6-K 1 pbr-6k_20190509.htm 6-K pbr-6k_20190509.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 6-K

 

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

Securities Exchange Act of 1934

 

For the month of May 2019

 

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 República do Chile, 65 

20031-912 - Rio de Janeiro, RJ

Federative Republic of Brazil

(Address of principal executive office)

 

 

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

Form 20-F ___X___ Form 40-F _______

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

Yes _______ No___X____

 

 


 

 

 

Quarterly Information- ITR

 

 

At March 31, 2019 and report on review of Quarterly Information

 

(A free translation of the original

in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Index

(Expressed in millions of reais, unless otherwise indicated)

 

 

 

 

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

3

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

4

Parent Company Interim Accounting Information / Statement of Income

5

Parent Company Interim Accounting Information / Statement of Comprehensive Income

6

Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2019 to 03/31/2019

7

Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2018 to 03/31/2018

8

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

9

Parent Company Interim Accounting Information / Statement of Added Value

10

Consolidated Interim Accounting Information / Statement of Financial Position - Assets

11

Consolidated Interim Accounting Information / Statement of Financial Position - Liabilities

12

Consolidated Interim Accounting Information / Statement of Income

13

Consolidated Interim Accounting Information / Statement of Comprehensive Income

14

Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2019 to 03/31/2019

15

Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2018 to 03/31/2018

16

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

17

Consolidated Interim Accounting Information / Statement of Added Value

18

NOTES TO THE FINANCIAL STATEMENTS

19

PETROBRAS

19

1.

Basis of preparation and presentation of the interim financial statements

19

2.

The “Lava Jato (Car Wash) investigation” and its effects on the company

19

3.

Summary of significant accounting policies

19

4.

Cash and cash equivalents and marketable securities

21

5.

Trade and other receivables

22

6.

Inventories

24

7.

Disposal of assets and other changes in organizational structure

24

8.

Investments

25

9.

Property, plant and equipment

26

10.

Intangible assets

28

11.

Exploration and evaluation of oil and gas reserves

28

12.

Finance debt

29

13.

Lease liabilities

31

14.

Related parties

31

15.

Provision for decommissioning costs

35

16.

Taxes

35

17.

Short-term benefits

36

18.

Employee benefits (Post-Employment)

36

19.

Equity

38

20.

Supplemental information on statement of cash flows

39

21.

Sales revenues

39

22.

Costs and expenses by nature

39

23.

Other income and expenses

40

24.

Net finance income (expense)

40

25.

Segment information

41

26.

Provisions for legal proceedings, judicial deposits and contingent liabilities

44

27.

Collateral for crude oil exploration concession agreements

46

28.

Risk management

46

29.

Fair value of financial assets and liabilities

50

30.

Subsequent events

51

31.

Correlation between the notes disclosed in the complete annual financial statements as of December 31, 2018 and the interim statements as of March 31, 2019

52

Statement Of Directors On Financial Statements And Auditors’ Report

53

 

 

 

2


 

 

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

(R$ Thousand)

 

 

 

 

Account Code

Account Description

03.31.2019

12.31.2018

1

Total Assets

1,043,895,000

839,717,000

1.01

Current Assets

101,675,000

96,541,000

1.01.01

Cash and Cash Equivalents

3,297,000

6,334,000

1.01.02

Marketable Securities

3,989,000

3,974,000

1.01.03

Trade and Other Receivables

39,100,000

36,731,000

1.01.04

Inventories

28,766,000

29,307,000

1.01.06

Recoverable Taxes

6,074,000

5,759,000

1.01.06.01

Current Recoverable Taxes

6,074,000

5,759,000

1.01.06.01.01

Current Income Tax and Social Contribution

2,069,000

2,018,000

1.01.06.01.02

Other Recoverable Taxes

4,005,000

3,741,000

1.01.08

Other Current Assets

20,449,000

14,436,000

1.01.08.01

Non-Current Assets Held for Sale

2,903,000

2,605,000

1.01.08.03

Others

17,546,000

11,831,000

1.01.08.03.01

Escrow account - Class action agreement

9,325,000

6,093,000

1.01.08.03.03

Others

8,221,000

5,738,000

1.02

Non-Current Assets

942,220,000

743,176,000

1.02.01

Long-Term Receivables

68,251,000

74,706,000

1.02.01.03

Marketable Securities Measured at Amortized Cost

200,000

202,000

1.02.01.04

Trade and Other Receivables

17,577,000

18,139,000

1.02.01.07

Deferred Taxes

12,844,000

12,498,000

1.02.01.07.02

Deferred Taxes and Contributions

12,844,000

12,498,000

1.02.01.10

Other Non-Current Assets

37,630,000

43,867,000

1.02.01.10.03

Advances to Suppliers

1,145,000

9,555,000

1.02.01.10.04

Judicial Deposits

26,979,000

24,476,000

1.02.01.10.05

Other Long-Term Assets

9,506,000

9,836,000

1.02.02

Investments

181,774,000

175,827,000

1.02.03

Property, Plant and Equipment

682,910,000

483,375,000

1.02.04

Intangible Assets

9,285,000

9,268,000

 

 

 

3


 

 

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

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

03.31.2019

12.31.2018

2

Total Liabilities

1,043,895,000

839,717,000

2.01

Current Liabilities

253,337,000

185,554,000

2.01.01

Payroll, Profit Sharing and Related Charges

6,069,000

5,477,000

2.01.02

Trade Payables

25,958,000

29,140,000

2.01.03

Taxes Obligations

679,000

207,000

2.01.03.01

Federal Taxes Obligations

679,000

207,000

2.01.03.01.01

Income Tax and Social Contribution Payable

679,000

207,000

2.01.04

Current Debt and Finance Lease Obligations

181,101,000

106,319,000

2.01.04.01

Current Debt

141,360,000

105,527,000

2.01.04.03

Lease Obligations

39,741,000

792,000

2.01.05

Other Liabilities

21,318,000

26,152,000

2.01.05.02

Others

21,318,000

26,152,000

2.01.05.02.01

Dividends and Interest on Capital Payable

3,960,000

3,894,000

2.01.05.02.04

Other Taxes and Contributions

11,608,000

13,101,000

2.01.05.02.05

Agreement with US Authorities

3,034,000

2.01.05.02.06

Other liabilities

5,750,000

6,123,000

2.01.06

Provisions

14,556,000

14,649,000

2.01.06.01

Provisions for Tax Social Security, Labor and Civil Lawsuits

11,398,000

11,673,000

2.01.06.01.04

Provisions for Civil Lawsuits

11,398,000

11,673,000

2.01.06.02

Other Provisions

3,158,000

2,976,000

2.01.06.02.04

Pension and Medical Benefits

3,158,000

2,976,000

2.01.07

Liabilities Associated with Non-Current Assets Held for Sale and Discontinued

3,656,000

3,610,000

2.01.07.01

Liabilities Associated with Non-Current Assets Held for Sale

3,656,000

3,610,000

2.02

Non-Current Liabilities

507,899,000

376,938,000

2.02.01

Non-Current Debt and Finance Lease Obligations

352,331,000

223,256,000

2.02.01.01

Non-Current Debt

190,929,000

220,352,000

2.02.01.03

Lease Obligations

161,402,000

2,904,000

2.02.02

Other Liabilities

2,066,000

2,090,000

2.02.02.02

Others

2,066,000

2,090,000

2.02.02.02.03

Income Tax and Social Contribution

2,066,000

2,090,000

2.02.03

Deferred Taxes

510,000

1,028,000

2.02.03.01

Deferred Taxes

510,000

1,028,000

2.02.04

Provisions

152,992,000

150,564,000

2.02.04.01

Provisions for Tax Social Security, Labor and Civil Lawsuits

11,573,000

10,584,000

2.02.04.02

Other Provisions

141,419,000

139,980,000

2.02.04.02.04

Pension and Medical Benefits

80,041,000

78,901,000

2.02.04.02.05

Provision for Decommissioning Costs

58,580,000

58,332,000

2.02.04.02.06

Other Provisions

2,798,000

2,747,000

2.03

Shareholders' Equity

282,659,000

277,225,000

2.03.01

Share Capital

205,432,000

205,432,000

2.03.02

Capital Reserves

2,674,000

2,674,000

2.03.04

Profit Reserves

99,182,000

95,148,000

2.03.08

Other Comprehensive Income

(24,629,000)

(26,029,000)

 

 

 

4


 

 

Parent Company Interim Accounting Information / Statement of Income

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

Accumulated of the Current Year 01/01/2019 to 03/31/2019

Accumulated of the Previous Year 01/01/2018 to 03/31/2018

3.01

Sales Revenues

64,233,000

55,867,000

3.02

Cost of Sales

(43,176,000)

(35,540,000)

3.03

Gross Profit

21,057,000

20,327,000

3.04

Operating Expenses / Income

(7,272,000)

(5,862,000)

3.04.01

Selling Expenses

(4,452,000)

(4,405,000)

3.04.02

General and Administrative Expenses

(1,694,000)

(1,475,000)

3.04.05

Other Operating Expenses

(5,552,000)

(2,266,000)

3.04.05.01

Other Taxes

(281,000)

(366,000)

3.04.05.02

Research and Development Expenses

(519,000)

(493,000)

3.04.05.03

Exploration Costs

(650,000)

(438,000)

3.04.05.05

Other Operating Expenses, Net

(4,102,000)

(969,000)

3.04.06

Share of Profit / Gains on Interest in Equity-Accounted Investments

4,426,000

2,284,000

3.05

Net Income Before Financial Results and Income Taxes

13,785,000

14,465,000

3.06

Finance Income (Expenses), Net

(9,265,000)

(4,519,000)

3.06.01

Finance Income

751,000

730,000

3.06.01.01

Finance Income

751,000

730,000

3.06.02

Finance Expenses

(10,016,000)

(5,249,000)

3.06.02.01

Finance Expenses

(7,347,000)

(3,319,000)

3.06.02.02

Foreign Exchange and Inflation Indexation Charges, Net

(2,669,000)

(1,930,000)

3.07

Net Income Before Income Taxes

4,520,000

9,946,000

3.08

Income Tax and Social Contribution

(489,000)

(2,985,000)

3.08.01

Current

(1,529,000)

(2,740,000)

3.08.02

Deferred

1,040,000

(245,000)

3.09

Net Income from Continuing Operations

4,031,000

6,961,000

3.11

Income / (Loss) for the Period

4,031,000

6,961,000

3.99.01

Income per Share  

 

 

3.99.01.01

Ordinary Shares

0.31

0.53

3.99.01.02

Preferred Shares

0.31

0.53

3.99.02

Diluted Income per Share

 

 

3.99.02.01

Ordinary Shares

0.31

0.53

3.99.02.02

Preferred Shares

0.31

0.53

 

 

 

5


 

 

Parent Company Interim Accounting Information / Statement of Comprehensive Income

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

Accumulated of the Current Year 01/01/2019 to 03/31/2019

Accumulated of the Previous Year 01/01/2018 to 03/31/2018

4.01

Net Income for the Period

4,031,000

6,961,000

4.02

Other Comprehensive Income

1,403,000

2,073,000

4.02.03

Cumulative Translation Adjustments

1,032,000

852,000

4.02.04

Unrealized Gains/(Losses) on securities measured at fair value through other comprehensive income

(3,000)

(3,000)

4.02.06

Deferred Income Tax and Social Contribution on securities measured at fair value through other comprehensive income

1,000

1,000

4.02.07

Unrealized Gains / (Losses) on Cash Flow Hedge - Recognized in Shareholders' Equity

(2,401,000)

(1,116,000)

4.02.08

Unrealized Gains / (Losses) on Cash Flow Hedge - Reclassified to Profit and Loss

2,575,000

2,402,000

4.02.09

Deferred Income Tax and Social Contribution on Cash Flow Hedge

(59,000)

(437,000)

4.02.10

Share of Other Comprehensive Income of Equity-Accounted Investments

258,000

374,000

4.03

Total Comprehensive Income for the Period

5,434,000

9,034,000

 

 

6


 

 

Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2019 to 03/31/2019

(R$ thousand)

 

 

 

 

 

Account Code

Account Description

Share Capital

Capital Reserves, Granted Options and Treasury Shares

Profit Reserves

Retained Earnings / Accumulated Losses

Other Comprehensive Income

Shareholders' Equity

5.01

Balance at the Beginning of the Period

205,432,000

2,674,000

95,148,000

(26,029,000)

277,225,000

5.03

Adjusted Opening Balance

205,432,000

2,674,000

95,148,000

(26,029,000)

277,225,000

5.04

Capital Transactions with Owners

3,000

(3,000)

5.04.09

Realization of the Deemed Cost

3,000

(3,000)

5.05

Total of Comprehensive Income

4,031,000

1,403,000

5,434,000

5.05.01

Net Income for the Period

4,031,000

4,031,000

5.05.02

Other Comprehensive Income

1,403,000

1,403,000

5.07

Balance at the End of the Period

205,432,000

2,674,000

95,148,000

4,034,000

(24,629,000)

282,659,000

 

 

 

 

7


 

 

Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2018 to 03/31/2018

(R$ thousand)

 

 

 

 

 

Account Code

Account Description

Share Capital

Capital Reserves, Granted Options and Treasury Shares

Profit Reserves

Retained Earnings / Accumulated Losses

Other Comprehensive Income

Shareholders' Equity

5.01

Balance at the Beginning of the Period

205,432,000

2,673,000

77,148,000

(21,268,000)

263,985,000

5.02

Prior Period Adjustments

(989,000)

(67,000)

(1,056,000)

5.03

Adjusted Opening Balance

205,432,000

2,673,000

77,148,000

(989,000)

(21,335,000)

262,929,000

5.04

Capital Transactions with Owners

3,000

(3,000)

5.04.09

Realization of the Deemed Cost

3,000

(3,000)

5.05

Total of Comprehensive Income

6,961,000

2,073,000

9,034,000

5.05.01

Net Income for the Period

6,961,000

6,961,000

5.05.02

Other Comprehensive Income

2,073,000

2,073,000

5.07

Balance at the End of the Period

205,432,000

2,673,000

77,148,000

5,975,000

(19,265,000)

271,963,000

 

8


 

 

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

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

Accumulated of the Current Year 01/01/2019 to 03/31/2019

Accumulated of the Previous Year 01/01/2018 to 03/31/2018

6.01

Net cash provided by operating activities

835,000

13,386,000

6.01.01

Cash provided by operating activities

25,341,000

18,623,000

6.01.01.01

Net Income (loss) for the period

4,031,000

6,961,000

6.01.01.02

Pension and medical benefits (actuarial expense)

1,990,000

1,782,000

6.01.01.03

Results in equity-accounted investments

(4,426,000)

(2,284,000)

6.01.01.04

Depreciation, depletion and amortization

14,795,000

8,623,000

6.01.01.05

Impairment of assets (reversal)

(195,000)

34,000

6.01.01.06

Exploratory expenditures write-offs

189,000

26,000

6.01.01.07

Gains and losses on disposals/write-offs of assets, returned areas and cancelled projects

(178,000)

(3,063,000)

6.01.01.08

Foreign exchange, indexation and finance charges

9,350,000

5,303,000

6.01.01.09

Deferred income taxes, net

(1,040,000)

245,000

6.01.01.10

Allowance for expected credit losses

42,000

419,000

6.01.01.13

Revision and unwinding of discount on the provision for decommissioning costs

783,000

577,000

6.01.02

Decrease / (increase) in assets / increase/ (decrease) in liabilities

(24,506,000)

(5,237,000)

6.01.02.01

Trade and other receivables, net

(7,830,000)

219,000

6.01.02.02

Inventories

541,000

(701,000)

6.01.02.03

Judicial deposits

(2,503,000)

(1,707,000)

6.01.02.04

Escrow account - Class action agreement

(3,232,000)

(2,067,000)

6.01.02.05

Other assets

(1,321,000)

(2,378,000)

6.01.02.06

Trade payables

(5,714,000)

(759,000)

6.01.02.07

Other taxes payable

(694,000)

1,690,000

6.01.02.08

Pension and medical benefits

(667,000)

(623,000)

6.01.02.09

Provisions for legal proceedings

713,000

463,000

6.01.02.10

Short-term benefits

604,000

504,000

6.01.02.11

Income tax and social contribution paid

(547,000)

(1,175,000)

6.01.02.12

Other liabilities

(3,856,000)

1,297,000

6.02

Net cash used in investing activities

(8,780,000)

1,641,000

6.02.01

Acquisition of PP&E and intangibles assets

(4,197,000)

(7,403,000)

6.02.02

Increase in investments in investees

3,000

(3,248,000)

6.02.03

Proceeds from disposal of assets - Divestment

5,102,000

6.02.04

Divestment (investment) in marketable securities

(4,706,000)

6,432,000

6.02.05

Dividends received

120,000

758,000

6.03

Net cash used in financing activities

4,908,000

(9,008,000)

6.03.02

Proceeds from financing

39,141,000

26,934,000

6.03.03

Repayment of principal

(25,384,000)

(33,949,000)

6.03.04

Repayment of interest

(4,170,000)

(1,993,000)

6.03.08

Settlement of lease liabilities

(4,679,000)

6.05

Net increase/ (decrease) in cash and cash equivalents

(3,037,000)

6,019,000

6.05.01

Cash and cash equivalents at the beginning of the year

6,334,000

1,305,000

6.05.02

Cash and cash equivalents at the end of the period

3,297,000

7,324,000

 

9


 

 

Parent Company Interim Accounting Information / Statement of Added Value

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

Accumulated of the Current Year 01/01/2019 to 03/31/2019

Accumulated of the Previous Year 01/01/2018 to 03/31/2018

7.01

Sales Revenues

92,934,000

88,775,000

7.01.01

Sales of Goods and Services

85,680,000

77,047,000

7.01.02

Other Revenues

690,000

3,873,000

7.01.03

Revenues Related to the Construction of Assets to be Used in Own Operations

6,606,000

8,274,000

7.01.04

Allowance for expected credit losses

(42,000)

(419,000)

7.02

Inputs Acquired from Third Parties

(31,342,000)

(24,023,000)

7.02.01

Cost of Sales

(11,986,000)

(5,884,000)

7.02.02

Materials, Power, Third-Party Services and Other Operating Expenses

(12,435,000)

(12,554,000)

7.02.03

Impairment Charges / Reversals of Assets

195,000

(34,000)

7.02.04

Others

(7,116,000)

(5,551,000)

7.02.04.01

Tax Credits on Inputs Acquired from Third Parties

(7,116,000)

(5,551,000)

7.03

Gross Added Value

61,592,000

64,752,000

7.04

Retentions

(16,245,000)

(8,623,000)

7.04.01

Depreciation, Amortization and Depletion

(16,245,000)

(8,623,000)

7.05

Net Added Value Produced

45,347,000

56,129,000

7.06

Transferred Added Value

5,445,000

3,233,000

7.06.01

Share of Profit of Equity-Accounted Investments

4,426,000

2,284,000

7.06.02

Finance Income

751,000

730,000

7.06.03

Others

268,000

219,000

7.07

Total Added Value to be Distributed

50,792,000

59,362,000

7.08

Distribution of Added Value

50,792,000

59,362,000

7.08.01

Employee Compensation

6,546,000

5,969,000

7.08.01.01

Salaries

3,747,000

3,450,000

7.08.01.02

Fringe Benefits

2,502,000

2,235,000

7.08.01.03

Unemployment Benefits (FGTS)

297,000

284,000

7.08.02

Taxes and Contributions

25,643,000

28,242,000

7.08.02.01

Federal

19,026,000

21,732,000

7.08.02.02

State

6,566,000

6,380,000

7.08.02.03

Municipal

51,000

130,000

7.08.03

Return on Third-Party Capital

14,572,000

18,190,000

7.08.03.01

Interest

11,255,000

6,513,000

7.08.03.02

Rental Expenses

3,317,000

11,677,000

7.08.04

Return on Shareholders' Equity

4,031,000

6,961,000

7.08.04.03

Retained Earnings / (Losses) for the Period

4,031,000

6,961,000

 

 

10


 

 

Consolidated Interim Accounting Information / Statement of Financial Position - Assets

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

03.31.2019

12.31.2018

1

Total Assets

949,087,000

860,473,000

1.01

Current Assets

130,605,000

143,606,000

1.01.01

Cash and Cash Equivalents

36,476,000

53,854,000

1.01.02

Marketable Securities

4,370,000

4,198,000

1.01.03

Trade and Other Receivables

19,336,000

22,264,000

1.01.04

Inventories

32,962,000

34,822,000

1.01.06

Recoverable Taxes

8,299,000

7,883,000

1.01.06.01

Current Recoverable Taxes

8,299,000

7,883,000

1.01.06.01.01

Current Income Tax and Social Contribution

2,948,000

2,863,000

1.01.06.01.02

Other Recoverable Taxes

5,351,000

5,020,000

1.01.08

Other Current Assets

29,162,000

20,585,000

1.01.08.01

Non-Current Assets Held for Sale

9,446,000

7,540,000

1.01.08.03

Others

19,716,000

13,045,000

1.01.08.03.01

Escrow account - Class action agreement

11,154,000

7,287,000

1.01.08.03.03

Others

8,562,000

5,758,000

1.02

Non-Current Assets

818,482,000

716,867,000

1.02.01

Long-Term Receivables

87,135,000

85,478,000

1.02.01.03

Marketable Securities measured at amortized cost

203,000

205,000

1.02.01.04

Trade and Other Receivables

20,657,000

21,281,000

1.02.01.07

Deferred Taxes

24,345,000

24,101,000

1.02.01.07.01

Deferred Income Tax and Social Contribution

10,331,000

10,384,000

1.02.01.07.02

Deferred Taxes and Contributions

14,014,000

13,717,000

1.02.01.10

Other Non-Current Assets

41,930,000

39,891,000

1.02.01.10.03

Advances to Suppliers

2,116,000

2,575,000

1.02.01.10.04

Judicial Deposits

28,571,000

26,003,000

1.02.01.10.05

Other Long-Term Assets

11,243,000

11,313,000

1.02.02

Investments

11,266,000

10,690,000

1.02.03

Property, Plant and Equipment

709,227,000

609,829,000

1.02.04

Intangible Assets

10,854,000

10,870,000

 

 


11


 

 

Consolidated Interim Accounting Information / Statement of Financial Position - Liabilities

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

03.31.2019

12.31.2018

2

Total Liabilities

949,087,000

860,473,000

2.01

Current Liabilities

113,539,000

97,068,000

2.01.01

Payroll, Profit Sharing and Related Charges

7,082,000

6,426,000

2.01.02

Trade Payables

22,912,000

24,516,000

2.01.03

Taxes Obligations

1,464,000

817,000

2.01.03.01

Federal Taxes Obligations

1,464,000

817,000

2.01.03.01.01

Income Tax and Social Contribution Payable

1,464,000

817,000

2.01.04

Current Debt and Lease Obligations

36,083,000

14,296,000

2.01.04.01

Current Debt

12,585,000

14,207,000

2.01.04.03

Lease Obligations

23,498,000

89,000

2.01.05

Other Liabilities

25,491,000

30,575,000

2.01.05.02

Others

25,491,000

30,575,000

2.01.05.02.01

Dividends and Interest on Capital Payable

4,356,000

4,296,000

2.01.05.02.04

Other Taxes and Contributions

12,162,000

13,778,000

2.01.05.02.05

Agreement with US Authorities

3,034,000

2.01.05.02.06

Other liabilities

8,973,000

9,467,000

2.01.06

Provisions

16,550,000

16,630,000

2.01.06.01

Provisions for Tax Social Security, Labor and Civil Lawsuits

13,226,000

13,493,000

2.01.06.01.04

Provisions for Civil Lawsuits

13,226,000

13,493,000

2.01.06.02

Other Provisions

3,324,000

3,137,000

2.01.06.02.04

Pension and Medical Benefits

3,324,000

3,137,000

2.01.07

Liabilities Associated with Non-Current Assets Held for Sale and Discontinued

3,957,000

3,808,000

2.01.07.01

Liabilities Associated with Non-Current Assets Held for Sale

3,957,000

3,808,000

2.02

Non-Current Liabilities

546,517,000

479,862,000

2.02.01

Non-Current Debt and Finance Lease Obligations

376,995,000

312,580,000

2.02.01.01

Non-Current Debt

294,514,000

311,954,000

2.02.01.03

Lease Obligations

82,481,000

626,000

2.02.02

Other Liabilities

2,115,000

2,139,000

2.02.02.02

Others

2,115,000

2,139,000

2.02.02.02.03

Income Tax and Social Contribution

2,115,000

2,139,000

2.02.03

Deferred Taxes

2,563,000

2,536,000

2.02.03.01

Deferred Taxes

2,563,000

2,536,000

2.02.04

Provisions

164,844,000

162,607,000

2.02.04.01

Provisions for Tax Social Security, Labor and Civil Lawsuits

15,961,000

15,202,000

2.02.04.02

Other Provisions

148,883,000

147,405,000

2.02.04.02.04

Pension and Medical Benefits

86,209,000

85,012,000

2.02.04.02.05

Provision for Decommissioning Costs

58,819,000

58,637,000

2.02.04.02.06

Other Provisions

3,855,000

3,756,000

2.03

Shareholders' Equity

289,031,000

283,543,000

2.03.01

Share Capital

205,432,000

205,432,000

2.03.02

Capital Reserves

2,458,000

2,458,000

2.03.04

Profit Reserves

99,398,000

95,364,000

2.03.08

Other Comprehensive Income

(24,629,000)

(26,029,000)

2.03.09

Non-controlling interests

6,372,000

6,318,000

 

 

 

12


 

 

Consolidated Interim Accounting Information / Statement of Income

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

Accumulated of the Current Year 01/01/2019 to 03/31/2019

Accumulated of the Previous Year 01/01/2018 to 03/31/2018

3.01

Sales Revenues

79,999,000

74,461,000

3.02

Cost of Sales

(53,575,000)

(47,688,000)

3.03

Gross Profit

26,424,000

26,773,000

3.04

Operating Expenses / Income

(11,909,000)

(8,447,000)

3.04.01

Selling Expenses

(4,134,000)

(4,128,000)

3.04.02

General and Administrative Expenses

(2,322,000)

(2,142,000)

3.04.05

Other Operating Expenses

(5,949,000)

(2,688,000)

3.04.05.01

Other Taxes

(389,000)

(481,000)

3.04.05.02

Research and Development Expenses

(519,000)

(495,000)

3.04.05.03

Exploration Costs

(654,000)

(442,000)

3.04.05.05

Other Operating Expenses, Net

(4,387,000)

(1,270,000)

3.04.06

Share of Profit / Gains on Interest in Equity-Accounted Investments

496,000

511,000

3.05

Net Income Before Financial Results and Income Taxes

14,515,000

18,326,000

3.06

Finance Income (Expenses), Net

(8,147,000)

(7,246,000)

3.06.01

Finance Income

1,366,000

1,101,000

3.06.01.01

Finance Income

1,366,000

1,101,000

3.06.02

Finance Expenses

(9,513,000)

(8,347,000)

3.06.02.01

Finance Expenses

(6,807,000)

(5,850,000)

3.06.02.02

Foreign Exchange and Inflation Indexation Charges, Net

(2,706,000)

(2,497,000)

3.07

Net Income Before Income Taxes

6,368,000

11,080,000

3.08

Income Tax and Social Contribution

(2,128,000)

(3,955,000)

3.08.01

Current

(2,644,000)

(3,321,000)

3.08.02

Deferred

516,000

(634,000)

3.09

Net Income from Continuing Operations

4,240,000

7,125,000

3.11

Income / (Loss) for the Period

4,240,000

7,125,000

3.11.01

Attributable to Shareholders of Petrobras

4,031,000

6,961,000

3.11.02

Attributable to Non-Controlling Interests

209,000

164,000

3.99.01

Income per Share  

 

 

3.99.01.01

Ordinary Shares

0.31

0.53

3.99.01.02

Preferred Shares

0.31

0.53

3.99.02

Diluted Income per Share

 

 

3.99.02.01

Ordinary Shares

0.31

0.53

3.99.02.02

Preferred Shares

0.31

0.53

 

 

13


 

 

Consolidated Interim Accounting Information / Statement of Comprehensive Income

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

Accumulated of the Current Year 01/01/2019 to 03/31/2019

Accumulated of the Previous Year 01/01/2018 to 03/31/2018

4.01

Net Income for the Period

4,240,000

7,125,000

4.02

Other Comprehensive Income

1,422,000

2,116,000

4.02.03

Cumulative Translation Adjustments

1,051,000

895,000

4.02.04

Unrealized Gains/(Losses) on securities measured at fair value through other comprehensive income

(3,000)

(3,000)

4.02.06

Deferred Income Tax and Social Contribution on securities measured at fair value through other comprehensive income

1,000

1,000

4.02.07

Unrealized Gains / (Losses) on Cash Flow Hedge  - Recognized in Shareholders' Equity

(2,408,000)

(1,099,000)

4.02.08

Unrealized Gains / (Losses) on Cash Flow Hedge  - Reclassified to Profit and Loss

2,847,000

2,661,000

4.02.09

Deferred Income Tax and Social Contribution on Cash Flow Hedge

(149,000)

(531,000)

4.02.10

Share of Other Comprehensive Income of Equity-Accounted Investments

83,000

192,000

4.03

Total Comprehensive Income for the Period

5,662,000

9,241,000

4.03.01

Attributable to Shareholders of Petrobras

5,434,000

9,034,000

4.03.02

Attributable to Non-controlling Interests

228,000

207,000

 

 

 

14


 

 

Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2019 to 03/31/2019

(R$ thousand)

 

 

 

 

 

Account Code

Account Description

Share Capital

Capital Reserves,

Granted Options

and Treasury Shares

Profit Reserves

Retained Earnings /

Accumulated Losses

Other

Comprehensive

Income

Shareholders' Equity

Non-controlling

interest

Shareholders' Equity

Consolidated

5.01

Balance at the Beginning of the Period

205,432,000

2,674,000

95,148,000

(26,029,000)

277,225,000

6,318,000

283,543,000

5.03

Adjusted Opening Balance

205,432,000

2,674,000

95,148,000

(26,029,000)

277,225,000

6,318,000

283,543,000

5.04

Capital Transactions with Owners

3,000

(3,000)

(174,000)

(174,000)

5.04.08

Capital Transactions

(174,000)

(174,000)

5.04.09

Realization of the Deemed Cost

3,000

(3,000)

5.05

Total of Comprehensive Income

4,031,000

1,403,000

5,434,000

228,000

5,662,000

5.05.01

Net Income for the Period

4,031,000

4,031,000

209,000

4,240,000

5.05.02

Other Comprehensive Income

1,403,000

1,403,000

19,000

1,422,000

5.07

Balance at the End of the Period

205,432,000

2,674,000

95,148,000

4,034,000

(24,629,000)

282,659,000

6,372,000

289,031,000

 

 

 

15


 

 

Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2018 to 03/31/2018

(R$ thousand)

 

 

 

 

 

Account Code

Account Description

Share Capital

Capital Reserves,

Granted Options

and Treasury Shares

Profit Reserves

Retained Earnings /

Accumulated Losses

Other

Comprehensive

Income

Shareholders' Equity

Non-controlling

interest

Shareholders' Equity

Consolidated

5.01

Balance at the Beginning of the Period

205,432,000

2,673,000

77,148,000

(21,268,000)

263,985,000

5,624,000

269,609,000

5.02

Prior Period Adjustments

(989,000)

(67,000)

(1,056,000)

(51,000)

(1,107,000)

5.03

Adjusted Opening Balance

205,432,000

2,673,000

77,148,000

(989,000)

(21,335,000)

262,929,000

5,573,000

268,502,000

5.04

Capital Transactions with Owners

3,000

(3,000)

10,000

10,000

5.04.06

Dividends

(110,000)

(110,000)

5.04.08

Capital Transactions

120,000

120,000

5.04.09

Realization of the Deemed Cost

3,000

(3,000)

5.05

Total of Comprehensive Income

6,961,000

2,073,000

9,034,000

207,000

9,241,000

5.05.01

Net Income for the Period

6,961,000

6,961,000

164,000

7,125,000

5.05.02

Other Comprehensive Income

2,073,000

2,073,000

43,000

2,116,000

5.07

Balance at the End of the Period

205,432,000

2,673,000

77,148,000

5,975,000

(19,265,000)

271,963,000

5,790,000

277,753,000

 

 

 

16


 

 

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

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

Accumulated of the Current Year 01/01/2019 to 03/31/2019

Accumulated of the Previous Year 01/01/2018 to 03/31/2018

6.01

Net cash provided by operating activities

17,749,000

22,218,000

6.01.01

Cash provided by operating activities

28,129,000

26,782,000

6.01.01.01

Net Income (loss) for the period

4,240,000

7,125,000

6.01.01.02

Pension and medical benefits (actuarial expense)

2,177,000

1,943,000

6.01.01.03

Results in equity-accounted investments

(496,000)

(511,000)

6.01.01.04

Depreciation, depletion and amortization

14,004,000

11,057,000

6.01.01.05

Impairment of assets (reversal)

(26,000)

58,000

6.01.01.06

Exploratory expenditures write-offs

189,000

26,000

6.01.01.07

Gains and losses on disposals/write-offs of assets, returned areas and cancelled projects

(695,000)

(3,261,000)

6.01.01.08

Foreign exchange, indexation and finance charges

8,373,000

8,614,000

6.01.01.09

Deferred income taxes, net

(516,000)

634,000

6.01.01.10

Allowance for expected credit losses

120,000

443,000

6.01.01.11

Write-Off - Overpayments Incorrectly Capitalized

(154,000)

60,000

6.01.01.12

Reclassification of cumulative translation adjustment

127,000

6.01.01.13

Revision and unwinding of discount on the provision for decommissioning costs

786,000

594,000

6.01.02

Decrease / (increase) in assets / increase/ (decrease) in liabilities

(10,380,000)

(4,564,000)

6.01.02.01

Trade and other receivables, net

4,565,000

1,810,000

6.01.02.02

Inventories

1,405,000

(1,142,000)

6.01.02.03

Judicial deposits

(2,562,000)

(1,712,000)

6.01.02.04

Escrow account - Class action agreement

(3,836,000)

(2,595,000)

6.01.02.05

Other assets

(1,955,000)

(2,081,000)

6.01.02.06

Trade payables

(2,375,000)

(1,357,000)

6.01.02.07

Other taxes payable

(451,000)

1,933,000

6.01.02.08

Pension and medical benefits

(732,000)

(662,000)

6.01.02.09

Provisions for legal proceedings

466,000

690,000

6.01.02.10

Short-term benefits

658,000

552,000

6.01.02.11

Income tax and social contribution paid

(882,000)

(1,469,000)

6.01.02.12

Other liabilities

(4,681,000)

1,469,000

6.02

Net cash used in investing activities

(4,561,000)

638,000

6.02.01

Acquisition of PP&E and intangibles assets

(6,070,000)

(9,919,000)

6.02.02

(Increase) decrease in investments in investees

(6,000)

(22,000)

6.02.03

Proceeds from disposal of assets - Divestment

1,184,000

7,502,000

6.02.04

Divestment (investment) in marketable securities

(98,000)

2,361,000

6.02.05

Dividends received

429,000

716,000

6.03

Net cash used in financing activities

(30,204,000)

(30,486,000)

6.03.01

Non-controlling interest

(173,000)

121,000

6.03.02

Proceeds from financing

15,955,000

19,258,000

6.03.03

Repayment of principal

(36,807,000)

(43,861,000)

6.03.04

Repayment of interest

(5,866,000)

(6,004,000)

6.03.08

Settlement of lease liabilities

(3,313,000)

6.04

Effect of exchange rate changes on cash and cash equivalents

(362,000)

(502,000)

6.05

Net increase/ (decrease) in cash and cash equivalents

(17,378,000)

(8,132,000)

6.05.01

Cash and cash equivalents at the beginning of the year

53,854,000

74,494,000

6.05.02

Cash and cash equivalents at the end of the period

36,476,000

66,362,000

 

 

17


 

 

 

Consolidated Interim Accounting Information / Statement of Added Value

(R$ Thousand)

 

 

 

 

 

Account Code

Account Description

Accumulated of the Current Year 01/01/2019 to 03/31/2019

Accumulated of the Previous Year 01/01/2018 to 03/31/2018

7.01

Sales Revenues

110,763,000

108,649,000

7.01.01

Sales of Goods and Services

101,253,000

95,475,000

7.01.02

Other Revenues

2,392,000

4,518,000

7.01.03

Revenues Related to the Construction of Assets to be Used in Own Operations

7,238,000

9,099,000

7.01.04

Allowance for expected credit losses

(120,000)

(443,000)

7.02

Inputs Acquired from Third Parties

(39,386,000)

(33,468,000)

7.02.01

Cost of Sales

(15,424,000)

(14,453,000)

7.02.02

Materials, Power, Third-Party Services and Other Operating Expenses

(16,472,000)

(12,882,000)

7.02.03

Impairment Charges / Reversals of Assets

26,000

(58,000)

7.02.04

Others

(7,516,000)

(6,075,000)

7.02.04.01

Tax Credits on Inputs Acquired from Third Parties

(7,670,000)

(6,015,000)

7.02.04.02

Inventory Write-Down to Net Realizable Value

154,000

(60,000)

7.03

Gross Added Value

71,377,000

75,181,000

7.04

Retentions

(15,454,000)

(11,057,000)

7.04.01

Depreciation, Amortization and Depletion

(15,454,000)

(11,057,000)

7.05

Net Added Value Produced

55,923,000

64,124,000

7.06

Transferred Added Value

1,968,000

1,691,000

7.06.01

Share of Profit of Equity-Accounted Investments

496,000

511,000

7.06.02

Finance Income

1,366,000

1,101,000

7.06.03

Others

106,000

79,000

7.07

Total Added Value to be Distributed

57,891,000

65,815,000

7.08

Distribution of Added Value

57,891,000

65,815,000

7.08.01

Employee Compensation

7,864,000

7,228,000

7.08.01.01

Salaries

4,674,000

4,346,000

7.08.01.02

Fringe Benefits

2,852,000

2,556,000

7.08.01.03

Unemployment Benefits (FGTS)

338,000

326,000

7.08.02

Taxes and Contributions

32,900,000

35,079,000

7.08.02.01

Federal

21,552,000

23,636,000

7.08.02.02

State

11,177,000

11,213,000

7.08.02.03

Municipal

171,000

230,000

7.08.03

Return on Third-Party Capital

12,887,000

16,383,000

7.08.03.01

Interest

10,823,000

9,962,000

7.08.03.02

Rental Expenses

2,064,000

6,421,000

7.08.04

Return on Shareholders' Equity

4,240,000

7,125,000

7.08.04.03

Retained Earnings / (Losses) for the Period

4,031,000

6,961,000

7.08.04.04

Non-controlling Interests on Retained Earnings / (Losses)

209,000

164,000

 

 

 

18


 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

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

(Expressed in millions of reais, unless otherwise indicated)

 

 

1.

Basis of preparation and presentation of the interim financial statements

These interim financial statements present the significant changes in the period, avoiding repetition of certain notes to the financial statements previously reported, and present the consolidated information, considering Management’s understanding that it provides a comprehensive view of the Company’s financial position and operational performance, complemented by certain information of the Parent Company. Hence, this interim financial information should be read together with the Company’s audited annual financial statements for the year ended December 31, 2018, which include the full set of notes.

The interim consolidated and separate financial statements (Parent Company) have been prepared and are presented in accordance with IAS 34 – “Interim Financial Reporting” as issued by the International Accounting Standards Board (IASB), and with the pronouncement CPC 21 (R1) – Demonstrações Intermediárias as issued by the Brazilian Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis - CPC) and released by the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM). All financial statements relevant information is being evidenced and corresponds to the ones used by the Company’s Management.

The Company adopted, as of January 1, 2019, the requirements contained in CPC 06 (R2) - Leasing Operations, related to IFRS 16 - Leases, and the technical interpretation ICPC 22 - Uncertainty about Tax Treatment on Net Income, related to IFRIC 23 Uncertainty over Income Tax Treatments. Changes in significant accounting policies are described in Note 3.

These interim financial statements were approved and authorized for issue by the Company’s Board of Directors in a meeting held on May 7, 2019.

2.

The “Lava Jato (Car Wash) investigation” and its effects on the company

The company has monitored the progress of investigations under the “Lava Jato Operation” and, in the preparation of these interim financial statements ended March 31, 2019, did not identified any additional information that would affect the adopted calculation methodology to write off, in the third quarter of 2014, amounts overpaid for the acquisition of property, plant and equipment. The Company will continue to monitor these investigations for additional information in order to assess their potential impact on the adjustment made.

2.1.

Investigations involving the Company

Securities and Exchange Commission - SEC and U.S. Department of Justice - DoJ

On September 27, 2018, the company settled the open matters with the U.S. Department of Justice (DoJ) and the U.S. Securities and Exchange Commission (SEC) investigation which encompassed the company’s internal controls, books and records, and financial statements from 2003 to 2012.

These agreements fully resolve the inquiries carried out by these authorities. Following this agreement, the Company paid US$ 85.3 million to the DoJ in 2018 and the same amount to the SEC in the first quarter of 2019. Additionally, the agreements also credited a remittance of US$ 682.6 million to the Brazilian authorities, which was deposited in January 2019. The Company fully recognized the effects of these settlements (R$ 3,536 - US$ 853.2 million) as other income and expenses in the third quarter of 2018.

This resolution meets the best interest of the Company and its shareholders, and eliminates uncertainties, risks, burdens and costs of potential litigations in the United States.

3.

Summary of significant accounting policies

The accounting practices and calculation methods used in preparing these consolidated quarterly financial statements are the same as those used in preparing the company's annual financial statements for the year ended December 31, 2018, except for the adoption of IFRS 16 Leases and IFRIC 23 Uncertainty over Income Tax Treatments.

 

 

19


 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

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

(Expressed in millions of reais, unless otherwise indicated)

 

3.1.

IFRS 16 – Leases / CPC 06 (R2) – Operações Arrendamento Mercantil

IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases, from the lessees and lessors’ perspectives.

Among the changes arising from IFRS 16, this standard eliminated the classification of leases as either operating or finance leases for lessees, providing for a single lessee accounting model in which all leases result in the recognition of a right-of-use asset and a lease liability.

Following the adoption of IFRS 16, lease payments under operating leases are not charged to operating results on accrual basis. Instead, depreciation of the right to use a leased asset, as well as the finance expenses and foreign exchange gains or losses over the lease liability, affect the results.

The Company applied the short-term lease exemption and recognizes payments associated with such leases as expenses over the term of the arrangements. See notes 9, 13 and 24 for the impacts of such payments in the statement of income for the period.

In the statement of cash flows, operating lease payments, which were previously presented within Cash flows from operating activities, from 2019 onwards are presented as Cash flows from financing activities, comprising the settlement of lease liabilities. However, such change does not affect the company’s cash and cash equivalents balance.

The company did not apply the recognition exemption related to leases for which the underlying asset is of low value.

According to the transition provisions set forth in IFRS 16, the Company applied this standard retrospectively with the cumulative effect of its initial application recognized at January 1, 2019, without restatement of prior period information, and the following practical expedients were chosen:

The standard to contracts that were previously identified as leases (note 18.2 to the Company’s audited financial statements ended December 31 ,2018);

Lease liabilities measured at the present value of the remaining lease payments, net of applicable recoverable taxes, discounted by the lessee’s incremental borrowing rate at the date of initial application;

Recognition of right-of-use assets at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the statement of financial position immediately before the date of initial application, excluding initial direct costs.

Foreign exchange gains and losses arising from lease arrangements denominated in U.S. dollars were designated for hedging relationship protection according to the current cash flow hedge accounting policy involving the Company’s future exports.

 

Disclosure

At January 1, 2019, the Company accounted for right-of-use assets and lease liabilities at the same amount (R$ 102,970) and, as a result, the impacts arising from the initial application of this standard did not affect equity. The right-of-use assets are presented as Property, plant and equipment (PP&E), primarily comprising the following underlying assets: oil and gas producing units, drilling rig and other exploration and production equipment, vessels, helicopters, lands and buildings. The lease liabilities are presented as a separate line item in the statement of financial position.

Right-of-use by underlying asset

 

Oil and gas producing units

50,083

Vessels

46,481

Lands and buildings

3,917

Others

2,489

Total

102,970

 

 


20


 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

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

(Expressed in millions of reais, unless otherwise indicated)

 

Reconciliation between operating lease commitments disclosed as of December 31, 2018 and lease liabilities recognized at the date of initial application is presented below:

 

 

Commitment to operating lease as of December 31, 2018

369,574

Commitments for which lease terms have not commenced

(212,435)

Discount

(38,669)

Short-term leases and others

(15,500)

Initial application

102,970

Finance lease (IAS 17) recognized at December 31, 2018

715

Lease liability at January1, 2019

103,685

 

 

During the first quarter of 2019, the Company’s Statement of Cash Flow was impacted by a change from net cash used in operating and investing activities of R$ 3,339 to net cash used in financing activities.

Key estimates and judgments

The incremental borrowing rates used to determine the present value of the remaining lease payments were determined mainly based on the Company’s cost of funding based on yields of bonds issued by the Company, adjusted by terms and currency of the lease arrangements, economic environment of the country where the lessee operates and similar collaterals.

The average incremental borrowing rate was 6.06% p.a. at the adoption of IFRS 16.

Other significant matters

The changes arising from IFRS 16 adoption did not impact Company’s business practice and there was no need to renegotiate covenant clauses in finance debts.

3.2.

IFRIC 23 Uncertainty over Income Tax Treatments / ICPC 22 - Uncertainty about Treatment of Taxes on Net Income

IFRIC 23 clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty about the treatment of taxes on net income. No impacts were identified in the adoption of IFRIC 23.

 

 

4.

Cash and cash equivalents and marketable securities

4.1.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, term deposits with banks and short-term highly liquid financial investments that are readily convertible to known amounts of cash, are subject to insignificant risk of changes in value and have a maturity of three months or less from the date of acquisition.

 

Consolidated

 

03.31.2019

12.31.2018

Cash at bank and in hand

1,879

3,344

Short-term financial investments

 

 

- In Brazil

 

 

Brazilian interbank deposit rate investment funds and other short-term deposits

8,308

7,266

Other investment funds

107

45

 

8,415

7,311

- Abroad

 

 

Time deposits

1,733

14,812

Automatic investing accounts and interest checking accounts

21,902

25,992

Other financial investments

2,547

2,395

 

26,182

43,199

Total das aplicações financeiras de curto prazo

34,597

50,510

Total de caixa e equivalentes de caixa

36,476

53,854

 

 

 

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

21


 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

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

(Expressed in millions of reais, unless otherwise indicated)

 

4.2.

Marketable securities

 

 

 

03.31.2019

12.31.2018

Fair value through profit or loss

4,370

4,198

Fair value through other comprehensive income

26

30

Amortized cost

177

175

Total

4,573

4,403

Current

4,370

4,198

Non-current

203

205

 

 

Marketable securities classified as fair value through profit or loss refer mainly to investments in Brazilian Federal Government Bonds. These financial investments have maturities of more than three months and are generally classified as current assets due to their maturity or the expectation of their realization in the short term.

 

5.

Trade and other receivables

5.1.

Trade and other receivables, net

 

Consolidated

 

03.31.2019

12.31.2018

Receivables from contracts with customers

 

 

Third parties

25,229

25,629

Related parties

 

 

Investees (note 14.6)

2,638

2,641

Receivables from the electricity sector (note 5.4) (*)

16,916

17,051

Subtotal

44,783

45,321

Other trade  receivables

 

 

Third parties

 

 

Receivables from divestments (**)

5,062

5,020

Finance lease receivables

1,991

2,011

Other receivables

3,581

5,134

Related parties

 

 

Diesel subsidy

1,550

Petroleum and alcohol accounts - receivables from Brazilian Government (note 14.6)

1,200

1,191

Subtotal

11,834

14,906

Total trade receivables

56,617

60,227

Expected credit losses (ECL) - Third parties

(13.031)

(13,137)

Expected credit losses (ECL) - Related parties

(3.593)

(3,545)

Total trade receivables, net

39,993

43,545

Current

19,336

22,264

Non-current

20,657

21,281

 

(*) It includes the amount of R$ 766 at March 31, 2019 (R$ 770 at December 31, 2018) regarding  finance lease receivable from Amazonas Distribuidora de Energia.

(**) It comprises receivable from the divestment of NTS and contingent payments from the sale of interest in Roncador field.

 

 

The remaining balance of receivables from the Diesel Price Subsidy Program, established by the Federal Government in 2018, was fully received until February 2019.

Trade and other receivables are generally classified as measured at amortized cost, except for receivables with final prices linked to changes in commodity price after their transfer of control, which are classified as measured at fair value through profit or loss. Changes in such prices during the first quarter of 2019 amounted to R$ 617.

5.2.

Aging of trade and other receivables – third parties

 

Consolidated

 

03.31.2019

12.31.2018

 

Trade receivables

Expected credit losses (ECL)

Trade receivables

Expected credit losses (ECL)

Current

21,035

(1,487)

22,718

(1,394)

Overdue:

 

 

 

 

1-90 days

1,320

(57)

1,876

(211)

91-180 days

493

(58)

135

(47)

181-365 days

210

(76)

186

(78)

More than 365 days

12,805

(11,353)

12,879

(11,407)

Total

35,863

(13,031)

37,794

(13,137)

 

 

 

22


 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

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

(Expressed in millions of reais, unless otherwise indicated)

 

5.3.

Changes in provision for expected credit losses – ECL

 

Consolidated

 

03.31.2019

12.31.2018

Opening balance

16,682

19,667

Initial application of IFRS 9

405

Additions

120

322

Write-offs

(67)

(4,540)

Transfer of assets held for sale

(140)

21

Cumulative translation adjustment

29

807

Closing balance

16,624

16,682

Current

6,544

6,645

Non-current

10,080

10,037

 

 

In 2018, write-offs in the balance of expected credit losses (R$ 4,540) primarily reflect the effects related to the agreements signed with companies from electricity sector.

5.4.

Trade receivables – electricity sector (isolated electricity system in the northern region of Brazil)

 

Consolidated

Receivables from electricity sector

Receivables outside the scope of DAAs

DAA 2014

DAA 2018

Lease receivables

Others

Total

Receivables

5,224

9,919

2,862

770

3

18,778

ECL

(4,580)

(20)

(3)

(3)

(4,606)

Balance at December 31, 2018

644

9,899

2,859

770

14,172

Sales

1,165

1,165

Amounts received

(924)

(268)

(436)

(26)

(1,654)

Interest

51

103

29

22

205

Derecognition of receivables

(2)

 

(2)

Agreements in 2018

280

280

(Additions)/reversals of ECL

(30)

2

(27)

(55)

Derecognition of receivables - ECL

14

14

Balance at March 31, 2019

918

9,736

2,732

739

14,125

Receivables

5,514

9,754

2,735

766

3

18,772

ECL

(4,596)

(18)

(3)

(27)

(3)

(4,647)

Balance at March 31, 2019

918

9,736

2,732

739

14,125

 

 

 

 

Receivables

ECL

Total

Related parties - Eletrobras Group

 

 

 

Amazonas Energia - AME

14,476

(3,586)

10,890

Eletrobras

2,440

(7)

2,433

 

16,916

(3,593)

13,323

Third parties

 

 

 

Cia de Gás do Amazonas - CIGÁS

766

(13)

753

Cia de Eletricidade do Amapá - CEA

884

(884)

Outros

206