  • In 2Q-2017, the FPSO P-66 started its operations in the Lula-South area, in the pre-salt of Santos basin and, in June, a record of operated production of crude oil and natural gas in the pre-salt area, of 1,686 thousand boed, was achieved. Furthermore, there were fewer expenses related to rig idleness.
  • In 1H-2017, output of domestic oil products decreased by 7% when compared to 1H-2016, to 1,805 thousand bpd. Domestic oil product sales decreased 7% to 1,943 thousand bpd.
  • The Company sustained its position of net exporter, with a balance of 401 thousand bpd in 1H-2017 (vs. 62 thousand bpd in 1H-2016) due to the increase in exports of 48% and reduction in imports of 25%, when compared to 1H-2016.
  • Contributed to the decrease in the import volumes in 1H-2017, the higher share of domestic crude in the processed feedstock and of domestic natural gas in the sales mix.

 

*See definitions of Free Cash Flow, Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt and Leverage in glossary and the respective reconciliations of such items in Liquidity and Capital Resources, Reconciliation of Adjusted EBITDA and Net Debt.

 

 

 

Audio of the Earnings Announcement 2Q17

Rio de Janeiro - May 11, 2017 - FIRST QUARTER OF 2017 RESULTS - Derived from consolidated interim financial information reviewed by independent auditors, prepared in accordance with International Financial Reporting Standards - IFRS.

Net income
R$ 4,449 billion

Production
2.182 Mbbl/d

Adjusted EBITDA
R$ 25.254 million

Main highlights

Main financial highlights

  • Net income of R$ 4,449 million in 1Q17, compared to a loss of R$ 1,246 million in 1Q-2016, as a result of:
    • lower oil and natural gas imports costs, due to the higher share of national oil in the processed feedstock and to the higher domestic natural gas production;
    • higher level of exports, that reached 782 thousand barrels per day (bpd), 72% above 1Q-2016, with higher average prices;
    • sales, general and administrative expenses, 27% lower than 1Q-2016;
    • decrease of 11% in net finance expenses; and
    • lower expenses associated with asset write-offs and with drilling rigs idleness.
  • Adjusted EBITDA* of R$ 25,254 million in 1Q-2017, 19% higher than 1Q-2016, reflecting lower operational expenses and import costs. Adjusted EBITDA Margin* was 37% in 1Q-2017.
  • In 1Q-2017, Free Cash Flow* was positive for the eighth quarter in a row, reaching R$ 13,368 million, 5.6x 1Q-2016. This result reflects the combination of improvement in the operational generation and reduction in investments.
  •  Gross debt decreased 5%, from R$ 385,784 million as of December 31, 2016 to R$ 364,758 million as of March 31, 2017 and Net debt* decreased 4%, from R$ 314,120 million as of December 31, 2016 to R$ 300,975 million as of March 31, 2017.
  •  In dollars, the decrease was of 1% (US$ 1,388 million) in net debt, from US$ 96,381 million as of December 31, 2016 to US$ 94,993 million as of March 31, 2017. In addition, the liquidity management led to a weighted average maturity of outstanding debt to increase from of 7.46 years as of December 31, 2016 to 7.61 years as of March 31, 2017.
  •  Reduction of the ratio between Net debt* and LTM Adjusted EBITDA*, from 3.54 as of December 31, 2016 to 3.24 as of March 31, 2017. During the same period, leverage decreased from 55% to 54%.
  •  Petrobras employees as of March, 31st,2017 were 65,220, a decrease of 17% compared to March 31st, 2016, due to the voluntary separation incentive plan.


Main operating highlights

  •  Average crude oil production in Brazil reached, in 1Q-2017, 2,182 thousand bpd, 10% above the average crude oil production in 1Q-2016. Total crude oil production reached 2,248 thousand bpd in 1Q-2017, an increase of 9% compared to 1Q-2016.
  •  In 1Q-2017, output of domestic oil products decreased by 8% when compared to 1Q-2016, to 1,811 thousand bpd. Domestic oil product sales decreased 5% to 1,951 thousand bpd.
  •  The Company sustained its position of net exporter, due to the increase in exports of 72% and reduction in imports of 40%, when compared to 1Q-2016.

 

* See definitions of Free Cash Flow, Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted EBITDA Margin and Net debt in glossary and the respective reconciliations of such items in Liquidity and Capital Resources, Reconciliation of Adjusted EBITDA, LTM Adjusted EBITDA and Net debt.

 

Audio of the Earnings Announcement 1Q17