Petrobras - Petroleo Brasileiro SA 6-K, filed Aug 4, 2023
Petrobras - Petroleo Brasileiro SA (PBR)
About this 6-K
Petrobras - Petroleo Brasileiro SA filed this 6-K on August 4, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private
Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of August, 2023
Commission File Number 1-15106
PETRÓLEO BRASILEIRO S.A. – PETROBRAS
(Exact name of registrant as specified in its charter)
Brazilian Petroleum Corporation – PETROBRAS
(Translation of Registrant's name into English)
Avenida Henrique Valadares, 28 – 19th floor
20231-030 – Rio de Janeiro, RJ
Federative Republic of Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
Petrobras financial performance in 2Q23
Rio de Janeiro, August 03, 2023
Main achievements:
- Robust recurring EBITDA of US$ 11.7 billion, a 19% decrease compared to 1Q23, mainly influenced by international diesel crack spreads, which declined more than 40% QoQ
- Gross debt under control at US$ 58 billion, even after the increase in leases due to the startup of chartered FPSOs Anna Nery and Almirante Barroso
- Cash generation resilience: Operating Cash Flow of US$ 9.6 billion
- Return to society with payment of R$ 56.1 billion in taxes
- New pre-salt production record with 2.06 MMboed in 2Q23, representing 78% of Petrobras total production in the quarter
- New units: start-up in May 2023 of FPSO Anna Nery, in Marlim, and FPSO Almirante Barroso, in Búzios field. FPSO Anita Garibaldi in Marlim, with mooring activities completed and expected to start operations in 3Q23
- Refining utilization factor: 93% in 2Q23, the highest level since 3Q15, with diesel, gasoline, and jet fuel production representing 67% of the total
- Sales records: diesel S10 accounting for 62.2% of total diesel sales. Highest gasoline sales in the year’s first half in 6 years
- Maritime sustainability: beginning of testing of maritime fuel with 24% renewable content and the first contract for a hybrid support vessel
- First sustainable decomissioning auction for P-32 platform
Disclaimer
This report may contain forward-looking statements. Such forward-looking statements only reflect expectations of the Company's managers regarding future economic conditions, as well as the Company's performance, financial performance and results, among others. The terms "anticipates", "believes", "expects", "predicts", "intends", "plans", "projects", "objective", "should", and similar terms, which evidently involve risks and uncertainties that may or may not be anticipated by the Company and therefore are not guarantees of future results of the Company's operations that may differ from current expectations. The readers should not rely exclusively on any forward-looking statement contained herein. The Company does not undertake any responsibility to update the presentations and forecasts in the light of new information or its future developments, and the figures reported for 2Q23 onwards are estimates or targets. These indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by others. We provide these indicators because we use them as measures of company performance; they should not be considered in isolation or as a substitute for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA and Net Indebtedness in the Glossary and their reconciliations in the Liquidity and Capital Resources sections, Reconciliation of Adjusted EBITDA and Net Indebtedness. Consolidated accounting information revised by independent auditors in accordance with international accounting standard IAS 34 – Interim Financial Reporting, issued by International Accounting Standards Board (IASB).
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Main items
Table 1 - Main items*
| Variation (%) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Sales revenues | 113,840 | 139,068 | 170,960 | 252,908 | 312,601 | (18.1) | (33.4) | (19.1) |
| Gross profit | 57,681 | 73,311 | 95,861 | 130,992 | 170,627 | (21.3) | (39.8) | (23.2) |
| Operating expenses | (15,604) | (13,295) | 627 | (28,899) | (10,557) | 17.4 | − | 173.7 |
| Consolidated net income (loss) attributable to the shareholders of Petrobras | 28,782 | 38,156 | 54,330 | 66,938 | 98,891 | (24.6) | (47.0) | (32.3) |
| Recurring consolidated net income (loss) attributable to the shareholders of Petrobras * | 28,789 | 38,043 | 44,885 | 66,832 | 88,232 | (24.3) | (35.9) | (24.3) |
| Net cash provided by operating activities | 47,751 | 53,759 | 71,804 | 101,510 | 124,628 | (11.2) | (33.5) | (18.5) |
| Free cash flow | 33,315 | 41,126 | 63,372 | 74,441 | 103,809 | (19.0) | (47.4) | (28.3) |
| Adjusted EBITDA | 56,690 | 72,497 | 98,260 | 129,187 | 175,970 | (21.8) | (42.3) | (26.6) |
| Recurring adjusted EBITDA* | 58.171 | 75.045 | 99.337 | 133.217 | 177.551 | (22,5) | (41,4) | (25,0) |
| Gross debt (US$ million) | 57,971 | 53,349 | 53,577 | 57,971 | 53,577 | 8.7 | 8.2 | 8.2 |
| Net debt (US$ million) | 42,177 | 37,588 | 34,435 | 42,177 | 34,435 | 12.2 | 22.5 | 22.5 |
| Net debt/LTM Adjusted EBITDA ratio ** | 0.74 | 0.58 | 0.60 | 0.74 | 0.60 | 27.6 | 23.3 | 23.3 |
| Average commercial selling rate for U.S. dollar | 4.95 | 5.19 | 4.92 | 5.07 | 5.08 | (4.6) | 0.6 | (0.2) |
| Brent crude (US$/bbl) | 78.39 | 81.27 | 113.78 | 79.83 | 107.59 | (3.5) | (31.1) | (25.8) |
| Domestic basic oil by-products price (R$/bbl) | 475.28 | 568.99 | 665.50 | 521.47 | 605.42 | (16.5) | (28.6) | (13.9) |
| TRI (total recordable injuries per million men-hour frequency rate) | - | - | - | 0.80 | 0.70 | - | - | 14.3 |
| ROCE (Return on Capital Employed) | 12.8% | 15.7% | 12.8% | 12.8% | 12.8% | -2,9 p.p. | 0 p.p. | 0 p.p. |
* See reconciliation of Recurring net income and Adjusted EBITDA in the Special Items section.
* *Ratio calculated in USD
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Consolidated results
Net revenues
Table 2 – Net revenues by products
| Variation (%) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Diesel | 35,099 | 43,150 | 52,603 | 78,249 | 91,478 | (18.7) | (33.3) | (14.5) |
| Gasoline | 18,700 | 19,189 | 21,187 | 37,889 | 40,591 | (2.5) | (11.7) | (6.7) |
| Liquefied petroleum gas (LPG) | 4,712 | 4,829 | 7,074 | 9,541 | 13,246 | (2.4) | (33.4) | (28.0) |
| Jet fuel | 5,461 | 7,302 | 6,899 | 12,763 | 12,075 | (25.2) | (20.8) | 5.7 |
| Naphtha | 2,132 | 2,485 | 3,555 | 4,617 | 6,737 | (14.2) | (40.0) | (31.5) |
| Fuel oil (including bunker fuel) | 1,294 | 1,486 | 1,734 | 2,780 | 3,645 | (12.9) | (25.4) | (23.7) |
| Other oil products | 5,584 | 5,633 | 7,949 | 11,217 | 14,599 | (0.9) | (29.8) | (23.2) |
| Subtotal oil products | 72,982 | 84,074 | 101,001 | 157,056 | 182,371 | (13.2) | (27.7) | (13.9) |
| Natural gas | 7,083 | 7,927 | 9,649 | 15,010 | 18,677 | (10.6) | (26.6) | (19.6) |
| Crude oil | 6,756 | 7,016 | 13,251 | 13,772 | 22,398 | (3.7) | (49.0) | (38.5) |
| Renewables and nitrogen products | 122 | 109 | 466 | 231 | 809 | 11.9 | (73.8) | (71.4) |
| Revenues from non-exercised rights | 1,072 | 1,142 | 834 | 2,214 | 1,373 | (6.1) | 28.5 | 61.3 |
| Electricity | 756 | 570 | 534 | 1,326 | 2,087 | 32.6 | 41.6 | (36.5) |
| Services, agency and others | 1,394 | 1,267 | 1,508 | 2,661 | 2,747 | 10.0 | (7.6) | (3.1) |
| Total domestic market | 90,165 | 102,105 | 127,243 | 192,270 | 230,462 | (11.7) | (29.1) | (16.6) |
| Exports | 21,950 | 35,014 | 40,401 | 56,964 | 75,511 | (37.3) | (45.7) | (24.6) |
| Crude oil | 14,416 | 28,809 | 27,589 | 43,225 | 52,632 | (50.0) | (47.7) | (17.9) |
| Fuel oil (including bunker fuel) | 6,580 | 5,372 | 11,224 | 11,952 | 21,089 | 22.5 | (41.4) | (43.3) |
| Other oil products and other products | 954 | 833 | 1,588 | 1,787 | 1,790 | 14.5 | (39.9) | (0.2) |
| Sales abroad (*) | 1,725 | 1,949 | 3,316 | 3,674 | 6,628 | (11.5) | (48.0) | (44.6) |
| Total foreign market | 23,675 | 36,963 | 43,717 | 60,638 | 82,139 | (35.9) | (45.8) | (26.2) |
| Total | 113,840 | 139,068 | 170,960 | 252,908 | 312,601 | (18.1) | (33.4) | (19.1) |
| (*) Sales revenues from operations outside of Brazil, including trading and excluding exports | ||||||||
In 2Q23, net revenues fell 18% compared to 1Q23, largely due to the 4% depreciation of Brent prices, declines in international diesel crack spreads above 40%, in addition to lower export revenues.
Revenues from oil products in the domestic market fell 13% in 2Q23 as a result of the average 17% reduction in oil product prices, reflecting the fall in international prices. This effect was partially offset by higher volumes, especially due to the increased competitiveness of gasoline against our customers' main supply alternatives. The decrease in natural gas revenues was mainly due to lower prices, as a consequence of contractual readjustments with distributors as of May 2023.
There was a 37% decrease in export revenues compared to 1Q23, mainly explained by the 50% fall in oil export revenues. This was largely due to the decrease in exports volumes in 2Q23, caused by the increase in refinery processing and the realization in 1Q23 of exports from previous periods. In addition, the depreciation of Brent between the periods contributed to the drop in revenues. This effect was partially offset by higher revenues from fuel oil exports, for which demand was higher in 2Q23.
During 2Q23, the principal traded products remained diesel and gasoline, which accounted for approximately 74% of the revenue generated from the sale of oil products.
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Graph 1 – Oil products sales revenues 2Q23 – domestic market
Noteworthy in exports is Petrobras first oil sale to Greece, totaling 1 million barrels. The sale results from the continuous development of markets for pre-salt oils in Europe, which was boosted with the change in oil flows as a result of the war in Ukraine.
In 2Q23, export volumes were diversified among different destinations, as presented below:
Table 3 – Destination of oil exports |
Table 4 – Destination of exports of oil products | |||||||
| Country | 2Q23 | 1Q23 | 2Q22 | Country | 2Q23 | 1Q23 | 2Q22 | |
| China | 28% | 42% | 15% | Singapore | 50% | 63% | 55% | |
| Europe | 20% | 26% | 39% | USA | 37% | 18% | 26% | |
| Latam | 26% | 22% | 24% | Others | 13% | 19% | 19% | |
| USA | 14% | 2% | 8% | |||||
| Asia (Ex China) | 11% | 9% | 12% | |||||
| Caribbean | 0% | 0% | 2% | |||||
Cost of goods sold *
Table 5 – Cost of goods sold
| Variation (%) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Acquisitions | (21,598) | (25,381) | (26,649) | (46,979) | (50,856) | (14.9) | (19.0) | (7.6) |
| Crude oil imports | (10,335) | (13,860) | (12,930) | (24,195) | (21,738) | (25.4) | (20.1) | 11.3 |
| Oil products imports | (7,760) | (9,413) | (8,901) | (17,173) | (15,913) | (17.6) | (12.8) | 7.9 |
| Natural gas imports | (3,503) | (2,108) | (4,818) | (5,611) | (13,205) | 66.2 | (27.3) | (57.5) |
| Production | (32,094) | (37,166) | (44,117) | (69,260) | (83,229) | (13.6) | (27.3) | (16.8) |
| Crude oil | (26,812) | (32,464) | (37,139) | (59,276) | (69,338) | (17.4) | (27.8) | (14.5) |
| Production taxes | (12,280) | (14,078) | (20,327) | (26,358) | (36,889) | (12.8) | (39.6) | (28.5) |
| Other costs | (14,532) | (18,386) | (16,812) | (32,918) | (32,449) | (21.0) | (13.6) | 1.4 |
| Oil products | (2,787) | (2,283) | (3,152) | (5,070) | (6,412) | 22.1 | (11.6) | (20.9) |
| Natural gas | (2,495) | (2,419) | (3,826) | (4,914) | (7,479) | 3.1 | (34.8) | (34.3) |
| Production taxes | (455) | (477) | (1,282) | (932) | (2,492) | (4.6) | (64.5) | (62.6) |
| Other costs | (2,040) | (1,942) | (2,544) | (3,982) | (4,987) | 5.0 | (19.8) | (20.2) |
| Services, electricity, operations abroad and others | (2,467) | (3,210) | (4,333) | (5,677) | (7,889) | (23.1) | (43.1) | (28.0) |
| Total | (56,159) | (65,757) | (75,099) | (121,916) | (141,974) | (14.6) | (25.2) | (14.1) |
In 2Q23, cost of goods sold decreased 15% compared to 1Q23, reflecting the decrease in costs of oil and oil products imports, due to lower prices and lower volumes of oil imports. This impact was partially offset by higher LNG (liquefied natural gas) import costs, which were necessary to balance the reduction in Bolivian gas supply.
* Managerial information (non-audited).
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In addition, the decrease in oil production and the fall in government take, due to the devaluation of Brent, also contributed to the reduction in costs of goods sold in 2Q23.
The increase in the volume of sales of oil products in the domestic market was met by higher production at the refineries, which was the main driver for the increase in the production costs of oil products in 2Q23.
Operating expenses
Table 6 – Operating expenses
| Variation (%) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Selling, General and Administrative Expenses | (7,868) | (8,199) | (7,725) | (16,067) | (15,443) | (4.0) | 1.9 | 4.0 |
| Selling expenses | (5,947) | (6,344) | (6,136) | (12,291) | (12,295) | (6.3) | (3.1) | (0.0) |
| Materials, third-party services, freight, rent and other related costs | (5,070) | (5,329) | (4,922) | (10,399) | (9,889) | (4.9) | 3.0 | 5.2 |
| Depreciation, depletion and amortization | (764) | (777) | (1,066) | (1,541) | (2,104) | (1.7) | (28.3) | (26.8) |
| Allowance for expected credit losses | 21 | (107) | (30) | (86) | (70) | − | − | 22.9 |
| Employee compensation | (134) | (131) | (118) | (265) | (232) | 2.3 | 13.6 | 14.2 |
| General and administrative expenses | (1,921) | (1,855) | (1,589) | (3,776) | (3,148) | 3.6 | 20.9 | 19.9 |
| Employee compensation | (1,209) | (1,189) | (1,060) | (2,398) | (2,096) | 1.7 | 14.1 | 14.4 |
| Materials, third-party services, rent and other related costs | (555) | (529) | (411) | (1,084) | (814) | 4.9 | 35.0 | 33.2 |
| Depreciation, depletion and amortization | (157) | (137) | (118) | (294) | (238) | 14.6 | 33.1 | 23.5 |
| Exploration costs | (945) | (817) | (196) | (1,762) | (604) | 15.7 | 382.1 | 191.7 |
| Research and Development | (850) | (800) | (1,080) | (1,650) | (2,161) | 6.3 | (21.3) | (23.6) |
| Other taxes | (1,632) | (1,039) | (455) | (2,671) | (766) | 57.1 | 258.7 | 248.7 |
| Impairment of assets | (1,946) | (16) | (847) | (1,962) | (843) | 12062.5 | 129.8 | 132.7 |
| Other income and expenses, net | (2,363) | (2,424) | 10,930 | (4,787) | 9,260 | (2.5) | − | − |
| Total | (15,604) | (13,295) | 627 | (28,899) | (10,557) | 17.4 | − | 173.7 |
In 2Q23, operating expenses increased 17% vs. 1Q23, mainly reflecting higher impairment expenses (-R$ 1.9 billion), mainly related to the 2nd train of RNEST (due to increased project scope, increased discount rate and appreciation of the BRL, but with the project still resilient and presenting positive NPV), and higher tax expenses (-R$ 0.6 billion), as a result of the tax on oil exports, which was in force for 4 months from March 2023.
In 2Q23, selling expenses decreased by 6%, because of lower logistics expenses due to the decrease in oil export volumes. However, this was partially offset by higher fuel oil exports.
In other operating revenues, the highlight in 2Q23 was the higher capital gains from asset sales (+R$ 0.8 billion), mainly related to the closing of the Potiguar and Norte Capixaba clusters.
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Adjusted EBITDA
In 2Q23, Adjusted EBITDA was R$ 56.7 billion, a decrease of 22% compared to 1Q23. This drop was mainly attributed to the Brent depreciation, declines in international diesel crack spreads above 40%, lower oil exports and higher LNG imports (from 0 in 1Q23 to 3 MMm³/d in 2Q23).
Financial results
Table 7 – Financial results
| Variation (%) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Finance income | 2,553 | 2,419 | 3,054 | 4,972 | 4,414 | 5.5 | (16.4) | 12.6 |
| Income from investments and marketable securities (Government Bonds) | 2,101 | 1,732 | 1,821 | 3,833 | 2,665 | 21.3 | 15.4 | 43.8 |
| Other finance income | 452 | 687 | 1,233 | 1,139 | 1,749 | (34.2) | (63.3) | (34.9) |
| Finance expenses | (4,295) | (4,387) | (4,691) | (8,682) | (8,660) | (2.1) | (8.4) | 0.3 |
| Interest on finance debt | (2,537) | (2,812) | (3,396) | (5,349) | (6,180) | (9.8) | (25.3) | (13.4) |
| Unwinding of discount on lease liabilities | (1,973) | (1,862) | (1,644) | (3,835) | (3,170) | 6.0 | 20.0 | 21.0 |
| Discount and premium on repurchase of debt securities | − | − | (404) | − | (538) | − | − | − |
| Capitalized borrowing costs | 1,573 | 1,408 | 1,464 | 2,981 | 2,708 | 11.7 | 7.4 | 10.1 |
| Unwinding of discount on the provision for decommissioning costs | (1,085) | (1,099) | (675) | (2,184) | (1,357) | (1.3) | 60.7 | 60.9 |
| Other finance expenses | (273) | (22) | (36) | (295) | (123) | 1140.9 | 658.3 | 139.8 |
| Foreign exchange gains (losses) and indexation charges | 1,473 | (1,232) | (14,120) | 241 | (8,528) | − | − | − |
| Foreign exchange gains (losses) | 7,402 | 4,170 | (8,184) | 11,572 | 4,351 | 77.5 | − | 166.0 |
| Reclassification of hedge accounting to the Statement of Income | (5,337) | (5,992) | (5,442) | (11,329) | (12,663) | (10.9) | (1.9) | (10.5) |
| Monetary restatement of anticipated dividends and dividends payable | (1,987) | (164) | (1,335) | (2,151) | (1,336) | 1111.6 | 48.8 | 61.0 |
| Recoverable taxes inflation indexation income | 150 | 335 | 119 | 485 | 227 | (55.2) | 26.1 | 113.7 |
| Other foreign exchange gains (losses) and indexation charges, net | 1,245 | 419 | 722 | 1,664 | 893 | 197.1 | 72.4 | 86.3 |
| Total | (269) | (3,200) | (15,757) | (3,469) | (12,774) | (91.6) | (98.3) | (72.8) |
In 2Q23, the financial result was negative by R$ 0.3 billion, compared to a negative result of R$ 3.2 billion in 1Q23. The improvement in the result can be explained mainly by higher gains from the FX variation of the BRL against the USD (+R$ 3.2 billion), which appreciated 5.1% in 2Q23 (from R$ 5.08/US$ on 03/31/2023 to R$ 4.82/US$ on 06/30/2023) versus an appreciation of 2.6% in 1Q23 (from R$5.22/US$ on 12/31/2022 to R$ 5.08/US$ on 03/31/2023). This effect was partially offset, basically, by the monetary restatement by the Selic rate of the complementary dividends for the year 2022 (-R$ 1.8 billion).
Net profit (loss) attributable to Petrobras shareholders
In 2Q23, net income was R$ 28.8 billion, compared to R$ 38,2 billion in 1Q23. This result is mainly explained by the depreciation of Brent, declines in international diesel crack spreads above 40% and higher operating expenses, especially impairment charges (-R$ 1,9 billion) and tax expenses (-R$ 0.6 billion). These effects were partially offset by higher capital gains from the sale of assets (+R$ 0.8 billion), lower financial expenses (+R$ 2.9 billion), as a result of foreign exchange gains due to the appreciation of the BRL against the USD, and lower income tax expenses (+R$ 5.9 billion), due to lower income before taxes and tax credits in 2Q23 resulting from the anticipation of the distribution of dividends for the 2023 financial year in the form of interest on equity.
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Recurring net income attributable to Petrobras shareholders and recurring Adjusted EBITDA
Excluding non-recurring items, net income would have remained stable at R$ 28.8 billion. Among the items that comprise the positive impact the highlights were the gains from the sale of the Potiguar and Norte Capixaba clusters (+R$ 3.4 billion), mainly offset by impairment expenses (-R$ 1.9 billion), legal contingencies (-R$ 0.5 billion) and the tax on oil exports (-R$ 1.0 billion), which was in force for 4 months from March 2023.
Adjusted EBITDA had a negative impact of R$ 1.5 billion, influenced by legal contingencies (-R$ 0.5 billion) and the tax on oil exports (-R$ 1.0 billion). Excluding the effects of non-recurring items, Adjusted EBITDA would have reached R$ 58,2 billion in 2Q23.
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Special items
Table 8 – Special items
| Variation (%) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Net income | 28,936 | 38,307 | 54,484 | 67,243 | 99,267 | (24.5) | (46.9) | (32.3) |
| Non-recurring items | (10) | 167 | 14,318 | 156 | 16,180 | − | − | (99.0) |
| Non-recurring items that do not affect Adjusted EBITDA | 1,471 | 2,715 | 15,395 | 4,186 | 17,761 | (45.8) | (90.4) | (76.4) |
| Impairment of assets and investments | (1,946) | (8) | (860) | (1,954) | (900) | 24225.0 | 126.3 | 117.1 |
| Gains and losses on disposal / write-offs of assets | 3,416 | 2,577 | 1,828 | 5,993 | 4,300 | 32.6 | 86.9 | 39.4 |
| Results from co-participation agreements in bid areas | (1) | 144 | 14,243 | 143 | 14,243 | − | − | (99.0) |
| Discount and premium on repurchase of debt securities | 2 | 2 | 184 | 4 | 118 | − | (98.9) | (96.6) |
| Other non-recurring items | (1,481) | (2,548) | (1,077) | (4,030) | (1,581) | (41.9) | 37.5 | 154.9 |
| Voluntary Separation Plan | 10 | 17 | (9) | 27 | (29) | (41.2) | − | − |
| Amounts recovered from Lava Jato investigation | 20 | 463 | − | 483 | 60 | (95.7) | − | 705.0 |
| Gains / (losses) on decommissioning of returned/abandoned areas | (58) | (3) | (15) | (61) | (140) | 1833.3 | 286.7 | (56.4) |
| Gains (losses) related to legal proceedings | (462) | (751) | (866) | (1,213) | (1,423) | (38.5) | (46.7) | (14.8) |
| Equalization of expenses - Production Individualization Agreements | (29) | (91) | (187) | (120) | (49) | (68.1) | (84.5) | 144.9 |
| Compensation for the termination of a vessel charter agreement | − | (1,654) | − | (1,654) | − | − | − | − |
| Export tax on crude oil | (962) | (529) | − | (1,492) | − | 81.9 | − | − |
| Net effect of non-recurring items on IR / CSLL | 4 | (54) | (4,873) | (50) | (5,521) | − | − | (99.1) |
| Recurring net income | 28,943 | 38,194 | 45,039 | 67,137 | 88,608 | (24.2) | (35.7) | (24.2) |
| Shareholders of Petrobras | 28,789 | 38,043 | 44,885 | 66,832 | 88,232 | (24.3) | (35.9) | (24.3) |
| Non-controlling interests | 154 | 151 | 154 | 305 | 376 | 2.0 | − | (18.9) |
| Adjusted EBITDA | 56,690 | 72,497 | 98,260 | 129,187 | 175,970 | (21.8) | (42.3) | (26.6) |
| Non-recurring items | (1,481) | (2,548) | (1,077) | (4,030) | (1,581) | (41.9) | 37.5 | 154.9 |
| Recurring Adjusted EBITDA | 58,171 | 75,045 | 99,337 | 133,217 | 177,551 | (22.5) | (41.4) | (25.0) |
In management's opinion, the special items presented above, although related to the Company's business, were highlighted as complementary information for a better understanding and evaluation of the result. Such items do not necessarily occur in all periods and are disclosed when relevant.
| 9 |
|
Capex
Table 9 - Capex
| Variation (%) | ||||||||
| US$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Exploration and Production | 2,599 | 2,040 | 1,674 | 4,639 | 3,049 | 27.3 | 55.2 | 52.2 |
| Refining, Transportation and Marketing | 365 | 342 | 274 | 707 | 526 | 6.7 | 33.2 | 34.4 |
| Gas and Power | 43 | 33 | 92 | 76 | 186 | 30.3 | (53.4) | (59.2) |
| Others | 93 | 67 | 141 | 160 | 189 | 39.3 | (33.8) | (15.0) |
| Subtotal | 3,100 | 2,482 | 2,181 | 5,582 | 3,949 | 24.9 | 42.1 | 41.3 |
| Signature bonus | 141 | − | 892 | 141 | 892 | − | − | − |
| Total | 3,241 | 2,482 | 3,073 | 5,723 | 4,841 | 30.5 | 5.5 | 18.2 |
In 2Q23, capex totaled US$ 3.2 billion, 31% above 1Q23, mainly due to the large pre-salt projects and the impact of the signature bonus related to the Southwest Sagittarius, Água Marinha and North Brava fields.
In the Exploration and & Production segment, capex totaled US$ 2.6 billion, 27% above 1Q23, due to the development of large projects, especially the progress in the construction and integration of FPSOs in Búzios, in addition to higher exploratory expenses in the pre-salt. Investments in 2Q23 were mainly focused on: (i) the development of production in the Santos Basin pre-salt (US$ 1.4 billion); (ii) deepwater production development (US$0.4 billion); (iii) exploratory investments (US$ 0.2 billion).
In the Refining, Transport and Commercialization segment, capex totaled US$ 0.37 billion, with a focus on the progress in the works of the SNOx (emission abatement unit) of RNEST and higher number of dockages for TRANSPETRO ships. In the Gas and Power segment, capex totaled US$ 0.04 billion in 2Q23, with emphasis on investments in the Route 3 Natural Gas processing unit.
Additionally, it is worth highlighting the entry into operation of the leased FPSOs units Anna Nery (Marlim 2) and Almirante Barroso (Búzios 5), whose lease amounts totaled US$ 5.2 billion. Just like owned units, leased FPSOs are recognized in the Company's assets and constitute an investment effort to expand production capacity with new units, but are not considered under Capex figures.
| 10 |
|
The following table presents the main information about the new oil and gas production systems, already contracted.
Table 10 – Main projects
| Unit | Start-up | FPSO capacity (bbl/day) |
Petrobras Actual Investment US$ bn |
Petrobras Total Investment US$ bn1 |
Petrobras Stake | Status |
|
Marlim 1 FPSO Anita Garibaldi (Chartered unit) |
2023 | 80,000 | 0.23 | 1.8 | 100% | Project in phase of execution. Production system arrived at the Marlim field. 1 well drilled and completed. 2 |
|
Mero 2 FPSO Sepetiba (Chartered unit) |
2023 | 180,000 | 0.37 | 0.8 | 38.6% | Project in phase of execution. Production system in transit to Brazil. 13 wells drilled and 12 completed. |
|
Mero 3 FPSO Marechal Duque de Caxias (Chartered unit) |
2024 | 180,000 | 0.17 | 0.8 | 38.6% | Project in phase of execution with production system under construction. 8 wells drilled and 2 completed. |
|
Integrado Parque das Baleias (IPB) FPSO Maria Quitéria (Chartered unit) |
2025 | 100,000 | 0.44 | 1.7 | 100% | Project in phase of execution with production system under construction. 3 wells drilled and 1 completed.2 |
|
Búzios 7 FPSO Almirante Tamandaré (Chartered unit) |
2025 | 225,000 | 0.25 | 2.0 | 88.99% |
Project in phase of execution with production system under construction. 4 wells drilled and 1 completed. |
|
Búzios 6 P-78 (Owned unit) |
2025 | 180,000 | 0.81 | 4.2 | 88.99% | Project in phase of execution with production system under construction. 3 wells drilled and 1 completed. |
|
Búzios 8 P-79 (Owned unit) |
2025 | 180,000 | 0.71 | 4.3 | 88.99% | Project in phase of execution with production system under construction. 5 wells drilled and 1 completed. |
|
Mero 4 FPSO Alexandre de Gusmão (Chartered unit) |
2025 | 180,000 | 0.05 | 0.8 | 38.6% |
Project in phase of execution with production system under construction. 6 wells drilled and 2 completed. |
|
Búzios 9 P-80 (Owned unit) |
2026 | 225,000 | 0.29 | 4.9 | 88.99% |
Project in phase of execution with production system under construction. 2 wells drilled and 2 completed. |
|
Búzios 10 P-82 (Owned unit) |
2027 | 225,000 | 0.20 | 5.5 | 88.99% |
Project in phase of execution with production system under construction 1 well drilled. |
|
Búzios 11 P-83 (Owned unit) |
2027 | 225,000 | 0.18 | 4.8 | 88.99% | Project in phase of execution with production system under construction. 2 wells drilled. |
|
BM-C-33 Non-operated project |
2028 | 126,000 | 0.12 | 2,3 3 | 30% | Project in phase of execution. Production system supply contract signed in May 2023. |
|
1 Total investment with the Strategic Plan 2023-27 assumptions and Petrobras work interest (WI). Chartered units leases are not included. 2 Production Unit for revitalization project. Refers only to new wells. The scope of the project also includes the relocation of some wells of the units being decommissioned. 3 It is included investment in the FPSO, contracted on a lump sum turnkey modality, which includes engineering, procurement, construction and installation for the unit. The contractor will also provide FPSO operation and maintenance services during the first year from the start of production. | ||||||
| 11 |
|
Liquidity and capital resources[1]
Table 11 - Liquidity and capital resources
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 |
| Adjusted cash and cash equivalents at the beginning of period | 80,068 | 64,092 | 87,568 | 64,092 | 62,040 |
| Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the beginning of period* | (27,791) | (22,369) | (5,967) | (22,369) | (3,630) |
| Cash and cash equivalents in companies classified as held for sale at the beginning of the period | − | − | 40 | − | 72 |
| Cash and cash equivalents at the beginning of period | 52,277 | 41,723 | 81,641 | 41,723 | 58,482 |
| Net cash provided by operating activities | 47,751 | 53,759 | 71,804 | 101,510 | 124,628 |
| Net cash (used in) provided by investing activities | (4,003) | (5,738) | 16,727 | (9,741) | 11,744 |
| Acquisition of PP&E and intangible assets | (14,389) | (12,592) | (8,383) | (26,981) | (20,721) |
| Acquisition of equity interests | (47) | (41) | (49) | (88) | (98) |
| Proceeds from disposal of assets - Divestment | 7,875 | 9,646 | 7,800 | 17,521 | 17,055 |
| Financial compensation from co-participation agreements | − | 2,032 | 24,512 | 2,032 | 24,831 |
| Dividends received | 289 | 55 | 938 | 344 | 1,213 |
| Investment in marketable securities | 2,269 | (4,838) | (8,091) | (2,569) | (10,536) |
| (=) Net cash provided by operating and investing activities | 43,748 | 48,021 | 88,531 | 91,769 | 136,372 |
| Net cash used in financing activities | (43,504) | (36,261) | (89,705) | (79,765) | (106,160) |
| Net financings | (5,759) | (6,595) | (20,212) | (12,354) | (30,135) |
| Proceeds from finance debt | 52 | 263 | 863 | 315 | 1,645 |
| Repayments | (5,811) | (6,858) | (21,075) | (12,669) | (31,780) |
| Repayment of lease liability | (7,277) | (7,223) | (6,697) | (14,500) | (13,613) |
| Dividends paid to shareholders of Petrobras | (30,595) | (21,803) | (62,027) | (52,398) | (62,029) |
| Dividends paid to non-controlling interests | (1) | (248) | (264) | (249) | (290) |
| Changes in non-controlling interest | 128 | (392) | (505) | (264) | (93) |
| Effect of exchange rate changes on cash and cash equivalents | (2,639) | (1,206) | 4,881 | (3,845) | (3,346) |
| Cash and cash equivalents at the end of period | 49,882 | 52,277 | 85,348 | 49,882 | 85,348 |
| Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the end of period* | 26,233 | 27,791 | 14,957 | 26,233 | 14,957 |
| Cash and cash equivalents in companies classified as held for sale at the end of the period | − | − | (37) | − | (37) |
| Adjusted cash and cash equivalents at the end of period | 76,115 | 80,068 | 100,268 | 76,115 | 100,268 |
| Reconciliation of Free Cash Flow | |||||
| Net cash provided by operating activities | 47,751 | 53,759 | 71,804 | 101,510 | 124,628 |
| Acquisition of PP&E and intangible assets | (14,389) | (12,592) | (8,383) | (26,981) | (20,721) |
| Acquisition of equity interests | (47) | (41) | (49) | (88) | (98) |
| Free cash flow** | 33,315 | 41,126 | 63,372 | 74,441 | 103,809 |
As of June 30, 2023, cash and cash equivalents totaled R$ 49.9 billion and adjusted cash and cash equivalents totaled R$ 76.1 billion.
In 2Q23, cash generated from operating activities reached R$ 47.8 billion and positive free cash flow totaled R$ 33.3 billion. This level of cash generation, along with the inflow of funds from the divestments of R$ 7.9 billion, especially the conclusion of the sales of the Potiguar (R$ 5.4 billion) and the Norte Capixaba (R$ 2.2 billion) clusters were used to: (a) pay remuneration to shareholders (R$ 30.6 billion), (b) make investments (R$ 14.4 billion), (c) amortize lease liabilities (R$ 7.3 billion), and (d) amortize principal and interest due in the period (R$ 5.8 billion).
* Includes government bonds, bank deposit certificates and time deposits of companies classified as held for sale.
** Free cash flow (FCF) is in accordance with the new Shareholder Remuneration Policy (“Policy”) approved on 07/28/2023 and corresponds to operating cash flow minus acquisitions of property, plant and equipment, intangible assets and equity interests. For comparative purposes, figures prior to 2Q23 have been adjusted in accordance with the new Policy.
| 12 |
|
Debt indicators
As of 06/30/2023, gross debt reached US$ 58.0 billion, an increase of 8.7% compared to 03/31/2023, mainly due to the increase in leases in the period with the entry into operation of the leased FPSOs Anna Nery and Almirante Barroso, which added US$ 5.2 billion to the company's lease liabilities. On the other hand, financial debt fell by US$ 608 million, compared to 03/31/2023, reaching US$ 29.2 billion on 06/30/2023.
Average maturity increased from 12 to 12.1 years and average cost varied from 6.5% p.a. to 6.6% p.a. over the same period.
The gross debt/EBITDA ratio reached 1.02x on 06/30/2023, compared to 0.82x on 03/31/2023.
On 06/30/2023, net debt reached US$ 42.2 billion, an increase of 12.2% compared to 03/31/2023, mainly due to the increase in leases in the period.
Table 12 – Debt indicators
| US$ million | 06.30.2023 | 03.31.2023 | Δ % | 06.30.2022 |
| Financial Debt | 29,228 | 29,836 | (2.0) | 31,051 |
| Capital Markets | 17,363 | 17,011 | 2.1 | 18,261 |
| Banking Market | 8,775 | 9,741 | (9.9) | 9,158 |
| Development banks | 735 | 720 | 2.1 | 770 |
| Export Credit Agencies | 2,190 | 2,201 | (0.5) | 2,688 |
| Others | 165 | 163 | 1.2 | 174 |
| Finance leases | 28,743 | 23,513 | 22.2 | 22,526 |
| Gross debt | 57,971 | 53,349 | 8.7 | 53,577 |
| Adjusted cash and cash equivalents | 15,794 | 15,761 | 0.2 | 19,142 |
| Net debt | 42,177 | 37,588 | 12.2 | 34,435 |
| Net Debt/(Net Debt + Market Cap) - Leverage | 33% | 37% | (10.8) | 32% |
| Average interest rate (% p.a.) | 6.6 | 6.5 | 1.5 | 6.3 |
| Weighted average maturity of outstanding debt (years) | 12.12 | 12.02 | 0.8 | 13.04 |
| Net debt/LTM Adjusted EBITDA ratio | 0.74 | 0.58 | 27.6 | 0.60 |
| Gross debt/LTM Adjusted EBITDA ratio | 1.02 | 0.82 | 25.0 | 0.93 |
| R$ million | ||||
| Financial Debt | 140,856 | 151,575 | (7.1) | 162,644 |
| Finance Lease | 138,519 | 119,456 | 16.0 | 117,993 |
| Adjusted cash and cash equivalents | 76,115 | 80,068 | (4.9) | 100,268 |
| Net Debt | 203,260 | 190,963 | 6.4 | 180,369 |
| 13 |
|
Results by segment
Exploration and Production
Table 13 – E&P results
| Variation (%) (*) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Sales revenues | 72,922 | 81,722 | 108,041 | 154,644 | 210,608 | (10.8) | (32.5) | (26.6) |
| Gross profit | 42,646 | 48,579 | 67,813 | 91,225 | 130,268 | (12.2) | (37.1) | (30.0) |
| Operating expenses | (2,707) | (638) | 12,537 | (3,345) | 12,274 | 324.3 | − | − |
| Operating income | 39,939 | 47,941 | 80,350 | 87,880 | 142,542 | (16.7) | (50.3) | (38.3) |
| Net income (loss) attributable to the shareholders of Petrobras | 26,456 | 31,742 | 53,319 | 58,198 | 94,628 | (16.7) | (50.4) | (38.5) |
| Adjusted EBITDA of the segment | 48,950 | 56,592 | 78,520 | 105,542 | 151,484 | (13.5) | (37.7) | (30.3) |
| EBITDA margin of the segment (%) | 67 | 69 | 73 | 68 | 72 | (2) | (6) | (4) |
| ROCE (Return on Capital Employed) (%) | 15.5 | 18.5 | 17.4 | 15.5 | 17.4 | (3.0) | (1.9) | (1.9) |
| Average Brent crude (US$/bbl) | 78.39 | 81.27 | 113.78 | 79.83 | 107.59 | (3.5) | (31.1) | (25.8) |
| Lifting cost - Brazil (US$/boe) | ||||||||
| excluding production taxes and leases | 5.96 | 5.51 | 5.22 | 5.73 | 5.60 | 8.2 | 14.0 | 2.4 |
| excluding production taxes | 7.92 | 7.27 | 6.97 | 7.59 | 7.32 | 9.0 | 13.6 | 3.7 |
| Onshore and shallow waters | ||||||||
| with leases | 15.71 | 14.70 | 16.44 | 15.21 | 16.82 | 6.9 | (4.5) | (9.6) |
| excluding leases | 15.71 | 14.70 | 16.44 | 15.21 | 16.82 | 6.9 | (4.5) | (9.6) |
| Deep and ultra-deep post-salt | ||||||||
| with leases | 16.85 | 12.94 | 11.28 | 14.80 | 12.83 | 30.2 | 49.3 | 15.4 |
| excluding leases | 14.56 | 11.45 | 9.57 | 12.93 | 11.27 | 27.2 | 52.1 | 14.8 |
| Pre-salt | ||||||||
| with leases | 5.71 | 5.61 | 5.13 | 5.66 | 5.16 | 1.7 | 11.3 | 9.7 |
| excluding leases | 3.72 | 3.71 | 3.25 | 3.72 | 3.28 | 0.4 | 14.5 | 13.3 |
| including production taxes and excluding leases | 19.29 | 19.19 | 24.36 | 19.24 | 25.14 | 0.5 | (20.8) | (23.5) |
| including production taxes and leases | 21.25 | 20.95 | 26.11 | 21.10 | 26.86 | 1.4 | (18.6) | (21.4) |
| Production taxes - Brazil | 13,346 | 14,461 | 19,848 | 27,807 | 41,013 | (7.7) | (32.8) | (32.2) |
| Royalties | 7,691 | 8,362 | 11,062 | 16,053 | 22,213 | (8.0) | (30.5) | (27.7) |
| Special participation | 5,597 | 6,037 | 8,725 | 11,634 | 18,678 | (7.3) | (35.9) | (37.7) |
| Retention of areas | 58 | 62 | 61 | 120 | 122 | (6.5) | (4.9) | (1.6) |
| (*) EBITDA margin and ROCE variations in percentage points | ||||||||
In 2Q23, E&P gross profit was R$ 42.6 billion, a reduction of 12% when compared to 1Q23. This reduction was mainly due to lower Brent prices and lower production in the period.
Operating income in 2Q23 was 17% lower than 1Q23, as a reflection of lower gross profit and higher tax expenses related to oil export operations.
Lifting costs in 2Q23, excluding production taxes and leases, was US$ 5.96/boe, an 8% increase when compared to 1Q23, due to higher integrity expenses, mainly subsea inspections and well interventions, and the appreciation of the Brazilian real against the US dollar.
Lifting costs in the pre-salt remained stable compared to 1Q23. The effect of the exchange rate appreciation was offset by the reduction in costs, mainly due to the reduction in well interventions and the increase in production in Búzios, due to the FPSO Almirante Barroso start-up, and Itapu, due to the ramp-up of P-71.
In the post-salt, the increase in lifting costs is explained by the higher volume of intervention activities in wells in the Campos Basin and by subsea inspection and maintenance activities. The lower production and the effect of Brazilian real appreciation also contributed to this result.
| 14 |
|
In onshore and shallow water assets, there was a 7% increase in lifting costs, also due to the effect of the exchange rate appreciation in 2Q23 and the resumption of production in onshore fields in Bahia.
The decrease with government take in dollars is explained by the lower Brent prices in 2Q23.
| 15 |
|
Refining, Transportation and Marketing
Table 14 - RTM results
| Variation (%) (*) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Sales revenues | 104,328 | 129,052 | 157,429 | 233,380 | 285,905 | (19.2) | (33.7) | (18.4) |
| Gross profit (loss) | 8,619 | 15,449 | 25,532 | 24,068 | 41,843 | (44.2) | (66.2) | (42.5) |
| Operating expenses | (5,682) | (6,141) | (5,100) | (11,823) | (8,284) | (7.5) | 11.4 | 42.7 |
| Operating Income | 2,937 | 9,308 | 20,432 | 12,245 | 33,559 | (68.4) | (85.6) | (63.5) |
| Net income (loss) attributable to the shareholders of Petrobras | 1,599 | 6,209 | 13,011 | 7,808 | 23,090 | (74.2) | (87.7) | (66.2) |
| Adjusted EBITDA of the segment | 7,940 | 12,351 | 23,371 | 20,291 | 39,190 | (35.7) | (66.0) | (48.2) |
| EBITDA margin of the segment (%) | 8 | 10 | 15 | 9 | 14 | (2) | (7) | (5) |
| ROCE (Return on Capital Employed) (%) | 7.7 | 11.7 | 10.5 | 7.7 | 10.5 | (4.0) | (2.8) | (2.8) |
| Refining cost (US$/barrel) - Brazil | 2.24 | 2.12 | 1.84 | 2.18 | 1.81 | 5.7 | 21.7 | 20.4 |
| Refining cost (R$/barrel) - Brazil | 11.04 | 11.06 | 9.19 | 11.05 | 9.18 | (0.2) | 20.1 | 20.4 |
| Domestic basic oil by-products price (R$/bbl) | 475.28 | 568.99 | 665.50 | 521.47 | 605.42 | (16.5) | (28.6) | (13.9) |
| (*) EBITDA margin and ROCE variations in percentage points | ||||||||
In 2Q23, the international diesel crack spreads dropped more than 40% leading to a gross profit of R$ 8.6 billion, R$ 6.8 billion lower than 1Q23. The inventory turnover was less pronounced in 2Q23 due to the lower changes in Brent prices, - R$ 2.2 billion vs. - R$ 5.9 billion in 1Q23. Excluding this effect, gross profit would have been R$ 10.9 billion in 2Q23 and R$ 21.4 billion in 1Q23.
The aforementioned lower margins in 2Q23, mainly those of diesel and jet fuel, were partially offset by higher domestic volumes of sales of gasoline, because of its greater competitiveness relative to ethanol, of diesel, due to the typical seasonality and by higher export volumes of fuel oil.
In 2Q23, operating income was lower, reflecting the lower gross profit.
In 2Q23, the refining cost per barrel in BRL was 0.2% lower than 1Q23. The higher expenses with materials and maintenance services and with catalysts, an input mainly used in the conversion units to produce gasoline, were offset by the higher feedstock in the period.
| 16 |
|
Gas and Power
Table 15 – G&P results
| Variation (%) (*) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Sales revenues | 13,701 | 14,823 | 18,390 | 28,524 | 36,045 | (7.6) | (25.5) | (20.9) |
| Gross profit | 5,650 | 7,202 | 6,713 | 12,852 | 9,096 | (21.5) | (15.8) | 41.3 |
| Operating expenses | (3,795) | (4,051) | (3,964) | (7,846) | (8,550) | (6.3) | (4.3) | (8.2) |
| Operating income | 1,855 | 3,151 | 2,749 | 5,006 | 546 | (41.1) | (32.5) | 816.8 |
| Net income (loss) attributable to the shareholders of Petrobras | 1,212 | 2,010 | 1,825 | 3,222 | 384 | (39.7) | (33.6) | 739.1 |
| Adjusted EBITDA of the segment | 2,467 | 3,833 | 3,263 | 6,300 | 1,623 | (35.6) | (24.4) | 288.2 |
| EBITDA margin of the segment (%) | 18 | 26 | 18 | 22 | 5 | (8) | − | 17 |
| ROCE (Return on Capital Employed) (%) | 10.0 | 10.7 | (3.9) | 10.0 | (3.9) | (0.7) | 13.9 | 13.9 |
| Natural gas sales price - Brazil (US$/bbl) | 70.96 | 73.27 | 71.16 | 72.13 | 63.00 | (3.2) | (0.3) | 14.5 |
| Natural gas sales price - Brazil (US$/MMBtu) | 11.96 | 12.35 | 12.00 | 12.16 | 10.62 | (3.2) | (0.3) | 14.5 |
| Fixed revenues from power auctions | 430 | 424 | 514 | 854 | 1,014 | 1.4 | (16.3) | (15.8) |
| Average price for power generation (R$/MWh) | 55.69 | 33.96 | 90.75 | 44.78 | 245.14 | 64.0 | (38.6) | (81.7) |
| (*) EBITDA margin and ROCE variations in percentage points | ||||||||
In 2Q23, gross profit was R$ 5.7 billion, a 21.5% decrease when compared to 1Q23, while operating income was R$ 1.9 billion, 41.1% lower than 1Q23. This result was due to the reduction in Bolivian gas purchases, as per the contractual curve agreed, partially offset by the regasification of LNG in the period, besides lower sales revenues due to Brent depreciation impact on gas prices. The higher use of LNG, of approximately 3MM m³/d in 2Q23, had a negative impact on the segment's result, given its higher acquisition cost.
| 17 |
|
Reconciliation of Adjusted EBITDA
EBITDA is an indicator calculated as the net income for the period plus taxes on profit, net financial result, depreciation and amortization. Petrobras announces EBITDA, as authorized by CVM Resolution 156 of June 2022.
In order to reflect the management view regarding the formation of the company's current business results, EBITDA is also presented adjusted (Adjusted EBITDA) as a result of: results in equity-accounted investments; impairment, reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments, results with co-participation agreement in production fields and gains/losses on disposal/write-offs of assets.
Adjusted EBITDA, reflecting the sum of the last twelve months (Last Twelve Months), also represents an alternative to the company's operating cash generation. This measure is used to calculate the Gross Debt and Net Debt to Adjusted EBITDA metric, helping to evaluate the company's leverage and liquidity.
EBITDA and adjusted EBITDA are not provided for in International Financial Reporting Standards (IFRS) and should not serve as a basis for comparison with those disclosed by other companies and should not be considered as a substitute for any other measure calculated in accordance with IFRS. These measures should be considered in conjunction with other measures and indicators for a better understanding of the company's performance and financial condition.
Table 16 - Reconciliation of Adjusted EBITDA
| Variation (%) (*) | ||||||||
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 | 2Q23 X 1Q23 | 2Q23 X 2Q22 | 1H23 X 1H22 |
| Net income | 28,936 | 38,307 | 54,484 | 67,243 | 99,267 | (24.5) | (46.9) | (32.3) |
| Net finance (expense) income | 269 | 3,200 | 15,757 | 3,469 | 12,774 | (91.6) | (98.3) | (72.8) |
| Income taxes | 12,766 | 18,690 | 26,193 | 31,456 | 49,791 | (31.7) | (51.3) | (36.8) |
| Depreciation, depletion and amortization | 16,082 | 15,186 | 16,996 | 31,268 | 33,600 | 5.9 | (5.4) | (6.9) |
| EBITDA | 58,053 | 75,383 | 113,430 | 133,436 | 195,432 | (23.0) | (48.8) | (31.7) |
| Results in equity-accounted investments | 106 | (181) | 54 | (75) | (1,762) | − | 96.3 | (95.7) |
| Impairment of assets (reversals) | 1,946 | 16 | 847 | 1,962 | 843 | 12062.5 | 129.8 | 132.7 |
| Results from co-participation agreements in bid areas | 1 | (144) | (14,243) | (143) | (14,243) | − | − | (99.0) |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | (3,416) | (2,577) | (1,828) | (5,993) | (4,300) | 32.6 | 86.9 | 39.4 |
| Adjusted EBITDA | 56,690 | 72,497 | 98,260 | 129,187 | 175,970 | (21.8) | (42.3) | (26.6) |
| Adjusted EBITDA margin (%) | 50 | 52 | 57 | 51 | 56 | (2.0) | (7.5) | (5.0) |
| (*) EBITDA Margin variations in percentage points | ||||||||
| 18 |
|
Financial statements
Table 17 - Income statement - Consolidated
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 |
| Sales revenues | 113,840 | 139,068 | 170,960 | 252,908 | 312,601 |
| Cost of sales | (56,159) | (65,757) | (75,099) | (121,916) | (141,974) |
| Gross profit | 57,681 | 73,311 | 95,861 | 130,992 | 170,627 |
| Selling expenses | (5,947) | (6,344) | (6,136) | (12,291) | (12,295) |
| General and administrative expenses | (1,921) | (1,855) | (1,589) | (3,776) | (3,148) |
| Exploration costs | (945) | (817) | (196) | (1,762) | (604) |
| Research and development expenses | (850) | (800) | (1,080) | (1,650) | (2,161) |
| Other taxes | (1,632) | (1,039) | (455) | (2,671) | (766) |
| Impairment (losses) reversals | (1,946) | (16) | (847) | (1,962) | (843) |
| Other income and expenses, net | (2,363) | (2,424) | 10,930 | (4,787) | 9,260 |
| (15,604) | (13,295) | 627 | (28,899) | (10,557) | |
| Operating income | 42,077 | 60,016 | 96,488 | 102,093 | 160,070 |
| Finance income | 2,553 | 2,419 | 3,054 | 4,972 | 4,414 |
| Finance expenses | (4,295) | (4,387) | (4,691) | (8,682) | (8,660) |
| Foreign exchange gains (losses) and inflation indexation charges | 1,473 | (1,232) | (14,120) | 241 | (8,528) |
| Net finance income (expense) | (269) | (3,200) | (15,757) | (3,469) | (12,774) |
| Results of equity-accounted investments | (106) | 181 | (54) | 75 | 1,762 |
| Income before income taxes | 41,702 | 56,997 | 80,677 | 98,699 | 149,058 |
| Income taxes | (12,766) | (18,690) | (26,193) | (31,456) | (49,791) |
| Net Income | 28,936 | 38,307 | 54,484 | 67,243 | 99,267 |
| Net income attributable to: | |||||
| Shareholders of Petrobras | 28,782 | 38,156 | 54,330 | 66,938 | 98,891 |
| Non-controlling interests | 154 | 151 | 154 | 305 | 376 |
| 19 |
|
Table 18 - Statement of financial position – Consolidated
| ASSETS - R$ million | 06.30.2023 | 12.31.2022 |
| Current assets | 136,816 | 163,052 |
| Cash and cash equivalents | 49,882 | 41,723 |
| Marketable securities | 11,103 | 14,470 |
| Trade and other receivables, net | 21,041 | 26,142 |
| Inventories | 39,241 | 45,804 |
| Recoverable taxes | 6,353 | 6,819 |
| Assets classified as held for sale | 1,937 | 18,823 |
| Other current assets | 7,259 | 9,271 |
| Non-current assets | 853,643 | 813,657 |
| Long-term receivables | 122,754 | 110,722 |
| Trade and other receivables, net | 9,651 | 12,729 |
| Marketable securities | 15,384 | 8,159 |
| Judicial deposits | 64,265 | 57,671 |
| Deferred taxes | 3,233 | 4,342 |
| Other tax assets | 20,577 | 19,715 |
| Other non-current assets | 9,644 | 8,106 |
| Investments | 7,921 | 8,172 |
| Property, plant and equipment | 706,647 | 679,182 |
| Intangible assets | 16,321 | 15,581 |
| Total assets | 990,459 | 976,709 |
| LIABILITIES - R$ million | 06.30.2023 | 12.31.2022 |
| Current liabilities | 151,599 | 163,731 |
| Trade payables | 26,168 | 28,507 |
| Finance debt | 19,897 | 18,656 |
| Lease liability | 29,921 | 28,994 |
| Taxes payable | 18,535 | 30,951 |
| Dividends payable | 30,822 | 21,762 |
| Short-term employee benefits | 10,594 | 11,555 |
| Liabilities related to assets classified as held for sale | 2,045 | 7,646 |
| Other current liabilities | 13,617 | 15,660 |
| Non-current liabilities | 466,579 | 448,593 |
| Finance debt | 120,959 | 137,630 |
| Lease liability | 108,598 | 95,423 |
| Income taxes payable | 1,518 | 1,578 |
| Deferred taxes | 53,491 | 35,220 |
| Employee benefits | 57,716 | 55,701 |
| Provision for legal and administrative proceedings | 17,006 | 15,703 |
| Provision for decommissioning costs | 96,878 | 97,048 |
| Other non-current liabilities | 10,413 | 10,290 |
| Shareholders' equity | 372,281 | 364,385 |
| Share capital (net of share issuance costs) | 205,432 | 205,432 |
| Profit reserves and others | 165,251 | 157,162 |
| Non-controlling interests | 1,598 | 1,791 |
| Total liabilities and shareholders´ equity | 990,459 | 976,709 |
| 20 |
|
Table 19 - Statement of cash flow – Consolidated
| R$ million | 2Q23 | 1Q23 | 2Q22 | 1H23 | 1H22 |
| Cash flows from operating activities | |||||
| Net income for the period | 28,936 | 38,307 | 54,484 | 67,243 | 99,267 |
| Adjustments for: | |||||
| Pension and medical benefits - actuarial losses | 1,924 | 1,924 | 1,605 | 3,848 | 3,210 |
| Results of equity-accounted investments | 106 | (181) | 54 | (75) | (1,762) |
| Depreciation, depletion and amortization | 16,082 | 15,186 | 16,996 | 31,268 | 33,600 |
| Impairment of assets (reversals) | 1,946 | 16 | 847 | 1,962 | 843 |
| Inventory (write-back) to net realizable value | 66 | (44) | 49 | 22 | 15 |
| Allowance for credit loss on trade and other receivables | 49 | 125 | 90 | 174 | 195 |
| Exploratory expenditure write-offs | 32 | 165 | 341 | 197 | 455 |
| Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA | (3,416) | (2,577) | (1,828) | (5,993) | (4,300) |
| Foreign exchange, indexation and finance charges | 1,106 | 3,377 | 16,618 | 4,483 | 14,178 |
| Income taxes | 12,766 | 18,690 | 26,193 | 31,456 | 49,791 |
| Revision and unwinding of discount on the provision for decommissioning costs | 1,143 | 1,102 | 691 | 2,245 | 1,497 |
| PIS and COFINS recovery - exclusion of ICMS (VAT tax) from the basis of calculation | − | − | (18) | − | (18) |
| Results from co-participation agreements in bid areas | 1 | (144) | (14,243) | (143) | (14,243) |
| Early termination and cash outflows revision of lease agreements | (445) | (868) | (882) | (1,313) | (2,022) |
| Losses with legal, administrative and arbitration proceedings, net | 1,361 | 1,319 | 1,485 | 2,680 | 2,792 |
| Decrease (Increase) in assets | |||||
| Trade and other receivables | 3,794 | 2,146 | (2,876) | 5,940 | 247 |
| Inventories | 502 | 5,127 | (489) | 5,629 | (10,252) |
| Judicial deposits | (1,888) | (2,093) | (2,248) | (3,981) | (4,368) |
| Other assets | 801 | 570 | (3,214) | 1,371 | (2,965) |
| Increase (Decrease) in liabilities | |||||
| Trade payables | 926 | (2,467) | 175 | (1,541) | (1,092) |
| Other taxes payable | (3,729) | (1,129) | (5,628) | (4,858) | (5,070) |
| Pension and medical benefits | (1,348) | (925) | (1,044) | (2,273) | (8,721) |
| Provisions for legal proceedings | (667) | (444) | (610) | (1,111) | (880) |
| Other employee benefits | (1,273) | 181 | (1,006) | (1,092) | (1,775) |
| Provision for decommissioning costs | (859) | (855) | (722) | (1,714) | (1,424) |
| Other liabilities | (123) | (514) | 4,506 | (637) | 2,879 |
| Income taxes paid | (10,042) | (22,235) | (17,522) | (32,277) | (25,449) |
| Net cash provided by operating activities | 47,751 | 53,759 | 71,804 | 101,510 | 124,628 |
| Cash flows from investing activities | |||||
| Acquisition of PP&E and intangible assets | (14,389) | (12,592) | (8,383) | (26,981) | (20,721) |
| Acquisition of equity interests | (47) | (41) | (49) | (88) | (98) |
| Proceeds from disposal of assets - Divestment | 7,875 | 9,646 | 7,800 | 17,521 | 17,055 |
| Financial compensation from co-participation agreements | − | 2,032 | 24,512 | 2,032 | 24,831 |
| Investment in marketable securities | 2,269 | (4,838) | (8,091) | (2,569) | (10,536) |
| Dividends received | 289 | 55 | 938 | 344 | 1,213 |
| Net cash (used in) provided by investing activities | (4,003) | (5,738) | 16,727 | (9,741) | 11,744 |
| Cash flows from financing activities | |||||
| Changes in non-controlling interest | 128 | (392) | (505) | (264) | (93) |
| Financing and loans, net: | |||||
| Proceeds from finance debt | 52 | 263 | 863 | 315 | 1,645 |
| Repayment of principal - finance debt | (3,660) | (3,894) | (19,357) | (7,554) | (27,040) |
| Repayment of interest - finance debt | (2,151) | (2,964) | (1,718) | (5,115) | (4,740) |
| Repayment of lease liability | (7,277) | (7,223) | (6,697) | (14,500) | (13,613) |
| Dividends paid to Shareholders of Petrobras | (30,595) | (21,803) | (62,027) | (52,398) | (62,029) |
| Dividends paid to non-controlling interests | (1) | (248) | (264) | (249) | (290) |
| Net cash used in financing activities | (43,504) | (36,261) | (89,705) | (79,765) | (106,160) |
| Effect of exchange rate changes on cash and cash equivalents | (2,639) | (1,206) | 4,881 | (3,845) | (3,346) |
| Net change in cash and cash equivalents | (2,395) | 10,554 | 3,707 | 8,159 | 26,866 |
| Cash and cash equivalents at the beginning of the period | 52,277 | 41,723 | 81,641 | 41,723 | 58,482 |
| Cash and cash equivalents at the end of the period | 49,882 | 52,277 | 85,348 | 49,882 | 85,348 |
| 21 |
|
Financial information by business areas
Table 20 - Consolidated income by segment – 1H23
| R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
| Sales revenues | 154,644 | 233,380 | 28,524 | 818 | (164,458) | 252,908 |
| Intersegments | 152,037 | 4,285 | 8,119 | 17 | (164,458) | − |
| Third parties | 2,607 | 229,095 | 20,405 | 801 | − | 252,908 |
| Cost of sales | (63,419) | (209,312) | (15,672) | (829) | 167,316 | (121,916) |
| Gross profit | 91,225 | 24,068 | 12,852 | (11) | 2,858 | 130,992 |
| Expenses | (3,345) | (11,823) | (7,846) | (5,841) | (44) | (28,899) |
| Selling expenses | (55) | (5,300) | (6,778) | (114) | (44) | (12,291) |
| General and administrative expenses | (172) | (822) | (164) | (2,618) | − | (3,776) |
| Exploration costs | (1,762) | − | − | − | − | (1,762) |
| Research and development expenses | (1,270) | (69) | (10) | (301) | − | (1,650) |
| Other taxes | (1,724) | (76) | (90) | (781) | − | (2,671) |
| Impairment (losses) reversals | (78) | (2,029) | − | 145 | − | (1,962) |
| Other income and expenses, net | 1,716 | (3,527) | (804) | (2,172) | − | (4,787) |
| Operating income (loss) | 87,880 | 12,245 | 5,006 | (5,852) | 2,814 | 102,093 |
| Net finance income (expense) | − | − | − | (3,469) | − | (3,469) |
| Results of equity-accounted investments | 186 | (274) | 106 | 57 | − | 75 |
| Income (loss) before income taxes | 88,066 | 11,971 | 5,112 | (9,264) | 2,814 | 98,699 |
| Income taxes | (29,879) | (4,163) | (1,702) | 5,245 | (957) | (31,456) |
| Net income (loss) | 58,187 | 7,808 | 3,410 | (4,019) | 1,857 | 67,243 |
| Net income (loss) attributable to: | ||||||
| Shareholders of Petrobras | 58,198 | 7,808 | 3,222 | (4,147) | 1,857 | 66,938 |
| Non-controlling interests | (11) | − | 188 | 128 | − | 305 |
Table 21 - Consolidated income by segment – 1H22
| R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
| Sales revenues | 210,608 | 285,905 | 36,045 | 1,401 | (221,358) | 312,601 |
| Intersegments | 207,178 | 4,707 | 9,461 | 12 | (221,358) | − |
| Third parties | 3,430 | 281,198 | 26,584 | 1,389 | − | 312,601 |
| Cost of sales | (80,340) | (244,062) | (26,949) | (1,378) | 210,755 | (141,974) |
| Gross profit | 130,268 | 41,843 | 9,096 | 23 | (10,603) | 170,627 |
| Expenses | 12,274 | (8,284) | (8,550) | (5,956) | (41) | (10,557) |
| Selling expenses | (29) | (4,412) | (7,711) | (102) | (41) | (12,295) |
| General and administrative expenses | (129) | (660) | (169) | (2,190) | − | (3,148) |
| Exploration costs | (604) | − | − | − | − | (604) |
| Research and development expenses | (1,848) | (23) | (17) | (273) | − | (2,161) |
| Other taxes | (193) | (129) | (94) | (350) | − | (766) |
| Impairment (losses) reversals | (618) | (222) | 3 | (6) | − | (843) |
| Other income and expenses, net | 15,695 | (2,838) | (562) | (3,035) | − | 9,260 |
| Operating income (loss) | 142,542 | 33,559 | 546 | (5,933) | (10,644) | 160,070 |
| Net finance income (expense) | − | − | − | (12,774) | − | (12,774) |
| Results of equity-accounted investments | 539 | 941 | 292 | (10) | − | 1,762 |
| Income (loss) before income taxes | 143,081 | 34,500 | 838 | (18,717) | (10,644) | 149,058 |
| Income taxes | (48,464) | (11,410) | (185) | 6,649 | 3,619 | (49,791) |
| Net income (loss) | 94,617 | 23,090 | 653 | (12,068) | (7,025) | 99,267 |
| Net income (loss) attributable to: | ||||||
| Shareholders of Petrobras | 94,628 | 23,090 | 384 | (12,186) | (7,025) | 98,891 |
| Non-controlling interests | (11) | − | 269 | 118 | − | 376 |
| 22 |
|
Table 22 - Quarterly consolidated income by segment – 2Q23
| R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
| Sales revenues | 72,922 | 104,328 | 13,701 | 430 | (77,541) | 113,840 |
| Intersegments | 71,770 | 1,823 | 3,938 | 10 | (77,541) | − |
| Third parties | 1,152 | 102,505 | 9,763 | 420 | − | 113,840 |
| Cost of sales | (30,276) | (95,709) | (8,051) | (431) | 78,308 | (56,159) |
| Gross profit | 42,646 | 8,619 | 5,650 | (1) | 767 | 57,681 |
| Expenses | (2,707) | (5,682) | (3,795) | (3,399) | (21) | (15,604) |
| Selling expenses | (20) | (2,525) | (3,388) | 7 | (21) | (5,947) |
| General and administrative expenses | (86) | (417) | (85) | (1,333) | − | (1,921) |
| Exploration costs | (945) | − | − | − | − | (945) |
| Research and development expenses | (625) | (59) | (3) | (163) | − | (850) |
| Other taxes | (1,634) | 482 | (44) | (436) | − | (1,632) |
| Impairment (losses) reversals | (148) | (1,943) | − | 145 | − | (1,946) |
| Other income and expenses, net | 751 | (1,220) | (275) | (1,619) | − | (2,363) |
| Operating income (loss) | 39,939 | 2,937 | 1,855 | (3,400) | 746 | 42,077 |
| Net finance income (expense) | − | − | − | (269) | − | (269) |
| Results of equity-accounted investments | 92 | (340) | 83 | 59 | − | (106) |
| Income (loss) before income taxes | 40,031 | 2,597 | 1,938 | (3,610) | 746 | 41,702 |
| Income taxes | (13,579) | (998) | (631) | 2,695 | (253) | (12,766) |
| Net income (loss) | 26,452 | 1,599 | 1,307 | (915) | 493 | 28,936 |
| Net income (loss) attributable to: | ||||||
| Shareholders of Petrobras | 26,456 | 1,599 | 1,212 | (978) | 493 | 28,782 |
| Non-controlling interests | (4) | − | 95 | 63 | − | 154 |
Table 23 - Quarterly consolidated income by segment – 1Q23
| R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
| Sales revenues | 81,722 | 129,052 | 14,823 | 388 | (86,917) | 139,068 |
| Intersegments | 80,267 | 2,462 | 4,181 | 7 | (86,917) | − |
| Third parties | 1,455 | 126,590 | 10,642 | 381 | − | 139,068 |
| Cost of sales | (33,143) | (113,603) | (7,621) | (398) | 89,008 | (65,757) |
| Gross profit | 48,579 | 15,449 | 7,202 | (10) | 2,091 | 73,311 |
| Expenses | (638) | (6,141) | (4,051) | (2,442) | (23) | (13,295) |
| Selling expenses | (35) | (2,775) | (3,390) | (121) | (23) | (6,344) |
| General and administrative expenses | (86) | (405) | (79) | (1,285) | − | (1,855) |
| Exploration costs | (817) | − | − | − | − | (817) |
| Research and development expenses | (645) | (10) | (7) | (138) | − | (800) |
| Other taxes | (90) | (558) | (46) | (345) | − | (1,039) |
| Impairment (losses) reversals | 70 | (86) | − | − | − | (16) |
| Other income and expenses, net | 965 | (2,307) | (529) | (553) | − | (2,424) |
| Operating income (loss) | 47,941 | 9,308 | 3,151 | (2,452) | 2,068 | 60,016 |
| Net finance income (expense) | − | − | − | (3,200) | − | (3,200) |
| Results of equity-accounted investments | 94 | 66 | 23 | (2) | − | 181 |
| Income (loss) before income taxes | 48,035 | 9,374 | 3,174 | (5,654) | 2,068 | 56,997 |
| Income taxes | (16,300) | (3,165) | (1,071) | 2,550 | (704) | (18,690) |
| Net income (loss) | 31,735 | 6,209 | 2,103 | (3,104) | 1,364 | 38,307 |
| Net income (loss) attributable to: | ||||||
| Shareholders of Petrobras | 31,742 | 6,209 | 2,010 | (3,169) | 1,364 | 38,156 |
| Non-controlling interests | (7) | − | 93 | 65 | − | 151 |
| 23 |
|
Table 24 - Other income and expenses by segment – 1H23
| R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
| Unscheduled stoppages and pre-operating expenses | (5,320) | (54) | (113) | (78) | − | (5,565) |
| Pension and medical benefits - retirees | − | − | − | (2,925) | − | (2,925) |
| Gains (losses) with legal, administrative and arbitration proceedings | (835) | (1,633) | 17 | (229) | − | (2,680) |
| Performance award program | (548) | (320) | (69) | (437) | − | (1,374) |
| Profit sharing | (153) | (65) | (18) | (102) | − | (338) |
| Losses on decommissioning of returned/abandoned areas | (61) | − | − | − | − | (61) |
| Results from co-participation agreements in bid areas | 143 | − | − | − | − | 143 |
| Gains (losses) with Commodities Derivatives | − | 363 | (1) | 1 | − | 363 |
| Amounts recovered from Lava Jato investigation (*) | − | − | − | 483 | − | 483 |
| Government grants | 63 | − | − | 833 | − | 896 |
| Early termination and changes to cash flow estimates of leases | 934 | 393 | (2) | (12) | − | 1,313 |
| Reimbursements from E&P partnership operations | 1,423 | − | − | − | − | 1,423 |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 6,094 | (146) | (6) | 51 | − | 5,993 |
| Others (**) | (24) | (2,065) | (612) | 243 | − | (2,458) |
| 1,716 | (3,527) | (804) | (2,172) | − | (4,787) | |
| (*) Through December 31, 2022, the amount recovered of R$ 6,719 was recognized through collaboration and leniency agreements entered into with individuals and legal entities. | ||||||
| (**) It includes, in 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of R$ 1,654. | ||||||
Table 25 - Other income and expenses by segment – 1H22
| R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
| Unscheduled stoppages and pre-operating expenses | (4,288) | (56) | (52) | (76) | − | (4,472) |
| Pension and medical benefits - retirees | − | − | − | (2,487) | − | (2,487) |
| Gains (losses) with legal, administrative and arbitration proceedings | (684) | (1,236) | (295) | (577) | − | (2,792) |
| Performance award program | (516) | (260) | (66) | (414) | − | (1,256) |
| Profit sharing | (136) | (80) | (16) | (97) | − | (329) |
| Losses on decommissioning of returned/abandoned areas | (140) | − | − | − | − | (140) |
| Results from co-participation agreements in bid areas | 14,243 | − | − | − | − | 14,243 |
| Gains (losses) with Commodities Derivatives | − | (1,091) | − | − | − | (1,091) |
| Amounts recovered from Lava Jato investigation | − | − | − | 60 | − | 60 |
| Government grants | 8 | − | − | 993 | − | 1,001 |
| Early termination and changes to cash flow estimates of leases | 1,889 | 151 | 16 | (34) | − | 2,022 |
| Reimbursements from E&P partnership operations | 776 | − | − | − | − | 776 |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 4,075 | 244 | (37) | 18 | − | 4,300 |
| Others | 468 | (510) | (112) | (421) | − | (575) |
| 15,695 | (2,838) | (562) | (3,035) | − | 9,260 | |
| 24 |
|
Table 26 - Other income and expenses by segment – 2Q23
| R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
| Unscheduled stoppages and pre-operating expenses | (2,842) | (27) | (59) | (43) | − | (2,971) |
| Pension and medical benefits - retirees | − | − | − | (1,465) | − | (1,465) |
| Gains (losses) with legal, administrative and arbitration proceedings | (533) | (532) | (19) | (277) | − | (1,361) |
| Performance award program | (260) | (159) | (33) | (197) | − | (649) |
| Profit sharing | (80) | (20) | (9) | (49) | − | (158) |
| Losses on decommissioning of returned/abandoned areas | (58) | − | − | − | − | (58) |
| Results from co-participation agreements in bid areas | (1) | − | − | − | − | (1) |
| Gains (losses) with Commodities Derivatives | − | (78) | 35 | (4) | − | (47) |
| Amounts recovered from Lava Jato investigation (*) | − | − | − | 20 | − | 20 |
| Government grants | 56 | − | − | 302 | − | 358 |
| Early termination and changes to cash flow estimates of leases | 495 | (27) | (7) | (16) | − | 445 |
| Reimbursements from E&P partnership operations | 588 | − | − | − | − | 588 |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 3,457 | (88) | 33 | 14 | − | 3,416 |
| Others (**) | (71) | (289) | (216) | 96 | − | (480) |
| 751 | (1,220) | (275) | (1,619) | − | (2,363) | |
| (*) Through December 31, 2022, the amount recovered of R$ 6,719 was recognized through collaboration and leniency agreements entered into with individuals and legal entities. | ||||||
| (**) It includes, in 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of R$ 1,654. | ||||||
Table 27 - Other income and expenses by segment – 1Q23
| R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
| Unscheduled stoppages and pre-operating expenses | (2,478) | (27) | (54) | (35) | − | (2,594) |
| Pension and medical benefits - retirees | − | − | − | (1,460) | − | (1,460) |
| Gains (losses) with legal, administrative and arbitration proceedings | (302) | (1,101) | 36 | 48 | − | (1,319) |
| Performance award program | (288) | (161) | (36) | (240) | − | (725) |
| Profit sharing | (73) | (45) | (9) | (53) | − | (180) |
| Losses on decommissioning of returned/abandoned areas | (3) | − | − | − | − | (3) |
| Results from co-participation agreements in bid areas | 144 | − | − | − | − | 144 |
| Gains (losses) with Commodities Derivatives | − | 441 | (36) | 5 | − | 410 |
| Amounts recovered from Lava Jato investigation (*) | − | − | − | 463 | − | 463 |
| Government grants | 7 | − | − | 531 | − | 538 |
| Early termination and changes to cash flow estimates of leases | 439 | 420 | 5 | 4 | − | 868 |
| Reimbursements from E&P partnership operations | 835 | − | − | − | − | 835 |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 2,637 | (58) | (39) | 37 | − | 2,577 |
| Others (**) | 47 | (1,776) | (396) | 147 | − | (1,978) |
| 965 | (2,307) | (529) | (553) | − | (2,424) | |
| (*) Through December 31, 2022, the amount recovered of R$ 6,719 was recognized through collaboration and leniency agreements entered into with individuals and legal entities. | ||||||
| (**) It includes, in 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of R$ 1,654. | ||||||
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Table 28 - Consolidated assets by segment – 06.30.2023
| R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Total assets | 634,332 | 165,965 | 33,141 | 180,073 | (23,052) | 990,459 |
| Current assets | 12,249 | 52,094 | 2,210 | 93,315 | (23,052) | 136,816 |
| Non-current assets | 622,083 | 113,871 | 30,931 | 86,758 | − | 853,643 |
| Long-term receivables | 37,865 | 10,016 | 487 | 74,386 | − | 122,754 |
| Investments | 1,925 | 4,953 | 773 | 270 | − | 7,921 |
| Property, plant and equipment | 568,692 | 98,294 | 29,272 | 10,389 | − | 706,647 |
| Operating assets | 500,426 | 84,005 | 18,051 | 8,295 | − | 610,777 |
| Assets under construction | 68,266 | 14,289 | 11,221 | 2,094 | − | 95,870 |
| Intangible assets | 13,601 | 608 | 399 | 1,713 | − | 16,321 |
Table 29 - Consolidated assets by segment – 12.31.2022
| R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Total assets | 606,994 | 179,652 | 39,574 | 177,953 | (27,464) | 976,709 |
| Current assets | 27,259 | 62,794 | 2,041 | 98,422 | (27,464) | 163,052 |
| Non-current assets | 579,735 | 116,858 | 37,533 | 79,531 | − | 813,657 |
| Long-term receivables | 33,140 | 9,450 | 492 | 67,640 | − | 110,722 |
| Investments | 1,976 | 5,098 | 905 | 193 | − | 8,172 |
| Property, plant and equipment | 531,550 | 101,728 | 35,747 | 10,157 | − | 679,182 |
| Operating assets | 480,481 | 87,925 | 25,085 | 8,267 | − | 601,758 |
| Assets under construction | 51,069 | 13,803 | 10,662 | 1,890 | − | 77,424 |
| Intangible assets | 13,069 | 582 | 389 | 1,541 | − | 15,581 |
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Table 30 - Reconciliation of Adjusted EBITDA by segment – 1H23
| R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Net income (loss) | 58,187 | 7,808 | 3,410 | (4,019) | 1,857 | 67,243 |
| Net finance income (expense) | − | − | − | 3,469 | − | 3,469 |
| Income taxes | 29,879 | 4,163 | 1,702 | (5,245) | 957 | 31,456 |
| Depreciation, depletion and amortization | 23,821 | 5,871 | 1,288 | 288 | − | 31,268 |
| EBITDA | 111,887 | 17,842 | 6,400 | (5,507) | 2,814 | 133,436 |
| Results in equity-accounted investments | (186) | 274 | (106) | (57) | − | (75) |
| Impairment of assets (reversals) | 78 | 2,029 | − | (145) | − | 1,962 |
| Results from co-participation agreements in bid areas | (143) | − | − | − | − | (143) |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | (6,094) | 146 | 6 | (51) | − | (5,993) |
| Adjusted EBITDA | 105,542 | 20,291 | 6,300 | (5,760) | 2,814 | 129,187 |
Table 31 - Reconciliation of Adjusted EBITDA by segment – 1H22
| R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Net income (loss) | 94,617 | 23,090 | 653 | (12,068) | (7,025) | 99,267 |
| Net finance income (expense) | − | − | − | 12,774 | − | 12,774 |
| Income taxes | 48,464 | 11,410 | 185 | (6,649) | (3,619) | 49,791 |
| Depreciation, depletion and amortization | 26,642 | 5,653 | 1,043 | 262 | − | 33,600 |
| EBITDA | 169,723 | 40,153 | 1,881 | (5,681) | (10,644) | 195,432 |
| Results in equity-accounted investments | (539) | (941) | (292) | 10 | − | (1,762) |
| Impairment of assets (reversals) | 618 | 222 | (3) | 6 | − | 843 |
| Results from co-participation agreements in bid areas | (14,243) | − | − | − | − | (14,243) |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | (4,075) | (244) | 37 | (18) | − | (4,300) |
| Adjusted EBITDA | 151,484 | 39,190 | 1,623 | (5,683) | (10,644) | 175,970 |
Table 32 - Reconciliation of Adjusted EBITDA by segment – 2Q23
| R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Net income (loss) | 26,452 | 1,599 | 1,307 | (915) | 493 | 28,936 |
| Net finance income (expense) | − | − | − | 269 | − | 269 |
| Income taxes | 13,579 | 998 | 631 | (2,695) | 253 | 12,766 |
| Depreciation, depletion and amortization | 12,319 | 2,972 | 645 | 146 | − | 16,082 |
| EBITDA | 52,350 | 5,569 | 2,583 | (3,195) | 746 | 58,053 |
| Results in equity-accounted investments | (92) | 340 | (83) | (59) | − | 106 |
| Impairment of assets (reversals) | 148 | 1,943 | − | (145) | − | 1,946 |
| Results from co-participation agreements in bid areas | 1 | − | − | − | − | 1 |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | (3,457) | 88 | (33) | (14) | − | (3,416) |
| Adjusted EBITDA | 48,950 | 7,940 | 2,467 | (3,413) | 746 | 56,690 |
Table 33 - Reconciliation of Adjusted EBITDA by segment – 1Q23
| R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
| Net income (loss) | 31,735 | 6,209 | 2,103 | (3,104) | 1,364 | 38,307 |
| Net finance income (expense) | − | − | − | 3,200 | − | 3,200 |
| Income taxes | 16,300 | 3,165 | 1,071 | (2,550) | 704 | 18,690 |
| Depreciation, depletion and amortization | 11,502 | 2,899 | 643 | 142 | − | 15,186 |
| EBITDA | 59,537 | 12,273 | 3,817 | (2,312) | 2,068 | 75,383 |
| Results in equity-accounted investments | (94) | (66) | (23) | 2 | − | (181) |
| Impairment of assets (reversals) | (70) | 86 | − | − | − | 16 |
| Results from co-participation agreements in bid areas | (144) | − | − | − | − | (144) |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | (2,637) | 58 | 39 | (37) | − | (2,577) |
| Adjusted EBITDA | 56,592 | 12,351 | 3,833 | (2,347) | 2,068 | 72,497 |
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Glossary ACL - Ambiente de Contratação Livre (Free contracting market) in the electricity system. ACR - Ambiente de Contratação Regulada (Regulated contracting market) in the electricity system. Adjusted cash and cash equivalents - Sum of cash and cash equivalents and investments in securities in domestic and international markets that have high liquidity, i.e., convertible into cash within 3 months, even if maturity is longer than 12 months, held for the purpose of complying with cash commitments. This measure is not defined under the International Financial Reporting Standards – IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents computed in accordance with IFRS. It may not be comparable to adjusted cash and cash equivalents of other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity and supports leverage management. Adjusted EBITDA - Adjusted EBITDA (a non-GAAP measure defined as net income plus net finance income (expense); income taxes; depreciation, depletion and amortization; results in equity-accounted investments; impairment of assets (reversals); results on disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA; and results from co-participation agreements in bid areas). Adjusted EBITDA margin - Adjusted EBITDA divided by sales revenues. Basic and diluted earnings (losses) per share - Calculated based on the weighted average number of shares. CAPEX – Capital Expenditure – investments that encompasses acquisition of property, plant, and equipment, including costs with leasing, intangible assets, investments in subsidiaries and affiliates, costs with geology and geophysics and pre-operating costs. Consolidated Structured Entities – Entities that have been designated so that voting rights or the like are not the determining factor in deciding who controls the entity. Petrobras has no equity interest in certain structured entities that are consolidated in the Company's financial statements, but control is determined by the power it has over its relevant operating activities. As there is no equity interest, the income from certain consolidated structured entities is attributable to non-controlling shareholders in the income statement, and disregarding the profit or loss attributable to Petrobras shareholders. CTA – Cumulative translation adjustment – The cumulative amount of exchange variation arising on translation of foreign operations that is recognized in Shareholders’ Equity and will be transferred to profit or loss on the disposal of the investment. Effect of average cost in the Cost of Sales – In view of the average inventory term of 60 days, the crude oil and oil products international prices movement, as well as foreign exchange effect over imports, production taxes and other factors that impact costs, do not entirely influence the cost of sales in the current period, having their total effects only in the following period. Free cash flow – Corresponds to operating cash flow minus acquisitions of property, plant and equipment, intangible assets and equity interests. Free cash flow is not defined under the IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents calculated in accordance with IFRS. It may not be comparable to free cash flow of other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity and supports leverage management. Investments – Capital expenditures based on the cost assumptions and financial methodology adopted in our Business and Management Plan, which include acquisition of PP&E, including expenses with leasing, intangibles assets, investment in investees and other items that do not necessarily qualify as cash flows used in investing activities, primarily geological and geophysical expenses, pre-operating charges, purchase of property, plant and equipment on credit and borrowing costs directly attributable to works in progress.
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Leverage – Ratio between the Net Debt and the sum of Net Debt and Shareholders’ Equity. Leverage is not a measure defined in the IFRS and it is possible that it may not be comparable to similar measures reported by other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity. Lifting Cost - Crude oil and natural gas lifting cost indicator, which considers expenditures occurred in the period. LTM Adjusted EBITDA - Sum of the last 12 months (Last Twelve Months) of Adjusted EBITDA. This metric is not foreseen in the international accounting standards - IFRS and it is possible that it is not comparable with similar indexes reported by other companies, however Management believes that it is supplementary information to assess liquidity and helps manage leverage. Adjusted EBITDA should be considered in conjunction with other metrics to better understand the Company's liquidity. OCF - Net Cash provided by (used in) operating activities (operating cash flow), presented in the consolidated cash flow statement. Net Debt – Gross debt less adjusted cash and cash equivalents. Net debt is not a measure defined in the IFRS and should not be considered in isolation or as a substitute for total long-term debt calculated in accordance with IFRS. Our calculation of net debt may not be comparable to the calculation of net debt by other companies, however our management believes that net debt is an appropriate supplemental measure that helps investors assess our liquidity and supports leverage management. Net Income by Business Segment - The information by the company's business segment is prepared based on available financial information that is directly attributable to the segment or that can be allocated on a reasonable basis, being presented by business activities used by the Executive Board to make resource allocation decisions. and performance evaluation. When calculating segmented results, transactions with third parties, including jointly controlled and associated companies, and transfers between business segments are considered. Transactions between business segments are valued at internal transfer prices calculated based on methodologies that take into account market parameters, and these transactions are eliminated, outside the business segments, for the purpose of reconciling the segmented information with the consolidated financial statements of the company. company. PLD (differences settlement price) - Electricity price in the spot market. Weekly weighed prices per output level (light, medium and heavy), number of hours and related market capacity. Refining - includes crude oil refining, logistics, transportation, acquisition and export activities, as well as the purchase and sale of petroleum and ethanol products in Brazil and abroad. Additionally, this segment includes the petrochemical area, which includes investments in companies in the petrochemical sector, shale exploration and processing. ROCE - operating profit after taxes / average capital employed, both measured in US$ on a LTM basis Operating profit after taxes: Adjusted EBITDA, minus DD&A of assets booked at historical exchange rates and 34% income tax rate. Average capital employed: quarterly average considering inventories, intangibles and fixed assets at historical exchange rates. Sales Price of Petroleum in Brazil - Average internal transfer prices from the E&P segment to the Refining segment. Total net liabilities - Total liability less adjusted cash and cash equivalents.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 3, 2023
PETRÓLEO BRASILEIRO S.A–PETROBRAS
By: /s/ Sergio Caetano Leite
______________________________
Sergio Caetano Leite
Chief Financial Officer and Investor Relations Officer