Petrobras - Petroleo Brasileiro SA Q4 FY2025 Earnings Call

Thank you for joining us for our fourth quarter results presentation. It's great to be here with you. This event will be conducted in Portuguese with real-time English translation available. You can find links to both language options on our Investor Relations website. Additionally, all attendees can listen to the broadcast online. After my introduction, we will have a Q&A session where you can submit your questions via email. Joining us today are several key executives, including Magda Chambriard, President of Petrobras; Álvaro Tupiassu, President of Gas and Energy; and other directors from various departments. Now, I will turn it over to our President, Magda Chambriard, for her opening remarks.

Ladies and gentlemen, good morning. It's a pleasure to be with you to present our results for 2025 and for the fourth quarter of the same year. We are extremely proud of our results, and I emphasize that betting against Petrobras will lead to losses. 2025 was an unprecedented year for production growth at Petrobras. Throughout the quarters, we saw a consistent increase in production, thanks to our integrated teams ensuring efficiency and optimal use of our resources. Despite a significant drop in oil prices, our production growth allowed us to mitigate this impact. We achieved an 11% increase in production in 2025 compared to 2024, consistently surpassing our targets, including in refining capacity and exploration. I want to highlight some of our achievements. The Buzios field platforms surpassed a production milestone of 1 million barrels per day in October 2025, ahead of schedule. The Atapu and Sépia fields also reached this milestone, achieving it on December 31, 2025. This demonstrates the dedication of the Petrobras team. In the nonrenewable energy sector, we reversed a decline in production that had persisted since 2019, proudly operating two oil fields that produce over 1 million barrels per day in the pre-salt sector. More oil production translates to more cash flow, investment capacity, taxes, and dividends. We are committed to exceeding our goals as we continue to focus on safety, operational excellence, and capital discipline. A recent example of our efficiency was the successful anchoring of the P-79 platform, which was completed in a record 12 days. Looking back at 2025, we met our deadlines and delivered contracts for refineries below projected costs. Our production has improved in quantity and quality, using fewer resources in our pursuit of excellence. We believe that each day should be better than the last, and we've seen significant improvement. We also achieved significant progress in our oil and gas reserves. In 2025, we added 1.7 billion barrels of oil, resulting in the highest level of proven reserves we’ve seen in the last decade. This achievement comes on the back of record production and exports. In 2025, we exported an average of 675,000 barrels per day, and in the last quarter, we approached 1 million barrels per day. This success reflects our logistical efficiency and efforts to develop new markets. We sold 1,747,000 barrels per day of byproducts in the internal market, which is a 1.43% increase from the previous year, mainly driven by gasoline and aviation fuel. We are expanding our production of high-value diesel and renewable fuels, including sustainable aviation fuel and high-quality bunker fuel with renewable content for the Asian market. In the gas sector, the second module of the Boaventura Complex began operations, increasing our processing capacity. We've seen growth in contracted gas volume, affirming Petrobras as the go-to natural gas provider in Brazil. We have numerous growth opportunities ahead, supported by a high-quality portfolio and disciplined administration. Petrobras is committed to becoming increasingly larger and more successful while contributing to Brazilian society and all its investors. Thank you for your trust. Petrobras is dedicated to a better future for the company and for Brazil. I want to restate that betting against Petrobras will not yield success. Thank you, and now I'll turn the floor over to our CFO, Fernando Melgarejo, to discuss our financial results. Thank you.

Thank you, Magda, for your introduction. I want to greet all the directors and everyone watching us on this webcast, which presents the results of the fourth quarter of 2025 and the year-end closing for 2025. As President Magda mentioned, we experienced unprecedented growth in our oil and gas production, which highlights the quality of our assets and our ability to generate strong cash flow even in challenging circumstances. Let's see how this is reflected in our financial results in the next slide. First, let's discuss the external environment. The average price of Brent in 2025 was $69 per barrel, a 14% decrease from 2024 and significantly lower than our expectations. These factors, by nature, are beyond our control. What we can and must manage is our resilience in various scenarios. We demonstrated the company’s management capability to maximize the potential of our assets. Later, we will discuss the management strategies and projects that enhanced production. Our adjusted EBITDA reached $42.5 billion excluding exceptional events. The total stands at $43.8 billion, comparable to the previous year. Net income reached $19.6 billion, excluding exclusive events, which is $18.1 billion. This excludes gains from exchange rate fluctuations and other factors without cash impact. In other quarters, exchange rate variation negatively affected the balance sheet. This time, it had a positive impact on the corporate results, reflecting the appreciation of the real against the dollar. Finally, concerning operating cash flow, despite a sharp decline in Brent prices, we generated $36 billion in operating cash during the year, maintaining results at the same level as last year, even with a 14% drop in Brent. This shows that our results are robust, supported by high-quality assets with significant returns and rapid cash generation. This slide illustrates how we achieved these outcomes despite the drop in Brent prices. In 2025, we saw a growth in the sale of derivatives in the domestic market, totaling 1.7 million barrels per day. I want to highlight the 5.2% increase in diesel sales, which reaffirms our competitiveness and ability to meet the Brazilian market's demand profitably. We achieved a refinery utilization factor of 91%, with 68% of our production consisting of higher value-added derivatives such as diesel, gasoline, and aviation fuel. Another key point is that 70% of the oil processed in our refineries came from the pre-salt, which contributed to generating higher value derivatives, reducing emissions, and optimizing our logistics. This result aligns with our commitment to sustainability and environmental responsibility. A crucial factor in offsetting Brent declines is what we achieved in 2025, where we exceeded our target. We have a snapshot of an 11% increase in our production in 2025, with new production from the pre-salt playing a pivotal role in these results. Buzios continues to outperform expectations with exceptionally high productivity levels. In October 2025, our platforms achieved a record of 1 million barrels of oil a day. The Tamandaré is now the leading production platform in Brazil, with over 240,000 barrels a day and a peak flow rate of 270,000 barrels a day. There are no records of similar production levels worldwide. In Mero, we reached another record of 650,000 barrels, improving our operational efficiency across the board between 2024 and 2025, achieving an efficiency increase of about 4 percentage points, translating into an additional production of 100,000 barrels of oil a day. These efficiency gains equate to launching a new production platform like the Maria Quiteria and the Jubarte oil field. This means more oil from the same assets. With these results, we are motivated to achieve even more. We are dedicated to optimizing our operations and minimizing avoidable losses. This indicates that our teams have reached a new level of operational efficiency at Petrobras. Next, please. From the start of our management, we have focused on changing previous investment behaviors. Until 2023, we allocated about 70% of our CapEx. Recently, in 2024 and 2025, we shifted our focus to profitable production increases. Our investments impact not only the deliveries of 2025 but demonstrate our long-term commitment. For instance, we tied in 77 oil wells, a historical milestone as the previous record was 57. We more than doubled our previous achievement. We also lowered the risks of delays and increased the likelihood of early completions, which is crucial for meeting our production growth targets. Next, please. This is why 84% of our investments were directed toward exploration and production, with 11% in refining and transportation, and 2% in low carbon energy. In total, we invested $17 billion in exploration and production, boasting one of the best portfolios globally. It’s essential to note that we maintain control over the costs of our projects. As shown in the table, the total CapEx for our current business plan projects is slightly lower compared to the same period in 2025-2029. Next, on this slide, we have excellent news we announced earlier this year regarding our reserves. We added 1.7 billion barrels to our reserves, which is the highest volume in the last decade as of December 31, 2025. The replacement rate was 175%, even with record production in 2025. The ratio of probable reserves to production exceeds what we expected and is higher than that of our peers. This positions us well with low costs, which will continue to be our priority. As of December 31, 2025, our gross debt was $69.8 billion. It's important to highlight that over 60% of this debt, specifically 62%, stems from leasing platforms, ships, and rigs. In 2025, the Almirante Tamandaré recorded $2.6 billion in debt, and the Alexandre de Gusmao accounted for another $1.1 billion. On our webcast, we should remind you that these new leasing installments relate to production-generating assets, which means they create income. The two additional platforms contributed 270,000 barrels a day in capacity solely for Petrobras. When we consider our financial debt, we continue to work on our debt management. Throughout 2025, we aim for a minimal debt profile and I would also like to highlight the successful capital market operations in December, which improved the attractiveness of our bonds along with liability management activities in the fourth quarter, including some prepayments. Therefore, we saw reductions in our debt from 2025 to 2026. Next, please. This quarter, the Board of Directors approved a payout of BRL 8.1 billion, equating to BRL 0.62 per share, which will be distributed in two equal installments in May and June. This strategy aims to create value and balance investment in high-yield projects while ensuring competitive shareholder returns. Regarding Petrobras' contributions to society, these cannot be summarized on a single slide. Every asset we operate—whether it's a platform, refinery, power plant, or research laboratory—has an impact on multiple layers of society. We aim to create a brief summary that highlights our contributions to the Brazilian economy. In 2025, we invested over $20 billion, reflecting a 22% increase compared to 2024. We are committed to accelerating efforts to yield returns for both our investors and society. This investment resulted in over 300,000 jobs, representing 5% of Brazilian investment. Another example includes BRL 277 billion, which we paid in taxes, royalties, and special contributions to governments at various levels. Additionally, we distributed BRL 45 billion in dividends, with BRL 17.6 billion going to the controlling group and around BRL 2 billion allocated to social and environmental initiatives, sponsorships, and donations. These are a few examples of our multiplying effect in Brazil. In conclusion, I want to emphasize that we have high-quality projects poised to deliver both growth and profitability, benefiting Brazilian society and our shareholders in the long term. I also want to highlight our focus on executing our business plan for 2026 to 2030, which revolves around three main objectives: maintaining capital discipline, increasing production, and achieving higher efficiency levels. We will pursue these goals throughout 2026, aiming for results that also contribute to the country's economic development. This concludes my presentation. Thank you, and I invite all top management, directors, and officers to address your questions.

Thank you, Magda and Fernando. We will now start our Q&A session. The first question comes from Rodolfo De Angele of JPMorgan.

So I think every analyst is entitled to a single question. I'd like to discuss some of your, earnings in further detail of quarter four. But as I cannot, I cannot ask a long question, I'll just ask about your current scenario. In other words, what's going on in the oil and gas industry, considering the conflict in the Middle East. We've had questions by our clients on how the situation is, especially with regard to fuel. So how is Petrobras preparing to work in this moment of uncertainty and also highly volatile prices? So now I'd like to hear from you, from Petrobras' top management, how you see your supply situation. Do you have any prospects, any strategy about prices? Can you give us your views? Is there anything going on in exports? Is it possible to increase the use of refineries in the short run? So these are some of my concerns that I can ask of you, especially short-term concerns.

Thank you. I’ll begin by addressing the question, and then I’ll invite my colleagues to share their insights in refining and finance. It’s clear that we are experiencing significant geopolitical instability. Therefore, we need to ensure that the company is prepared for any eventuality. Whether the oil price is $85 per barrel or $55, we must be ready for both scenarios. Last year, we started with an oil price above $80 and ended below $60, specifically at $59. Despite this price fluctuation, the company delivered robust results and demonstrated resilience. At the beginning of this year, we again witnessed high volatility due to the ongoing conflict. Nevertheless, we continue to adhere to our solid internal policy. We evaluate oil and derivative pricing without passing this volatility onto the Brazilian domestic market, a practice we have consistently maintained. Last year, we achieved excellent price results. When Petrobras assesses international prices and the value of its products, it also takes into account its position in the Brazilian market, which is no longer a concern. I have received many similar inquiries this week regarding how we manage when oil prices drop. The same applies when prices surge, as we are currently witnessing. Our internal price policy remains unchanged, and there are no discussions about altering it. Regarding our exports and imports, we will provide more details shortly. It is essential for us to continue exporting what we need, while our refineries still possess growing processing capacity. Our focus remains on maintaining resilience, respecting capital discipline, and reducing costs, especially with a projected price of $85, compared to $59 a few years ago and the $55 mentioned for next year. We are diligently monitoring all these variables to ensure the company is well-prepared for any scenarios that may arise in 2026 and 2027. I will now pass the floor to another director, followed by Fernando, who will discuss our refineries' performance. Additionally, I want to highlight that in exploration and production, we are ensuring increased production levels. Our goal is to optimize the extraction from our oil wells and deposits. Everyone is committed to delivering these results. Now, could you elaborate a bit more on the global market, Schlosser?

Yes, thank you, President. The company has a strategic plan in place, and we are prepared for a wide range of Brent prices in both the short and long term. In the short term, our current situation is highly unpredictable, unlike anything we've encountered before. The regions typically exporting 16 million barrels of oil along with an additional 5 million barrels in petroleum products are currently closed, which significantly impacts the market. Just ten days ago, discussions revolved around $50 per barrel or a surplus of 4 to 5 million barrels, but that has now changed dramatically. We are currently facing a unique scenario where oil production and petroleum product manufacturing have effectively stalled, leading to a freeze in trading for 2 to 3 days. We understand this market behavior, and it is anticipated that prices will readjust accordingly. There are numerous ships that have been stranded, while others are in the process of unloading, affecting current shipping and freight values. Currently, our snapshot indicates that we have a favorable netback to Petrobras, resulting in improved margins, especially for the oil we supply to markets outside of the conflict zones. We are not operating in regions like the Gulf, so our shipments to India, Europe, and other areas place us in a strong position. In terms of shipping, Petrobras stands out when compared to other global companies, as many are reliant on external contracts while we have a significant portion of our fleet tied to long-term agreements. Regarding refined products, Petrobras is effectively meeting its targets through an optimized operational plan. Our robust assets, including terminals, refineries, and pipelines, enhance our ability to manage imported products efficiently. We continue to export gasoline and LNG while ensuring our commitments reflect current market needs. Although there are other players in Brazil's supply chain, Petrobras is dedicated to its customers. Looking ahead, our long-term strategy is well-defined, while our short-term focus adapts daily to the changing market conditions. We regularly evaluate opportunities to maximize netback, whether through oil exports or profitable imports. Our plans include refining strategy with logistical considerations for the first quarter, targeting a 91% utilization rate by year-end and aiming for 95% by the end of the first quarter. We are prepared to extend refinery operation periods if necessary to boost refined product output. Globally, our utilization rate is a benchmark of excellence, and our strategic planning remains intact, focusing on efficiency and reducing our Brent benchmark to $59. These optimizations, overseen by our directors, will translate into strong operational outcomes for the company. Petrobras' business strategy is designed for high volatility situations like the ones we are currently facing, reinforcing the robustness of our operations.

Thank you, Magda, Fernando, Schlosser, Emilia. Before we take the next question, I would like to ask everyone to limit their questions to one per analyst, please. Lilyanna Yang from HSBC.

First, I want to congratulate you on the greater transparency of information. My question is regarding the oil price, which is significantly higher than the Brent price included in your budget that outlines the investment plans. If oil prices remain elevated, can you share how the additional cash flow generated beyond the budget for the first half will be prioritized? Specifically, I am interested in knowing which investment projects out of the $10 billion have not yet been approved or those that you intend to approve but may have postponed the final investment decision. Which of these projects are further along in the approval process, and does this include Braskem, for example?

Thank you for your question. It's great to hear from you again. Our primary focus is on maintaining capital discipline as always. We will carefully consider all our decisions. The situation is still quite new, and the world is assessing its full impact. There is uncertainty regarding the new Brent price levels and their implications for the short or long term. As we have discussed previously, our main emphasis is on scheduled investments, including our base CapEx, target CapEx, and any CapEx currently under review. If we generate additional revenue, we will prioritize investments and then address our debt obligations. Our goal is to reach $65 billion in the next five years. Should we experience a cash surplus, we will plan for it in line with our capital discipline. Our approach to managing excess cash levels remains consistent; if we find our cash flow to be too high, we would consider distributing extraordinary dividends, provided it does not affect the financial viability of our projects outlined in our strategic plan for 2026 to 2030.

Now the next question comes from Bruno Montanari from Morgan Stanley.

Going back to the first subject about the prices, just to confirm, if I understand you correctly, it's very clear that the policy does not transfer volatility to the domestic market, but the President also said that it works in scenarios of high oil and low oil price scenarios. Since the Brent has reached levels above 90 today, for how long can the company maintain its unaltered prices before that starts harming its refining margin? In other words, should we always expect the refining margin to be positive in scenarios where this margin is challenged. Is this the moment where you make the decision to adjust the prices, assuming that the prices will remain like that for weeks or months? I'd just like to understand if that's the correct way to look at the policy.

Thank you for your question. I will start the answer and then Schlosser will assist me with the rest. Your statement brings up an interesting point. If this assumption continues as it is, we are currently focusing on the trend and what that might look like in a few days. Is this just a temporary spike? Have we made unnecessary changes to our rules? Or is this a more lasting shift that we need to address? At this moment, I would say that this question remains unanswered. However, if the volatility is indeed this high and if prices are rising significantly, it will definitely necessitate quicker responses than would be required if the changes were more gradual. As you noted, as of now, we are uncertain about many things, especially regarding this assumption.

Thank you. I think I agree with you. As you've mentioned, it's part of Petrobras' strategy to be the best option for customers. We are constantly analyzing international market prices and assessing our position. Our exploration and production have been yielding significant oil production, and our refineries have increased output. As William noted, our performance is outstanding. The key principle is not to pass on volatility. In the past, price adjustments occurred daily, where any market changes would be directly reflected, but that approach is not effective for the company or society as a whole. Therefore, our commercial strategy focuses on ensuring stability. As the President articulated well, we are looking at snapshots of the situation, and in just ten days, the scenario can change drastically. We are discussing substantial amounts of oil available globally. Our strategy considers these dynamics, but another crucial aspect of our business strategy is financeability, which is integrated into our approach and analyzed daily from a technical perspective. If you ask me, we have not changed diesel prices in 300 days, despite the volatile global environment. Given this volatility, the most critical factor is timing.

Thank you, Magda and Schlosser. Bruno, thank you for your question. The next question comes from Bruno Amorim from Goldman Sachs.

Congratulations on the strong deliveries this year, particularly in production. My question is related to production. I would like to understand your views on the options for future anticipations and platform operations. Is there a chance these could be pushed to 2026? What are the discussions like with suppliers regarding this? This is a broader question about the possible anticipations related to platform operations.

As we always say, we're consistently working on our forecasts. For 2026, we don't believe there's any other prediction possible regarding the launch of these platforms. The P-80 is scheduled to launch in August, P-82 in September, and P-83 in February of next year. Our focus is on the expected ramp-up of P-78 and P-79. I mentioned the mooring record of P-79, and this week we achieved a record for the first gas injection at P-78. Previously, the quickest time we achieved with our platforms was with P-66 at 79 days. We were able to significantly accelerate the injection process, which is crucial for moving forward with the additional wells. We have one interconnected well to P-78, and by stabilizing the gas injection, we will seek approval for a second well and continue this process. Thus, our goal for 2026 is to speed up the ramp-up of the current platforms.

Thank you, Renata, and thank you, Bruno, for your question.

Thank you, Eduardo. I want to remind everyone that we are focusing on two large platforms that will start production in a context where we have significantly reduced the decline in production from our large fields. Our reserves have helped us achieve this decline reduction. If you compare the production figures from last year, we have successfully lowered the decline rate of our fields from 12% to 4% per year since 2024. If it were still at 12%, adding platforms would not have resulted in an increase in production. By managing our fields more effectively and optimizing our gas and water injection projects, as well as our complementary development projects, we can minimize decline and ensure that the new platforms contribute to increased production. With a 4% annual decline in the pre-salt, two platforms with a capacity of 180,000 barrels each will provide a significant boost to production by 2026. Additionally, the P80 platform that was sold in August is expected to arrive in Brazil after 2 to 3 months, meaning it should be moored by November, further supporting our production by early 2027. Therefore, we have two large platforms starting production this year that will enhance Brazil's production levels, along with two more set to begin production at the start of 2027, also contributing to production levels in Brazil at that time.

Thank you, Magda. We will now go on to our next question. That's Monique Greco, Itaú BBA.

I'll return to the topic of our trade strategy. It's intriguing to see how you manage volatility in the short term to ensure a better allocation of your production. My question relates to your commercial strategy. How are you executing your commercial approach? Do you meet daily, or do you evaluate it weekly or every 15 days? Can you provide more insights on how you are developing your response to an ongoing question? Please share more details about this process so that you can establish the framework necessary before making your next decision.

Thank you for your question, Monique. I’ll start by discussing our process and how the entire company is involved. Our commercial strategy aims to be the best option for our clients, and we need a strong position to achieve that. Our technical team works on both domestic and foreign market commercialization, and they communicate daily. We prepare follow-up reports on various factors, including Brent prices and the exchange rate for our petroleum products. This analysis is part of our alternative cost considerations for clients, and we circulate reports to a special group that includes our President, as well as logistics and finance officers. Our top management also analyzes different scenarios and crisis moments more frequently. For example, just last week, the executive directors discussed pricing scenarios, which prompts more frequent meetings when we anticipate disruptions. Our Board of Directors is kept informed about the conditions and our commercial strategy as well. We hold daily meetings, and if needed, there is increased involvement from both the executive team and the Board. I'm not sure if that fully addresses your question.

Thank you for your question. Monique, thank you, Schlosser. Now Regis Cardoso, XP, you may proceed Regis.

I have a single question. So let me now discuss your current crisis situation. In the foreign market, we see limits shut-in oil production in the Middle East and crack spread of some products abroad. So my question is, in your physical operation per se in Petrobras in Brazil, what are the consequences? What are the effects that you feel in terms of LGP or the importing of liquefied gas? LNG or what you get from the oil that you are not getting from the Middle East, how will you adapt your refineries? In other words, physically speaking, how has your operation or how have the operations been affected or maybe gasoline is less critical, but tell me about your day-to-day operations and how you're adapting and how you believe this will change or evolve over time because I know that you also have some ways of absorbing that fluctuation, but how will happen with your stocks over time?

Okay, I will try to avoid repetition and highlight some additional details. We import a specific type of oil used for lubricants from the Red Sea, utilizing a ship that transports it from there to Saudi Arabia. Saudi Arabia has two logistics systems for oil transportation: one through the Strait of Hormuz and another through the Red Sea, which serves as an alternative route. In terms of inventory, we have a secure supply of oil with a substantial stockpile, backed by a long-term contract with Saudi Arabia, allowing us to depend on this oil. Our planning includes optimizing for maximum profitability. We continuously evaluate our linear progression models for potential imports and can adjust our strategy daily if necessary. We are always on the lookout for new opportunities in oil production or petroleum products to capitalize on. For example, if ships are dispatched to the U.S. but a more profitable opportunity arises in Africa, we will adapt based on the circumstances. Currently, our supply planning is focused on the short term, with a strong outlook for April due to our solid positioning in the market and the support we receive from our distributors. Our President has emphasized the importance of operating excellence, and for 2025, we have set indicators that we have already surpassed with the best results in Petrobras' history. This performance reflects the difference between our planned outcomes and actual achievements, demonstrating our efficiency and resulting in significant success.

Next question, Tasso Vasconcellos, Tasso your question you may proceed.

I'd like to explore a new topic based on some news we saw earlier regarding your questions about IG4 and Braskem. What are your expectations regarding the outcome of the discussion? Is there a timeline? Additionally, what about the Braskem shareholders? Do you anticipate equalizing their debt with some capital injection? Will Petrobras be involved in that capital injection process in any way? If not, what other options are being discussed? How could Petrobras contribute through a loan or other possibilities? Lastly, will the decision regarding this extraordinary discussion be made by the end of the year, or can it be evaluated throughout the year considering our current situation?

I'll begin addressing the question, and then I'll hand it over to Fernando. This falls mainly to him to respond. At Braskem, we are facing a corporate issue involving a related party and a shareholders' agreement with them. Essentially, our partner will have the majority of control in administration. There is an agreement between the shareholder of Braskem and IG4, who represents the banks, which is still awaiting approval from the CADE committee. As of now, this approval has been postponed for a month. This period is crucial for us to establish a new shareholders' agreement with IG4 to better leverage synergies between Braskem and Petrobras. Currently, the synergies are not being utilized effectively, resulting in Braskem missing out on potential financial benefits when partnering with a large entity like Petrobras. We anticipate that this matter will be resolved soon, enabling us to form a new agreement with a different partner. Our goal is to optimize the synergy between the Petrobras system and Braskem to benefit both Petrobras and Braskem, as well as our shareholders and Brazilian society as a whole. Can you elaborate on that, Melgarejo?

Right. Regarding Braskem, we should keep in mind that with our government approvals, we have accepted the prevailing rights and are relinquishing the right of first choice for everything we have approved. Thus, unless there are new developments, the situation will remain unchanged as this has already been determined. As the President mentioned, petrochemicals are a key interest for Petrobras, and we see opportunities for synergies there. We are committed to this project, but we cannot speak for the company regarding potential investments from them into Petrobras. Our priority is to generate value for Petrobras' shareholders, and that is our underlying approach. All updates will be communicated promptly once CADE approves the necessary proposals. Currently, we are awaiting the shareholders' agreement and subsequent dividends. Regarding your query on dividends, our strategy has accounted for the foreign political landscape and its impact on our pricing. We have established a basic and target CapEx, but we also need to remain flexible to initiate new projects. Initially, our focus is on effectively executing the existing projects. The recent Brent price fluctuations will not change how we manage our projects, which are still testing at $50. We aim for long-term resilience, which will remain constant across all levels of governance. We are also seeking to maximize returns on new investments. If prices rise to $110, we will assess the potential for those projects. This involves a new level of governance where we evaluate quarterly cash surpluses, but we do not necessarily anticipate immediate payouts in the next month, quarter, or year. It's premature to make any statements on that. If we do have surplus cash, we would certainly prefer to distribute it as long as it doesn't compromise our long-term sustainability. However, it's too early to comment further. Evaluating surplus is part of our strategic agenda and is essential for discussing our extraordinary dividends.

Thank you, Magda, Fernando and Tasso. Now the last question of our webcast by Gabriel Barra of Citi.

My question is about the current situation with higher oil prices and the equatorial margin, which I consider a very important topic. The issue of leaks has already been resolved. Can you provide an update on your exploration schedule and when we can expect the first figures for the projects in the region? Additionally, in light of the higher oil price scenario, are you considering any short-term hedging given the more challenging oil situation? I know Petrobras doesn't frequently discuss hedging compared to other companies, but could you address these points?

So I'll talk about the hedge. We have no hedge strategy being assessed. So far, we haven't had any strategies for hedging. And our opinion is that we shouldn't apply any hedging to the oil prices. That's a long-standing rationale that we still consider to be valid. The hedging cost nowadays would probably be a huge and to apply hedging to the amount of oil that we produce would be unfeasible. Talking about the equatorial margin, Sylvia?

Gabriel, regarding the equatorial margin, I can share that we have made significant progress as we begin drilling, despite not having obtained our license yet. We are currently implementing the BOP, and within a few days, we plan to resume production, aiming to reach the reservoir interval by the second quarter of 2026. When we acquired these blocks, we committed to a minimum exploration requirement, which involves drilling this well along with seven others to ensure thorough exploration of the area. I want to emphasize that the equatorial margin holds substantial potential, distinct from our other pre-salt fields, as its reservoirs closely resemble those found in post-salt basins. Any plans moving forward are highly dependent on exploration results. A single well's outcomes will not suffice to evaluate our exploration efforts. The equatorial margin is linked to significant discoveries made in Africa around 2010 and 2012, which are comparable to the discoveries in Guyana. Our oil system will determine whether this generator is similar to Venezuela's La Luna generator, as well as the efficiency of the oil system and the adequacy of migration generation for achieving the anticipated accumulation. However, we will only see meaningful results after an actual discovery is made. Following that, we can conduct an exploratory assessment and begin considering the appropriate production system. Let's hope for success with this well, which is widely discussed. Even the janitor has asked me about ROL, so let's keep our fingers crossed for another discovery.

Thank you, Sylvia and Fernando. Thank you, Barra, for your question. This is the end of our Q&A session. If you have any additional questions, please send them to our R&I team. We'll be happy to answer your questions. I will now give the floor to the Petrobras President, Magda Chambriard for her final comments about the 2025 results.

We are very proud of the results we're delivering. Petrobras is extremely proud of its integrated work and the delivery capacity of the Petrobras team. Over the course of 2025, we became Latin America's biggest company, which required a lot of work, a lot of efforts dedication and a lot of purpose to turn this company into Latin America's biggest company, we've been able to do that. So let's maintain our mission and purpose. The company is a strong cash generator. Our processes are solid. Our procedures have proven correct and effective, and this is what we're going to keep chasing. We are committed to providing the best possible production by our pre-salt giants. We've just made an important discovery in the Aram reservoir. It hasn't been tested yet, but we've seen a beautiful flame indicating that that's yet another pre-salt reservoir that's emerging with a beautiful flame produced by gas and condensate. Along 2025, we made 5 discoveries, not as big as the pre-salt. I would say that there are midsized discoveries that will require development efforts on our part. And we are considering all of them along with a complementary development project for 2P Buzios. And for the fields in general, both from the pre-salt and the Campos Basin with capital discipline and with the certainty that producing is not enough. We need to produce a value to our refineries and find the best possible markets for our products in the world. This is what we're doing, and that we'll keep on doing and this is how we should look at Petrobras and understand that this team is really committed to delivering what they promised. So let's keep doing this. Thank you very much.

Well to wrap up. Thank you, Magda. Thanks, everybody. It's great to be with you, and to the investors, we are constantly available to ask to answer your questions over the phone or in person. As a take-home message, I want to say that a wrong strategy in a commodity company at a time of high volatility may bring about huge difficulties for the future of the company. That is why our Administration principles are based on 3 important pillars, regardless of the price of Brent, whether it's going up or down, which is capital discipline operational efficiency in all of our processes and the search for production increase.

Thank you, Fernando. Once again, I thank you for your attention. This presentation will be available on our Investor Relations website soon, and the audio track will also be available to you. Thank you. Have a great day, and see you in the next webcast.