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____
Interim Financial Information
PETRÓLEO BRASILEIRO S.A. - PETROBRAS
At June 30, 2023 and report on review of interim financial information
(A free translation of the original in Portuguese)
INDEX
PETROBRAS
| 2 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Financial Position - Assets (R$ Thousand) |
 |
| Account Code | Account Description | 06.30.2023 | 12.31.2022 |
| 1 | Total Assets | 1,250,840,000 | 1,268,330,000 |
| 1.01 | Current Assets | 131,374,000 | 176,508,000 |
| 1.01.01 | Cash and Cash Equivalents | 2,011,000 | 3,627,000 |
| 1.01.02 | Marketable Securities | 8,871,000 | 9,109,000 |
| 1.01.03 | Trade and Other Receivables | 67,245,000 | 87,396,000 |
| 1.01.04 | Inventories | 35,653,000 | 39,016,000 |
| 1.01.06 | Recoverable Taxes | 5,887,000 | 6,344,000 |
| 1.01.06.01 | Current Recoverable Taxes | 5,887,000 | 6,344,000 |
| 1.01.06.01.01 | Current Income Tax and Social Contribution | 750,000 | 602,000 |
| 1.01.06.01.02 | Other Recoverable Taxes | 5,137,000 | 5,742,000 |
| 1.01.08 | Other Current Assets | 11,707,000 | 31,016,000 |
| 1.01.08.01 | Non-Current Assets Held for Sale | 2,187,000 | 19,365,000 |
| 1.01.08.03 | Others | 9,520,000 | 11,651,000 |
| 1.01.08.03.03 | Others | 9,520,000 | 11,651,000 |
| 1.02 | Non-Current Assets | 1,119,466,000 | 1,091,822,000 |
| 1.02.01 | Long-Term Receivables | 118,940,000 | 105,183,000 |
| 1.02.01.03 | Marketable Securities Measured at Amortized Cost | 15,384,000 | 8,159,000 |
| 1.02.01.04 | Trade and Other Receivables | 8,539,000 | 10,912,000 |
| 1.02.01.07 | Deferred Taxes | 20,218,000 | 19,349,000 |
| 1.02.01.07.02 | Deferred Taxes and Contributions | 20,218,000 | 19,349,000 |
| 1.02.01.10 | Other Non-Current Assets | 74,799,000 | 66,763,000 |
| 1.02.01.10.04 | Judicial Deposits | 63,822,000 | 57,239,000 |
| 1.02.01.10.05 | Other Assets | 10,977,000 | 9,524,000 |
| 1.02.02 | Investments | 259,263,000 | 271,427,000 |
| 1.02.03 | Property, Plant and Equipment | 725,097,000 | 699,786,000 |
| 1.02.04 | Intangible Assets | 16,166,000 | 15,426,000 |
| 3 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Financial Position - Liabilities (R$ Thousand) |
|
| Account Code | Account Description | 06.30.2023 | 12.31.2022 |
| 2 | Total Liabilities | 1,250,840,000 | 1,268,330,000 |
| 2.01 | Current Liabilities | 261,228,000 | 267,314,000 |
| 2.01.01 | Payroll, Profit Sharing and Related Charges | 6,238,000 | 7,146,000 |
| 2.01.02 | Trade Payables | 32,746,000 | 34,714,000 |
| 2.01.03 | Taxes Obligations | 657,000 | 12,690,000 |
| 2.01.03.01 | Federal Taxes Obligations | 657,000 | 12,690,000 |
| 2.01.03.01.01 | Income Tax and Social Contribution Payable | 657,000 | 12,690,000 |
| 2.01.04 | Current Debt and Finance Lease Obligations | 158,055,000 | 150,657,000 |
| 2.01.04.01 | Current Debt | 126,533,000 | 120,724,000 |
| 2.01.04.03 | Lease Obligations | 31,522,000 | 29,933,000 |
| 2.01.05 | Other Liabilities | 57,736,000 | 50,711,000 |
| 2.01.05.02 | Others | 57,736,000 | 50,711,000 |
| 2.01.05.02.01 | Dividends and Interest on Capital Payable | 30,822,000 | 21,751,000 |
| 2.01.05.02.04 | Other Taxes Payable | 15,412,000 | 15,576,000 |
| 2.01.05.02.06 | Other liabilities | 11,502,000 | 13,384,000 |
| 2.01.06 | Provisions | 3,751,000 | 3,750,000 |
| 2.01.06.02 | Other Provisions | 3,751,000 | 3,750,000 |
| 2.01.06.02.04 | Pension and Medical Benefits | 3,751,000 | 3,750,000 |
| 2.01.07 | Liabilities Associated with Non-Current Assets Held for Sale and Discontinued | 2,045,000 | 7,646,000 |
| 2.01.07.01 | Liabilities Associated with Non-Current Assets Held for Sale | 2,045,000 | 7,646,000 |
| 2.02 | Non-Current Liabilities | 618,929,000 | 638,422,000 |
| 2.02.01 | Non-Current Debt and Finance Lease Obligations | 377,802,000 | 417,644,000 |
| 2.02.01.01 | Non-Current Debt | 264,481,000 | 315,417,000 |
| 2.02.01.03 | Lease Obligations | 113,321,000 | 102,227,000 |
| 2.02.02 | Other Liabilities | 1,479,000 | 1,538,000 |
| 2.02.02.02 | Others | 1,479,000 | 1,538,000 |
| 2.02.02.02.03 | Income Taxes Payable | 1,479,000 | 1,538,000 |
| 2.02.03 | Deferred Taxes | 60,175,000 | 42,511,000 |
| 2.02.03.01 | Deferred Income Taxes | 60,175,000 | 42,511,000 |
| 2.02.04 | Provisions | 179,473,000 | 176,729,000 |
| 2.02.04.01 | Provisions for Tax Social Security, Labor and Civil Lawsuits | 15,774,000 | 14,609,000 |
| 2.02.04.02 | Other Provisions | 163,699,000 | 162,120,000 |
| 2.02.04.02.04 | Pension and Medical Benefits | 56,050,000 | 54,000,000 |
| 2.02.04.02.05 | Provision for Decommissioning Costs | 96,396,000 | 96,552,000 |
| 2.02.04.02.06 | Employee Benefits | 634,000 | 761,000 |
| 2.02.04.02.07 | Other liabilities | 10,619,000 | 10,807,000 |
| 2.03 | Shareholders' Equity | 370,683,000 | 362,594,000 |
| 2.03.01 | Share Capital | 205,432,000 | 205,432,000 |
| 2.03.02 | Capital Reserves | 3,318,000 | 3,318,000 |
| 2.03.04 | Profit Reserves | 134,801,000 | 128,346,000 |
| 2.03.08 | Other Comprehensive Income | 27,132,000 | 25,498,000 |
| 4 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Income (R$ Thousand) |
|
| Account Code | Account Description | Accumulated of the Current Quarter 04/01/2023 to 06/30/2023 | Accumulated of the Current Year 01/01/2023 to 06/30/2023 | Accumulated of the Previous Quarter 04/01/2022 to 06/30/2022 | Accumulated of the Previous Year 01/01/2022 to 06/30/2022 |
| 3.01 | Sales Revenues | 109,551,000 | 238,689,000 | 162,738,000 | 297,186,000 |
| 3.02 | Cost of Sales | (56,205,000) | (118,251,000) | (71,069,000) | (136,906,000) |
| 3.03 | Gross Profit | 53,346,000 | 120,438,000 | 91,669,000 | 160,280,000 |
| 3.04 | Operating Expenses / Income | (11,458,000) | (17,310,000) | 5,689,000 | 2,579,000 |
| 3.04.01 | Selling Expenses | (6,107,000) | (12,318,000) | (7,121,000) | (13,638,000) |
| 3.04.02 | General and Administrative Expenses | (1,614,000) | (3,165,000) | (1,277,000) | (2,519,000) |
| 3.04.05 | Other Operating Expenses | (6,869,000) | (12,118,000) | 8,842,000 | 6,278,000 |
| 3.04.05.01 | Other Taxes | (1,374,000) | (2,189,000) | (396,000) | (667,000) |
| 3.04.05.02 | Research and Development Expenses | (850,000) | (1,650,000) | (1,080,000) | (2,161,000) |
| 3.04.05.03 | Exploration Costs | (944,000) | (1,760,000) | 73,000 | (333,000) |
| 3.04.05.05 | Other Operating Expenses, Net | (1,840,000) | (4,728,000) | 11,052,000 | 10,236,000 |
| 3.04.05.07 | Impairment of Assets Reversals (Charges) | (1,861,000) | (1,791,000) | (807,000) | (797,000) |
| 3.04.06 | Share of Profit / Gains on Interest in Equity-Accounted Investments | 3,132,000 | 10,291,000 | 5,245,000 | 12,458,000 |
| 3.05 | Net Income Before Financial Results and Income Taxes | 41,888,000 | 103,128,000 | 97,358,000 | 162,859,000 |
| 3.06 | Finance Income (Expenses), Net | (3,184,000) | (9,340,000) | (18,180,000) | (16,819,000) |
| 3.06.01 | Finance Income | 2,898,000 | 5,592,000 | 3,123,000 | 4,754,000 |
| 3.06.01.01 | Finance Income | 2,898,000 | 5,592,000 | 3,123,000 | 4,754,000 |
| 3.06.02 | Finance Expenses | (6,082,000) | (14,932,000) | (21,303,000) | (21,573,000) |
| 3.06.02.01 | Finance Expenses | (8,148,000) | (16,367,000) | (6,694,000) | (13,435,000) |
| 3.06.02.02 | Foreign Exchange and Inflation Indexation Charges, Net | 2,066,000 | 1,435,000 | (14,609,000) | (8,138,000) |
| 3.07 | Net Income Before Income Taxes | 38,704,000 | 93,788,000 | 79,178,000 | 146,040,000 |
| 3.08 | Income Tax and Social Contribution | (9,922,000) | (26,850,000) | (24,848,000) | (47,149,000) |
| 3.08.01 | Current | (6,511,000) | (20,921,000) | (24,639,000) | (37,153,000) |
| 3.08.02 | Deferred | (3,411,000) | (5,929,000) | (209,000) | (9,996,000) |
| 3.09 | Net Income from Continuing Operations | 28,782,000 | 66,938,000 | 54,330,000 | 98,891,000 |
| 3.11 | Income / (Loss) for the Period | 28,782,000 | 66,938,000 | 54,330,000 | 98,891,000 |
| 3.99.01 | Income per Share | ||||
| 3.99.01.01 | Ordinary Shares | 2.20 | 5.13 | 4.16 | 7.58 |
| 3.99.01.02 | Preferred Shares | 2.20 | 5.13 | 4.16 | 7.58 |
| 3.99.02 | Diluted Income per Share | ||||
| 3.99.02.01 | Ordinary Shares | 2.20 | 5.13 | 4.16 | 7.58 |
| 3.99.02.02 | Preferred Shares | 2.20 | 5.13 | 4.16 | 7.58 |
| 5 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Comprehensive Income (R$ Thousand) |
|
| Account Code | Account Description | Accumulated of the Current Quarter 04/01/2023 to 06/30/2023 | Accumulated of the Current Year 01/01/2023 to 06/30/2023 | Accumulated of the Previous Quarter 04/01/2022 to 06/30/2022 | Accumulated of the Previous Year 01/01/2022 to 06/30/2022 |
| 4.01 | Net Income for the Period | 28,782,000 | 66,938,000 | 54,330,000 | 98,891,000 |
| 4.02 | Other Comprehensive Income | 300,000 | 1,634,000 | 7,896,000 | 10,200,000 |
| 4.02.01 | Actuarial Gains / (Losses) on Defined Benefits Plans | − | (570,000) | − | − |
| 4.02.02 | Deferred Income Tax and Social Contribution on Actuarial Gains / (Losses) on Defined Benefits Plans | − | 194,000 | − | − |
| 4.02.03 | Translation Adjustments in investees | (14,691,000) | (22,473,000) | 26,222,000 | (17,074,000) |
| 4.02.07 | Unrealized Gains / (Losses) on Cash Flow Hedge - Recognized in Shareholders' Equity | 16,534,000 | 24,225,000 | (32,407,000) | 27,501,000 |
| 4.02.08 | Unrealized Gains / (Losses) on Cash Flow Hedge - Reclassified to Profit and Loss | 5,286,000 | 11,183,000 | 5,155,000 | 12,376,000 |
| 4.02.09 | Deferred Income Tax and Social Contribution on Cash Flow Hedge | (7,420,000) | (12,040,000) | 9,266,000 | (13,558,000) |
| 4.02.10 | Share of Other Comprehensive Income of Equity-Accounted Investments | 591,000 | 1,115,000 | (340,000) | 955,000 |
| 4.03 | Total Comprehensive Income for the Period | 29,082,000 | 68,572,000 | 62,226,000 | 109,091,000 |
| 6 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2023 to 06/30/2023 (R$ Thousand) |
|
| Account Code | Account Description | Share Capital | Capital Reserves, Granted Options and Treasury Shares | Profit Reserves | Retained Earnings / Accumulated Losses | Other Comprehensive Income | Shareholders' Equity |
| 5.01 | Balance at the Beginning of the Period | 205,432,000 | 3,318,000 | 128,346,000 | − | 25,498,000 | 362,594,000 |
| 5.03 | Adjusted Opening Balance | 205,432,000 | 3,318,000 | 128,346,000 | − | 25,498,000 | 362,594,000 |
| 5.04 | Capital Transactions with Owners | − | − | (35,815,000) | (24,668,000) | − | (60,483,000) |
| 5.04.06 | Dividends | − | − | (35,815,000) | (24,700,000) | − | (60,515,000) |
| 5.04.11 | Expired dividends | − | − | − | 32,000 | − | 32,000 |
| 5.05 | Total of Comprehensive Income | − | − | − | 66,938,000 | 1,634,000 | 68,572,000 |
| 5.05.01 | Net Income for the Period | − | − | − | 66,938,000 | − | 66,938,000 |
| 5.05.02 | Other Comprehensive Income | − | − | − | − | 1,634,000 | 1,634,000 |
| 5.07 | Balance at the End of the Period | 205,432,000 | 3,318,000 | 92,531,000 | 42,270,000 | 27,132,000 | 370,683,000 |
| 7 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2022 to 06/30/2022 (R$ Thousand) |
|
| Account Code | Account Description | Share Capital | Capital Reserves, Granted Options and Treasury Shares | Profit Reserves | Retained Earnings / Accumulated Losses | Other Comprehensive Income | Shareholders' Equity |
| 5.01 | Balance at the Beginning of the Period | 205,432,000 | 3,313,000 | 164,028,000 | − | 14,556,000 | 387,329,000 |
| 5.03 | Adjusted Opening Balance | 205,432,000 | 3,313,000 | 164,028,000 | − | 14,556,000 | 387,329,000 |
| 5.04 | Capital Transactions with Owners | − | 5,000 | (44,842,000) | (41,038,000) | − | (85,875,000) |
| 5.04.06 | Dividends | − | − | (44,842,000) | (41,038,000) | − | (85,880,000) |
| 5.04.08 | Change in Interest in Subsidiaries | − | 5,000 | − | − | − | 5,000 |
| 5.05 | Total of Comprehensive Income | − | − | − | 98,891,000 | 10,200,000 | 109,091,000 |
| 5.05.01 | Net Income for the Period | − | − | − | 98,891,000 | − | 98,891,000 |
| 5.05.02 | Other Comprehensive Income | − | − | − | − | 10,200,000 | 10,200,000 |
| 5.07 | Balance at the End of the Period | 205,432,000 | 3,318,000 | 119,186,000 | 57,853,000 | 24,756,000 | 410,545,000 |
b
| 8 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Cash Flows – Indirect Method (R$ Thousand) |
|
| Account Code | Account Description | Accumulated of the Current Year 01/01/2023 to 06/30/2023 | Accumulated of the Previous Year 01/01/2022 to 06/30/2022 |
| 6.01 | Net cash provided by operating activities | 56,949,000 | 71,822,000 |
| 6.01.01 | Cash provided by operating activities | 128,446,000 | 173,337,000 |
| 6.01.01.01 | Net Income for the period | 66,938,000 | 98,891,000 |
| 6.01.01.02 | Pension and medical benefits (actuarial expense) | 3,747,000 | 3,136,000 |
| 6.01.01.03 | Results in equity-accounted investments | (10,291,000) | (12,458,000) |
| 6.01.01.04 | Depreciation, depletion and amortization | 32,993,000 | 35,167,000 |
| 6.01.01.05 | Impairment of assets (reversal) | 1,791,000 | 797,000 |
| 6.01.01.06 | Exploratory expenditures write-offs | 197,000 | 183,000 |
| 6.01.01.07 | Losses on legal, administrative and arbitration proceedings | 2,443,000 | 2,688,000 |
| 6.01.01.08 | Foreign exchange, indexation and finance charges | 8,421,000 | 16,570,000 |
| 6.01.01.10 | Allowance (reversals) for expected credit losses | 98,000 | 216,000 |
| 6.01.01.13 | Revision and unwinding of discount on the provision for decommissioning costs | 2,233,000 | 1,487,000 |
| 6.01.01.15 | Income Taxes | 26,850,000 | 47,149,000 |
| 6.01.01.16 | Results from co-participation agreements in bid areas | (144,000) | (14,243,000) |
| 6.01.01.17 | Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA | (5,541,000) | (4,212,000) |
| 6.01.01.18 | PIS and COFINS recovery - exclusion of ICMS (VAT tax) from the basis of calculation | − | (11,000) |
| 6.01.01.19 | Early termination and cash outflows revision of lease agreements | (1,289,000) | (2,023,000) |
| 6.01.02 | Decrease / (increase) in assets / increase/ (decrease) in liabilities | (39,972,000) | (76,444,000) |
| 6.01.02.01 | Trade and other receivables, net | (29,753,000) | (43,437,000) |
| 6.01.02.02 | Inventories | 3,087,000 | (10,764,000) |
| 6.01.02.03 | Judicial deposits | (3,938,000) | (4,242,000) |
| 6.01.02.05 | Other assets | 1,663,000 | (2,070,000) |
| 6.01.02.06 | Trade payables | (1,133,000) | 83,000 |
| 6.01.02.07 | Other taxes | (3,262,000) | (5,214,000) |
| 6.01.02.08 | Pension and medical benefits | (2,267,000) | (8,713,000) |
| 6.01.02.09 | Provisions for legal proceedings | (1,068,000) | (865,000) |
| 6.01.02.10 | Other Employee Benefits | (1,035,000) | (1,705,000) |
| 6.01.02.12 | Provision for Decommissioning Costs | (1,695,000) | (1,424,000) |
| 6.01.02.14 | Other liabilities | (571,000) | 1,907,000 |
| 6.01.03 | Others | (31,525,000) | (25,071,000) |
| 6.01.03.01 | Income Taxes Paid | (31,525,000) | (25,071,000) |
| 6.02 | Net cash used in investing activities | 1,544,000 | 5,427,000 |
| 6.02.01 | Acquisition of PP&E and intangibles assets | (26,966,000) | (20,015,000) |
| 6.02.02 | Acquisition of equity interests | (49,000) | (82,000) |
| 6.02.03 | Proceeds from disposal of assets - Divestment | 17,513,000 | 16,970,000 |
| 6.02.04 | Divestment (investment) in marketable securities | 8,195,000 | (17,783,000) |
| 6.02.05 | Dividends received | 819,000 | 1,506,000 |
| 6.02.08 | Financial compensation for Co-participation Agreement | 2,032,000 | 24,831,000 |
| 6.03 | Net cash used in financing activities | (60,109,000) | (77,625,000) |
| 6.03.02 | Proceeds from financing | 56,035,000 | 43,654,000 |
| 6.03.03 | Repayment of principal - finance debt | (37,793,000) | (35,586,000) |
| 6.03.04 | Repayment of interest - finance debt | (10,915,000) | (9,506,000) |
| 6.03.05 | Dividends paid to shareholders of Petrobras | (52,398,000) | (62,029,000) |
| 6.03.08 | Settlement of lease liabilities | (15,038,000) | (14,158,000) |
| 6.05 | Net increase/ (decrease) in cash and cash equivalents | (1,616,000) | (376,000) |
| 6.05.01 | Cash and cash equivalents at the beginning of the year | 3,627,000 | 2,930,000 |
| 6.05.02 | Cash and cash equivalents at the end of the period | 2,011,000 | 2,554,000 |
| 9 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Added Value (R$ Thousand) |
|
| Account Code | Account Description | Accumulated of the Current Year 01/01/2023 to 06/30/2023 | Accumulated of the Previous Year 01/01/2022 to 06/30/2022 |
| 7.01 | Sales Revenues | 317,223,000 | 395,557,000 |
| 7.01.01 | Sales of Goods and Services | 278,080,000 | 358,045,000 |
| 7.01.02 | Other Revenues | 15,324,000 | 20,927,000 |
| 7.01.03 | Revenues Related to the Construction of Assets to be Used in Own Operations | 23,917,000 | 16,801,000 |
| 7.01.04 | Allowance for expected credit losses | (98,000) | (216,000) |
| 7.02 | Inputs Acquired from Third Parties | (117,628,000) | (109,255,000) |
| 7.02.01 | Cost of Sales | (45,117,000) | (62,277,000) |
| 7.02.02 | Materials, Power, Third-Party Services and Other Operating Expenses | (50,792,000) | (23,038,000) |
| 7.02.03 | Impairment Charges / Reversals of Assets | (1,791,000) | (797,000) |
| 7.02.04 | Others | (19,928,000) | (23,143,000) |
| 7.02.04.01 | Tax Credits on Inputs Acquired from Third Parties | (19,928,000) | (23,143,000) |
| 7.03 | Gross Added Value | 199,595,000 | 286,302,000 |
| 7.04 | Retentions | (37,770,000) | (38,684,000) |
| 7.04.01 | Depreciation, Amortization and Depletion | (37,770,000) | (38,684,000) |
| 7.05 | Net Added Value Produced | 161,825,000 | 247,618,000 |
| 7.06 | Transferred Added Value | 18,784,000 | 20,052,000 |
| 7.06.01 | Share of Profit of Equity-Accounted Investments | 10,291,000 | 12,458,000 |
| 7.06.02 | Finance Income | 5,592,000 | 4,754,000 |
| 7.06.03 | Others | 2,901,000 | 2,840,000 |
| 7.06.03.01 | Rentals, royalties and others | 2,901,000 | 2,840,000 |
| 7.07 | Total Added Value to be Distributed | 180,609,000 | 267,670,000 |
| 7.08 | Distribution of Added Value | 180,609,000 | 267,670,000 |
| 7.08.01 | Employee Compensation | 14,097,000 | 12,557,000 |
| 7.08.01.01 | Salaries | 8,870,000 | 8,016,000 |
| 7.08.01.02 | Fringe Benefits | 4,724,000 | 4,090,000 |
| 7.08.01.03 | Unemployment Benefits (FGTS) | 503,000 | 451,000 |
| 7.08.02 | Taxes and Contributions | 78,269,000 | 128,507,000 |
| 7.08.02.01 | Federal | 61,635,000 | 104,058,000 |
| 7.08.02.02 | State | 16,531,000 | 24,275,000 |
| 7.08.02.03 | Municipal | 103,000 | 174,000 |
| 7.08.03 | Return on Third-Party Capital | 21,305,000 | 27,715,000 |
| 7.08.03.01 | Interest | 17,914,000 | 24,227,000 |
| 7.08.03.02 | Rental Expenses | 3,391,000 | 3,488,000 |
| 7.08.04 | Return on Shareholders' Equity | 66,938,000 | 98,891,000 |
| 7.08.04.01 | Interest on Capital | 8,721,000 | 5,633,000 |
| 7.08.04.02 | Dividends | 15,979,000 | 35,405,000 |
| 7.08.04.03 | Retained Earnings / (Losses) for the Period | 42,238,000 | 57,853,000 |
| 10 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Financial Position - Assets (R$ Thousand) |
|
| Account Code | Account Description | 06.30.2023 | 12.31.2022 |
| 1 | Total Assets | 990,459,000 | 976,709,000 |
| 1.01 | Current Assets | 136,816,000 | 163,052,000 |
| 1.01.01 | Cash and Cash Equivalents | 49,882,000 | 41,723,000 |
| 1.01.02 | Marketable Securities | 11,103,000 | 14,470,000 |
| 1.01.03 | Trade and Other Receivables | 21,041,000 | 26,142,000 |
| 1.01.04 | Inventories | 39,241,000 | 45,804,000 |
| 1.01.06 | Recoverable Taxes | 6,353,000 | 6,819,000 |
| 1.01.06.01 | Current Recoverable Taxes | 6,353,000 | 6,819,000 |
| 1.01.06.01.01 | Recoverable Income Taxes | 977,000 | 859,000 |
| 1.01.06.01.02 | Other Recoverable Taxes | 5,376,000 | 5,960,000 |
| 1.01.08 | Other Current Assets | 9,196,000 | 28,094,000 |
| 1.01.08.01 | Non-Current Assets Held for Sale | 1,937,000 | 18,823,000 |
| 1.01.08.03 | Others | 7,259,000 | 9,271,000 |
| 1.01.08.03.03 | Others | 7,259,000 | 9,271,000 |
| 1.02 | Non-Current Assets | 853,643,000 | 813,657,000 |
| 1.02.01 | Long-Term Receivables | 122,754,000 | 110,722,000 |
| 1.02.01.03 | Marketable Securities measured at amortized cost | 15,384,000 | 8,159,000 |
| 1.02.01.04 | Trade and Other Receivables | 9,651,000 | 12,729,000 |
| 1.02.01.07 | Deferred Taxes | 23,810,000 | 24,057,000 |
| 1.02.01.07.01 | Deferred Income Tax and Social Contribution | 3,233,000 | 4,342,000 |
| 1.02.01.07.02 | Deferred Taxes and Contributions | 20,577,000 | 19,715,000 |
| 1.02.01.10 | Other Non-Current Assets | 73,909,000 | 65,777,000 |
| 1.02.01.10.04 | Judicial Deposits | 64,265,000 | 57,671,000 |
| 1.02.01.10.05 | Other Assets | 9,644,000 | 8,106,000 |
| 1.02.02 | Investments | 7,921,000 | 8,172,000 |
| 1.02.03 | Property, Plant and Equipment | 706,647,000 | 679,182,000 |
| 1.02.04 | Intangible Assets | 16,321,000 | 15,581,000 |
| 11 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Financial Position - Liabilities (R$ Thousand) |
|
| Account Code | Account Description | 06.30.2023 | 12.31.2022 |
| 2 | Total Liabilities | 990,459,000 | 976,709,000 |
| 2.01 | Current Liabilities | 151,599,000 | 163,731,000 |
| 2.01.01 | Payroll, Profit Sharing and Related Charges | 6,843,000 | 7,805,000 |
| 2.01.02 | Trade Payables | 26,168,000 | 28,507,000 |
| 2.01.03 | Taxes Obligations | 2,746,000 | 15,045,000 |
| 2.01.03.01 | Federal Taxes Obligations | 2,746,000 | 15,045,000 |
| 2.01.03.01.01 | Income Taxes Payable | 2,746,000 | 15,045,000 |
| 2.01.04 | Current Debt and Lease Obligations | 49,818,000 | 47,650,000 |
| 2.01.04.01 | Current Debt | 19,897,000 | 18,656,000 |
| 2.01.04.03 | Lease Obligations | 29,921,000 | 28,994,000 |
| 2.01.05 | Other Liabilities | 60,228,000 | 53,328,000 |
| 2.01.05.02 | Others | 60,228,000 | 53,328,000 |
| 2.01.05.02.01 | Dividends and Interest on Capital Payable | 30,822,000 | 21,762,000 |
| 2.01.05.02.04 | Other Taxes Payable | 15,789,000 | 15,906,000 |
| 2.01.05.02.06 | Other liabilities | 13,617,000 | 15,660,000 |
| 2.01.06 | Provisions | 3,751,000 | 3,750,000 |
| 2.01.06.02 | Other Provisions | 3,751,000 | 3,750,000 |
| 2.01.06.02.04 | Pension and Medical Benefits | 3,751,000 | 3,750,000 |
| 2.01.07 | Liabilities Associated with Non-Current Assets Held for Sale and Discontinued | 2,045,000 | 7,646,000 |
| 2.01.07.01 | Liabilities Associated with Non-Current Assets Held for Sale | 2,045,000 | 7,646,000 |
| 2.02 | Non-Current Liabilities | 466,579,000 | 448,593,000 |
| 2.02.01 | Non-Current Debt and Finance Lease Obligations | 229,557,000 | 233,053,000 |
| 2.02.01.01 | Non-Current Debt | 120,959,000 | 137,630,000 |
| 2.02.01.03 | Lease Obligations | 108,598,000 | 95,423,000 |
| 2.02.02 | Other Liabilities | 1,518,000 | 1,578,000 |
| 2.02.02.02 | Others | 1,518,000 | 1,578,000 |
| 2.02.02.02.03 | Income Taxes Payable | 1,518,000 | 1,578,000 |
| 2.02.03 | Deferred Taxes | 53,491,000 | 35,220,000 |
| 2.02.03.01 | Deferred Taxes | 53,491,000 | 35,220,000 |
| 2.02.04 | Provisions | 182,013,000 | 178,742,000 |
| 2.02.04.01 | Provisions for Tax Social Security, Labor and Civil Lawsuits | 17,006,000 | 15,703,000 |
| 2.02.04.02 | Other Provisions | 165,007,000 | 163,039,000 |
| 2.02.04.02.04 | Pension and Medical Benefits | 57,070,000 | 54,925,000 |
| 2.02.04.02.05 | Provision for Decommissioning Costs | 96,878,000 | 97,048,000 |
| 2.02.04.02.06 | Employee Benefits | 646,000 | 776,000 |
| 2.02.04.02.07 | Other liabilities | 10,413,000 | 10,290,000 |
| 2.03 | Shareholders' Equity | 372,281,000 | 364,385,000 |
| 2.03.01 | Share Capital | 205,432,000 | 205,432,000 |
| 2.03.02 | Capital Reserves | 3,102,000 | 3,102,000 |
| 2.03.04 | Profit Reserves | 135,017,000 | 128,562,000 |
| 2.03.08 | Other Comprehensive Income | 27,132,000 | 25,498,000 |
| 2.03.09 | Non-controlling interests | 1,598,000 | 1,791,000 |
| 12 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Income (R$ Thousand) |
|
| Account Code | Account Description | Accumulated of the Current Quarter 04/01/2023 to 06/30/2023 | Accumulated of the Current Year 01/01/2023 to 06/30/2023 | Accumulated of the Previous Quarter 04/01/2022 to 06/30/2022 | Accumulated of the Previous Year 01/01/2022 to 06/30/2022 |
| 3.01 | Sales Revenues | 113,840,000 | 252,908,000 | 170,960,000 | 312,601,000 |
| 3.02 | Cost of Sales | (56,159,000) | (121,916,000) | (75,099,000) | (141,974,000) |
| 3.03 | Gross Profit | 57,681,000 | 130,992,000 | 95,861,000 | 170,627,000 |
| 3.04 | Operating Expenses / Income | (15,710,000) | (28,824,000) | 573,000 | (8,795,000) |
| 3.04.01 | Selling Expenses | (5,947,000) | (12,291,000) | (6,136,000) | (12,295,000) |
| 3.04.02 | General and Administrative Expenses | (1,921,000) | (3,776,000) | (1,589,000) | (3,148,000) |
| 3.04.05 | Other Operating Expenses | (7,736,000) | (12,832,000) | 8,352,000 | 4,886,000 |
| 3.04.05.01 | Other Taxes | (1,632,000) | (2,671,000) | (455,000) | (766,000) |
| 3.04.05.02 | Research and Development Expenses | (850,000) | (1,650,000) | (1,080,000) | (2,161,000) |
| 3.04.05.03 | Exploration Costs | (945,000) | (1,762,000) | (196,000) | (604,000) |
| 3.04.05.05 | Other Operating Expenses, Net | (2,363,000) | (4,787,000) | 10,930,000 | 9,260,000 |
| 3.04.05.07 | Impairment of Assets Reversals (Charges) | (1,946,000) | (1,962,000) | (847,000) | (843,000) |
| 3.04.06 | Share of Profit / Gains on Interest in Equity-Accounted Investments | (106,000) | 75,000 | (54,000) | 1,762,000 |
| 3.05 | Net Income Before Financial Results and Income Taxes | 41,971,000 | 102,168,000 | 96,434,000 | 161,832,000 |
| 3.06 | Finance Income (Expenses), Net | (269,000) | (3,469,000) | (15,757,000) | (12,774,000) |
| 3.06.01 | Finance Income | 2,553,000 | 4,972,000 | 3,054,000 | 4,414,000 |
| 3.06.01.01 | Finance Income | 2,553,000 | 4,972,000 | 3,054,000 | 4,414,000 |
| 3.06.02 | Finance Expenses | (2,822,000) | (8,441,000) | (18,811,000) | (17,188,000) |
| 3.06.02.01 | Finance Expenses | (4,295,000) | (8,682,000) | (4,691,000) | (8,660,000) |
| 3.06.02.02 | Foreign Exchange and Inflation Indexation Charges, Net | 1,473,000 | 241,000 | (14,120,000) | (8,528,000) |
| 3.07 | Net Income Before Income Taxes | 41,702,000 | 98,699,000 | 80,677,000 | 149,058,000 |
| 3.08 | Income Tax and Social Contribution | (12,766,000) | (31,456,000) | (26,193,000) | (49,791,000) |
| 3.08.01 | Current | (8,763,000) | (23,955,000) | (26,057,000) | (39,520,000) |
| 3.08.02 | Deferred | (4,003,000) | (7,501,000) | (136,000) | (10,271,000) |
| 3.09 | Net Income from Continuing Operations | 28,936,000 | 67,243,000 | 54,484,000 | 99,267,000 |
| 3.11 | Income / (Loss) for the Period | 28,936,000 | 67,243,000 | 54,484,000 | 99,267,000 |
| 3.11.01 | Attributable to Shareholders of Petrobras | 28,782,000 | 66,938,000 | 54,330,000 | 98,891,000 |
| 3.11.02 | Attributable to Non-Controlling Interests | 154,000 | 305,000 | 154,000 | 376,000 |
| 3.99.01 | Income per Share | ||||
| 3.99.01.01 | Ordinary Shares | 2.20 | 5.13 | 4.16 | 7.58 |
| 3.99.01.02 | Preferred Shares | 2.20 | 5.13 | 4.16 | 7.58 |
| 3.99.02 | Diluted Income per Share | ||||
| 3.99.02.01 | Ordinary Shares | 2.20 | 5.13 | 4.16 | 7.58 |
| 3.99.02.02 | Preferred Shares | 2.20 | 5.13 | 4.16 | 7.58 |
| 13 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Comprehensive Income (R$ Thousand) |
|
| Account Code | Account Description | Accumulated of the Current Quarter 04/01/2023 to 06/30/2023 | Accumulated of the Current Year 01/01/2023 to 06/30/2023 | Accumulated of the Previous Quarter 04/01/2022 to 06/30/2022 | Accumulated of the Previous Year 01/01/2022 to 06/30/2022 |
| 4.01 | Net Income for the Period | 28,936,000 | 67,243,000 | 54,484,000 | 99,267,000 |
| 4.02 | Other Comprehensive Income | 298,000 | 1,632,000 | 7,898,000 | 10,198,000 |
| 4.02.01 | Actuarial Gains (Losses) on Post-employment Defined Benefits Plans | − | (570,000) | − | − |
| 4.02.02 | Deferred Income Tax and Social Contribution on Actuarial Gains / (Losses) on Defined Benefits Plans | − | 194,000 | − | − |
| 4.02.03 | Translation Adjustments in investees | (14,693,000) | (22,475,000) | 26,224,000 | (17,076,000) |
| 4.02.07 | Unrealized Gains / (Losses) on Cash Flow Hedge - Recognized in Shareholders' Equity | 16,534,000 | 24,225,000 | (32,407,000) | 27,501,000 |
| 4.02.08 | Unrealized Gains / (Losses) on Cash Flow Hedge - Reclassified to Profit and Loss | 5,337,000 | 11,329,000 | 5,442,000 | 12,663,000 |
| 4.02.09 | Deferred Income Tax and Social Contribution on Cash Flow Hedge | (7,436,000) | (12,088,000) | 9,168,000 | (13,656,000) |
| 4.02.10 | Share of Other Comprehensive Income of Equity-Accounted Investments | 556,000 | 1,017,000 | (529,000) | 766,000 |
| 4.03 | Total Comprehensive Income for the Period | 29,234,000 | 68,875,000 | 62,382,000 | 109,465,000 |
| 4.03.01 | Attributable to Shareholders of Petrobras | 29,082,000 | 68,572,000 | 62,226,000 | 109,091,000 |
| 4.03.02 | Attributable to Non-controlling Interests | 152,000 | 303,000 | 156,000 | 374,000 |
| 14 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2023 to 06/30/2023 (R$ Thousand) |
|
| Account Code | Account Description | Share Capital |
Capital Reserves, Granted Options and Treasury Shares |
Profit Reserves |
Retained Earnings / Accumulated Losses |
Other Comprehensive Income |
Shareholders' Equity |
Non-controlling interest |
Shareholders' Equity Consolidated |
| 5.01 | Balance at the Beginning of the Period | 205,432,000 | 3,318,000 | 128,346,000 | − | 25,498,000 | 362,594,000 | 1,791,000 | 364,385,000 |
| 5.03 | Adjusted Opening Balance | 205,432,000 | 3,318,000 | 128,346,000 | − | 25,498,000 | 362,594,000 | 1,791,000 | 364,385,000 |
| 5.04 | Capital Transactions with Owners | − | − | (35,815,000) | (24,668,000) | − | (60,483,000) | (496,000) | (60,979,000) |
| 5.04.06 | Dividends | − | − | (35,815,000) | (24,700,000) | − | (60,515,000) | (234,000) | (60,749,000) |
| 5.04.08 | Capital Transactions | − | − | − | − | − | − | (262,000) | (262,000) |
| 5.04.11 | Capital Transactions | − | − | − | 32,000 | − | 32,000 | − | 32,000 |
| 5.05 | Total of Comprehensive Income | − | − | − | 66,938,000 | 1,634,000 | 68,572,000 | 303,000 | 68,875,000 |
| 5.05.01 | Net Income for the Period | − | − | − | 66,938,000 | − | 66,938,000 | 305,000 | 67,243,000 |
| 5.05.02 | Other Comprehensive Income | − | − | − | − | 1,634,000 | 1,634,000 | (2,000) | 1,632,000 |
| 5.07 | Balance at the End of the Period | 205,432,000 | 3,318,000 | 92,531,000 | 42,270,000 | 27,132,000 | 370,683,000 | 1,598,000 | 372,281,000 |
| 15 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2022 to 06/30/2022 (R$ Thousand) |
|
| Account Code | Account Description | Share Capital |
Capital Reserves, Granted Options and Treasury Shares |
Profit Reserves |
Retained Earnings / Accumulated Losses |
Other Comprehensive Income |
Shareholders' Equity |
Non-controlling interest |
Shareholders' Equity Consolidated |
| 5.01 | Balance at the Beginning of the Period | 205,432,000 | 3,313,000 | 164,028,000 | − | 14,556,000 | 387,329,000 | 2,252,000 | 389,581,000 |
| 5.03 | Adjusted Opening Balance | 205,432,000 | 3,313,000 | 164,028,000 | − | 14,556,000 | 387,329,000 | 2,252,000 | 389,581,000 |
| 5.04 | Capital Transactions with Owners | − | 5,000 | (44,842,000) | (41,038,000) | − | (85,875,000) | (319,000) | (86,194,000) |
| 5.04.06 | Dividends | − | − | (44,842,000) | (41,038,000) | − | (85,880,000) | (223,000) | (86,103,000) |
| 5.04.08 | Capital Transactions | − | 5,000 | − | − | − | 5,000 | (96,000) | (91,000) |
| 5.05 | Total of Comprehensive Income | − | − | − | 98,891,000 | 10,200,000 | 109,091,000 | 374,000 | 109,465,000 |
| 5.05.01 | Net Income for the Period | − | − | − | 98,891,000 | − | 98,891,000 | 376,000 | 99,267,000 |
| 5.05.02 | Other Comprehensive Income | − | − | − | − | 10,200,000 | 10,200,000 | (2,000) | 10,198,000 |
| 5.07 | Balance at the End of the Period | 205,432,000 | 3,318,000 | 119,186,000 | 57,853,000 | 24,756,000 | 410,545,000 | 2,307,000 | 412,852,000 |
| 16 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Cash Flows – Indirect Method (R$ Thousand) |
|
| Account Code | Account Description | Accumulated of the Current Year 01/01/2023 to 06/30/2023 | Accumulated of the Previous Year 01/01/2022 to 06/30/2022 |
| 6.01 | Net cash provided by operating activities | 101,510,000 | 124,628,000 |
| 6.01.01 | Cash provided by operating activities | 138,054,000 | 183,498,000 |
| 6.01.01.01 | Net Income for the period | 67,243,000 | 99,267,000 |
| 6.01.01.02 | Pension and medical benefits (actuarial expense) | 3,848,000 | 3,210,000 |
| 6.01.01.03 | Results of equity-accounted investments | (75,000) | (1,762,000) |
| 6.01.01.04 | Depreciation, depletion and amortization | 31,268,000 | 33,600,000 |
| 6.01.01.05 | Impairment of assets (reversal) | 1,962,000 | 843,000 |
| 6.01.01.06 | Exploratory expenditures write-offs | 197,000 | 455,000 |
| 6.01.01.07 | Losses on legal, administrative and arbitration proceedings | 2,680,000 | 2,792,000 |
| 6.01.01.08 | Foreign exchange, indexation and finance charges | 4,483,000 | 14,178,000 |
| 6.01.01.10 | Allowance (Reversals) for expected credit losses | 174,000 | 195,000 |
| 6.01.01.11 | Inventory write-back to net realizable value | 22,000 | 15,000 |
| 6.01.01.13 | Revision and unwinding of discount on the provision for decommissioning costs | 2,245,000 | 1,497,000 |
| 6.01.01.15 | Income Taxes | 31,456,000 | 49,791,000 |
| 6.01.01.16 | Results from co-participation agreements in bid areas | (143,000) | (14,243,000) |
| 6.01.01.17 | Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA | (5,993,000) | (4,300,000) |
| 6.01.01.18 | PIS and COFINS recovery - exclusion of ICMS (VAT tax) from the basis of calculation | − | (18,000) |
| 6.01.01.19 | Early termination and cash outflows revision of lease agreements | (1,313,000) | (2,022,000) |
| 6.01.02 | Decrease / (increase) in assets / increase/ (decrease) in liabilities | (4,267,000) | (33,421,000) |
| 6.01.02.01 | Trade and other receivables, net | 5,940,000 | 247,000 |
| 6.01.02.02 | Inventories | 5,629,000 | (10,252,000) |
| 6.01.02.03 | Judicial deposits | (3,981,000) | (4,368,000) |
| 6.01.02.05 | Other assets | 1,371,000 | (2,965,000) |
| 6.01.02.06 | Trade payables | (1,541,000) | (1,092,000) |
| 6.01.02.07 | Other taxes | (4,858,000) | (5,070,000) |
| 6.01.02.08 | Pension and medical benefits | (2,273,000) | (8,721,000) |
| 6.01.02.09 | Provisions for legal proceedings | (1,111,000) | (880,000) |
| 6.01.02.10 | Other Employee Benefits | (1,092,000) | (1,775,000) |
| 6.01.02.12 | Provision for Decommissioning Costs | (1,714,000) | (1,424,000) |
| 6.01.02.14 | Other liabilities | (637,000) | 2,879,000 |
| 6.01.03 | Others | (32,277,000) | (25,449,000) |
| 6.01.03.01 | Income Taxes Paid | (32,277,000) | (25,449,000) |
| 6.02 | Net cash used in investing activities | (9,741,000) | 11,744,000 |
| 6.02.01 | Acquisition of PP&E and intangibles assets | (26,981,000) | (20,721,000) |
| 6.02.02 | Acquisition of equity interests | (88,000) | (98,000) |
| 6.02.03 | Proceeds from disposal of assets - Divestment | 17,521,000 | 17,055,000 |
| 6.02.04 | Divestment (investment) in marketable securities | (2,569,000) | (10,536,000) |
| 6.02.05 | Dividends received | 344,000 | 1,213,000 |
| 6.02.08 | Financial compensation for Co-participation Agreement | 2,032,000 | 24,831,000 |
| 6.03 | Net cash used in financing activities | (79,765,000) | (106,160,000) |
| 6.03.01 | Changes in non-controlling interest | (264,000) | (93,000) |
| 6.03.02 | Proceeds from financing | 315,000 | 1,645,000 |
| 6.03.03 | Repayment of principal - finance debt | (7,554,000) | (27,040,000) |
| 6.03.04 | Repayment of interest - finance debt | (5,115,000) | (4,740,000) |
| 6.03.05 | Dividends paid to shareholders of Petrobras | (52,398,000) | (62,029,000) |
| 6.03.06 | Dividends paid to non-controlling interests | (249,000) | (290,000) |
| 6.03.08 | Settlement of lease liabilities | (14,500,000) | (13,613,000) |
| 6.04 | Effect of exchange rate changes on cash and cash equivalents | (3,845,000) | (3,346,000) |
| 6.05 | Net increase/ (decrease) in cash and cash equivalents | 8,159,000 | 26,866,000 |
| 6.05.01 | Cash and cash equivalents at the beginning of the year | 41,723,000 | 58,482,000 |
| 6.05.02 | Cash and cash equivalents at the end of the period | 49,882,000 | 85,348,000 |
| 17 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Added Value (R$ Thousand) |
|
| Account Code | Account Description | Accumulated of the Current Year 01/01/2023 to 06/30/2023 | Accumulated of the Previous Year 01/01/2022 to 06/30/2022 |
| 7.01 | Sales Revenues | 333,844,000 | 413,029,000 |
| 7.01.01 | Sales of Goods and Services | 292,560,000 | 373,772,000 |
| 7.01.02 | Other Revenues | 17,186,000 | 22,006,000 |
| 7.01.03 | Revenues Related to the Construction of Assets to be Used in Own Operations | 24,272,000 | 17,446,000 |
| 7.01.04 | Allowance for expected credit losses | (174,000) | (195,000) |
| 7.02 | Inputs Acquired from Third Parties | (122,209,000) | (114,396,000) |
| 7.02.01 | Cost of Sales | (49,958,000) | (67,181,000) |
| 7.02.02 | Materials, Power, Third-Party Services and Other Operating Expenses | (51,363,000) | (24,347,000) |
| 7.02.03 | Impairment Charges / Reversals of Assets | (1,962,000) | (843,000) |
| 7.02.04 | Others | (18,926,000) | (22,025,000) |
| 7.02.04.01 | Tax Credits on Inputs Acquired from Third Parties | (18,904,000) | (22,010,000) |
| 7.02.04.02 | Inventory Write-Down to Net Realizable Value | (22,000) | (15,000) |
| 7.03 | Gross Added Value | 211,635,000 | 298,633,000 |
| 7.04 | Retentions | (36,046,000) | (37,117,000) |
| 7.04.01 | Depreciation, Amortization and Depletion | (36,046,000) | (37,117,000) |
| 7.05 | Net Added Value Produced | 175,589,000 | 261,516,000 |
| 7.06 | Transferred Added Value | 6,644,000 | 7,811,000 |
| 7.06.01 | Share of Profit of Equity-Accounted Investments | 75,000 | 1,762,000 |
| 7.06.02 | Finance Income | 4,972,000 | 4,414,000 |
| 7.06.03 | Others | 1,597,000 | 1,635,000 |
| 7.06.03.01 | Rentals, royalties and others | 1,597,000 | 1,635,000 |
| 7.07 | Total Added Value to be Distributed | 182,233,000 | 269,327,000 |
| 7.08 | Distribution of Added Value | 182,233,000 | 269,327,000 |
| 7.08.01 | Employee Compensation | 15,477,000 | 13,809,000 |
| 7.08.01.01 | Salaries | 9,861,000 | 8,976,000 |
| 7.08.01.02 | Fringe Benefits | 5,064,000 | 4,334,000 |
| 7.08.01.03 | Unemployment Benefits (FGTS) | 552,000 | 499,000 |
| 7.08.02 | Taxes and Contributions | 84,839,000 | 132,922,000 |
| 7.08.02.01 | Federal | 67,644,000 | 107,816,000 |
| 7.08.02.02 | State | 16,844,000 | 24,671,000 |
| 7.08.02.03 | Municipal | 351,000 | 435,000 |
| 7.08.03 | Return on Third-Party Capital | 14,674,000 | 23,329,000 |
| 7.08.03.01 | Interest | 11,423,000 | 19,872,000 |
| 7.08.03.02 | Rental Expenses | 3,251,000 | 3,457,000 |
| 7.08.04 | Return on Shareholders' Equity | 67,243,000 | 99,267,000 |
| 7.08.04.01 | Interest on Capital | 8,721,000 | 5,633,000 |
| 7.08.04.02 | Dividends | 15,979,000 | 35,405,000 |
| 7.08.04.03 | Retained Earnings / (Losses) for the Period | 42,238,000 | 57,853,000 |
| 7.08.04.04 | Non-controlling Interests on Retained Earnings / (Losses) | 305,000 | 376,000 |
| 18 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 1. | Basis of preparation |
These interim financial statements present the significant changes in the period, avoiding repetition of certain notes to the financial statements previously reported, and present the consolidated information, considering Management’s understanding that it provides a comprehensive view of the Company’s financial position and operational performance, complemented by certain information of the Parent Company. Hence, this interim financial information should be read together with the Company’s audited annual financial statements for the year ended December 31, 2022, which include the full set of notes.
The consolidated and individual interim financial information of the company was prepared and is presented in accordance with the Technical Pronouncement - CPC 21 (R1) - Interim Financial Statement, issued by the Accounting Pronouncements Committee (CPC) and approved by the Securities and Exchange Commission (CVM), and related to IAS 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB). All relevant information pertaining to the financial statements, and only these, are being evidenced, and correspond to those used in the management of the company's Management.
These interim financial statements were approved and authorized for issue by the Company’s Board of Directors in a meeting held on August 3, 2023.
| 2. | Summary of significant accounting policies |
The same accounting policies and methods of computation were followed in these consolidated interim financial statements as those followed in the preparation of the annual financial statements of the Company for the year ended December 31, 2022.
The accounting standards that came into effect on January 1st, 2023 did not have a material effect on these individual and consolidated quarterly information.
| 3. | Cash and cash equivalents and Marketable securities |
| 3.1. | Cash and cash equivalents |
They include cash, available bank deposits and short-term financial investments with high liquidity, which meet the definition of cash and cash equivalents.
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Cash at bank and in hand | 539 | 1,126 |
| Short-term financial investments | ||
| - In Brazil | ||
| Brazilian interbank deposit rate investment funds and other short-term deposits | 3,749 | 14,414 |
| Other investment funds | 919 | 1,277 |
| 4,668 | 15,691 | |
| - Abroad | ||
| Time deposits | 26,368 | 12,458 |
| Automatic investing accounts and interest checking accounts | 18,286 | 12,339 |
| Other financial investments | 21 | 109 |
| 44,675 | 24,906 | |
| Total short-term financial investments | 49,343 | 40,597 |
| Total cash and cash equivalents | 49,882 | 41,723 |
Short-term financial investments in Brazil primarily consist of investments in funds holding Brazilian Federal Government Bonds that can be redeemed immediately, as well as reverse repurchase agreements that mature within three months as of the date of their acquisition. Short-term financial investments abroad comprise time deposits that mature in three months or less from the date of their acquisition, highly-liquid automatic investment accounts, interest checking accounts and other short-term fixed income instruments.
| 19 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 3.2. | Marketable securities |
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Fair value through profit or loss | 4,360 | 3,722 |
| Amortized cost - Bank Deposit Certificates and time deposits | 21,873 | 18,647 |
| Amortized cost – Others | 254 | 260 |
| Total | 26,487 | 22,629 |
| Current | 11,103 | 14,470 |
| Non-current | 15,384 | 8,159 |
Marketable securities classified as fair value through profit or loss refer mainly to investments in Brazilian Federal Government Bonds (amounts determined by level 1 of the fair value hierarchy). These financial investments have maturities of more than three months.
Securities classified as amortized cost refer to investments in Brazil in post-fixed Bank Deposit Certificates with daily liquidity, with maturities between one and two years, and to investments abroad in time deposits with maturities of more than three months from the contracting date.
| 4. | Sales revenues |
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Gross sales | 136,729 | 292,560 | 201,389 | 373,772 |
| Sales taxes (1) | (22,889) | (39,652) | (30,429) | (61,171) |
| Sales revenues | 113,840 | 252,908 | 170,960 | 312,601 |
| Diesel | 35,099 | 78,249 | 52,603 | 91,478 |
| Gasoline | 18,700 | 37,889 | 21,187 | 40,591 |
| Liquefied petroleum gas | 4,712 | 9,541 | 7,074 | 13,246 |
| Jet fuel | 5,461 | 12,763 | 6,899 | 12,075 |
| Naphtha | 2,132 | 4,617 | 3,555 | 6,737 |
| Fuel oil (including bunker fuel) | 1,294 | 2,780 | 1,734 | 3,645 |
| Other oil products | 5,584 | 11,217 | 7,949 | 14,599 |
| Subtotal oil products | 72,982 | 157,056 | 101,001 | 182,371 |
| Natural gas | 7,083 | 15,010 | 9,649 | 18,677 |
| Crude oil | 6,756 | 13,772 | 13,251 | 22,398 |
| Nitrogen products and renewables | 122 | 231 | 466 | 809 |
| Breakage | 1,072 | 2,214 | 834 | 1,373 |
| Electricity | 756 | 1,326 | 534 | 2,087 |
| Services, agency and others | 1,394 | 2,661 | 1,508 | 2,747 |
| Domestic market | 90,165 | 192,270 | 127,243 | 230,462 |
| Exports | 21,950 | 56,964 | 40,401 | 75,511 |
| Crude oil | 14,416 | 43,225 | 27,589 | 52,632 |
| Fuel oil (including bunker fuel) | 6,580 | 11,952 | 11,224 | 21,089 |
| Other oil products and other products | 954 | 1,787 | 1,588 | 1,790 |
| Sales abroad (2) | 1,725 | 3,674 | 3,316 | 6,628 |
| Foreign Market | 23,675 | 60,638 | 43,717 | 82,139 |
| Sales revenues | 113,840 | 252,908 | 170,960 | 312,601 |
| (1) Includes, mainly, CIDE, PIS, COFINS and ICMS (VAT). | ||||
| (2) Sales revenues from operations outside of Brazil, including trading and excluding exports. | ||||
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Brazil | 90,165 | 192,270 | 127,243 | 230,462 |
| Domestic market | 90,165 | 192,270 | 127,243 | 230,462 |
| China | 4,846 | 17,792 | 7,581 | 15,766 |
| Americas (except United States) | 6,107 | 13,501 | 10,699 | 19,371 |
| Europe | 3,455 | 10,459 | 10,141 | 16,653 |
| Asia (except China and Singapore) | 3,642 | 7,844 | 2,321 | 4,923 |
| United States | 3,658 | 6,578 | 6,032 | 11,941 |
| Singapore | 1,961 | 4,455 | 6,935 | 13,470 |
| Others | 6 | 9 | 8 | 15 |
| Foreign market | 23,675 | 60,638 | 43,717 | 82,139 |
| Sales revenues | 113,840 | 252,908 | 170,960 | 312,601 |
In the period from January to June 2023, the revenues of two clients in the Refining, Transportation and Marketing (RTM) segment individually represent 16% and 11% of the company's revenues. In the same period of 2022, only one customer in the RTM segment represented 14% of the company's total revenue.
| 20 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 5. | Costs and expenses by nature |
| 5.1. | Cost of sales |
| Consolidated | |||||
| 2023 | 2022 | ||||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | ||
| Raw material, products for resale, materials and third-party services (1) | (28,153) | (65,010) | (39,525) | (69,782) | |
| Depreciation, depletion and amortization | (12,652) | (25,096) | (13,677) | (27,093) | |
| Production taxes | (13,345) | (27,802) | (19,828) | (40,974) | |
| Employee compensation | (2,009) | (4,008) | (2,069) | (4,125) | |
| Total | (56,159) | (121,916) | (75,099) | (141,974) | |
| (1) It Includes short-term leases and inventory turnover. | |||||
| 5.2. | Selling expenses |
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Materials, third-party services, freight, rent and other related costs | (5,070) | (10,399) | (4,922) | (9,889) |
| Depreciation, depletion and amortization | (764) | (1,541) | (1,066) | (2,104) |
| Allowance for expected credit losses | 21 | (86) | (30) | (70) |
| Employee compensation | (134) | (265) | (118) | (232) |
| Total | (5,947) | (12,291) | (6,136) | (12,295) |
| 5.3. | General and administrative expenses |
| Consolidated | ||||
| Apr-Jun |
2023 Jan-Jun |
Apr-Jun |
2022 Jan-Jun | |
| Employee compensation | (1,209) | (2,398) | (1,060) | (2,096) |
| Materials, third-party services, rent and other related costs | (555) | (1,084) | (411) | (814) |
| Depreciation, depletion and amortization | (157) | (294) | (118) | (238) |
| Total | (1,921) | (3,776) | (1,589) | (3,148) |
| 6. | Other income and expenses |
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Unscheduled stoppages and pre-operating expenses | (2,971) | (5,565) | (2,520) | (4,472) |
| Pension and medical benefits – retirees | (1,465) | (2,925) | (1,245) | (2,487) |
| Losses related to legal, administrative and arbitration proceedings | (1,361) | (2,680) | (1,485) | (2,792) |
| Variable compensation program | (649) | (1,374) | (638) | (1,256) |
| Profit Sharing | (158) | (338) | (168) | (329) |
| Gains (losses) on decommissioning of returned/abandoned areas | (58) | (61) | (15) | (140) |
| Results from co-participation agreements in bid areas | (1) | 143 | 14,243 | 14,243 |
| Gains/(losses) with Commodities Derivatives | (47) | 363 | (809) | (1,091) |
| Amounts recovered from Lava Jato investigation (1) | 20 | 483 | − | 60 |
| Government grants | 358 | 896 | 616 | 1,001 |
| Early termination and cash outflows revision of lease agreements | 445 | 1,313 | 882 | 2,022 |
| Expenses/Reimbursements from E&P partnership operations | 588 | 1,423 | 638 | 776 |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 3,416 | 5,993 | 1,828 | 4,300 |
| Others (2) | (480) | (2,458) | (397) | (575) |
| Total | (2,363) | (4,787) | 10,930 | 9,260 |
| (1) Up to the year ended December 31, 2022, the amount recovered of R$ 6,719 was recognized through collaboration and leniency agreements entered into with individuals and legal entities. | ||||
| (2) It includes, in 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of R$ 1,654. | ||||
| 21 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 7. | Net finance income (expense) |
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Finance income | 2,553 | 4,972 | 3,054 | 4,414 |
| Income from investments and marketable securities (Government Bonds) | 2,101 | 3,833 | 1,821 | 2,665 |
| Others | 452 | 1,139 | 1,233 | 1,749 |
| Finance expenses | (4,295) | (8,682) | (4,691) | (8,660) |
| Interest on finance debt | (2,537) | (5,349) | (3,396) | (6,180) |
| Unwinding of discount on lease liabilities | (1,973) | (3,835) | (1,644) | (3,170) |
| Discount and premium on repurchase of debt securities | − | − | (404) | (538) |
| Capitalized borrowing costs | 1,573 | 2,981 | 1,464 | 2,708 |
| Unwinding of discount on the provision for decommissioning costs | (1,085) | (2,184) | (675) | (1,357) |
| Others | (273) | (295) | (36) | (123) |
| Foreign exchange gains (losses) and indexation charges | 1,473 | 241 | (14,120) | (8,528) |
| Foreign Exchange(1) | 7,402 | 11,572 | (8,184) | 4,351 |
| Reclassification of hedge accounting to the Statement of Income (1) | (5,337) | (11,329) | (5,442) | (12,663) |
| Monetary restatement of anticipated dividends and dividends payable | (1,987) | (2,151) | (1,335) | (1,336) |
| Recoverable taxes inflation indexation income | 150 | 485 | 119 | 227 |
| Others | 1,245 | 1,664 | 722 | 893 |
| Total | (269) | (3,469) | (15,757) | (12,774) |
| (1) For more information, see notes 27.3a and 27.3c. | ||||
| 8. | Net income by operating segment |
In 2022, Petrobras implemented changes to its financial reporting system, according to the metric approved by the Executive Board. These changes did not change the allocation of Petrobras' reportable operating segments (E&P, RT&M and G&P). However, the measurement of certain components of the operating segments and of Corporate and other businesses was changed as following:
| · | trade and other receivables, recoverable income taxes and other recoverable taxes, previously allocated to operating segments, are now presented in Corporate and other businesses. Expected credit losses are now also presented in Corporate and other businesses; |
| · | losses with commodity derivatives (within other income and expenses, net), previously presented in Corporate and other businesses, are now presented in operating segments; |
| · | general and administrative expenses related to logistics and fuel sales, previously presented in Corporate and other businesses, are now disclosed in the RT&M segment. |
This information reflects the Company's current management model and is used by the Board of Executive Officers (Chief Operating Decision Maker - CODM) to make decisions regarding resource allocation and performance evaluation.
In this context, the information by operating segment from January to June 2022 has been restated for comparison purposes, as follows:
| Consolidated Statement of Income by operating segment - Jan-Jun/2022 Reclassified | ||||||
| Exploration and Production (E&P) | Refining, Transportation & Marketing (RT&M) |
Gas & Power (G&P) |
Corporate and other businesses | Eliminations | Total | |
| Net income (loss) of the period disclosed in Jan-Jun/2022 | 94,633 | 23,974 | 604 | (12,919) | (7,025) | 99,267 |
| Changes in the measurement | (16) | (884) | 49 | 851 | − | − |
| Net income (loss) of the period reclassified - Jan-Jun/2022 | 94,617 | 23,090 | 653 | (12,068) | (7,025) | 99,267 |
| Net income (loss) of the period disclosed in Apr-Jun/2022 | 53,322 | 13,629 | 1,929 | (11,603) | (2,793) | 54,484 |
| Changes in the measurement | (8) | (618) | 29 | 597 | − | − |
| Net income (loss) of the period reclassified - Apr-Jun/2022 | 53,314 | 13,011 | 1,958 | (11,006) | (2,793) | 54,484 |
| 22 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 8.1. | Net income by operating segment |
Consolidated Statement of Income by operating segment – Apr-Jun/2023
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and other business | Eliminations | 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 | (20) | (2,525) | (3,388) | 7 | (21) | (5,947) |
| General and administrative | (86) | (417) | (85) | (1,333) | − | (1,921) |
| Exploration costs | (945) | − | − | − | − | (945) |
| Research and development | (625) | (59) | (3) | (163) | − | (850) |
| Other taxes | (1,634) | 482 | (44) | (436) | − | (1,632) |
| Impairment | (148) | (1,943) | − | 145 | − | (1,946) |
| Other income and expenses | 751 | (1,220) | (275) | (1,619) | − | (2,363) |
| Net income (loss) before financial results and income taxes | 39,939 | 2,937 | 1,855 | (3,400) | 746 | 42,077 |
| Net finance income (expenses) | − | − | − | (269) | − | (269) |
| Results in equity-accounted investments | 92 | (340) | 83 | 59 | − | (106) |
| Net 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) of the period | 26,452 | 1,599 | 1,307 | (915) | 493 | 28,936 |
| Attributable to: | ||||||
| Shareholders of Petrobras | 26,456 | 1,599 | 1,212 | (978) | 493 | 28,782 |
| Non-controlling interests | (4) | − | 95 | 63 | − | 154 |
| 26,452 | 1,599 | 1,307 | (915) | 493 | 28,936 | |
| ||||||
Consolidated Statement of Income by operating segment – Apr-Jun/2022 - Reclassified
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and other business | Eliminations | Total | |
| Sales revenues | 108,041 | 157,429 | 18,390 | 743 | (113,643) | 170,960 |
| Intersegments | 106,229 | 2,449 | 4,971 | (6) | (113,643) | − |
| Third parties | 1,812 | 154,980 | 13,419 | 749 | − | 170,960 |
| Cost of sales | (40,228) | (131,897) | (11,677) | (729) | 109,432 | (75,099) |
| Gross profit | 67,813 | 25,532 | 6,713 | 14 | (4,211) | 95,861 |
| Expenses | 12,537 | (5,100) | (3,964) | (2,825) | (21) | 627 |
| Selling | (20) | (2,289) | (3,759) | (47) | (21) | (6,136) |
| General and administrative | (61) | (336) | (85) | (1,107) | − | (1,589) |
| Exploration costs | (196) | − | − | − | − | (196) |
| Research and development | (939) | (10) | (3) | (128) | − | (1,080) |
| Other taxes | (117) | (90) | (42) | (206) | − | (455) |
| Impairment | (625) | (222) | − | − | − | (847) |
| Other income and expenses | 14,495 | (2,153) | (75) | (1,337) | − | 10,930 |
| Net income (loss) before financial results and income taxes | 80,350 | 20,432 | 2,749 | (2,811) | (4,232) | 96,488 |
| Net finance income (expenses) | − | − | − | (15,757) | − | (15,757) |
| Results in equity-accounted investments | 282 | (474) | 143 | (5) | − | (54) |
| Net Income (loss) before income taxes | 80,632 | 19,958 | 2,892 | (18,573) | (4,232) | 80,677 |
| Income taxes | (27,318) | (6,947) | (934) | 7,567 | 1,439 | (26,193) |
| Net income (loss) of the period | 53,314 | 13,011 | 1,958 | (11,006) | (2,793) | 54,484 |
| Attributable to: | ||||||
| Shareholders of Petrobras | 53,319 | 13,011 | 1,825 | (11,032) | (2,793) | 54,330 |
| Non-controlling interests | (5) | − | 133 | 26 | − | 154 |
| 53,314 | 13,011 | 1,958 | (11,006) | (2,793) | 54,484 | |
| 23 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Consolidated Statement of Income by operating segment - Jan-Jun/2023 | ||||||
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and other business | Eliminations | 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 | (55) | (5,300) | (6,778) | (114) | (44) | (12,291) |
| General and administrative | (172) | (822) | (164) | (2,618) | − | (3,776) |
| Exploration costs | (1,762) | − | − | − | − | (1,762) |
| Research and development | (1,270) | (69) | (10) | (301) | − | (1,650) |
| Other taxes | (1,724) | (76) | (90) | (781) | − | (2,671) |
| Impairment | (78) | (2,029) | − | 145 | − | (1,962) |
| Other income and expenses | 1,716 | (3,527) | (804) | (2,172) | − | (4,787) |
| Net income (loss) before financial results and income taxes | 87,880 | 12,245 | 5,006 | (5,852) | 2,814 | 102,093 |
| Net finance income (expenses) | − | − | − | (3,469) | − | (3,469) |
| Results in equity-accounted investments | 186 | (274) | 106 | 57 | − | 75 |
| Net 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) of the period | 58,187 | 7,808 | 3,410 | (4,019) | 1,857 | 67,243 |
| Attributable to: | ||||||
| Shareholders of Petrobras | 58,198 | 7,808 | 3,222 | (4,147) | 1,857 | 66,938 |
| Non-controlling interests | (11) | − | 188 | 128 | − | 305 |
| 58,187 | 7,808 | 3,410 | (4,019) | 1,857 | 67,243 | |
| Consolidated Statement of Income by operating segment - Jan-Jun/2022 - Reclassified | ||||||
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and other business | Eliminations | 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 | (29) | (4,412) | (7,711) | (102) | (41) | (12,295) |
| General and administrative | (129) | (660) | (169) | (2,190) | − | (3,148) |
| Exploration costs | (604) | − | − | − | − | (604) |
| Research and development | (1,848) | (23) | (17) | (273) | − | (2,161) |
| Other taxes | (193) | (129) | (94) | (350) | − | (766) |
| Impairment | (618) | (222) | 3 | (6) | − | (843) |
| Other income and expenses | 15,695 | (2,838) | (562) | (3,035) | − | 9,260 |
| Net income (loss) before financial results and income taxes | 142,542 | 33,559 | 546 | (5,933) | (10,644) | 160,070 |
| Net finance income (expenses) | − | − | − | (12,774) | − | (12,774) |
| Results in equity-accounted investments | 539 | 941 | 292 | (10) | − | 1,762 |
| Net 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) of the period | 94,617 | 23,090 | 653 | (12,068) | (7,025) | 99,267 |
| Attributable to: | ||||||
| Shareholders of Petrobras | 94,628 | 23,090 | 384 | (12,186) | (7,025) | 98,891 |
| Non-controlling interests | (11) | − | 269 | 118 | − | 376 |
| 94,617 | 23,090 | 653 | (12,068) | (7,025) | 99,267 | |
The balance of depreciation, depletion and amortization by business segment is shown below:
| 24 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and other business | Total | |
| Apr-Jun/2023 | 12,319 | 2,972 | 645 | 146 | 16,082 |
| Apr-Jun/2022 | 13,701 | 2,662 | 481 | 152 | 16,996 |
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and other business | Total | |
| Jan-Jun/2023 | 23,821 | 5,871 | 1,288 | 288 | 31,268 |
| Jan-Jun/2022 | 26,642 | 5,653 | 1,043 | 262 | 33,600 |
| 8.2. | Assets by operating segment |
| Exploration and Production (E&P) | Refining, Transportation & Marketing (RT&M) |
Gas & Power (G&P) |
Corporate and other business | Elimina-tions | Total | |
| Consolidated assets by operating segment - 06.30.2023 | ||||||
| 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 |
| Under construction | 68,266 | 14,289 | 11,221 | 2,094 | − | 95,870 |
| Intangible assets | 13,601 | 608 | 399 | 1,713 | − | 16,321 |
| Total Assets | 634,332 | 165,965 | 33,141 | 180,073 | (23,052) | 990,459 |
| Consolidated assets by operating segment - 12.31.2022 | ||||||
| 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 |
| Under construction | 51,069 | 13,803 | 10,662 | 1,890 | − | 77,424 |
| Intangible assets | 13,069 | 582 | 389 | 1,541 | − | 15,581 |
| Total Assets | 606,994 | 179,652 | 39,574 | 177,953 | (27,464) | 976,709 |
| 9. | Trade and other receivables |
| 9.1. | Trade and other receivables, net |
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Receivables from contracts with customers | ||
| Third parties | 22,209 | 27,184 |
| Related parties | ||
| Investees (note 28.5) | 570 | 486 |
| Subtotal | 22,779 | 27,670 |
| Other trade receivables | ||
| Third parties | ||
| Receivables from divestments and Transfer of Rights Agreement (1) | 7,820 | 10,026 |
| Lease receivables | 1,824 | 2,054 |
| Other receivables | 2,810 | 3,993 |
| Related parties | ||
| Petroleum and alcohol accounts – receivables from Brazilian Government | 3,285 | 3,143 |
| Subtotal | 15,739 | 19,216 |
| Total trade receivables | 38,518 | 46,886 |
| Expected credit losses (ECL) – Third parties | (7,812) | (8,000) |
| Expected credit losses (ECL) – Related parties | (14) | (15) |
| Total trade receivables, net | 30,692 | 38,871 |
| Current | 21,041 | 26,142 |
| Non-current | 9,651 | 12,729 |
| (1) On 06.30.2023, refers mainly to receivables for the operations of Atapu, Sépia, Carmópolis, Roncador, Miranga, Baúna, Pampo and Enchova, Breitener and Polo Potiguar. | ||
| 25 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
Accounts receivable are classified in the amortized cost category, except for certain receivables with final price formation after the transfer of control of products that depend on the variation in the value of the commodity, classified in the category fair value through profit or loss, whose value on June 30, 2023 totaled R$ 2,530 (R$ 2,451 as of December 31, 2022).
The balance of receivables from divestments was reduced mainly by earn out receipts related to Sépia and Atapu (R$ 2,007) and Baúna (R$ 438).
| 9.2. | Aging of trade and other receivables – third parties |
| Consolidated | ||||
| 06.30.2023 | 12.31.2022 | |||
| Trade receivables | Expected credit losses (ECL) | Trade receivables | Expected credit losses (ECL) | |
| Current | 25,573 | (259) | 33,778 | (203) |
| Overdue: | ||||
| Until 3 months | 527 | (178) | 986 | (252) |
| 3 – 6 months | 188 | (169) | 159 | (143) |
| 6 – 12 months | 483 | (297) | 330 | (265) |
| More than 12 months | 7,892 | (6,909) | 8,004 | (7,137) |
| Total | 34,663 | (7,812) | 43,257 | (8,000) |
| 9.3. | Changes in provision for expected credit losses - third parties and related parties |
| Consolidated | ||
|
2023 Jan-Jun |
2022 Jan-Jun | |
| Opening balance | 8,015 | 8,083 |
| Additions | 475 | 370 |
| Reversals | (243) | (196) |
| Write-offs | (166) | (104) |
| Cumulative translation adjustment | (255) | (233) |
| Closing balance | 7,826 | 7,920 |
| Current | 1,364 | 994 |
| Non-current | 6,462 | 6,926 |
| 10. | Inventories |
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Crude oil | 15,507 | 19,505 |
| Oil products | 13,943 | 17,102 |
| Intermediate products | 2,704 | 3,063 |
| Natural gas and LNG (1) | 609 | 706 |
| Biofuels | 61 | 75 |
| Fertilizers | 7 | 19 |
| Total products | 32,831 | 40,470 |
| Materials, suppliers and others | 6,410 | 5,334 |
| Total | 39,241 | 45,804 |
| (1) Liquefied Natural Gas | ||
Consolidated inventories are presented net of losses for adjustment to their net realizable value, these adjustments being mainly due to fluctuations in international oil prices and their oil products and, they are recognized in the statement of income for the period as cost of sales. In the period from January to June 2023, there was a R$ 22 loss within cost of sales, adjusting inventories to net realizable value (a R$ 15 loss within cost of sales in the period from January to June 2022).
As of June 30, 2023, the company has a volume of oil and/or oil product inventories given as guarantee of the Term of Financial Commitments (TFC) related to the PPSP-R, PPSP R pre 70 and PPSP NR pre 70 Pension plans, signed in 2008 with Fundação Petrobras de Seguridade Social - Petros, in the estimated amount of R$ 4.239, after deducting the partial early settlement.
| 26 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 11. | Trade payables |
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Third parties in Brazil | 17,224 | 18,248 |
| Third parties abroad | 8,910 | 10,096 |
| Related parties | 34 | 163 |
| Total in current liabilities | 26,168 | 28,507 |
12. Taxes 12.1. Income tax and social contribution Current taxes |
|
Income tax and social contribution |
Consolidated | |||||
| Current assets | Current liabilities | Non-current liabilities | ||||
| 06.30.2023 | 12.31.2022 | 06.30.2023 | 12.31.2022 | 06.30.2023 | 12.31.2022 | |
| Taxes in Brazil | ||||||
| Income taxes | 960 | 833 | 695 | 13,074 | − | − |
| Income taxes – Tax settlement programs | − | − | 271 | 259 | 1,518 | 1,578 |
| 960 | 833 | 966 | 13,333 | 1,518 | 1,578 | |
| Taxes abroad | 17 | 26 | 1,780 | 1,712 | − | − |
| Total | 977 | 859 | 2,746 | 15,045 | 1,518 | 1,578 |
Reconciliation between statutory tax rate and effective tax expense rate
The reconciliation of taxes calculated according to nominal rates and the amount of registered taxes are shown below:
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Net income before income taxes | 41,702 | 98,699 | 80,677 | 149,058 |
| Nominal income taxes computed based on Brazilian statutory corporate tax rates (34%) | (14,179) | (33,558) | (27,430) | (50,680) |
| Adjustments to arrive at the effective tax rate: | ||||
| Interest on capital | 2,965 | 2,965 | 1,899 | 1,895 |
| Different jurisdictional tax rates for companies abroad | (683) | 595 | 1,009 | 2,043 |
| Brazilian income taxes on income of companies incorporated outside Brazil (1) | (492) | (1,018) | (1,613) | (3,155) |
| Tax incentives | 161 | 383 | 8 | 51 |
| Tax loss carryforwards (unrecognized tax losses) | (61) | (89) | (48) | (36) |
| Non-taxable income (non-deductible expenses), net | (5) | 28 | 185 | 319 |
| Post-retirement benefit | (495) | (896) | (218) | (940) |
| Results of equity-accounted investments in Brazil and abroad | (35) | 25 | (12) | 621 |
| Others | 58 | 109 | 27 | 91 |
| Income tax expenses | (12,766) | (31,456) | (26,193) | (49,791) |
| Deferred income taxes | (4,003) | (7,501) | (136) | (10,271) |
| Current income taxes | (8,763) | (23,955) | (26,057) | (39,520) |
| Effective tax rate of income taxes | 30.6% | 31.9% | 32.5% | 33.4% |
(1) Income tax and social contribution in Brazil referring to income earned in the years by investees abroad, according to provisions provided for in Law No. 12,973 / 2014.
| 27 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
Deferred income taxes - non-current
The table below shows the movement in the periods:
| Consolidated | ||
| 2023 | 2022 | |
| Jan-Jun | Jan-Jun | |
| Opening balance | (30,878) | (3,486) |
| Recognized in income of the period | (7,501) | (10,271) |
| Recognized in shareholders’ equity | (11,894) | (13,656) |
| Cummulative Translation Adjustment | (108) | (31) |
| Use of tax credits | − | (5,819) |
| Others | 123 | 17 |
| Final balance | (50,258) | (33,246) |
The table below shows the composition and basis for realization of deferred tax assets and liabilities:
Consolidated
| Nature | Basis for realization | 06.30.2023 | 12.31.2022 | |||||
| Property, plant and equipment - Cost of prospecting and dismantling areas |
Depreciation, Amortization and Write-off of Assets |
4,405 | 824 | |||||
| Property, plant and equipment - Impairment | Amortization, Write-off of Assets and Impairment Reversal | 18,187 | 18,795 | |||||
| Property, plant and equipment – Depreciation, accelerated and linear x unit produced and capitalized charges | Depreciation, Amortization and Write-off of Assets | (84,630) | (80,553) | |||||
| Loans, accounts receivable / payable and financing | Payments, Receipts and Consideration | (8,698) | 4,228 | |||||
| Leases | Appropriation of consideration | (1,469) | 2,266 | |||||
| Provision for lawsuits | Payment and reversal of the provision | 5,086 | 4,618 | |||||
| Tax losses | Compensation of 30% of taxable income | 4,593 | 4,771 | |||||
| Inventories | Sale, Write-Off and Loss | 904 | 1,740 | |||||
| Employee benefits, mainly pension plan | Payment and reversal of the provision | 7,395 | 7,918 | |||||
| Others | 3,969 | 4,515 | ||||||
| Total | (50,258) | (30,878) | ||||||
| Deferred income taxes – assets | 3,233 | 4,342 | ||||||
| Deferred income taxes – liabilities | (53,491) | (35,220) | ||||||
|
| ||||||||
Uncertain tax treatments
Between April and July, 2023, the Company received additional charges from the Dutch tax authority, due to a final assessment on the calculation of the Corporate Income Tax (CIT) of subsidiaries in the Netherlands from 2018 to 2020, arising from the valuation for tax purposes of platforms and equipment nationalized under the Repetro tax regime, in the amount of R$ 2,361 (U$S 490 million).
Tax treatments related to 2019 to 2022 of certain subsidiaries have not yet been assessed by this tax authority. Any charges by the Dutch tax authority for those years, on a similar basis to the periods already assessed, could reach the amount of R$ 1,576 (U$S 327 million). Thus, the total amount of these uncertain tax treatments is R$ 3,937 (U$S 817 million).
The Company continue to defend its position, but understands that the tax authority is unlikely to fully accept this tax treatment. Thus, a liability was recognized with a corresponding effect in income taxes within the statement of income statement for the period, by means of the expected value method, constituted by the sum of amounts weighted by the probability of loss.
| 28 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 12.2. | Other taxes |
Consolidated
| Other taxes | Current assets | Non-current assets | Current liabilities | Non-current liabilities (1) | ||||
| 06.30.2023 | 12.31.2022 | 06.30.2023 | 12.31.2022 | 06.30.2023 | 12.31.2022 | 06.30.2023 | 12.31.2022 | |
| Taxes in Brazil: | ||||||||
| Current/Deferred VAT Rate (VAT) | 3,493 | 3,734 | 2,605 | 2,470 | 4,468 | 3,646 | − | − |
| Current/Deferred PIS and COFINS | 1,572 | 1,970 | 13,007 | 12,323 | 583 | 148 | 567 | 466 |
| PIS and COFINS - Law 9,718/98 | − | − | 3,491 | 3,429 | − | − | − | − |
| Production taxes/Royalties | − | − | − | 8,748 | 10,416 | 718 | 594 | |
| Withholding income taxes | − | − | − | − | 417 | 779 | − | − |
| Others (2) | 274 | 218 | 1,415 | 1,424 | 1,414 | 820 | 435 | 471 |
| Total in Brazil | 5,339 | 5,922 | 20,518 | 19,646 | 15,630 | 15,809 | 1,720 | 1,531 |
| Taxes abroad | 37 | 38 | 59 | 69 | 159 | 97 | − | − |
| Total | 5,376 | 5,960 | 20,577 | 19,715 | 15,789 | 15,906 | 1,720 | 1,531 |
(1) The amounts of taxes and contributions in non-current liabilities are classified in "Other liabilities".
(2) Includes, on June 30, 2023, in current liabilities, the amount of R$ 563 referring to the Export Tax on crude oil exports, which was in effect from March 1 to June 30, 2023. During the Export Tax collection period, the company calculated and recorded R$ 1,492 in tax expenses.
| 13. | Employee benefits |
Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees or for the termination of employment. It also includes expenses with directors and other managers. Such benefits include salaries, post-employment benefits, termination benefits and other benefits.
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Liabilities | ||
| Short-term employee benefits | 6,682 | 7,576 |
| Termination benefits | 807 | 1,005 |
| Post-retirement benefits | 60,821 | 58,675 |
| Total | 68,310 | 67,256 |
| Current | 10,594 | 11,555 |
| Non-current | 57,716 | 55,701 |
13.1. Short-term benefits
| Consolidated | ||||
| 06.30.2023 | 12.31.2022 | |||
| Variable compensation program – Employees | 1,550 | 2,552 | ||
| Accrued vacation and christmas bonus | 3,440 | 2,634 | ||
| Salaries and related charges and other provisions | 1,346 | 1,704 | ||
| Profit sharing | 346 | 686 | ||
| Total | 6,682 | 7,576 | ||
| Current | 6,504 | 7,413 | ||
| Non-current (1) | 178 | 163 | ||
(1) Refers to the balance of the deferral for 4 years of 40% of the PPP portion of the administrators and executive managers.
The company recognized the following amounts in the income statement:
| Consolidated | ||||
| Apr-Jun |
2023 Jan-Jun |
Apr-Jun |
2022 Jan-Jun | |
| Costs/Expenses in the statement of income | ||||
| Salaries, vacation, christmas bonus, charges over provisions and others | (4,242) | (8,120) | (3,836) | (7,365) |
| Variable compensation program (1) | (649) | (1,374) | (638) | (1,256) |
| Profit sharing (1) | (158) | (338) | (168) | (329) |
| Manager compensations and charges | (17) | (29) | (11) | (26) |
| Total | (5,066) | (9,861) | (4,653) | (8,976) |
(1) Includes complement/reversion of previous programs.
| 29 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
13.1.1 Variable compensation program
Performance award program (PPP)
Until June 2023, the company paid the 2022 PPP to employees in the amount of R$2,824 (R$2,620 in the parent company), considering compliance with the company's performance metrics and the individual performance of all employees.
With regard to the 2023 financial year, a proposal for reviewing Petrobras' PPP model is under study. However, in view of the expectation of maintaining a program with a similar nature to that of 2022, Petrobras provisioned, in the period from January to June 2023, R$ 1,247 (R$ 1,192 in the period from January to June 2022) referring to the variable remuneration of 2023 of employees, recorded in other operating expenses and, in the consolidated, R$ 1,367 (R$ 1,256 in the period from January to June 2022) with the other programs of the consolidated companies.
Profit Sharing (PLR)
Until June 2023, the company paid the 2022 PLR to employees in the amount of R$ 678 (R$ 643 in the parent company), considering the PLR 2021 2022 rule approved by the Secretaria de Coordenação e Governança das Empresas Estatais (Secretariat for Coordination and Governance of State-owned Companies - Sest), of the Federal Government, which covers employees who do not occupy bonuses functions and provides for individual limits according to the remuneration of participants.
In the period from January to June 2023, the company provisioned R$340 (R$328 in the parent company) referring to employees' profit sharing for the year 2023, recorded in other operating expenses. In the period from January to June 2022, the provision was R$ 333 (R$ 300 in the parent company) related to PLR 2022.
13.2. Termination benefits
These are those provided by the termination of the employment contract as a result of: i) the entity's decision to terminate the employee's employment relationship before the normal retirement date; or ii) employee's decision to accept an offer of benefits in exchange for termination of employment.
The company has voluntary termination programs (PDV), incentive retirement (PAI), specific termination programs for the corporate segment and for employees assigned to units in the process of divestment, which basically provide for the same legal and indemnity benefits.
Considering the set of programs, there are 11,745 adhesions accumulated until June 30, 2023 (11,688 adhesions until December 31, 2022).
The change in the provision is shown below:
| Consolidated | ||
| 2023 | 2022 | |
| Jan-Jun | Jan-Jun | |
| Opening Balance | 1,005 | 1,950 |
| Effects in the statement of income | (27) | 29 |
| Enrollments | 24 | 25 |
| Revision of provisions | (51) | 4 |
| Effect in cash and cash equivalents | (171) | (805) |
| Use due to termination | (171) | (805) |
| Saldo final | 807 | 1,174 |
| Current | 339 | 647 |
| Non Current | 468 | 527 |
The recognition of the provision for expenses with the retirement programs occurs as the employees join.
| 30 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
The company deferred the payment of indemnities in two installments, the first at the time of termination, together with the legal severance payments, and the second, when applicable, 12 months after the payment of the first installment.
On June 30, 2023, the amount of R$ 146 corresponds to the second installment of 565 employees dismissed and the amount of R$ 661 corresponds to 1,225 employees enrolled in the voluntary termination programs with a forecast of leaving by September 2025, totaling the amount of R$ 807.
13.3. Post-employment benefits
The company maintains a health care plan for its employees in Brazil (active and retired) and their dependents and five other main post-retirement pension benefits (collectively referred to as “company pension plans”).
The balances related to post-employment benefits granted to employees are shown below:
| Consolidated | ||||
| 06.30.2023 | 12.31.2022 | |||
| Liabilities | ||||
| Health Care Plan: Saúde Petrobras | 31,501 | 30,330 | ||
| Petros Pension Plan - Renegotiated (PPSP-R) | 18,988 | 18,813 | ||
| Petros Pension Plan - Non-renegotiated (PPSP-NR) | 5,495 | 5,431 | ||
| Petros Pension Plan - Renegotiated - Pre-70 (PPSP-R Pré 70) | 2,106 | 1,484 | ||
| Petros Pension Plan - Non-renegotiated - Pre-70 (PPSP-NR Pré 70) | 1,821 | 1,767 | ||
| Petros 2 Pension Plan (PP-2) | 910 | 850 | ||
| Total | 60,821 | 58,675 | ||
| Current | 3,751 | 3,750 | ||
| Non-current | 57,070 | 54,925 | ||
Health Care Plan
The health care plan, named “Saúde Petrobras”, is managed by the Petrobras Health Association (APS), a non-profit civil association and includes prevention and health care programs. The plan covers all current employees, retirees and is open to new employees.
Benefits are paid by the Company based on the costs incurred by the participants. The financial participation of the Company and the beneficiaries on the expenses is established in the collective bargaining agreement (ACT), being 60% (sixty percent) by the company and 40% (forty percent) by the participants.
Pension plans
The Company’s post-retirement plans are managed by Petros Foundation (Fundação Petrobras de Seguridade Social), which was established by Petrobras (Sponsor) as a nonprofit legal entity governed by private law with administrative and financial autonomy.
The net obligation with pension plans recorded by the company has a different recognition methodology than that applicable to pension funds, regulated by the Conselho Nacional de Previdência Complementar.
The main differences in accounting practices adopted in Brazil (CNPC and CVM) between the Pension Fund and the Sponsor for calculating the actuarial commitment on December 31, 2022 are shown below:
| 31 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| PPSP-R (1) | PPSP-NR (1) | |
| Deficit registered by Petros | 1,721 | 1,781 |
| Ordinary and extraordinary future contributions - sponsor | 21,977 | 5,627 |
| Contributions related to the TFC - sponsor | 3,608 | 2,041 |
| Financial assumptions (interest and Inflation rates), adjustment in the value of plan assets and calculation methodology | (7,009) | (2,251) |
| Net actuarial liability recorded by the Company | 20,297 | 7,198 |
| (1) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. | ||
On March 29, 2023, the Petros Deliberative Council approved the financial statements of the pension plans for the year ended on December 31, 2022, sponsored by the company.
Deficit Settlement Plan 2021 referring to the PPSP-R plan
On April 1st, 2023, the deficit equation plan (PED) for the 2021 fiscal year of the Petros Renegotiated Plan (PPSP-R) came into effect, with the start of extraordinary charges on the payroll of assets and beneficiaries from April/ 23, after a favorable statement by SEST (the supervisory body of the sponsor Petrobras), which took place on March 17, 2023.
The PED 2021 had already been approved by Petros' Deliberative Council (CD) on November 10, 2022 and the deficit calculated for the 2021 fiscal year of R$ 8,515, must be equated equally between the sponsors and the participants of the PPSP-R, subject to the contribution parity limit, and Petrobras will have the total amount of R$ 4,012, positioned on December 31, 2022, which will be paid in monthly installments for the entire period of existence of the plan.
13.3.1 Amounts in the financial statements related to defined benefit plans
The net actuarial liability represents the company's obligations, net of the fair value of plan assets (when applicable), at present value.
The movement of obligations with pension and health plans with a defined benefit feature is shown below:
| Consolidated | |||||
| Pension Plans | Health Care Plan | ||||
| PPSP-R (1) | PPSP-NR (1) | PP2 | AMS - Saúde Petrobras | Total | |
| Balance on December 31, 2022 | 20,297 | 7,198 | 850 | 30,330 | 58,675 |
| Recognized in income – cost and expenses | 1,221 | 421 | 77 | 2,129 | 3,848 |
| Current service cost | 27 | 6 | 26 | 360 | 419 |
| Interest cost, net | 1,194 | 415 | 51 | 1,769 | 3,429 |
| Recognized in Equity - other comprehensive income | 570 | − | − | − | 570 |
| Remeasurement: (Gains) / Actuarial losses (2) | 570 | − | − | − | 570 |
| Cash effect | (994) | (304) | (17) | (958) | (2,273) |
| Payment of contributions | (923) | (275) | (17) | (958) | (2,173) |
| Term of Financial Commitment (TCF) | (71) | (29) | − | − | (100) |
| Other changes | − | 1 | − | − | 1 |
| Balance on June 30, 2023 | 21,094 | 7,316 | 910 | 31,501 | 60,821 |
| (1) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. | |||||
| (2) Refers to the complement of 2022 year. | |||||
| Consolidated | ||||||
| Pension Plans | Health Care Plan | Other plans | ||||
| PPSP-R (1) | PPSP-NR (1) | PP2 | AMS - Saúde Petrobras | Total | ||
| Balance on December 31, 2021 | 22,599 | 6,523 | 918 | 25,029 | 61 | 55,130 |
| Recognized in income – cost and expenses | 1,183 | 374 | 83 | 1,570 | − | 3,210 |
| Current service cost | 25 | 3 | 34 | 270 | − | 332 |
| Interest cost, net | 1,158 | 371 | 49 | 1,300 | − | 2,878 |
| Cash effects | (5,965) | (1,917) | − | (839) | − | (8,721) |
| Payment of contributions | (728) | (243) | − | (839) | − | (1,810) |
| Term of Financial Commitment (TCF) | (5,237) | (1,674) | − | − | − | (6,911) |
| Other changes | − | − | 4 | 4 | (58) | (50) |
| Balance on June 30, 2022 | 17,817 | 4,980 | 1,005 | 25,764 | 3 | 49,569 |
| (1) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. | ||||||
| 32 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
The net expense with pension and health plans is presented below:
| Pension plans | Health Care Plan | |||||
| PPSP-R (1) | PPSP-NR (1) | PP2 |
AMS - Saúde Petrobras |
Total | ||
| Related to active employees (cost and expenses) | (116) | (23) | (36) | (748) | (923) | |
| Related to retired employees (other income and expenses) | (1,105) | (398) | (41) | (1,381) | (2,925) | |
| Expense in the statement of income - Jan-Jun/2023 | (1,221) | (421) | (77) | (2,129) | (3,848) | |
| Related to active employees (cost and expenses) | (91) | (15) | (47) | (570) | (723) | |
| Related to retired employees (other income and expenses) | (1,092) | (359) | (36) | (1,000) | (2,487) | |
| Expense in the statement of income - Jan-Jun/2022 | (1,183) | (374) | (83) | (1,570) | (3,210) | |
| (1) It includes amounts of PPSP-R pre-70 and PPSP-NR pre-70 | ||||||
| Pension Plans | Health Care Plan | ||||
| PPSP-R (1) | PPSP-NR (1) | PP2 |
AMS - Saúde Petrobras |
Total | |
| Related to active employees (cost and expenses) | (57) | (12) | (18) | (372) | (459) |
| Related to retired employees (other income and expenses) | (553) | (198) | (21) | (693) | (1,465) |
| Expense in the statement of income - Apr-Jun/2023 | (610) | (210) | (39) | (1,065) | (1,924) |
| Related to active employees (cost and expenses) | (46) | (8) | (23) | (283) | (360) |
| Related to retired employees (other income and expenses) | (546) | (179) | (18) | (502) | (1,245) |
| Expense in the statement of income - Apr-Jun/2022 | (592) | (187) | (41) | (785) | (1,605) |
| (1) It includes amounts of PPSP-R pre-70 and PPSP-NR pre-70 | |||||
13.3.2. Contributions
From January to June 2023, the company contributed a total of R$ 2,273 (R$ 8,721 for the period from January to June 2022) to defined benefit plans, which reduced the balance of obligations, as per the table in note 13.3.1. Additionally, it contributed R$522 (R$ 458 for the period from January to June 2022) to the defined contribution portion of the PP2 plan and R$4 of the PP3 plan (R$4 for the period from January to June 2022), which were recognized in costing and in statement of income for the year.
The contribution to the defined benefit portion of the PP-2, which had been suspended since July 2012, was restored in April 2023, pursuant to a decision by the Petros Foundation's Deliberative Council. Thus, a portion of the monthly contribution will be destined to risk coverage (payment of sickness allowance, reclusion allowance, lump sum death benefit and minimum guarantees) to reduce the balance of the actuarial liability.
| 14. | Provisions for legal proceedings, judicial deposits and contingent liabilities |
14.1 Provisions for legal proceedings
The company sets up provisions in judicial, administrative and arbitration proceedings in an amount sufficient to cover losses considered probable and for which a reliable estimate can be made. The main actions refer to:
| · | Labor lawsuits, highlighting: (i) various labor claims; (ii) individual actions to review the methodology for calculating the Minimum Remuneration by Level and Regime (RMNR); and (iii) third-party claims. |
| · | Tax claims including: (i) tax notices for alleged non-compliance with ancillary obligations; (ii) claims relating to benefits previously taken for Brazilian federal tax credits applied that were subsequently alleged to be disallowable; and (iii) claims for alleged non-payment of CIDE on imports of propane and butane. |
| · | Civil claims, in particular: (i) lawsuits related to contracts; (ii) administrative and judicial proceedings that discuss the difference in special participation and royalties in different fields; and (iii) fines imposed by the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP), especially those relating to production measurement systems. |
| 33 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| · | Environmental claims, specially: (i) fines relating to an environmental accident in the State of Paraná in 2000; (ii) fines relating to the Company’s offshore operation; and (iii) public civil action for oil spill in 2004 in Serra do Mar-São Paulo State Park. |
Provisions for legal proceedings are set out as follows:
| Consolidated | ||
| Non-current liabilities | 06.30.2023 | 12.31.2022 |
| Labor claims | 3,902 | 3,844 |
| Tax claims | 2,581 | 2,433 |
| Civil claims | 9,003 | 7,847 |
| Environmental claims | 1,520 | 1,579 |
| Total | 17,006 | 15,703 |
|
|
Consolidated | |
|
2023 Jan-Jun |
2022 Jan-Jun | |
| Opening Balance | 15,703 | 11,263 |
| Additions, net of reversals | 1,700 | 1,070 |
| Use of provision | (1,322) | (421) |
| Accruals and charges | 947 | 253 |
| Others | (22) | (58) |
| Closing balance | 17,006 | 12,107 |
In the preparation of the interim financial information for the period ended on June 30, 2023, the Company considered all available information concerning legal proceedings in which the Company is a defendant, in order to estimate the amounts of obligations and probability that outflows of resources will be required.
In the period from January to June 2023, the increase in liabilities is mainly due to changes in the following cases: (i) R$770 in the provision for civil litigation involving contractual issues; (ii) R$202 in the provision for civil litigation involving the purchase and sale of assets; (iii) R$126 in the provision for labor claims, partially offset by (iv) a reduction of R$104 due to an agreement involving environmental processes of administrative responsibility.
14.2 Judicial deposits
Judicial deposits made in connection with legal proceedings are set out in the table below according to the nature of the corresponding lawsuits:
| Consolidated | ||
| Non-current assets | 06.30.2023 | 12.31.2022 |
| Tax | 45,542 | 41,095 |
| Labor | 4,751 | 4,735 |
| Civil | 13,082 | 10,899 |
| Environmental | 551 | 569 |
| Others | 339 | 373 |
| Total | 64,265 | 57,671 |
| Consolidated | ||
|
2023 Jan-Jun |
2022 Jan-Jun | |
| Opening Balance | 57,671 | 44,858 |
| Additions | 3,971 | 4,362 |
| Use | (243) | (225) |
| Accruals and charges | 2,898 | 1,949 |
| Others | (32) | (50) |
| Closing balance | 64,265 | 50,894 |
From January to June 2023, the company made judicial deposits in the amount of R$3,971, with emphasis on: (i) R$1,044 referring to production taxes amounts related to the unification of fields (Cernambi, Tupi, Tartaruga Verde and Tartaruga Mestiça); (ii) R$978 referring to Corporate Income Tax and Social Contribution Tax for not adding the income of subsidiaries and affiliates domiciled abroad to the parent company's Corporate Income Tax and Social Contribution Tax calculation basis; (iii) R$926 referring to the incidence of CIDE, PIS and COFINS related to the chartering of platforms; and (iv) R$457 related to the recalculation of production taxes on the production of the Albacora field.
| 34 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
14.3 Contingent liabilities
As of June 30, 2023, the contingent liabilities plus interest and monetary restatement, estimated for legal proceedings, whose probability of loss is considered possible, are presented in the following table:
| Consolidated | ||
| Nature | 06.30.2023 | 12.31.2022 |
| Tax | 170,097 | 167,457 |
| Labor | 46,393 | 43,163 |
| Civil | 42,327 | 39,381 |
| Environmental | 7,232 | 6,561 |
| Total | 266,049 | 256,562 |
The main contingent liabilities are:
| · | Tax matters comprising: i) withholding income tax (IRRF), Contribution of Intervention in the Economic Domain (CIDE), Social Integration Program (PIS) and Contribution to Social Security Financing (COFINS) on remittances for payments of vessel charters; (ii) income from foreign subsidiaries and associates located outside Brazil not included in the computation of taxable income (IRPJ and CSLL); (iii) collection of customs taxes and fines related to imports under the Repetro regime in the Frade consortium; (iv) collection of VAT tax (ICMS) involving several states; (v) collection of PIS and COFINS, resulting from the payment of taxes negotiated with the Brazilian Federal Government, excluding the payment of fines; and (vi) deduction from the PIS and COFINS tax base, including ship-or-pay agreements and chartering of aircraft and vessels. |
| · | Labor matters comprising mainly actions requiring a review of the methodology by which the minimum compensation based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime - RMNR) is calculated. |
| · | Civil matters comprising mainly: (i) lawsuits related to contracts; (ii) administrative and judicial proceedings that discuss difference in special participation and royalties in several fields, including unification of fields; and (iii) fines from regulatory agencies, especially the ANP. |
| · | Environmental matters, with emphasis on indemnities and reparations for damages and environmental fines related to the company's operations. |
In the period from January to June 2023, the increase in contingent liabilities is mainly due to: (i) R$ 2,335 referring to class actions that require the review of the methodology for calculating the Minimum Remuneration by Level and Regime (RMNR); (ii) R$1,285 referring to the incidence of PIS/COFINS on tax amnesties; (iii) R$1,275 referring to the incidence of CIDE and PIS/COFINS related to the chartering of platforms; (iv) R$1,139 referring to lawsuits involving reversal of ICMS VAT credit; (v) R$1,134 of civil lawsuits involving contractual matters involving foreign subsidiaries; (vi) R$866 referring to administrative and judicial proceedings that discuss the difference in special participation and royalties in different fields, including the unification of fields; (vii) R$831 related to labor claims; (viii) R$691 related to civil litigation involving contractual matters in Brazil; (ix) R$601 referring to the infraction notice, for the collection, by joint liability, of customs taxes and fines resulting from the importation of goods under the Repetro regime, for use in the Frade consortium; (x) R$599 referring to fines from regulatory agencies; and (xi) R$511 referring to Corporate Income Tax (IRPJ) and Social Contribution (CSLL) for not adding the income of subsidiaries and affiliates domiciled abroad to the parent company's Corporate Income Tax (IRPJ) and Social Contribution (CSLL) calculation basis. These effects were partially offset mainly by (xii) R$3,391 from the transfer to remote loss due to a favorable decision referring to ICMS VAT tax disputes involving the tax classification of goods; and (xiii) R$509 referring to the levy of ICMS VAT tax on imports.
14.4 RMNR - Minimum Remuneration by Level and Work Regime
There are several lawsuits related to the Minimum Remuneration by Level and Work Regime (RMNR), with the objective of revising its calculation criteria.
The RMNR consists of a guaranteed minimum remuneration for employees, based on salary level, working conditions and geographic location. This compensation policy was created and implemented by Petrobras in 2007 through collective bargaining with union representatives, and approved at employee meetings, being questioned three years after its implementation.
| 35 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
In 2018, the Superior Labor Court (TST) ruled against the Company, which filed extraordinary appeals against its decision. However, the Federal Supreme Court (STF) suspended the effects of the decision rendered by the TST and determined the national suspension of the ongoing processes related to the RMNR.
On July 29, 2021, a monocratic decision was published in which the Reporting Justice granted the Extraordinary Appeal filed in one of the proceedings to reestablish the judgment that dismissed the copyright requests, accepting the Company's thesis and recognizing the validity of the collective bargaining agreement freely signed between Petrobras and the labor unions, reversing the decision of the TST.
In February 2022, the trial of the grievances filed by the plaintiff and several amici curiae began. Currently, the judgment is in progress in the First Panel of the Federal Supreme Court, with 3 votes in favor of the company, confirming that the prevailing understanding is in the sense of recognizing the validity of the collective bargaining agreement freely signed between companies and unions, and 1 vote against. One of the Justices who had voted in favor of Petrobras asked for a review after the dissenting vote was delivered, suspending the judgment.
As of June 30, 2023, there are several lawsuits related to the Minimum Remuneration by Level and Work System (RMNR) reflected in the company's interim financial information, with R$846 classified as a probable loss, recognized in liabilities as a provision for legal and administrative proceedings, and R$37,873 classified as a possible loss.
14.5 Class action and related proceedings
On January 23, 2017, Stichting Petrobras Compensation Foundation ("Foundation") filed a class action in the Netherlands, at the District Court of Rotterdam, against Petróleo Brasileiro S.A. – Petrobras, Petrobras International Braspetro B.V. (PIB BV), Petrobras Global Finance B.V. (PGF), Petrobras Oil & Gas B.V. (PO&G) and some former Petrobras managers. The Foundation alleges that it represents the interests of an unidentified group of investors and claims that, based on the facts revealed by Lava-Jato Operation, the defendants acted illegally before investors. On 26 May 2021, the District Court of Rotterdam decided that the class action must proceed and that the arbitration clause of Petrobras' bylaws does not prevent the Company's shareholders from having access to the Dutch Judiciary and being represented by the Stichting Petrobras Compensation Foundation (“Foundation”). However, investors who have already initiated arbitration against Petrobras or who are parties to legal proceedings in which the applicability of the arbitration clause has been definitively recognized are excluded from the action. The class action proceeded to the phase of discussion of matters of merit.
On July 26, 2023, the Court issued an intermediate decision on the merits, ordering the production of evidence, in relation to which the parties may express their views before the publication of the judgment on the merits, which is appealable. In addition, the Court advanced the following understandings, which must be included in the judgment on the merits, among which: i) the requests made against PIB BV and PO&G were rejected and; ii) the Court declared that Petrobras and the PGF acted illegally in relation to their investors.
The Court also confirmed that the Foundation cannot claim compensation under the class action, which will depend on the filing of subsequent actions by or on behalf of the investors by the Foundation itself, an opportunity in which Petrobras will be able to offer all the defenses already presented in the class action. and others that it deems appropriate, including in relation to the occurrence and quantification of any damages, not yet proven. In view of the uncertainties that exist at the moment, it is not possible to make any reliable assessment regarding possible risks related to this dispute. The eventual indemnification for the alleged damages will only be determined by judicial decisions in later actions to be brought by individual investors. Petrobras and the PGF deny the allegations made by the Foundation and will continue to defend themselves firmly. For more information, see explanatory note 18.4.1 to the financial statements for the year ended December 31, 2022.
In the arbitration in Argentina, in which Petrobras is held responsible for an alleged loss of market value of Petrobras shares in the country, due to the developments of Lava Jato Operation, the appeal filed by the Consumidores Damnificados Asociación Civil para su Defensa (“Association”) was denied, but the Association filed a new appeal with the Argentine Supreme Court, which was also denied, with the arbitration being sent to the Arbitration Court.
In parallel to such arbitration, the Association also filed a class action before the Civil and Commercial Court of Buenos Aires, Argentina, with Petrobras appearing spontaneously on April 10, 2023, in the context of which it alleges Petrobras' responsibility for an alleged loss of market value of Petrobras' securities in Argentina, as a result of allegations made within the scope of the Lava Jato Operation and its impact on the Company's financial statements prior to 2015. Such demand does not generate immediate financial and economic impacts for the company. Petrobras denies the allegations made by the Association and will vigorously defend itself against the accusations made by the author of the collective action.
| 36 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
Regarding the criminal action in Argentina related to an alleged fraudulent offer of securities, aggravated by the fact that Petrobras allegedly declared false data in its financial statements prior to 2015, the Court of Appeals revoked, on October 21, 2021, the decision of first instance that had recognized Petrobras' immunity from jurisdiction and recommended that the lower court take steps to certify whether the company could be considered criminally immune in Argentina for a subsequent reassessment of the matter. Petrobras appealed against this decision, but the higher courts upheld the decision of the Court of Appeals. After carrying out the steps determined by the Court of Appeals, on May 30, 2023, the lower court denied the recognition of immunity from jurisdiction to Petrobras. Petrobras filed an appeal against this decision, which is still pending judgment. The Court of Appeals had also already recognized that the Association could not act as a representative of financial consumers, due to the loss of its registration with the competent Argentine bodies, which was also the subject of an appeal accepted by the Court of Cassation on September 15, 2022, recognizing the Association's right to represent financial consumers. Petrobras presented other procedural defenses, still subject to appreciation by the appellate courts of the Argentine Justice. This criminal action is pending before the Criminal Economic Court No. 2 of the city of Buenos Aires.
In relation to the other criminal action, for alleged non-compliance with the obligation to publish as a “relevant fact” in the Argentine market that there was a class action filed by Consumidores Damnificados Asociación Civil para su Defensa before the Commercial Court, no relevant events occurred in the period from January to June 2023.
The EIG Energy Fund XIV, L.P. and affiliates (“EIG”) filed a lawsuit against Petrobras, before the District Court of Columbia, United States, to recover alleged losses related to its investment in Sete Brasil Participações S.A. On August 8, 2022, the judge upheld EIG's claim as to Petrobras' responsibility for the alleged losses, but denied the motion for summary judgment with respect to damages, whereby the award of compensation will be subject to the proof of damages by EIG at a hearing and to the consideration of the defenses by the Company. In the same decision, whose effects were recognized in the company's financial statements in the third quarter of 2022, the judge denied the request to dismiss the case based on Petrobras' immunity from jurisdiction, which is why an appeal was filed with the Federal Court of Appeals for the District of Columbia. Considering the filing of the appeal, Petrobras requested the suspension of the process, which was granted by the lower court judge on October 26, 2022
On August 26, 2022, the District Court of Amsterdam granted a precautionary measure to block certain Petrobras assets in the Netherlands, at the request of EIG. The concession was based on the decision of the District Court of Columbia, on August 8, 2022, and was intended to ensure the satisfaction of EIG's claims contained in the aforementioned US lawsuit. For the purpose of this injunction alone, the District Court of Amsterdam limited EIG's claims to a total of US$ 297.2 million, although the US Court ruled that any award of damages will depend on evidence of damages by EIG at a trial hearing. There are some discussions about the scope of the assets blocked by EIG, but there is no related lawsuit pending in the Netherlands. This precautionary block does not prevent Petrobras and its subsidiaries from complying with their obligations to third parties.
| 14.6 | Arbitrations proposed by non-controlling Shareholders in Brazil |
During 2023, there were partial decisions that did not change the assessment and information on arbitrations in Brazil. For more information, see explanatory note 18.5 to the financial statements for the year ended December 31, 2022.
| 14.7 | Legal proceedings - Compulsory Loan – Eletrobrás |
In the six-month period ended June 30, 2023, there were no events that changed the assessment on this proceeding. For more information, see explanatory note 18.6 to the financial statements for the year ended December 31, 2022.
| 14.8 | Lawsuits brought by natural gas distributors and others |
In the six-month period ended June 30, 2023, there were no events that changed the assessment and information on lawsuits and arbitrations. For more information, see explanatory note 18.7 to the financial statements for the year ended December 31, 2022.
| 37 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 15 | Provision for decommissioning costs |
The following table details the amount of the decommissioning provision by production area:
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Onshore | 2,193 | 2,182 |
| Shallow Waters | 23,343 | 22,951 |
| Deep and ultra-deep post-salt | 51,189 | 52,114 |
| Pre-salt | 20,153 | 19,801 |
| Total | 96,878 | 97,048 |
| Consolidated | ||
|
2023 Jan-Jun |
2022 Jan-Jun | |
| Opening balance | 97,048 | 87,160 |
| Adjustment to provision | 92 | 194 |
| Transfers related to liabilities held for sale (1) | − | (5,473) |
| Payments made | (2,322) | (2,052) |
| Interest accrued | 2,098 | 1,249 |
| Others | (38) | (25) |
| Total | 96,878 | 81,053 |
(1) In the period from January to June 2022, refers to the transfers of R$507 related to the Golfinho and Camarupim Poles, in Espírito Santo, R$1,841 related to Albacora Leste Field, in Rio de Janeiro, R$165 related to the North Pole Capixaba, in Espírito Santo, and R$2,960 related to the Potiguar Pole, in Rio Grande do Norte.
| 16 | Other assets and liabilities |
| Assets | Consolidated | |
| 06.30.2023 | 12.31.2022 | |
| Escrow account and/ or collateral | 5,087 | 5,673 |
| Advances to suppliers | 7,400 | 8,147 |
| Prepaid expenses | 2,323 | 1,892 |
| Derivatives transactions | 418 | 281 |
| Assets related to E&P partnerships | 521 | 368 |
| Others | 1,154 | 1,016 |
| 16,903 | 17,377 | |
| Current | 7,259 | 9,271 |
| Non-Current | 9,644 | 8,106 |
| Liabilities | Consolidated | |
| 06.30.2023 | 12.31.2022 | |
| Obligations arising from divestments | 6,994 | 7,068 |
| Contractual retentions | 3,401 | 3,134 |
| Advances from customers | 2,723 | 4,726 |
| Provisions for environmental expenses, R&D and fines | 3,944 | 3,519 |
| Other taxes | 1,720 | 1,531 |
| Unclaimed dividends | 1,444 | 1,258 |
| Derivatives transactions | 233 | 767 |
| Others | 3,571 | 3,947 |
| 24,030 | 25,950 | |
| Current | 13,617 | 15,660 |
| Non-Current | 10,413 | 10,290 |
| 38 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 17 | Property, plant and equipment |
17.1By class of assets
| Consolidated | Parent Company | ||||||
|
Land, buildings and improvement |
Equipment and other assets (1) |
Assets under construction (2) |
Exploration and development costs (oil and gas producing properties) (3) | Right-of-use assets | Total | Total | |
| Balance at December 31, 2022 | 13,241 | 287,740 | 77,424 | 200,537 | 100,240 | 679,182 | 699,786 |
| Accumulated cost | 22,659 | 550,097 | 124,904 | 352,617 | 154,805 | 1,205,082 | 1,158,091 |
| Accumulated depreciation and impairment (4) | (9,418) | (262,357) | (47,480) | (152,080) | (54,565) | (525,900) | (458,305) |
| Additions | 1 | 1,157 | 23,546 | 8 | 36,544 | 61,256 | 60,868 |
| Additions to / review of estimates of decommissioning costs | − | − | − | 31 | − | 31 | − |
| Capitalized borrowing costs | − | − | 2,952 | − | − | 2,952 | 2,952 |
| Transfer of Signature Bonus (5) | − | − | − | 31 | − | 31 | 31 |
| Write-offs | (3) | (899) | (56) | (209) | (789) | (1,956) | (2,012) |
| Transfers (6) | 227 | 6,118 | (6,628) | 4,194 | − | 3,911 | 3,736 |
| Transfers to assets held for sale | (74) | (261) | (57) | (100) | − | (492) | (491) |
| Depreciation, amortization and depletion | (214) | (12,020) | − | (11,191) | (12,782) | (36,207) | (37,982) |
| Impairment recognition | − | (879) | (1,292) | (6) | − | (2,177) | (2,006) |
| Impairment reversal | 7 | 71 | − | − | 137 | 215 | 215 |
| Cumulative translation adjustment | (4) | (15) | (19) | (66) | 5 | (99) | − |
| Balance at June 30, 2023 | 13,181 | 281,012 | 95,870 | 193,229 | 123,355 | 706,647 | 725,097 |
| Accumulated cost | 22,633 | 554,864 | 141,839 | 354,985 | 186,769 | 1,261,090 | 1,214,477 |
| Accumulated depreciation and impairment (4) | (9,452) | (273,852) | (45,969) | (161,756) | (63,414) | (554,443) | (489,380) |
| Consolidated | Parent Company | ||||||
|
Land, buildings and improvement |
Equipment and other assets (1) |
Assets under construction (2) |
Exploration and development costs (oil and gas producing properties) (3) | Right-of-use assets | Total | Total | |
| Balance at December 31, 2021 | 13,302 | 296,471 | 94,430 | 200,046 | 95,157 | 699,406 | 717,355 |
| Accumulated cost | 22,770 | 547,365 | 144,831 | 345,470 | 147,222 | 1,207,658 | 1,154,481 |
| Accumulated depreciation and impairment (4) | (9,468) | (250,894) | (50,401) | (145,424) | (52,065) | (508,252) | (437,126) |
| Additions | − | 2,229 | 16,262 | 42 | 15,996 | 34,529 | 33,534 |
| Additions to / review of estimates of decommissioning costs | − | − | − | 54 | − | 54 | − |
| Capitalized borrowing costs | − | − | 2,687 | − | − | 2,687 | 2,656 |
| Transfer of Signature Bonus (5) | − | − | − | 4,242 | − | 4,242 | 4,242 |
| Write-offs | (1) | (3,592) | (4,811) | (3,012) | (6,884) | (18,300) | (18,006) |
| Transfers (6) | 321 | 8,963 | (20,898) | 12,053 | − | 439 | 373 |
| Transfers to assets held for sale | (78) | (9,272) | (1,743) | (6,266) | (38) | (17,397) | (16,826) |
| Depreciation, amortization and depletion | (224) | (12,015) | − | (13,570) | (11,484) | (37,293) | (38,833) |
| Impairment reversal | − | 62 | 9 | 57 | − | 128 | 127 |
| Cumulative translation adjustment | (3) | (13) | (430) | (78) | (4) | (528) | − |
| Balance at June 30, 2022 | 13,317 | 282,592 | 85,415 | 193,356 | 92,743 | 667,423 | 684,117 |
| Accumulated cost | 22,564 | 535,190 | 134,005 | 337,430 | 146,509 | 1,175,698 | 1,123,374 |
| Accumulated depreciation and impairment (4) | (9,247) | (252,598) | (48,590) | (144,074) | (53,766) | (508,275) | (439,257) |
(1) Consisting of production platforms, refineries, thermoelectric plants, gas treatment units, pipelines and other operation, storage and production facilities, including subsea equipment for the production and disposal of oil and gas, depreciated using the units-of-production method.
(2) Balances by business segment are presented in Note 8.
(3) Consisting of exploration and production assets related to wells, abandonment of areas, signature bonuses associated with proved reserves and other direct expenses. linked to exploration and production, except production platforms (oil and gas producing fields).
(4) In the case of land and assets under construction, it refers only to impairment losses.
(5) Transfer of Intangible Assets. In 2023, it refers to the declaration of commerciality of the Manjuba field. In 2022, it refers to the Atapu and Sepia fields.
(6) Mainly includes transfers between asset types and transfers of advances to suppliers.
The additions in right of use are mainly due to the entry into operation of FPSO Almirante Barroso and FPSO Anna Nery, and the respective impact on lease liabilities (explanatory note 25).
17.2Estimated useful life
The useful life of assets depreciated are shown below:
| 39 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Asset | Weighted average useful life in years |
| Buildings and improvement | 40 (between 25 and 50) |
| Equipment and other assets | 20 (3 to 31) (except assets by the units of production method) |
| Exploration and development costs | Units of production method |
| Right-of-use | 8 (between 2 and 47) |
17.3Right-of-use assets
The right-of-use assets comprise the following underlying assets:
| Consolidated | Parent Company | |||||
| Platforms | Vessels | Buildings and others | Total | Total | ||
| 06.30.2023 | ||||||
| Accumulated cost | 93,169 | 80,544 | 13,056 | 186,769 | 199,508 | |
| Accumulated depreciation and impairment | (21,469) | (38,815) | (3,130) | (63,414) | (67,124) | |
| Total | 71,700 | 41,729 | 9,926 | 123,355 | 132,384 | |
| 12.31.2022 | ||||||
| Accumulated cost | 65,758 | 77,159 | 11,888 | 154,805 | 167,727 | |
| Accumulated depreciation and impairment | (17,704) | (34,092) | (2,769) | (54,565) | (57,517) | |
| Total | 48,054 | 43,067 | 9,119 | 100,240 | 110,210 | |
17.4Production Individualization Agreements
Petrobras has Production Individualization Agreements (AIP) signed in Brazil with partner companies in E&P consortia, as well as contracts resulting from divestment operations and strategic partnerships linked to these consortia. These agreements will result in equalizations payable or receivable of expenses and production volumes related to the Agulhinha, Albacora Leste, Berbigão, Budião Noroeste, Budião Sudeste, Caratinga, Sururu and Tartaruga fields.
In the following table, Petrobras presents the provision of values recorded from the execution of the AIPs submitted to the approval of the ANP, as well as their movement:
| Consolidated and Parent Company | ||
|
2023 Jan-Jun |
2022 Jan-Jun | |
| Initial balance | 2,122 | 2,033 |
| Additions/(write-offs) in Property, Plant and Equipment | 22 | (192) |
| Other operating (income) expenses | 121 | 49 |
| Final balance | 2,265 | 1,890 |
17.5Capitalization rate used to determine the amount of borrowing costs eligible for capitalization
The capitalization rate used to determine the amount of borrowing costs eligible for capitalization was the weighted average of the borrowing costs applicable to the borrowings that were outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. For the six-month period ended June 30, 2023, the capitalization rate was 6.89% p.a. (6.56% p.a. for the six-month period ended June 30, 2022).
| 40 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 18 | Intangible assets |
18.1By class of assets
| Consolidated | Parent Company | ||||
| Rights and Concessions (1) | Software | Goodwill | Total | Total | |
| Balance at December 31, 2022 | 13,164 | 2,294 | 123 | 15,581 | 15,426 |
| Accumulated Cost | 13,453 | 8,144 | 123 | 21,720 | 20,864 |
| Accumulated amortization and impairment | (289) | (5,850) | − | (6,139) | (5,438) |
| Addition | 734 | 424 | − | 1,158 | 1,148 |
| Capitalized borrowing costs | − | 29 | − | 29 | 29 |
| Write-offs | (180) | − | − | (180) | (180) |
| Transfers | − | 7 | − | 7 | 2 |
| Transfer from Signature Bonus (2) | (31) | − | − | (31) | (31) |
| Amortization | (9) | (234) | − | (243) | (228) |
| Balance at June 30, 2023 | 13,678 | 2,520 | 123 | 16,321 | 16,166 |
| Accumulated Cost | 13,977 | 8,574 | 122 | 22,673 | 21,831 |
| Accumulated amortization and impairment | (299) | (6,054) | 1 | (6,352) | (5,665) |
| Estimated useful life in years | (3) | 5 | Undefined | ||
| Consolidated | Parent Company | ||||
| Rights and Concessions (1) | Software | Goodwill | Total | Total | |
| Balance at December 31, 2021 | 15,037 | 1,719 | 123 | 16,879 | 16,682 |
| Accumulated Cost | 15,312 | 7,373 | 123 | 22,808 | 21,769 |
| Accumulated amortization and impairment | (275) | (5,654) | − | (5,929) | (5,087) |
| Addition | 4,260 | 438 | − | 4,698 | 4,670 |
| Capitalized borrowing costs | − | 21 | − | 21 | 21 |
| Write-offs | (50) | (4) | − | (54) | (5) |
| Transfers | (54) | (3) | − | (57) | (58) |
| Transfer from Signature Bonus (2) | (4,242) | − | − | (4,242) | (4,242) |
| Amortization | (9) | (178) | − | (187) | (178) |
| Impairment - accrual | − | (6) | − | (6) | − |
| Cumulative translation adjustment | (10) | − | − | (10) | − |
| Balance at June 30, 2022 | 14,932 | 1,987 | 123 | 17,042 | 16,890 |
| Accumulated Cost | 15,216 | 7,786 | 123 | 23,125 | 22,150 |
| Accumulated amortization and impairment | (284) | (5,799) | − | (6,083) | (5,260) |
| Weighted average useful life in years | (3) | 5 | Undefined | ||
(1) Consisting mainly of signature bonuses, paid in concession contracts for oil or natural gas exploration and production sharing, in addition to public service concessions, trademarks and patents, and others.
(2) Transfer to Property, Plant and Equipment. In 2023, it refers to the declaration of commerciality of the Manjuba field. In 2022, it refers to the Atapu and Sepia fields.
(3) Mainly composed of assets with an indefinite useful life whose valuation is reviewed annually to determine whether it remains justifiable.
18.2. ANP Auction Result
Sudoeste de Sagitário, Água Marinha and Norte de Brava Blocks - 1st Cycle of Permanent Production Sharing Offer
On December 16, 2022, Petrobras acquired the oil and natural gas exploration and production rights in the Sudoeste de Sagitário, Água Marinha and Norte de Brava blocks in the 1st Cycle of Permanent Production Sharing Offer, carried out by the ANP. In May 2023, the Production Sharing Agreements were signed and the intangible signature bonus was recognized, in the amount of R$729, paid as an advance in February 2023.
| 41 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 19 | Impairment |
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Recognition of (loss) / reversal | ||||
| Property, plant and equipment | (1,946) | (1,962) | (420) | (416) |
| Intangible | − | − | − | (6) |
| Property, plant and equipment and intangible | (1,946) | (1,962) | (420) | (422) |
| Assets held for sale | − | − | (427) | (421) |
| (1,946) | (1,962) | (847) | (843) | |
| Investments | − | 8 | (13) | (57) |
| Net effect in the statement of income | (1,946) | (1,954) | (860) | (900) |
| Recognition of loss | (2,099) | (2,210) | (1,052) | (1,105) |
| Reversal of loss | 153 | 256 | 192 | 205 |
The company assesses the recoverability of assets annually or when there is an indication of devaluation or reversal of impairment losses recognized in previous years. In the period from January to June 2023, net losses were recognized in the statement of income due to depreciation in Property, Plant and Equipment, in the amount of R$ 1,962, highlighting:
| · | Assessment of the recoverability of the RNEST's 2nd Train resulted in the recognition of impairment losses in the amount of R$ 1,858, mainly due to: (i) reassessment of the RNEST Project, with a review of the project's scope of logistic infrastructure, impacting on the increase in investments required for the implementation of the 2nd Train; (ii) increase in the discount rate to 7.4% p.a. (7.1% p.a. in December 2022); and (iii) dollar decline, negatively impacting value in use. |
In the period from January to June 2022, net losses due to devaluation in the amount of R$ 843 were recognized in the statement of income, mainly due to the following reasons:
| · | Permanent shutdown of the P-35 platform in the Marlim field, which led to the exclusion of this asset from the North Pole CGU and classification as an isolated asset, with the recognition of impairment losses in the amount of R$ 262; |
| · | Approval of the sale of the Golfinho Pole, which comprises the fields of Golfinho, oil producer, and Canapu, producer of non-associated gas, and exploratory block BM-ES-23. As a result of this operation, the company assessed the recoverability of the carrying amount of the complex's assets, considering the net fair value of selling expenses, which resulted in the recognition of impairment losses in the amount of R$ 258; |
| · | Approval of the sale of the Refinaria de Lubrificantes e Derivados de Petróleo do Nordeste (LUBNOR), in the state of Ceará, which led to its exclusion from the CGU Refining, Transportation and Marketing (RTM) and classification as an isolated asset. As a result of this operation, the company assessed the recoverability of the refinery's book value, considering the fair value net of selling expenses, which resulted in the recognition of impairment losses in the amount of R$ 222. |
| 42 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 20 | Exploration and evaluation of oil and gas reserves |
Changes in the balances of capitalized costs directly associated with exploratory wells pending determination of proved reserves and the balance of amounts paid for obtaining rights and concessions for exploration of oil and natural gas (capitalized acquisition costs) are set out in the following table:
| Consolidated | ||
| 2023 | 2022 | |
| Jan-Jun | Jan-Jun | |
| Capitalized Exploratory Well Costs/Capitalized Acquisition Costs (1) | ||
| Property, plant and equipment | ||
| Opening Balance | 9,790 | 11,127 |
| Additions | 799 | 486 |
| Write-offs | (5) | (72) |
| Transfers | (227) | (210) |
| Cummulative translation adjustment | (24) | (37) |
| Final balance | 10,333 | 11,294 |
| Intangible | 13,074 | 14,322 |
| Capitalized Exploratory Well Costs / Capitalized Acquisition Costs | 23,407 | 25,616 |
| (1) Amounts capitalized and subsequently expensed in the same period have been excluded from this table. | ||
Exploratory costs recognized in the statement of income and cash flows related to the assessment and exploration of oil and natural gas are shown below:
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Geological and geophysical expenses | (949) | (1,598) | (403) | (681) |
| Exploration expenditures written off (includes dry wells and signature bonuses) | (32) | (197) | (341) | (455) |
| Contractual penalties on local content requirements | 37 | 36 | 545 | 536 |
| Other exploration expenses | (1) | (3) | 3 | (4) |
| (945) | (1,762) | (196) | (604) | |
| Cash used in: | ||||
| Operating activities | 950 | 1,601 | 400 | 685 |
| Investment activities | 1,191 | 1,528 | 4,452 | 4,847 |
| 2,141 | 3,129 | 4,852 | 5,532 | |
In 2022, Petrobras approved the signature, with the ANP, of a Term of Adjustment of Conduct (TAC) to offset local content fines related to:
| · | 22 concessions in which Petrobras has a 100% interest, located in the Barreirinhas, Campos, Espírito Santo, Parecis, Potiguar, Recôncavo, Santos, Sergipe-Alagoas and Solimões basins; and |
| · | 18 concessions in which Petrobras operates in partnership with other concessionaires, located in the Almada, Campos, Espírito Santo, Mucuri, Parnaíba, Pelotas, Pernambuco-Paraíba, Potiguar, Recôncavo, Santos and Sergipe basins. |
This TAC provides for the conversion of fines into investment commitments in Exploration and Production with local content. As a result, all administrative proceedings related to the collection of fines resulting from non-compliance with local content in these concessions were closed, resulting in the reversal of the provision and respective reduction in liabilities, in the amount of R$ 639 (in the period from January to June 2022) and R$ 2 (from January to June 2023).
On June 30, 2023, under the terms of these agreements, Petrobras undertakes to invest R$ 1,350 in local content by December 31, 2026.
| 43 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 21 | Collateral for crude oil exploration concession agreements |
Petrobras has granted collateral to the ANP in the total amount of R$ 8,767 for the Minimum Exploratory Programs established in the concession agreements for petroleum exploration areas, which are in force and net of commitments undertaken. Of this amount, R$8,502 corresponds to the pledge of crude oil from previously identified fields that are already in the production phase and R$265 refers to bank guarantees.
| 22 | Investments |
22.1Changes in investment (Parent Company)
| Controlled companies | Joint operations | Jointly controlled companies |
Associates (2) |
Total | |
| Balance at December 31, 2022 | 266,054 | 130 | 113 | 5,130 | 271,427 |
| Investments | − | − | 49 | − | 49 |
| Restructuring, capital decrease and others | (389) | − | − | − | (389) |
| Results in equity-accounted investments | 10,532 | 22 | (7) | (256) | 10,291 |
| Cumulative translation adjustments | (21,557) | − | − | (916) | (22,473) |
| Other comprehensive income | 98 | − | (2) | 1,019 | 1,115 |
| Dividends | (686) | (32) | (34) | (5) | (757) |
| Balance at June 30, 2023 | 254,052 | 120 | 119 | 4,972 | 259,263 |
| Controlled companies | Joint operations | Jointly controlled companies |
Associates (2) |
Total | |
| Balance at December 31, 2021 | 264,102 | 180 | 109 | 5,434 | 269,825 |
| Investments | 9 | − | 74 | − | 83 |
| Transfer to held for sale | (9) | − | − | (282) | (291) |
| Restructuring, capital decrease and others | (517) | − | − | 5 | (512) |
| Results in equity-accounted investments (1) | 11,379 | 30 | 65 | 922 | 12,396 |
| Cumulative translation adjustments | (16,557) | − | − | (517) | (17,074) |
| Other comprehensive income | 189 | − | 2 | 764 | 955 |
| Dividends | (722) | (80) | (23) | (505) | (1,330) |
| Balance at June 30, 2022 | 257,874 | 130 | 227 | 5,821 | 264,052 |
| (1) In the statement of income, includes results of companies classified as held for sale in the amount of R$ 62, credit effect, on June 30, 2022. | |||||
| (2) Includes other investments. | |||||
22.2Changes in investment (Consolidated)
| Jointly controlled companies |
Associates (1) |
Total | |||
| Balance at December 31, 2022 | 2,855 | 5,317 | 8,172 | ||
| Investments | 49 | 39 | 88 | ||
| Restructuring, capital decrease and others | − | 6 | 6 | ||
| Results in equity-accounted investments | 274 | (199) | 75 | ||
| Cumulative translation adjustments | (214) | (936) | (1,150) | ||
| Other comprehensive income | (2) | 1,019 | 1,017 | ||
| Dividends | (282) | (5) | (287) | ||
| Balance at June 30, 2023 | 2,680 | 5,241 | 7,921 |
| Jointly controlled companies |
Associates (1) |
Total | |||
| Balance at December 31, 2021 | 2,839 | 5,588 | 8,427 | ||
| Investments | 74 | 29 | 103 | ||
| Transfers to held for sale | − | (282) | (282) | ||
| Restructuring, capital decrease and others | − | (69) | (69) | ||
| Results in equity-accounted investments | 792 | 970 | 1,762 | ||
| Cumulative translation adjustments | (151) | (525) | (676) | ||
| Other comprehensive income | 2 | 764 | 766 | ||
| Dividends | (533) | (505) | (1,038) | ||
| Balance at June 30, 2022 | 3,023 | 5,970 | 8,993 | ||
| (1) Includes other investments. | |||||
| 44 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 23 | Disposal of assets and other transactions |
The Company has an active portfolio, which takes into account opportunities of partnerships, acquisitions and disposal of non-strategic assets in several areas in which it operates, whose development of transactions also depends on conditions beyond the control of the Company.
On April 3, 2023, the Company’s Board of Executive Officers informed that the revision of divestment processes will be carried out within the scope of the adjustments to the Strategic Plan.
On June 1, 2023, the company's Board of Directors approved the review of the strategic elements to be considered in the 2024-2028 Strategic Plan.
The major classes of assets and related liabilities classified as held for sale are shown in the following table:
| Consolidated | |||||
| 06.30.2023 | 12.31.2022 | ||||
| E&P | RT&M | Corporate and other segments | Total | Total | |
| Assets classified as held for sale | |||||
| Inventories | − | 148 | − | 148 | 108 |
| Investments | 1 | 1 | − | 2 | 2 |
| Property, plant and equipment | 1,674 | 110 | − | 1,784 | 18,713 |
| Others | − | 3 | − | 3 | − |
| Total | 1,675 | 262 | − | 1,937 | 18,823 |
| Liabilities on assets classified as held for sale | |||||
| Finance debt | − | − | 648 | 648 | 694 |
| Provision for decommissioning costs | 1,397 | − | − | 1,397 | 6,952 |
| Total | 1,397 | − | 648 | 2,045 | 7,646 |
23.1Sales pending closing on June 30, 2023
In operations carried out in prior periods, the main assets and liabilities classified as held for sale include:
i. Lubrificantes e Derivados de Petróleo do Nordeste Refinery (LUBNOR) and associated logistical assets, in Ceará; and
ii. Total participation in the sets of maritime concessions called Golfinho Pole and Camarupim Pole, in Espírito Santo.
The description of these operations was presented in the explanatory note 30.1 of the financial statements of December 31, 2022 and are subject to the fulfillment of certain precedent conditions.
Additionally, from January to June 2023, no new contracts were signed.
23.2Closed sales until June 30, 2023
The main asset sales operations are presented below:
| 45 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Transaction | Acquirer |
Signature date (S) Closing date (C) |
Sale amount (1)(2) | Closing amount in other currencies(3) | Gain/ (loss) (4) | Further infor-mation |
| Sale of the entire interest in the Albacora Leste production field, located in the Campos Basin | Petro Rio Jaguar Petróleo LTDA (PetroRio), subsidiary of PRio S.A |
Apr/2022 Jan/2023 |
9,654 | US$ 1,928 | 2,898 | a |
| Sale of the entire interest in a set of four concessions of onshore production fields, with integrated facilities, located in the state of Espírito Santo, jointly known as Norte Capixaba Pole. | Seacrest Petróleo SPE Norte Capixaba Ltda., wholly-owned company of Seacrest Exploração e Produção de Petróleo Ltda. |
Feb/2022 Apr/2023 |
2,406 | US$ 474 | 1,715 | b |
| Sale of the entire interest in a set of 22 concessions of onshore and shallow water production fields, together with its processing, refining, logistics, storage, transport and oil and natural gas transport infrastructure, located in the Potiguar Basin, in the state of Rio Grande do Norte, jointly known as the Potiguar Pole. | 3R Potiguar S.A., wholly-owned company of 3R Petroleum Óleo e Gás S.A. |
Jan/2022 Jun/2023 |
7,123 | US$ 1,445 | 2,250 | c |
| 19,183 | 6,863 |
(1) Amount agreed at the signing of the transaction, plus closing price adjustment, when provided for in the contract.
(2) The amount of “Receivables from the sale of assets (Divestments) in the Statement of Cash Flows” is mainly composed of amounts from the Divestment Program: partial receipt of operations from this year, installments of operations from previous years and advances related to operations not concluded.
(3) Contract value and price adjustments of transactions traded in currencies other than the real.
(4) Recognized in "Results from disposals, write-off of assets and result from the remeasurement of equity interests" - explanatory note 6 - Other (expenses) net operating income.
a) Sale of the Albacora Leste Field
The operation was concluded after the fulfillment of precedent conditions, with the receipt, in cash, of R$ 8,455 (US$ 1,635 million), already with the adjustments foreseen in the contract, which is added to the receipt in the sale of US$ 293 million on the date of execution of the contract. In addition to this amount, Petrobras is expected to receive up to US$ 250 million in contingent payments, depending on future Brent prices.
b) Sale of assets in the Capixaba North Pole
The operation was completed with the receipt of R$ 2,169 (US$ 427 million) in cash, with the adjustments provided for in the contract. This amount is added to the amount of US$ 36 million received when the contract was signed. In addition to this amount, it is expected to receive up to US$ 66 million in contingent payments, depending on future Brent prices. Of this contingent portion, US$ 11 million was recognized in April 2023.
c) Sale of assets at the Potiguar Pole
The operation was concluded with receipt of R$ 5,408 (US$ 1,100 million), already with adjustments provided for in the contract. This amount is added to US$ 110 million received on the date of signature of the contract, in addition to the amount of US$ 235 million to be received in 4 equal annual installments, starting in March 2024.
23.3Contingent assets from disposed investments and other transactions
Some asset sales and agreements entered into by the company provide for receipts conditioned to contractual clauses, especially related to the Brent variation in operations related to E&P assets.
The operations that can generate recognition of gain, recorded in other operating income, are presented below:
| 46 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Transactions | Closing date |
At the closing of the operation US$ million |
Asset recognized in the period from January to June 2023 |
Asset recognized in previous periods US$ million | |
| US$ million | R$ | ||||
| Sales in previous Years | |||||
| Riacho da Forquilha group of fields | Dec/2019 | 62 | 7 | 34 | 28 |
| Pampo and Enchova group of fields | Jul/2020 | 650 | − | − | 180 |
| Baúna field | Nov/2020 | 285 | − | − | 132 |
| Ventura Pole | Jul2021 | 43 | − | − | 43 |
| Miranga Pole | Dec/2021 | 85 | − | − | 55 |
| Cricaré Pole | Dec/2021 | 118 | − | − | 22 |
| Peroá Pole | Aug/2022 | 43 | − | − | 10 |
| Papa-Terra | Dec/2022 | 90 | 1 | 3 | 15 |
| Sales in the period | |||||
| Albacora Leste field | Jan/2023 | 250 | − | − | − |
| Norte Capixaba Pole | Apr/2023 | 66 | 11 | 54 | - |
| Surplus volume of the Transfer of Rights Agreement | − | ||||
| Sepia and Atapu | Apr/2022 | 5,244 | 25 | 130 | 693 |
| Total | 44 | 221 | 1,178 | ||
| 24 | Finance debt |
24.1Balance by type of finance debt
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Banking Market | 6,283 | 6,705 |
| Capital Market | 15,414 | 15,108 |
| Development banks (1) | 3,544 | 3,770 |
| Others | 16 | 19 |
| Total in Brazil | 25,257 | 25,602 |
| Banking Market | 36,006 | 43,759 |
| Capital Market | 68,265 | 73,368 |
| Export Credit Agency | 10,553 | 12,745 |
| Others | 775 | 812 |
| Total abroad | 115,599 | 130,684 |
| Total finance debt | 140,856 | 156,286 |
| Current | 19,897 | 18,656 |
| Noncurrent | 120,959 | 137,630 |
(1) Includes BNDES, FINAME, and FINEP.
The amount classified in current liabilities is composed of:
| Consolidated | ||
| 06.30.2023 | 12.31.2022 | |
| Short-term debt | 42 | − |
| Current portion of long-term debt | 17,474 | 16,231 |
| Accrued interest on short and long-term debt | 2,381 | 2,425 |
| Total | 19,897 | 18,656 |
The capital market balance is mainly composed of R$65,273 in global notes, issued abroad by PGF, R$9,925 in debentures and R$4,707 in book-entry commercial notes, issued in Brazil by Petrobras.
The global notes mature between 2024 and 2115 and do not require collateral. Such financing was carried out in dollars, euros and pounds, being 87%, 2% and 11% of the total global notes, respectively.
The debentures and commercial notes, due between 2024 and 2037, do not require real guarantees and are not convertible into shares or equity interests.
As of June 30, 2023, there were no defaults, breaches of covenants (breaches) or adverse changes in clauses that resulted in changes in the payment terms of loan and financing agreements. There was no change in the guarantees required in relation to December 31, 2022.
| 47 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
24.2 Changes
| Consolidated | |||
| Brazil | Abroad | Total | |
| Balance at December 31, 2022 | 25,602 | 130,684 | 156,286 |
| Proceeds from financing | 61 | 254 | 315 |
| Repayment of principal (1) | (1,073) | (6,182) | (7,255) |
| Repayment of interest (1) | (744) | (4,266) | (5,010) |
| Charges incurred in the period (2) | 1,075 | 4,446 | 5,521 |
| Monetary and exchange variations | 418 | (850) | (432) |
| Cumulative translation adjustment | − | (8,487) | (8,487) |
| Modification of contractual cash flows | (82) | − | (82) |
| Balance at June 30, 2023 | 25,257 | 115,599 | 140,856 |
| Consolidated | |||
| Brazil | Abroad | Total | |
| Balance at December 31, 2021 | 25,209 | 174,015 | 199,224 |
| Proceeds from financing | − | 1,645 | 1,645 |
| Repayment of principal (1) | (886) | (25,589) | (26,475) |
| Repayment of interest (1) | (646) | (4,091) | (4,737) |
| Charges incurred in the period (2) | 1,017 | 4,807 | 5,824 |
| Monetary and exchange variations | 542 | (2,766) | (2,224) |
| Cumulative translation adjustment | − | (10,613) | (10,613) |
| Balance at June 30, 2022 | 25,236 | 137,408 | 162,644 |
| (1) Includes prepaymments. | |||
| (2)Includes appropriations of goodwill, discounts and associated transaction costs. | |||
In the period from January to June 2023, the Company repaid several finance debts, in the amount of R$ 12,669.
The Company carried out an exchange operation under the terms of a debt in the domestic banking market in the amount of R$ 2,500, changing the term from 2024 to 2030. The modification of the contractual terms was not substantial and resulted in a gain of R$ 82 per modification.
| 48 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
24.3Reconciliation with cash flows from financing activities - Consolidated
| 2023 | 2022 | |||||
| Jan-Jun | Jan-Jun | |||||
| Proceeds from financing | Repayment of principal | Repayment of interest | Proceeds from financing | Repayment of principal | Repayment of interest | |
| Changes in financing | 315 | (7,255) | (5,010) | 1,645 | (26,475) | (4,737) |
| Debt reestructuring | − | 1 | − | − | (538) | − |
| Related deposits (1) | − | (300) | (105) | − | (27) | (3) |
| Cash flows from financing activities | 315 | (7,554) | (5,115) | 1,645 | (27,040) | (4,740) |
| (1)Amounts deposited for payment of obligations related to financing obtained from the China Development Bank (CDB), with semi-annual settlements in June and December. | ||||||
24.4Summarized information on current and non-current finance debt
| Consolidated | |||||||||
| Maturity in | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 onwards | Total (1) | Fair value | |
| Financing in U.S. Dollars (US$): | 8,258 | 15,600 | 12,378 | 7,363 | 11,876 | 48,290 | 103,765 | 104,007 | |
| Floating rate debt (2) | 7,295 | 12,906 | 9,317 | 5,508 | 8,385 | 3,141 | 46,552 | ||
| Fixed rate debt | 963 | 2,694 | 3,061 | 1,855 | 3,491 | 45,149 | 57,213 | ||
| Average interest rate (p.a) | 6.6% | 6.8% | 6.1% | 6.3% | 5.9% | 6.6% | 6.6% | ||
| Financing in Brazilian Reais (R$): | 1,370 | 2,583 | 1,148 | 2,321 | 647 | 17,189 | 25,258 | 26,033 | |
| Floating rate debt(3) | 435 | 209 | 704 | 704 | 200 | 9,563 | 11,815 | ||
| Fixed rate debt | 935 | 2,374 | 444 | 1,617 | 447 | 7,626 | 13,443 | ||
| Average interest rate (p.a) | 6.2% | 7.1% | 6.9% | 6.7% | 7.0% | 6.8% | 6.8% | ||
| Financing in Euro (€): | − | 138 | 1,427 | − | − | 2,885 | 4,450 | 4,341 | |
| Fixed rate debt | − | 138 | 1,427 | − | − | 2,885 | 4,450 | ||
| Average interest rate (p.a) | - | 4.7% | 4.7% | − | − | 4.7% | 4.7% | ||
| Financing in Pound Sterling (£): | 170 | 76 | − | 2,829 | − | 4,308 | 7,383 | 6,685 | |
| Fixed rate debt | 170 | 76 | − | 2,829 | − | 4,308 | 7,383 | ||
| Average interest rate (p.a) | 6.2% | 6.3% | − | 6.2% | − | 6.5% | 6.3% | ||
| Total on June 30, 2023 | 9,798 | 18,397 | 14,953 | 12,513 | 12,523 | 72,672 | 140,856 | 141,066 | |
| Average interest rate (p.a) | 6.5% | 6.7% | 6.2% | 6.3% | 6.1% | 6.6% | 6.6% | − | |
| Total on December 31, 2022 | 18,656 | 20,577 | 16,061 | 13,164 | 15,096 | 72,732 | 156,286 | 155,766 | |
| Average interest rate (p.a) | 6.7% | 6.5% | 6.1% | 6.2% | 6.0% | 6.6% | 6.5% | − | |
| (1)The average maturity of outstanding debt as of June 30, 2023 is 12.12 years (12.07 years as of December 31, 2022). | |||||||||
(2) Operations with variable index plus fixed spread.
(3) Operations with variable index plus fixed spread, as applicable.
As of June 30, 2023, the fair values of financing are mainly determined by using:
Level 1 - prices quoted in active markets, when applicable, in the amount of R$ 63,594 (R$ 68,146, on December 31, 2022); and
Level 2 - cash flow method discounted by the spot rates interpolated from the indexes (or proxies) of the respective financing, observed to the pegged currencies, and by the credit risk of Petrobras, in the amount of R$ 77,472 (R$ 87,620, on December 31, 2022).
Regarding the Interest Rate Benchmark Reform (IBOR Reform), there will be a need to amend all the Company's contracts referenced in these indexes, considering the end of the publication of LIBOR (London Interbank Offered Rate) in dollars (US$), of one, three and six months, on June 30, 2023.
As of June 30, 2023, approximately 27.9% of the Company's finance debt is originally indexed to LIBOR. Throughout July 2023, there were renegotiations for contractual amendments so that the SOFR (Secured Overnight Financing Rate) was established as the new index, with the CSA (Credit Spread Adjustment) indicated by the regulatory bodies serving as a parameter. As the renegotiations of current contracts are being carried out under market conditions, the Company does not expect that there will be material effects when this process is completed.
The renegotiations were carried out only to change the LIBOR index and are necessary as a direct consequence of the reform of the reference interest rate, as well as the renegotiated cash flows are economically equivalent to the previous basis. Thus, the change will be prospective with the recognition of interest at the new index in the periods applicable to the changes made.
| 49 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
The sensitivity analysis for financial instruments subject to foreign exchange variation is set out in note 27.3.
A maturity schedule of the Company’s finance debt (undiscounted), including face value and interest payments is set out as follows:
| Consolidated | ||||||||
| Maturity | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 onwards | 06.30.2023 | 12.31.2022 |
| Principal | 7,349 | 18,464 | 15,415 | 12,890 | 12,865 | 76,725 | 143,708 | 165,419 |
| Interest | 4,692 | 8,968 | 7,500 | 6,654 | 5,551 | 84,185 | 117,550 | 129,478 |
| Total (1) | 12,041 | 27,432 | 22,915 | 19,544 | 18,416 | 160,910 | 261,258 | 294,897 |
|
(1)The nominal flow of leases is found in note 25. . | ||||||||
24.5Lines of credit
| 06.30.2023 | |||||||||
| Company | Financial institution | Date | Maturity |
Available (Lines of Credit) |
Used | Balance | |||
| Abroad (in US$ million) | |||||||||
| PGT BV | Syndicate of banks | 12/16/2021 | 11/16/2026 | 5.000 | − | 5.000 | |||
| PGT BV (1) | Syndicate of banks | 03/27/2019 | 02/27/2026 | 2.050 | − | 2.050 | |||
| Total | 7.050 | 7.050 | |||||||
| In Brazil | |||||||||
| Petrobras | Banco do Brasil | 03/23/2018 | 09/26/2026 | 2,000 | − | 2,000 | |||
| Petrobras | Banco do Brasil | 10/04/2018 | 09/05/2025 | 2,000 | − | 2,000 | |||
| Transpetro | Caixa Econômica Federal | 11/23/2010 | Not defined | 329 | − | 329 | |||
| Total | 4,329 | − | 4,329 | ||||||
| (1) On June 30, 2023, Petrobras reduced part of the Revolving Credit Facility to US$ 2,050 million compared to the US$ 3,250 million contracted in 2019. Thus, US$ 2,050 million will be available for withdrawal from July 1st, 2023, to February 27, 2026. | |||||||||
| 25 | Lease liabilities |
Changes in lease agreements recognized as liabilities are shown below:
| Consolidated | |||
| Brazil | Abroad | Total | |
| Balance at December 31, 2022 | 31,411 | 93,006 | 124,417 |
| Remeasurement/New agreements | 3,730 | 30,273 | 34,003 |
| Payment of principal and interest (1) | (5,266) | (9,233) | (14,499) |
| Charges incurred in the period | 1,204 | 2,691 | 3,895 |
| Monetary and Exchange variation | (1,165) | (8,033) | (9,198) |
| Cumulative translation adjustments | − | (98) | (98) |
| Transfers | (1) | − | (1) |
| Balance at June 30, 2023 | 29,913 | 108,606 | 138,519 |
| Current | 29,921 | ||
| No Current | 108,598 | ||
(1) The Statement of Cash Flows has R$ 1 related to the changes on liabilities held for sale.
| Consolidated | |||
| Brazil | Abroad | Total | |
| Balance at December 31, 2021 | 25,695 | 102,899 | 128,594 |
| Remeasurement / New agreements | 4,761 | 2,571 | 7,332 |
| Payment of principal and interest | (3,972) | (9,641) | (13,613) |
| Charges incurred in the period | 818 | 2,447 | 3,265 |
| Monetary and Exchange variation | (830) | (6,413) | (7,243) |
| Cumulative translation adjustments | − | (161) | (161) |
| Transfers | − | (181) | (181) |
| Balance at June 30, 2022 | 26,472 | 91,521 | 117,993 |
| Current | 27,363 | ||
| No Current | 90,630 | ||
As of June 30, 2023, the value of the lease liability of Petrobras Holding is R$ 144,843 (R$ 132,160 as of December 31, 2022), including leases and subleases with investee companies, mainly vessels with PNBV and Transpetro.
The nominal flow (not discounted) without considering the projected future inflation in the flows of the lease contracts, by maturity, is presented below:
| 50 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Consolidated | |||||||
| Maturity in | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 onwards | Total |
| Nominal value on June 30, 2023 | 16,458 | 27,527 | 20,936 | 15,108 | 12,812 | 109,714 | 202,555 |
| Nominal value on December 31, 2022 | 29,797 | 24,115 | 17,640 | 12,492 | 11,071 | 75,646 | 170,761 |
In certain contracts, there are variable payments and amounts less than 1 year recognized as an expense:
| Consolidated | ||||
| 2023 | 2022 | |||
| Jan-Jun | Jan-Jun | |||
| Variable payments | 2,991 | 3,023 | ||
| Up to 1 year maturity | 259 | 431 | ||
| Variable payments x fixed payments | 21% | 22% | ||
At June 30, 2023, the nominal amounts of lease agreements for which the lease term has not commenced, as they relate to assets under construction or not yet available for use, is R$ 351,771 (R$ 416,962 at December 31, 2022).
The sensitivity analysis of financial instruments subject to exchange variation is presented in note 27.3.
| 26 | Equity |
26.1 Share capital
As of June 30, 2023 and December 31, 2022, the subscribed and paid-in capital in the amount of R$205,432 is represented by 13,044,496,930 shares, of which R$117,208 refer to 7,442,454,142 common shares and R$88,224 refer to 5,602,042,788 preferred shares, all registered, book-entry shares and with no par value.
Preferred shares have priority in the case of capital reimbursement, do not guarantee voting rights and are not convertible into common shares.
There are shares owned by Petrobras that are held in treasury in the amount of R$7 (R$7 on December 31, 2022), represented by 295,669 shares, of which 222,760 are common shares and 72,909 are preferred shares.
| 26.2 | Remuneration to shareholders |
Dividends for the year 2022
On April 27, 2023, the Annual Shareholders' Meeting approved dividends for the year 2022, in the amount of R$222,560, corresponding to R$17.06202044 per outstanding preferred and common share. This amount includes advance payment to shareholders, monetarily restated by the Selic rate variation from the payment date to December 31, 2022, in the amount of R$186,745, and the additional dividend of R$35,815 which, on December 31, 2022, was highlighted in shareholders' equity as an additional proposed dividend.
Complementary dividends of R$ 35,815, equivalent to R$ 2.74573369 per outstanding preferred and common share, were reclassified from shareholders' equity to liabilities on the date of approval of the Annual Shareholders' Meeting. The first and second installments were paid on May 19 and June 16, 2023, respectively. The third and final installment will be paid on December 27, 2023 with monetary restatement based on the Selic rate variation from December 31, 2022 until the date of payment.
Anticipation of dividends related to 2023 fiscal year
On May 11, 2023, the Board of Directors approved the distribution of remuneration to shareholders in the total amount of R$24,700 (R$1.893577 per outstanding preferred and common share), based on the result for the period from January to March 2023 (interim dividends), as shown in the table below:
| 51 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Remuneration to shareholders of Petrobras | ||||
| Date of approval | Date of record | Amount per common and preferred share (R$) | Amount | |
| Interim dividends | 05.11.2023 | 06.12.2023 | 1.224968 | 15,979 |
| Interim interest on capital | 05.11.2023 | 06.12.2023 | 0.668609 | 8,721 |
| Total distribution to shareholders | 1.893577 | 24,700 | ||
These dividends and interest on capital will be paid in two equal installments of R$12,350, on August 18 and September 20, 2023, and will be included in the remuneration proposal that will be distributed to shareholders at the close of the fiscal year 2023. The amounts will be monetarily restated, according to the variation of the Selic rate, from the date of effective payment of each installment until the end of the referred fiscal year, on December 31, 2023.
The anticipated interest on capital for the year 2023 resulted in an income tax and social contribution tax credit of R$ 2,965. Interest is subject to withholding income tax of 15%, except for immune and exempt shareholders, as established in Law No. 9,249/95.
Dividends payable
On June 30, 2023, the balance of dividends payable to the parent company's shareholders, in the amount of R$30,822, corresponds to the third and last installment of the supplementary dividends for 2022 in the amount of R$6,919, monetarily restated by the Selic rate variation , as well as the anticipation of dividends of R$ 23,903, net of withholding income tax on interest on capital, referring to the first quarter of 2023.
| Parent Company | ||
| 2023 | 2022 | |
| Jan-Jun | Jan-Jun | |
| Change on dividends payable | ||
| Initial balance | 21,751 | − |
| Addition by resolution of the Ordinary General Meeting | 35,815 | 37,320 |
| Addition by decision of the Board of Directors (anticipations) | 24,700 | 48,466 |
| Payment | (52,398) | (62,029) |
| Monetary restatement (1) | 2,143 | 1,424 |
| Transfers (unclaimed dividends) | (218) | (293) |
| Withholding income tax on interest on capital and monetary restatement (2) | (971) | (655) |
| Final balance | 30,822 | 24,233 |
| (1) Includes monetary restatement of R$1,721 on dividends paid and R$422 on dividends payable. | ||
| (2) Includes withholding income tax on interest on capital and monetary restatement of R$175, referring to dividends paid and R$796 on dividends approved in the 1st quarter of 2023. | ||
From January to June 2023, Petrobras made the following dividend payments:
| Events | Date of payment | Deliberate amount | Monetary restatement | Withholding income tax on interest on capital and monetary restatement | Unclaimed dividends |
Total paid |
| Dividends and interest on capital for the 3rd quarter of 2022 (1) | 01/19/2023 | 21,751 | 156 | (16) | (101) | 21,790 |
| Complementary dividends for 2022 - 1st installment | 05/19/2023 | 17,908 | 885 | (90) | (85) | 18,618 |
| Complementary dividends for 2022 - 2nd installment | 06/16/2023 | 11,411 | 680 | (69) | (55) | 11,967 |
| Dividends from previous events | Jan-Jun/2023 | − | − | − | 23 | 23 |
| Total | 51,070 | 1,721 | (175) | (218) | 52,398 |
(1) Deliberated gross amount of R$ 21,841, net of withholding income tax on interest on capital of R$ 90 paid in 2022.
Unclaimed dividends
On June 30, 2023, the balance of dividends not claimed by Petrobras shareholders represents R$ 1,444 (R$ 1,258 on December 31, 2022) recorded in other current liabilities, as per note 16. The payment of these dividends was not made due to the existence of unresolved registration issues that are the responsibility of the shareholders with the bank that holds the shares and with Petrobras itself.
| 52 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Parent Company | ||
| 2023 | 2022 | |
| Jan-Jun | Jan-Jun | |
| Change on unclaimed dividends | ||
| Initial balance | 1,258 | 451 |
| Prescription | (32) | − |
| Transfers (dividends payable) | 218 | 293 |
| Final balance | 1,444 | 744 |
26.3Earnings per share
| 2023 | 2023 | 2022 | 2022 | |
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Basic and diluted denominator – Net income attributable to shareholders of Petrobras attributable equally between share classes | ||||
| Net income of the period | ||||
| Common | 16,421 | 38,191 | 30,997 | 56,421 |
| Preferred | 12,361 | 28,747 | 23,333 | 42,470 |
| 28,782 | 66,938 | 54,330 | 98,891 | |
| Basic and diluted denominator - Weighted average number of outstanding shares (number of shares) | ||||
| Common | 7,442,231,382 | 7,442,231,382 | 7,442,231,382 | 7,442,231,382 |
| Preferred | 5,601,969,879 | 5,601,969,879 | 5,601,969,879 | 5,601,969,879 |
| 13,044,201,261 | 13,044,201,261 | 13,044,201,261 | 13,044,201,261 | |
| Basic and diluted earnings per share (R$ per share) | ||||
| Common | 2.20 | 5.13 | 4.16 | 7.58 |
| Preferred | 2.20 | 5.13 | 4.16 | 7.58 |
Basic earnings per share are calculated by dividing the net income attributable to shareholders of Petrobras by the weighted average number of outstanding shares during the period.
Diluted earnings per share are calculated by adjusting the net income attributable to shareholders of Petrobras and the weighted average number of outstanding shares during the period taking into account the effects of all dilutive potential shares (equity instrument or contractual arrangements that are convertible into shares).
Basic and diluted earnings are identical as the Company has no potentially dilutive shares.
| 27 | Risk management |
The Company presents a sensitivity analysis of factors relating to its corporate risk management process. The possible and remote scenarios are related to events with low and very low probability of occurrence, respectively. The period of application of the sensitivity analysis is one year, except for operations with commodity derivatives, for which a three-month period is applied, due to the short-term nature of these transactions.
27.1Derivative financial instruments
The following tables present a summary of the positions held by the company as of June 30, 2023, recognized as other current assets and liabilities, in addition to the amounts recognized in income, other comprehensive income for the period and guarantees given as collateral by nature of the operations:
| 53 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Statement of Financial Position | |||||
| Fair value | |||||
| Notional value | Asset Position (Liability) | Maturity | |||
| 06.30.2023 | 12.31.2022 | 06.30.2023 | 12.31.2022 | ||
| Derivatives not designated for hedge accounting | |||||
| Future contracts (1) | 1,809 | 683 | (57) | (209) | |
| Long position/Crude oil and oil products | 10,380 | 9,058 | − | − | 2023 |
| Short position/Crude oil and oil products | (8,571) | (8,375) | − | − | 2023 |
| Swap (2) | |||||
| Long position/ Soybean oil (2) | (10) | (3) | (8) | (1) | 2023 |
| Forward contracts | |||||
| Short position/Foreign currency forwards (BRL/USD) (3) | (9) | − | 1 | − | 2023 |
| Swap | |||||
| Swap - CDI X IPCA | 3,008 | 3,008 | 295 | (82) | 2029/2034 |
| Foreign currency / Cross-currency Swap (3) | US$ 729 | US$ 729 | (98) | (336) | 2024/2029 |
| Total recognized in the Statement of Financial Position | 133 | (628) | |||
| (1) Notional value in thousands of bbl. | |||||
| (2) Notional value in thousands of tons (PBIO operations). | |||||
|
(3) Amounts in US$ are presented in million. | |||||
| Gains/ (losses) recognized in the statement of income | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Commodity derivatives | ||||
| Other operations - 27.2 (a) | (47) | 363 | (809) | (1,091) |
| Recognized in Other Income and Expenses | (47) | 363 | (809) | (1,091) |
| Currency derivatives | ||||
| Swap Pound Sterling x Dollar | − | − | (622) | (780) |
| Swap CDI x Dollar - 27.3 (b) | 305 | 384 | (113) | 766 |
| Others | 3 | 2 | (1) | (2) |
| 308 | 386 | (736) | (16) | |
| Interest rate derivatives | ||||
| Swap - CDI X IPCA | 200 | 235 | (78) | (97) |
| 200 | 235 | (78) | (97) | |
| Cash flow hedge on exports - 27.3 (a) | (5,337) | (11,329) | (5,442) | (12,663) |
| Recognized in Net finance income (expense) | (4,829) | (10,708) | (6,256) | (12,776) |
| Total | (4,876) | (10,345) | (7,065) | (13,867) |
| Gains/ (losses) recognized in other comprehensive income | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Cash flow hedge on exports - 27.3 (a) | 21,871 | 35,554 | (26,965) | 40,164 |
| Guarantees given (received) as collateral | ||
| 06.30.2023 | 12.31.2022 | |
| Commodity derivatives | 250 | 499 |
| 250 | 499 | |
A sensitivity analysis of the derivative financial instruments for the different types of market risks as of June 30, 2023 is set out as follows:
| 54 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Consolidated | |||||||
| Financial Instruments | Risk | Probable Scenario |
Possible Scenario |
Remote Scenario | |||
| Derivatives not designated for hedge accounting | |||||||
| Future and Swap contracts | Crude oil and oil products - price changes | − | (445) | (889) | |||
| Future and Swap contracts | Soy oil - price changes | − | (13) | (26) | |||
| Forward contracts | Foreign currency - depreciation BRL x USD | − | (4) | (7) | |||
| − | (462) | (922) | |||||
The probable scenario uses references external to the Company, widely used in the pricing of cargo in the oil, oil products and natural gas market, which take into account the closing price of the asset on June 30, 2023, and therefore, it is considered that there is no variation in the result of open operations in this scenario. The possible and remote scenarios reflect the potential effect on the result of outstanding transactions, considering a variation in the closing price of 20% and 40%, respectively. To simulate the most unfavorable scenarios, the variation was applied to each product group according to the position of open operations: price drop for long positions and high for short positions.
27.2Risk management of crude oil and oil products prices
Petrobras prefers exposure to the price cycle to the systematic performance of protection of operations of purchase or sale of goods, whose objective is to meet its operational needs, with the use of derivative financial instruments. However, subject to the analysis of the business environment and the prospects for carrying out the Strategic Plan, the execution of an occasional hedging strategy with derivatives may be applicable.
a) Other commodity derivative transactions
Petrobras, using its assets, positions and proprietary and market knowledge from its operations in Brazil and abroad, seeks to capture market opportunities through the purchase and sale of oil and oil products, which can occasionally be optimized with the use of commodity derivative instruments to manage price risk in a safe and controlled manner.
27.3Foreign exchange risk management
a) Cash Flow Hedge involving the Company’s future exports
The reference values, at present value, of the hedging instruments as of June 30, 2023, in addition to the expectation of reclassification to the statement of income of the balance of exchange variation accumulated in shareholders' equity in future periods, based on a rate of R$/US$ of 4,8192, are shown below:
|
Present value of hedging instrument at 06.30.2023 | ||||||||||||
| Hedging Instrument | Hedged Transactions |
Nature of the Risk |
Maturity Date |
US$ million |
R$ | |||||||
| Foreign exchange gains and losses on proportion of non-derivative financial instruments cash flows | Foreign exchange gains and losses of highly probable future monthly exports revenues |
Foreign Currency – Real vs U.S. Dollar Spot Rate |
From Jul/2023 to Jun/2033 | 65,472 | 315,523 | |||||||
| Changes in the present value of hedging instrument (principal and interest) | US$ million | R$ |
| Amounts designated as of December 31, 2022 | 62,119 | 324,121 |
| Additional hedging relationships designated, designations revoked and hedging instruments re-designated | 15,874 | 80,388 |
| Exports affecting the statement of income | (3,547) | (18,145) |
| Principal repayments / amortization | (8,974) | (45,515) |
| Foreign exchange variation | − | (25,326) |
| Amount on June 30, 2023 | 65,472 | 315,523 |
| Nominal value of hedging instrument (finance debt and lease liability) on June 30, 2023 | 79,394 | 382,618 |
.
In the period from January to June 2023, an exchange gain of R$1,101 was recognized referring to the ineffectiveness in the exchange variation line (exchange loss of R$401 in the same period in 2022).
| 55 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
Future exports designated as hedged items in cash flow hedge relationships represent, on average, 54.5% of highly probable future exports.
The movement in the exchange variation accumulated in other comprehensive income as of June 30, 2023, to be realized by future exports, is shown below:
| Exchange rate variation | Tax effect |
Consolidaded
Total | |
| Balance at December 31, 2022 | (70,089) | 23,831 | (46,258) |
| Recognized in Shareholders’ Equity | 24,225 | (8,237) | 15,988 |
| Reclassified to the statement of income - occurred exports | 11,329 | (3,851) | 7,478 |
| Balance at June 30, 2023 | (34,535) | 11,743 | (22,792) |
| Exchange rate variation | Tax effect | Total | |
| Balance at December 31, 2021 | (123,622) | 42,034 | (81,588) |
| Recognized in Shareholders’ Equity | 27,501 | (9,350) | 18,151 |
| Reclassified to the statement of income - occurred exports | 12,663 | (4,306) | 8,357 |
| Balance at June 30, 2022 | (83,458) | 28,378 | (55,080) |
Changes in expectations of realization of export prices and volumes in future reviews of business plans may determine the need for additional reclassifications of accumulated exchange variation in shareholders' equity to the statement of income. A sensitivity analysis with an average Brent oil price lower in US$ 10/barrel than considered in the last revision of the Strategic Plan 2023-2027, would not indicate the need to reclassify the exchange variation from the shareholders’ equity to the statement of income.
The annual expectation of realization of the exchange variation balance accumulated in shareholders' equity as of June 30, 2023 is shown below:
| Consolidated | |||||||||
| 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 to 2033 | Total | ||
| Expected realization | (7,141) | (11,584) | (6,352) | (4,532) | (5,672) | (2,989) | 3,735 | (34,535) | |
b) Information on ongoing contracts
As of June 30, 2023, the company has swap contracts - IPCA x CDI and CDI x Dollar outstanding.
Swap contracts – IPCA x CDI and CDI x Dollar
In 2019, Petrobras entered into derivative operations with the objective of protecting itself from exposure arising from the 1st series of the 7th issue of debentures, with IPCA x CDI interest swap operations, maturing in September 2029 and September 2034, and operations of cross-currency swap CDI x Dollar, with maturities in September 2024 and September 2029.
In July 2022, the first debenture repurchase plan was approved, authorizing the acquisition of these securities to be held in treasury or resold. Until June 30, 2023, only an immaterial amount of this debt was repurchased. The position in derivative contracts of IPCA x CDI and CDI x Dollar remains unchanged.
Changes in future interest rate curves (CDI) may impact the company's results, due to the market value of these swap contracts. In preparing the sensitivity analysis on future interest rate curves, the parallel shock on this curve was estimated based on the average maturity of swaps and the methodology on the horizon of application of sensitivity, presented above. For the possible and remote scenarios, the impacts of variations of 40% (400 BP – basis points) and 80% (800 BP), respectively, on future interest rate curves were estimated. The effects of this sensitivity analysis, keeping all other variables constant, are shown in the table below:
| 56 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Possible Result | Remote Result | |
| SWAP foreign currency (IPCA x USD) | (49) | (95) |
The methodology used to calculate the fair value of this swap operation consists of calculating the future value of the operations, using rates agreed in each contract and the projections of the forward curves, IPCA coupon and foreign exchange coupon, discounting to present value using the risk-free rate. Curves are obtained from Bloomberg based on forward contracts traded in stock exchanges.
The mark-to-market is adjusted to the credit risk of the financial institutions, which is not relevant in terms of financial volume, since the Company deals in contracts with highly rated banks.
c) Sensitivity analysis for foreign exchange risk on financial instruments
The scenario considered probable is referenced by an external source, Focus and Thomson Reuters, based on the exchange rate forecast for the close of the next quarter. The possible and remote scenarios have the same references and consider the appreciation of the exchange rate at the end of the quarter (risk) at 20% and 40%, respectively, with the exception of the balances of assets and liabilities in foreign currency of subsidiaries abroad, when carried out in currency equivalent to their respective functional currencies. These analyzes cover only the exchange rate variation and keep all other variables constant.
| Financial Instruments | Exposure at 06.30.2023 | Risk | Probable Scenario (1) |
Reasonably possible scenario |
Remote Scenario |
| Assets | 32,630 | Dollar / Real | 1,224 | 6,526 | 13,052 |
| Liabilities | (473,971) | (17,782) | (94,794) | (189,588) | |
| Exchange rate - Cross currency swap | (3,008) | (113) | (602) | (1,203) | |
| Cash flow hedge on exports | 315,523 | 11,837 | 63,105 | 126,209 | |
| (128,826) | (4,834) | (25,765) | (51,530) | ||
| Assets | 6,561 | Euro / Dollar | 208 | 1,312 | 2,624 |
| Liabilities | (11,616) | (369) | (2,323) | (4,646) | |
| (5,055) | (161) | (1,011) | (2,022) | ||
| Assets | 7,601 | Pound Sterling/ Dollar | 56 | 1,520 | 3,040 |
| Liabilities | (14,791) | (110) | (2,958) | (5,916) | |
| (7,190) | (54) | (1,438) | (2,876) | ||
| Assets | 5 | Pound Sterling / Real | − | 1 | 2 |
| Liabilities | (133) | (6) | (27) | (53) | |
| (128) | (6) | (26) | (51) | ||
| Assets | 21 | Euro / Real | 1 | 4 | 8 |
| Liabilities | (55) | (4) | (11) | (22) | |
| (34) | (3) | (7) | (14) | ||
| Assets | 130 | Peso/Dollar | (66) | (22) | (39) |
| 130 | (66) | (22) | (39) | ||
| Total | (141,103) | (5,124) | (28,269) | (56,532) | |
| (1) The probable scenarios were calculated considering the following risk variations: Real x Dollar - devaluation of the real by 3.75% / Euro x Dollar - appreciation of the euro by 3.1% / Pound x Dollar - appreciation of the pound by 0.72% / Real x Euro - devaluation of the real by 6.9% / Real x Pound - devaluation of the real by 4.5%; / Peso X Dollar - Devaluation of the peso by 95.6%. Source: Focus and Thomson Reuters. | |||||
27.4Interest rate risk management
The company preferentially does not use derivative financial instruments to manage exposure to interest rate fluctuations, as they do not cause material impacts, except in specific situations presented by Petrobras subsidiaries.
The interest rate risk sensitivity analysis is performed for a 12-month horizon. The values referring to the possible and remote scenarios mean the total floating interest expense in the event of a variation of 40% and 80% in these interest rates, respectively, keeping all other variables constant.
The following table informs, in the probable scenario, the amount to be disbursed by Petrobras with the payment of interest related to debts with floating interest rate on June 30, 2023.
| 57 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Consolidated | |||
| Risk | Probable Scenario (1) |
Reasonably possible scenario |
Remote Scenario |
| LIBOR 3M | 58 | 75 | 92 |
| LIBOR 6M | 2,908 | 4,071 | 5,234 |
| SOFR 3M (2) | 437 | 570 | 704 |
| SOFR 6M (2) | 84 | 118 | 151 |
| CDI | 540 | 756 | 972 |
| TJLP | 272 | 380 | 489 |
| IPCA | 378 | 529 | 681 |
| 4,677 | 6,499 | 8,323 | |
|
(1) The probable scenario was calculated considering the quotations of currencies and floating rates to which the debts are indexed. (2) Represents the Secured Overnight Funding Rate. | |||
27.5Liquidity risk management
The possibility of insufficient cash to settle obligations on the scheduled dates is routinely managed by the company. Liquidity risk is also mitigated by defining reference parameters for managing cash and financial investments and by periodically analyzing projected cash flow risks, quantifying through Monte Carlo simulations its main risk factors, such such as oil prices, exchange rates, international gasoline and diesel prices, among others. In this way, it is possible to measure the need for financial availability for operational continuity and the execution of its strategic plan.
In this context, even these unaudited condensed consolidated interim financial statements presenting negative net working capital, the Company does not present liquidity risk.
Additionally, the company maintains committed credit facilities (revolving credit facilities) contracted as a liquidity reserve in adverse situations, as per note 24.5, and regularly assesses market conditions and may carry out repurchase transactions of its securities or those of its subsidiaries in the market international capital markets, through various means, including repurchase offers, security redemptions and/or open market operations, provided they are in line with the company's liability management strategy, which aims to improve the amortization profile and cost of the debt.
27.6Fair value of financial assets and liabilities
| Level I | Level II | Level III |
Total fair value recorded | |
| Assets | ||||
| Foreign currency derivatives | − | 1 | − | 1 |
| Interest rate derivatives | − | 295 | − | 295 |
| Balance at June 30, 2023 | − | 296 | − | 296 |
| Balance at December 31, 2022 | − | − | − | − |
| Liabilities | − | |||
| Foreign currency derivatives | − | (98) | − | (98) |
| Commodity derivatives | (57) | (8) | − | (65) |
| Balance at June 30, 2023 | (57) | (106) | − | (163) |
| Balance at December 31, 2022 | (209) | (419) | − | (628) |
The fair value of other financial assets and liabilities is presented in the respective notes: 3 – Marketable securities; 9 – Trade and other receivables; and 24 – Finance debt (estimated amount).
The fair values of cash and cash equivalents, current debt and other financial assets and liabilities are equivalent or do not differ significantly from their carrying amounts.
| 28 | Related-party transactions |
The company has a policy on Transactions with Related Parties that is reviewed and approved annually by the Board of Directors, as provided for in Petrobras' Bylaws.
The policy also aims to ensure adequate and diligent decision-making by the company's management.
| 58 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
28.1Commercial transactions per operation with investees (Parent Company)
| 06.30.2023 | 12.31.2022 | |||||
| Current | Non-current | Total | Current | Non-current | Total | |
| Assets | ||||||
| Trade and other receivables | ||||||
| Trade and other receivables, mainly from sales | 20,960 | − | 20,960 | 26,388 | − | 26,388 |
| Dividends receivable | 53 | − | 53 | 94 | − | 94 |
| Amounts related to construction of gas pipeline | − | 741 | 741 | − | 820 | 820 |
| Other operations | 30 | 196 | 226 | 678 | 200 | 878 |
| Advances to suppliers | 650 | 1,843 | 2,493 | 614 | 2,010 | 2,624 |
| Total | 21,693 | 2,780 | 24,473 | 27,774 | 3,030 | 30,804 |
| Liabilities | ||||||
| Lease liabilities (1) | (2,558) | (3,542) | (6,100) | (2,113) | (4,630) | (6,743) |
| Mutual operations | (676) | (64,926) | (65,602) | (1,093) | (52,569) | (53,662) |
| Prepayment of exports | (85,362) | (170,062) | (255,424) | (76,192) | (231,206) | (307,398) |
| Accounts payable to suppliers | (12,741) | − | (12,741) | (13,455) | − | (13,455) |
| Purchases of crude oil, oil products and others | (7,817) | − | (7,817) | (9,471) | − | (9,471) |
| Affreightment of platforms | (246) | − | (246) | (365) | − | (365) |
| Advances from clientes | (4,677) | − | (4,677) | (3,614) | − | (3,614) |
| Other operations | (1) | − | (1) | (5) | − | (5) |
| Total | (101,337) | (238,530) | (339,867) | (92,853) | (288,405) | (381,258) |
(1) Includes amounts referring to lease and sub-lease transactions between investees required by IFRS 16 / CPC 06 (R2) - Leases.
| Apr-Jun |
2023 Jan-Jun |
Apr-Jun |
2022 Jan-Jun | |
| Result | ||||
| Revenues, mainly sales revenues | 23,012 | 52,974 | 43,137 | 82,520 |
| Foreign exchange and inflation indexation charges, net (2) | 4,475 | 3,256 | (12,450) | (6,441) |
| Finance income (expenses), net (2) | (6,091) | (12,252) | (5,411) | (10,635) |
| Total | 21,396 | 43,978 | 25,276 | 65,444 |
| (2) Includes the amounts of R$ 118 of active exchange variation and R$ 263 of financial expenses related to leasing and subleasing operations required by IFRS 16 / CPC 06 (R2) (R$ 158 of active exchange variation and R$ 302 financial expense for the period from January to June 2022). | ||||
28.2Annual interest rates for loan operations
| Parent Company | ||
| Liability | ||
| 06.30.2023 | 12.31.2022 | |
| De 7.01 to 8% | (51,032) | (53,662) |
| De 8.01 to 9% | (14,570) | − |
| Total | (65,602) | (53,662) |
28.3Non-standardized credit rights investment fund (FIDC-NP)
The parent company maintains funds invested in the FIDC-NP that are mainly used for the acquisition of performing and / or non-performing credit rights for operations carried out by affiliates. The amounts invested are recorded in accounts receivable.
Assignments of credit rights, performed and not performed, are recorded as financing in current liabilities.
| Parent Company | ||
| 06.30.2023 | 12.31.2022 | |
| Accounts receivable, net | 29,010 | 40,007 |
| Credit rights assignments | (35,129) | (36,541) |
| 59 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Apr-Jun |
2023 Jan-Jun |
Apr-Jun |
2022 Jan-Jun | |
| Financial Income FIDC-NP | 1,440 | 2,725 | 2,281 | 3,331 |
| Financial Expenses FIDC-NP | (1,199) | (2,318) | (1,269) | (2,015) |
| Net finance income (expense) | 241 | 407 | 1,012 | 1,316 |
28.4Guarantees
Petrobras has the procedure of granting guarantees to its equity interests for certain financial operations carried out in Brazil and abroad. The financial operations carried out by these equity interests and guaranteed by Petrobras present a balance of R$ 101,870 to be settled on June 30, 2023 (R$ 113,815 on December 31, 2022).
The guarantees offered by Petrobras, mainly personal, non-remunerated, are based on contractual clauses that support financial transactions between subsidiaries/controlled companies and third parties, guaranteeing the assumption of compliance with a third party's obligation, if the original debtor fails to do so.
28.5Transactions with joint ventures, associates, government entities and pension plans
The company does, and expects to continue to do, business in the normal course of various transactions with its joint ventures, affiliates, pension funds, as well as with its controlling shareholder, the Brazilian federal government, which includes transactions with banks and other entities under its control, such as financing and banking services, asset management and others.
Significant transactions resulted in the following balances:
| Consolidated | ||||
| 06.30.2023 | 12.31.2022 | |||
| Asset | Liability | Asset | Liability | |
| Joint ventures and associates | ||||
| Petrochemical companies (associates) | 193 | 11 | 109 | 52 |
| Other associates and joint ventures | 377 | 23 | 377 | 111 |
| Subtotal | 570 | 34 | 486 | 163 |
| Brazilian government | ||||
| Government bonds | 8,817 | − | 8,812 | − |
| Banks controlled by the Brazilian Government | 67,429 | 8,731 | 61,625 | 8,178 |
| Petroleum and alcohol account - receivables from the Brazilian Government | 3,285 | − | 3,143 | − |
| Federal Government (1) | − | 10,641 | − | 7,419 |
| Pré-Sal Petróleo S.A. – PPSA | − | 307 | − | 296 |
| Others | 446 | 424 | 306 | 371 |
| Subtotal | 79,977 | 20,103 | 73,886 | 16,264 |
| Petros | 383 | 1,018 | 290 | 1,569 |
| Total | 80,930 | 21,155 | 74,662 | 17,996 |
| Current assets | 12,909 | 13,176 | 13,583 | 11,055 |
| Non-current assets | 68,021 | 7,979 | 61,079 | 6,941 |
(1) Includes lease amounts.
The effect on the result of significant transactions is presented below:
| 60 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| Consolidated | ||||
| 2023 | 2022 | |||
| Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | |
| Joint ventures and associates | ||||
| State-controlled gas distributors (1) | − | − | 3,062 | 6,064 |
| Petrochemical companies | 4,027 | 8,645 | 6,561 | 12,443 |
| Other associates and joint ventures | 54 | 99 | 301 | 454 |
| Subtotal | 4,081 | 8,744 | 9,924 | 18,961 |
| Brazilian government | ||||
| Government bonds | 267 | 542 | 249 | 469 |
| Banks controlled by the Brazilian Government | (118) | (85) | (251) | (142) |
| Petroleum and alcohol account - receivables from the Brazilian Government | 86 | 141 | 132 | 229 |
| Brazilian Government | (617) | (705) | (381) | (381) |
| Pré-Sal Petróleo S.A. – PPSA | (113) | (677) | (651) | (854) |
| Others | (345) | (545) | (80) | (19) |
| Subtotal | (840) | (1,329) | (982) | (698) |
| Petros | (25) | (48) | − | − |
| Total | 3,216 | 7,367 | 8,942 | 18,263 |
| Revenues, mainly sales revenues | 4,060 | 8,707 | 9,940 | 19,252 |
| Purchases and services | 8 | 16 | 7 | 29 |
| Operating income and expense | (467) | (1,235) | (768) | (1,231) |
| Foreign exchange and inflation indexation charges, net | (846) | (1,067) | (214) | (149) |
| Finance income (expenses), net | 461 | 946 | (23) | 362 |
| Total | 3,216 | 7,367 | 8,942 | 18,263 |
| (1) In July 2022, the Company disposed its entire interest in Gaspetro. | ||||
Liabilities with pension plans of the company's employees and managed by Fundação Petros, which include debt instruments, are presented in note 13.
28.6Compensation of key management personnel
The total remuneration of the members of the Board of Directors and Executive Board of Petrobras Holding are based on the guidelines established by the Secretariat for Coordination and Governance of State Companies - SEST, of the Ministry of Management and Innovation in Public Services, and by the Ministry of Mines and Energy and are presented below:
Parent Company
| Jan-Jun/2023 | Jan-Jun/2022 | |||||
| Officers | Board Members | Total | Officers | Board Members | Total | |
| Wages and short-term benefits | 7.3 | 0.4 | 7.7 | 7.0 | 0.2 | 7.2 |
| Social security and other employee-related taxes | 2.0 | 0.1 | 2.1 | 2.0 | − | 2.0 |
| Post-employment benefits (pension plan) | 0.4 | − | 0.4 | 0.6 | − | 0.6 |
| Benefits due to termination of tenure | 2.2 | − | 2.2 | 0.6 | − | 0.6 |
| Total compensation recognized in the statement of income | 11.9 | 0.5 | 12.4 | 10.2 | 0.2 | 10.4 |
| Total compensation paid (1) | 25.9 | 0.5 | 26.4 | 20.4 | 0.2 | 20.6 |
| Monthly average number of members in the period | 9.00 | 11.00 | 20.00 | 9.00 | 11.00 | 20.00 |
| Monthly average number of paid members in the period | 9.00 | 5.67 | 14.67 | 9.00 | 2.83 | 11.83 |
|
(1) Includes the PPP for Administrators in the Executive Board.
| ||||||
In the period from January to June 2023, the consolidated expense with the total compensation of the company's officers and board members totaled R$ 28.67 (R$ 29.56 in the period from January to March 2022).
The remuneration of the members of the Advisory Committees to the Board of Directors must be considered apart from the global limit of the remuneration established for the administrators, that is, the amounts received are not classified as remuneration of the administrators.
The members of the Board of Directors who participate in the Statutory Audit Committees waive the remuneration of the Board of Directors, as established in art. 38, § 8 of Decree No. 8,945, of December 27, 2016, and were entitled to a total remuneration of R$ 1,125 thousand in the period from January to June 2023 (R$ 1,350 thousand, considering social charges). In the period from January to June 2022, the remuneration accrued in the period was R$ 1,721 thousand (R$ 2,066 thousand, considering social charges).
On April 27, 2023, the Annual Shareholders' Meeting set the remuneration of the management (Executive Board and Board of Directors) at up to R$44.99 as the global limit of remuneration to be paid in the period between April 2023 and March 2024 (R$ 39.59 in the period between April 2022 and March 2023, fixed on April 13, 2022).
| 61 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 29 | Supplemental information on statement of cash flows |
| Consolidated | ||
| 2023 | 2022 | |
| Jan-Jun | Jan-Jun | |
| Amounts paid/received during the period | ||
| Withholding income tax paid on behalf of third-parties | 3,414 | 3,023 |
| Transactions that does not involve cash | ||
| Purchase of property, plant and equipment on credit | − | 95 |
| Lease | 36,102 | 15,906 |
| Provision for decommissioning costs | 31 | 54 |
| Use of tax credits and judicial deposit for the payment of contingency | 254 | 5,819 |
| Remeasurement of property, plant and equipment acquired in previous periods | 57 | 189 |
The final balance of cash and cash equivalents, in the statement of cash flows, includes amounts related to assets held for sale, as shown in the reconciliation below:
| Consolidated | ||
| 2023 | 2022 | |
| Jan-Jun | Jan-Jun | |
| Balance reconciliation at the beginning of the period | ||
| Balance of cash and cash equivalents on the statement of financial position | 41,723 | 58,410 |
| Cash and cash equivalents classified as assets held for sale | − | 72 |
| Cash and cash equivalents in the Statement of Cash Flow - Opening balance | 41,723 | 58,482 |
| Balance reconciliation at the end of the period | ||
| Balance of cash and cash equivalents on the statement of financial position | 49,882 | 85,311 |
| Cash and cash equivalents classified as assets held for sale | − | 37 |
| Cash and cash equivalents in the Statement of Cash Flow - Closing Balance | 49,882 | 85,348 |
29.1Reconciliation of depreciation with Statements of Cash Flows
| Consolidated | ||
| 2023 | 2022 | |
| Jan-Jun | Jan-Jun | |
| Depreciation of Property, plant and equipment | 36,207 | 37,293 |
| Amortization of Intangible assets | 243 | 187 |
| 36,450 | 37,480 | |
| Depreciation of right of use - recovery of PIS/COFINS | (404) | (363) |
| Depreciation, depletion and amortization in the Statements of Added Value | 36,046 | 37,117 |
| Capitalized depreciation | (4,778) | (3,517) |
| Depreciation, depletion and amortization in the Statements of Cash Flows | 31,268 | 33,600 |
| 30 | Subsequent events |
Global notes offering in the international capital market
On July 3, 2023, Petrobras, through its wholly owned subsidiary Petrobras Global Finance B.V. (PGF), concluded the global notes offering in the international capital market, in the amount of US$ 1,250 million, maturing in 2033 with a 6.625% p.a. yield to investors.
Debentures repurchase program
On July 15, 2023, Petrobras ended its 1st Debenture Repurchase Plan. Since the creation of the program until July 15, 2023, the Company has repurchased a total of 244,334 debentures, in the amount of R$ 271, among the papers of the 5th, 6th and 7th issuance, equivalent to 3% of the total amount of outstanding debentures.
Review of the Shareholder Compensation Policy
On July 28, 2023, the Company’s Board of Directors approved a revision on the Shareholder Compensation Policy, where the main changes are the following:
| · | The company will distribute to shareholders 45% (previously 60%) of the cash flow, which consists of the difference between the net cash generated by operating activities and the application of cash in the acquisition of property, plant and equipment and intangible assets and the acquisition of equity interests (previously the free cash flow of the company did not deduct acquisitions of equity interests); |
| 62 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| · | Inclusion of share repurchase as a possibility of compensation to shareholders, aiming at canceling these shares. The amounts related to share repurchase will be deducted from the total shareholder remuneration formula in each quarter; and |
| · | Replacement of references to specific gross debt amounts by the “gross debt level established in the Strategic Plan”. The Strategic Plan 2023-2027 establishes that the maximum level of the gross debt range is US$ 65 billion. |
Distribution of remuneration to shareholders
On August 3, 2023, Petrobras’s Board of Directors approved the distribution of remuneration to shareholders in the amount of R$14,992 (R$1.149304 per outstanding preferred and common shares), based on the net income for the three-month period ended June 30, 2023, as presented in the following table:
| Remuneration to shareholders of Petrobras | ||||
| Date of Board of Directors’ approval | Date of shareholders’ position | Amount per preferred and common shares (R$) | Amount | |
| Interim dividends | 08.03.2023 | 08.21.2023 | 0.783828 | 10,225 |
| Interim interest on capital | 08.03.2023 | 08.21.2023 | 0.365476 | 4,767 |
| Total distribution to shareholders | 1.149304 | 14,992 | ||
These dividends and interest on capital will be paid in two equal installments of R$7,496, on November 21 and December 15, 2023, and will be deducted from the remuneration that will be distributed to shareholders relating to the fiscal year 2023. The amounts will be adjusted by the SELIC rate from the date of payment of each installment until the end of the referred fiscal year, on December 31, 2023.
Repurchase of shares
On August 3, 2023, the Board of Directors approved the Share Repurchase Program, which is the acquisition of up to 157.8 million preferred shares issued by the company, on the Brazilian Stock Exchange (B3), to be held in treasury with subsequent cancellation, without reduction of share capital. The Program will be carried out in the context of the Shareholder Remuneration Policy, approved on July 28, 2023, and within a maximum period of 12 months.
| 63 |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 31 | Correlation between the explanatory notes of December 31, 2022 and the ones of June 30, 2023 |
| Number of notes | ||
| Notes to the Financial Statements |
Annual for 2022 |
Quarterly information for 2Q-23 |
| Basis of preparation and presentation of financial statements | 2 | 1 |
| Summary of significant accounting policies | 3 | 2 |
| Cash and cash equivalents and Marketable securities | 7 | 3 |
| Sales revenues | 8 | 4 |
| Costs and Expenses by nature | 9 | 5 |
| Other income and expenses | 10 | 6 |
| Net finance income (expense) | 11 | 7 |
| Segment information | 12 | 8 |
| Trade and other receivables | 13 | 9 |
| Inventories | 14 | 10 |
| Trade payables | 15 | 11 |
| Taxes | 16 | 12 |
| Employee benefits (Post-Employment) | 17 | 13 |
| Provisions for legal proceedings | 18 | 14 |
| Provision for decommissioning costs | 19 | 15 |
| Other assets and liabilities | 20 | 16 |
| Property, plant and equipment | 23 | 17 |
| Intangible assets | 24 | 18 |
| Impairment | 25 | 19 |
| Exploration and evaluation of oil and gas reserves | 26 | 20 |
| Collateral for crude oil exploration concession agreements | 27 | 21 |
| Investments | 29 | 22 |
| Disposal of Assets and other changes in organizational structure | 30 | 23 |
| Finance debt | 31 | 24 |
| Leases | 32 | 25 |
| Equity | 33 | 26 |
| Risk management | 34 | 27 |
| Related-party transactions | 35 | 28 |
| Supplemental information on statement of cash flows | 36 | 29 |
| Subsequent events | 37 | 30 |
The notes to the annual report 2022, which were suppressed in the interim financial statements of June 30, 2023 because they do not have significant changes and / or may not be applicable to interim financial information, are:
| Notes to the Financial Statements | Number of notes |
| The Company and its operations | 1 |
| Accounting estimates | 4 |
| New standards and interpretations | 5 |
| Capital management | 6 |
| “Lava Jato Operation” and the reflects on the Company | 21 |
| Commitment to purchase natural gas | 22 |
| Partnerships in exploration and production activities | 28 |
| 64 |
STATEMENT OF DIRECTORS ON INTERIM ACCOUNTING INFORMATION AND REPORT ON THE REVIEW OF QUARTERLY INFORMATION
PETROBRAS
In compliance with the provisions of items V and VI of article 27 of CVM Resolution 80, of March 29, 2022, the chief executive officer and directors of Petróleo Brasileiro S.A. - Petrobras, a publicly-held corporation, headquartered at Avenida República do Chile, 65, Rio de Janeiro, RJ, registered with the CNPJ under nº 33.000.167 / 0001-01, declare that the financial statements were prepared in accordance with the law or the bylaws and that:
(i)reviewed, discussed and agreed with the Interim Financial Statements of Petrobras for the period ended on June 30, 2023;
(ii) reviewed, discussed and agreed with the conclusions expressed in the report of KPMG Auditores Independentes Ltda., regarding the Interim Financial Statements of Petrobras for the period ended on June 30, 2023.
Rio de Janeiro, August 3, 2023.
| Jean Paul Terra Prates | Mário Vinícius Claussen Spinelli | |
|
Chief Executive Officer |
Chief Governance and Compliance Executive Officer | |
| Carlos José do Nascimento Travassos | Mauricio Tolmasquim | |
|
Chief Engineering, Technology and Innovation Officer |
Chief Energy Transition and Sustainability Officer | |
| Clarice Coppetti | Sergio Caetano Leite | |
|
Chief Corporate Affairs Officer |
Chief Financial and Investor Relations Executive Officer | |
| Claudio Romeo Schlosser | William França da Silva | |
| Chief Logistics, Commercialization and Markets Executive Officer | Chief Industrial Processes and Products Officer | |
| Joelson Falcão Mendes | ||
| Chief Exploration and Production Executive Officer |
| 65 |
KPMG Auditores Independentes Ltda.
Rua do Passeio, 38 - Setor 2 - 17º andar - Centro
20021-290 - Rio de Janeiro/RJ - Brasil
Caixa Postal 2888 - CEP 20001-970 - Rio de Janeiro/RJ - Brasil
Telefone +55 (21) 2207-9400, Fax +55 (21) 2207-9000
www.kpmg.com.br
Report on the review of quarterly information - ITR
(A free translation of the original report in Portuguese, as filed with the Brazilian Securities Commission - CVM, prepared in accordance with the Technical Pronouncement CPC 21 (R1) - Interim Financial Reporting and the international accounting standard IAS 34 - Interim Financial Reporting, as issued by the International Accounting Standards Board - IASB)
To the Board of Directors and Shareholders of
Petróleo Brasileiro S.A. - Petrobras
Rio de Janeiro - RJ
Introduction
We have reviewed the individual and consolidated interim financial information of Petróleo Brasileiro S.A. - Petrobras (“the Company”), included in the quarterly information form - ITR for the quarter ended June 30, 2023, which comprises the statement of financial position as of June 30, 2023 and the respective statements of income and comprehensive income for the three and six-months periods then ended, and statements of changes in shareholders' equity and of cash flows for the six-months period then ended, including the explanatory notes.
Management is responsible for the preparation of the individual and consolidated interim financial information in accordance with the CPC 21 (R1) – Interim Financial Reporting and the international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, such as for the presentation of these information in accordance with the standards issued by the Brazilian Securities Commission - CVM, applicable to the preparation of quarterly information - ITR. Our responsibility is to express our conclusion on this interim financial information based on our review.
| KPMG Auditores Independentes Ltda., uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça. | KPMG Auditores Independentes Ltda., a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. |
| 66 |
Scope of the review
We conducted our review in accordance with Brazilian and international standards on reviews of interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the auditing standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the individual and consolidated interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34, issued by the IASB, applicable to the preparation of quarterly information - ITR, and presented in accordance with the standards issued by the Brazilian Securities Commission.
Other matters - Statements of added value
The individual and consolidated interim financial information referred to above includes the individual and consolidated statements of added value (DVA) for the six-month period ended at June 30, 2023, prepared under responsibility of Company’s management, and presented as supplementary information for IAS 34 purposes. These statements were submitted to review procedures carried out together with the review of the Company’s interim financial information to conclude that they are reconciled with interim financial information and accounting records, as applicable, and its form and content are in accordance with the criteria defined in CPC 09 - Statement of Added Value. Based on our review, nothing has come to our attention that causes us to believe that those statements were not prepared, in all material respects, in accordance with the criteria set forth in this Standard with respect to the individual and consolidated interim financial information taken as a whole.
Rio de Janeiro, August 03, 2023
KPMG Auditores Independentes Ltda.
CRC SP-014428/O-6 F-RJ
(Original report in Portuguese signed by)
Ulysses M. Duarte Magalhães
Accountant CRC RJ-092095/O-8
| KPMG Auditores Independentes Ltda., uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça. | KPMG Auditores Independentes Ltda., a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. |
| 67 |
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