Petrobras - Petroleo Brasileiro SA 6-K, filed May 6, 2022
Petrobras - Petroleo Brasileiro SA (PBR)
About this 6-K
Petrobras - Petroleo Brasileiro SA filed this 6-K on May 6, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private
Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of May, 2022
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)
Av. 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____
Quarterly Information- ITR
At March 31, 2022 and report on review of Quarterly Information
(A free translation of the original in Portuguese)
PETROBRAS
| 2 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Financial Position - Assets (R$ Thousand) |
 | |
| Account Code | Account Description | 03.31.2022 | 12.31.2021 |
| 1 | Total Assets | 1,219,204,000 | 1,248,196,000 |
| 1.01 | Current Assets | 181,908,000 | 170,555,000 |
| 1.01.01 | Cash and Cash Equivalents | 2,876,000 | 2,930,000 |
| 1.01.02 | Marketable Securities | 3,482,000 | 3,630,000 |
| 1.01.03 | Trade and Other Receivables | 95,267,000 | 100,110,000 |
| 1.01.04 | Inventories | 42,885,000 | 33,906,000 |
| 1.01.06 | Recoverable Taxes | 5,344,000 | 6,368,000 |
| 1.01.06.01 | Current Recoverable Taxes | 5,344,000 | 6,368,000 |
| 1.01.06.01.01 | Recoverable Income Taxes | 576,000 | 526,000 |
| 1.01.06.01.02 | Other Recoverable Taxes | 4,768,000 | 5,842,000 |
| 1.01.08 | Other Current Assets | 32,054,000 | 23,611,000 |
| 1.01.08.01 | Non-Current Assets Held for Sale | 20,163,000 | 13,142,000 |
| 1.01.08.03 | Others | 11,891,000 | 10,469,000 |
| 1.01.08.03.03 | Others | 11,891,000 | 10,469,000 |
| 1.02 | Non-Current Assets | 1,037,296,000 | 1,077,641,000 |
| 1.02.01 | Long-Term Receivables | 80,279,000 | 73,779,000 |
| 1.02.01.03 | Marketable Securities Measured at Amortized Cost | 257,000 | 247,000 |
| 1.02.01.04 | Trade and Other Receivables | 7,661,000 | 8,450,000 |
| 1.02.01.07 | Deferred Taxes | 18,114,000 | 17,845,000 |
| 1.02.01.07.02 | Deferred Taxes and Contributions | 18,114,000 | 17,845,000 |
| 1.02.01.10 | Other Non-Current Assets | 54,247,000 | 47,237,000 |
| 1.02.01.10.04 | Judicial Deposits | 47,226,000 | 44,543,000 |
| 1.02.01.10.05 | Other Long-Term Assets | 7,021,000 | 2,694,000 |
| 1.02.02 | Investments | 234,740,000 | 269,825,000 |
| 1.02.03 | Property, Plant and Equipment | 705,494,000 | 717,355,000 |
| 1.02.04 | Intangible Assets | 16,783,000 | 16,682,000 |
| 3 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Financial Position - Liabilities (R$ Thousand) |
| |
| Account Code | Account Description | 03.31.2022 | 12.31.2021 |
| 2 | Total Liabilities | 1,219,204,000 | 1,248,196,000 |
| 2.01 | Current Liabilities | 246,463,000 | 269,989,000 |
| 2.01.01 | Payroll, Profit Sharing and Related Charges | 7,087,000 | 7,655,000 |
| 2.01.02 | Trade Payables | 32,626,000 | 32,734,000 |
| 2.01.03 | Taxes Obligations | 4,135,000 | 3,599,000 |
| 2.01.03.01 | Federal Taxes Obligations | 4,135,000 | 3,599,000 |
| 2.01.03.01.01 | Income Tax and Social Contribution Payable | 4,135,000 | 3,599,000 |
| 2.01.04 | Current Debt and Finance Lease Obligations | 158,442,000 | 187,005,000 |
| 2.01.04.01 | Current Debt | 132,020,000 | 155,461,000 |
| 2.01.04.03 | Lease Obligations | 26,422,000 | 31,544,000 |
| 2.01.05 | Other Liabilities | 33,318,000 | 30,767,000 |
| 2.01.05.02 | Others | 33,318,000 | 30,767,000 |
| 2.01.05.02.04 | Other Taxes Payable | 22,320,000 | 22,022,000 |
| 2.01.05.02.06 | Other liabilities | 10,998,000 | 8,745,000 |
| 2.01.06 | Provisions | 3,686,000 | 3,578,000 |
| 2.01.06.02 | Other Provisions | 3,686,000 | 3,578,000 |
| 2.01.06.02.04 | Pension and Medical Benefits | 3,686,000 | 3,578,000 |
| 2.01.07 | Liabilities Associated with Non-Current Assets Held for Sale and Discontinued | 7,169,000 | 4,651,000 |
| 2.01.07.01 | Liabilities Associated with Non-Current Assets Held for Sale | 7,169,000 | 4,651,000 |
| 2.02 | Non-Current Liabilities | 538,547,000 | 590,878,000 |
| 2.02.01 | Non-Current Debt and Finance Lease Obligations | 335,492,000 | 413,637,000 |
| 2.02.01.01 | Non-Current Debt | 243,959,000 | 306,944,000 |
| 2.02.01.03 | Lease Obligations | 91,533,000 | 106,693,000 |
| 2.02.02 | Other Liabilities | 1,609,000 | 1,637,000 |
| 2.02.02.02 | Others | 1,609,000 | 1,637,000 |
| 2.02.02.02.03 | Income Tax and Social Contribution | 1,609,000 | 1,637,000 |
| 2.02.03 | Deferred Taxes | 51,150,000 | 14,807,000 |
| 2.02.03.01 | Deferred Taxes | 51,150,000 | 14,807,000 |
| 2.02.04 | Provisions | 150,296,000 | 160,797,000 |
| 2.02.04.01 | Provisions for Tax Social Security, Labor and Civil Lawsuits | 11,193,000 | 10,382,000 |
| 2.02.04.02 | Other Provisions | 139,103,000 | 150,415,000 |
| 2.02.04.02.04 | Pension and Medical Benefits | 44,563,000 | 50,773,000 |
| 2.02.04.02.05 | Provision for Decommissioning Costs | 83,301,000 | 86,713,000 |
| 2.02.04.02.06 | Employee Benefits | 605,000 | 803,000 |
| 2.02.04.02.07 | Other Provisions | 10,634,000 | 12,126,000 |
| 2.03 | Shareholders' Equity | 434,194,000 | 387,329,000 |
| 2.03.01 | Share Capital | 205,432,000 | 205,432,000 |
| 2.03.02 | Capital Reserves | 3,313,000 | 3,313,000 |
| 2.03.04 | Profit Reserves | 208,589,000 | 164,028,000 |
| 2.03.08 | Other Comprehensive Income | 16,860,000 | 14,556,000 |
| 4 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Income (R$ Thousand) |
| |
| Account Code | Account Description | Accumulated of the Current Year 01/01/2022 to 03/31/2022 | Accumulated of the Previous Year 01/01/2021 to 03/31/2021 |
| 3.01 | Sales Revenues | 134,448,000 | 88,816,000 |
| 3.02 | Cost of Sales | (65,837,000) | (46,030,000) |
| 3.03 | Gross Profit | 68,611,000 | 42,786,000 |
| 3.04 | Operating Expenses / Income | (3,110,000) | (7,852,000) |
| 3.04.01 | Selling Expenses | (6,517,000) | (5,415,000) |
| 3.04.02 | General and Administrative Expenses | (1,242,000) | (1,220,000) |
| 3.04.05 | Other Operating Expenses | (2,564,000) | (4,112,000) |
| 3.04.05.01 | Other Taxes | (271,000) | (468,000) |
| 3.04.05.02 | Research and Development Expenses | (1,081,000) | (639,000) |
| 3.04.05.03 | Exploration Costs | (406,000) | (1,193,000) |
| 3.04.05.05 | Other Operating Expenses, Net | (816,000) | (1,123,000) |
| 3.04.05.07 | Impairment of Assets Charges / Reversals | 10,000 | (689,000) |
| 3.04.06 | Share of Profit / Gains on Interest in Equity-Accounted Investments | 7,213,000 | 2,895,000 |
| 3.05 | Net Income Before Financial Results and Income Taxes | 65,501,000 | 34,934,000 |
| 3.06 | Finance Income (Expenses), Net | 1,361,000 | (32,476,000) |
| 3.06.01 | Finance Income | 1,631,000 | 467,000 |
| 3.06.01.01 | Finance Income | 1,631,000 | 467,000 |
| 3.06.02 | Finance Expenses | (270,000) | (32,943,000) |
| 3.06.02.01 | Finance Expenses | (6,741,000) | (7,655,000) |
| 3.06.02.02 | Foreign Exchange and Inflation Indexation Charges, Net | 6,471,000 | (25,288,000) |
| 3.07 | Net Income Before Income Taxes | 66,862,000 | 2,458,000 |
| 3.08 | Income Tax and Social Contribution | (22,301,000) | (1,291,000) |
| 3.08.01 | Current | (12,514,000) | − |
| 3.08.02 | Deferred | (9,787,000) | (1,291,000) |
| 3.09 | Net Income | 44,561,000 | 1,167,000 |
| 3.11 | Income / (Loss) for the Period | 44,561,000 | 1,167,000 |
| 3.99 | Income per Share | ||
| 3.99.01 | Income per Share | ||
| 3.99.01.01 | Ordinary Shares | 3.42 | 0.09 |
| 3.99.01.02 | Preferred Shares | 3.42 | 0.09 |
| 3.99.02 | Diluted Income per Share | ||
| 3.99.02.01 | Ordinary Shares | 3.42 | 0.09 |
| 3.99.02.02 | Preferred Shares | 3.42 | 0.09 |
| 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 Year 01/01/2022 to 03/31/2022 | Accumulated of the Previous Year 01/01/2021 to 03/31/2021 |
| 4.01 | Net Income for the Period | 44,561,000 | 1,167,000 |
| 4.02 | Other Comprehensive Income | 2,304,000 | 7,534,000 |
| 4.02.03 | Cumulative Translation Adjustments | (43,296,000) | 24,285,000 |
| 4.02.07 | Unrealized Gains / (Losses) on Cash Flow Hedge - Recognized in Shareholders' Equity | 59,908,000 | (30,521,000) |
| 4.02.08 | Unrealized Gains / (Losses) on Cash Flow Hedge - Reclassified to Profit and Loss | 7,221,000 | 5,903,000 |
| 4.02.09 | Deferred Income Tax and Social Contribution on Cash Flow Hedge | (22,824,000) | 8,370,000 |
| 4.02.10 | Share of Other Comprehensive Income of Equity-Accounted Investments | 1,295,000 | (503,000) |
| 4.03 | Total Comprehensive Income for the Period | 46,865,000 | 8,701,000 |
| 6 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2022 to 03/31/2022 (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 |
| 5.05 | Total of Comprehensive Income | − | − | − | 44,561,000 | 2,304,000 | 46,865,000 |
| 5.05.01 | Net Income for the Period | − | − | − | 44,561,000 | − | 44,561,000 |
| 5.05.02 | Other Comprehensive Income | − | − | − | − | 2,304,000 | 2,304,000 |
| 5.07 | Balance at the End of the Period | 205,432,000 | 3,313,000 | 164,028,000 | 44,561,000 | 16,860,000 | 434,194,000 |
| 7 |
Petróleo Brasileiro S.A. – Petrobras Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021 (R$ Thousand) |
| |
| Account Code | Account Description | Share Capital | Capital Reserves, Granted Options and Treasury Shares | Profit Reserves | Retained Earnings / Accumulated Losses | Other Comprehensive Income | Shareholders' Equity |
| 5.01 | Balance at the Beginning of the Period | 205,432,000 | 2,665,000 | 127,296,000 | − | (26,983,000) | 308,410,000 |
| 5.03 | Adjusted Opening Balance | 205,432,000 | 2,665,000 | 127,296,000 | − | (26,983,000) | 308,410,000 |
| 5.04 | Capital Transactions with Owners | − | (3,716,000) | − | − | − | (3,716,000) |
| 5.04.08 | Change in Interest in Subsidiaries | − | (3,716,000) | − | − | − | (3,716,000) |
| 5.05 | Total of Comprehensive Income | − | − | − | 1,167,000 | 7,534,000 | 8,701,000 |
| 5.05.01 | Net Income for the Period | − | − | − | 1,167,000 | − | 1,167,000 |
| 5.05.02 | Other Comprehensive Income | − | − | − | − | 7,534,000 | 7,534,000 |
| 5.07 | Balance at the End of the Period | 205,432,000 | (1,051,000) | 127,296,000 | 1,167,000 | (19,449,000) | 313,395,000 |
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 01/01/2022 to 03/31/2022 | Accumulated of the Previous Year 01/01/2021 to 03/31/2021 |
| 6.01 | Net cash provided by operating activities | 28,674,000 | 28,067,000 |
| 6.01.01 | Cash provided by operating activities | 62,021,000 | 50,986,000 |
| 6.01.01.01 | Net Income for the period | 44,561,000 | 1,167,000 |
| 6.01.01.02 | Pension and medical benefits (actuarial expense) | 1,568,000 | 1,661,000 |
| 6.01.01.03 | Results in equity-accounted investments | (7,213,000) | (2,895,000) |
| 6.01.01.04 | Depreciation, depletion and amortization | 17,402,000 | 16,905,000 |
| 6.01.01.05 | Impairment of assets (reversal) | (10,000) | 689,000 |
| 6.01.01.06 | Exploratory expenditures write-offs | 114,000 | 740,000 |
| 6.01.01.08 | Foreign exchange, indexation and finance charges | (1,297,000) | 31,680,000 |
| 6.01.01.09 | Deferred income taxes, net | 9,787,000 | 1,291,000 |
| 6.01.01.10 | Allowance for expected credit losses | 115,000 | (52,000) |
| 6.01.01.13 | Revision and unwinding of discount on the provision for decommissioning costs | 801,000 | 1,055,000 |
| 6.01.01.17 | Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA | (2,682,000) | (856,000) |
| 6.01.01.19 | Early termination and cash outflows revision of lease agreements | (1,125,000) | (399,000) |
| 6.01.02 | Decrease / (increase) in assets / increase/ (decrease) in liabilities | (33,347,000) | (22,919,000) |
| 6.01.02.01 | Trade and other receivables, net | (18,817,000) | (3,112,000) |
| 6.01.02.02 | Inventories | (9,022,000) | (7,824,000) |
| 6.01.02.03 | Judicial deposits | (1,941,000) | (825,000) |
| 6.01.02.05 | Other assets | (191,000) | (801,000) |
| 6.01.02.06 | Trade payables | 1,000,000 | (8,683,000) |
| 6.01.02.07 | Other taxes payable | 13,144,000 | 5,465,000 |
| 6.01.02.08 | Pension and medical benefits | (7,673,000) | (5,252,000) |
| 6.01.02.09 | Provisions for legal proceedings | 811,000 | (742,000) |
| 6.01.02.10 | Short-term benefits | (763,000) | (455,000) |
| 6.01.02.11 | Income tax and social contribution paid | (7,659,000) | (34,000) |
| 6.01.02.12 | Provision for Decommissioning Costs | (702,000) | (885,000) |
| 6.01.02.14 | Other liabilities | (1,534,000) | 229,000 |
| 6.02 | Net cash used in investing activities | (3,980,000) | (54,511,000) |
| 6.02.01 | Acquisition of PP&E and intangibles assets | (11,899,000) | (41,328,000) |
| 6.02.02 | Decrease (increase) in investments in investees | (45,000) | − |
| 6.02.03 | Proceeds from disposal of assets – Divestment | 9,185,000 | 1,365,000 |
| 6.02.04 | Divestment (investment) in marketable securities | (1,631,000) | (15,539,000) |
| 6.02.05 | Dividends received | 91,000 | 991,000 |
| 6.02.08 | Financial compensation for the Búzios Co-participation Agreement | 319,000 | − |
| 6.03 | Net cash used in financing activities | (24,748,000) | 25,585,000 |
| 6.03.02 | Proceeds from financing | 3,184,000 | 63,976,000 |
| 6.03.03 | Repayment of principal - finance debt | (15,565,000) | (22,151,000) |
| 6.03.04 | Repayment of interest - finance debt | (5,136,000) | (7,774,000) |
| 6.03.05 | Dividends paid to shareholders of Petrobras | (2,000) | − |
| 6.03.08 | Settlement of lease liabilities | (7,229,000) | (8,466,000) |
| 6.05 | Net increase/ (decrease) in cash and cash equivalents | (54,000) | (859,000) |
| 6.05.01 | Cash and cash equivalents at the beginning of the period | 2,930,000 | 5,180,000 |
| 6.05.02 | Cash and cash equivalents at the end of the period | 2,876,000 | 4,321,000 |
| 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 01/01/2022 to 03/31/2022 | Accumulated of the Previous Year 01/01/2021 to 03/31/2021 |
| 7.01 | Sales Revenues | 176,913,000 | 120,559,000 |
| 7.01.01 | Sales of Goods and Services | 165,040,000 | 110,642,000 |
| 7.01.02 | Other Revenues | 3,949,000 | 2,740,000 |
| 7.01.03 | Revenues Related to the Construction of Assets to be Used in Own Operations | 8,039,000 | 7,125,000 |
| 7.01.04 | Allowance for expected credit losses | (115,000) | 52,000 |
| 7.02 | Inputs Acquired from Third Parties | (49,192,000) | (34,815,000) |
| 7.02.01 | Cost of Sales | (30,792,000) | (20,466,000) |
| 7.02.02 | Materials, Power, Third-Party Services and Other Operating Expenses | (7,706,000) | (5,305,000) |
| 7.02.03 | Impairment Charges / Reversals of Assets | 10,000 | (689,000) |
| 7.02.04 | Others | (10,704,000) | (8,355,000) |
| 7.02.04.01 | Tax Credits on Inputs Acquired from Third Parties | (10,704,000) | (8,355,000) |
| 7.03 | Gross Added Value | 127,721,000 | 85,744,000 |
| 7.04 | Retentions | (19,301,000) | (18,081,000) |
| 7.04.01 | Depreciation, Amortization and Depletion | (19,301,000) | (18,081,000) |
| 7.05 | Net Added Value Produced | 108,420,000 | 67,663,000 |
| 7.06 | Transferred Added Value | 10,149,000 | 3,783,000 |
| 7.06.01 | Share of Profit of Equity-Accounted Investments | 7,213,000 | 2,895,000 |
| 7.06.02 | Finance Income | 1,631,000 | 467,000 |
| 7.06.03 | Others | 1,305,000 | 421,000 |
| 7.06.03.01 | Rentals, royalties and others | 1,305,000 | 421,000 |
| 7.07 | Total Added Value to be Distributed | 118,569,000 | 71,446,000 |
| 7.08 | Distribution of Added Value | 118,569,000 | 71,446,000 |
| 7.08.01 | Employee Compensation | 6,165,000 | 6,092,000 |
| 7.08.01.01 | Salaries | 3,850,000 | 3,776,000 |
| 7.08.01.02 | Fringe Benefits | 2,074,000 | 2,090,000 |
| 7.08.01.03 | Unemployment Benefits (FGTS) | 241,000 | 226,000 |
| 7.08.02 | Taxes and Contributions | 64,754,000 | 28,795,000 |
| 7.08.02.01 | Federal | 52,636,000 | 21,731,000 |
| 7.08.02.02 | State | 12,003,000 | 7,025,000 |
| 7.08.02.03 | Municipal | 115,000 | 39,000 |
| 7.08.03 | Return on Third-Party Capital | 3,089,000 | 35,392,000 |
| 7.08.03.01 | Interest | 1,477,000 | 34,086,000 |
| 7.08.03.02 | Rental Expenses | 1,612,000 | 1,306,000 |
| 7.08.04 | Return on Shareholders' Equity | 44,561,000 | 1,167,000 |
| 7.08.04.03 | Retained Earnings / (Losses) for the Period | 44,561,000 | 1,167,000 |
| 10 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Financial Position - Assets (R$ Thousand) |
| |
| Account Code | Account Description | 03.31.2022 | 12.31.2021 |
| 1 | Total Assets | 998,662,000 | 972,951,000 |
| 1.01 | Current Assets | 199,512,000 | 168,247,000 |
| 1.01.01 | Cash and Cash Equivalents | 81,601,000 | 58,410,000 |
| 1.01.02 | Marketable Securities | 5,967,000 | 3,630,000 |
| 1.01.03 | Trade and Other Receivables | 26,849,000 | 35,538,000 |
| 1.01.04 | Inventories | 48,351,000 | 40,486,000 |
| 1.01.06 | Recoverable Taxes | 6,175,000 | 7,511,000 |
| 1.01.06.01 | Current Recoverable Taxes | 6,175,000 | 7,511,000 |
| 1.01.06.01.01 | Recoverable Income Taxes | 893,000 | 911,000 |
| 1.01.06.01.02 | Other Recoverable Taxes | 5,282,000 | 6,600,000 |
| 1.01.08 | Other Current Assets | 30,569,000 | 22,672,000 |
| 1.01.08.01 | Non-Current Assets Held for Sale | 20,910,000 | 13,895,000 |
| 1.01.08.03 | Others | 9,659,000 | 8,777,000 |
| 1.01.08.03.03 | Others | 9,659,000 | 8,777,000 |
| 1.02 | Non-Current Assets | 799,150,000 | 804,704,000 |
| 1.02.01 | Long-Term Receivables | 85,532,000 | 79,992,000 |
| 1.02.01.03 | Marketable Securities measured at amortized cost | 257,000 | 247,000 |
| 1.02.01.04 | Trade and Other Receivables | 9,289,000 | 10,603,000 |
| 1.02.01.07 | Deferred Taxes | 21,509,000 | 21,568,000 |
| 1.02.01.07.01 | Deferred Income Tax and Social Contribution | 2,962,000 | 3,371,000 |
| 1.02.01.07.02 | Deferred Taxes and Contributions | 18,547,000 | 18,197,000 |
| 1.02.01.10 | Other Non-Current Assets | 54,477,000 | 47,574,000 |
| 1.02.01.10.04 | Judicial Deposits | 47,602,000 | 44,858,000 |
| 1.02.01.10.05 | Other Long-Term Assets | 6,875,000 | 2,716,000 |
| 1.02.02 | Investments | 9,601,000 | 8,427,000 |
| 1.02.03 | Property, Plant and Equipment | 687,051,000 | 699,406,000 |
| 1.02.04 | Intangible Assets | 16,966,000 | 16,879,000 |
| 11 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Financial Position - Liabilities (R$ Thousand) |
| |
| Account Code | Account Description | 03.31.2022 | 12.31.2021 |
| 2 | Total Liabilities | 998,662,000 | 972,951,000 |
| 2.01 | Current Liabilities | 130,222,000 | 134,913,000 |
| 2.01.01 | Payroll, Profit Sharing and Related Charges | 7,743,000 | 8,335,000 |
| 2.01.02 | Trade Payables | 28,029,000 | 30,597,000 |
| 2.01.03 | Taxes Obligations | 4,895,000 | 4,089,000 |
| 2.01.03.01 | Federal Taxes Obligations | 4,895,000 | 4,089,000 |
| 2.01.03.01.01 | Income Tax and Social Contribution Payable | 4,895,000 | 4,089,000 |
| 2.01.04 | Current Debt and Lease Obligations | 43,318,000 | 50,631,000 |
| 2.01.04.01 | Current Debt | 17,957,000 | 20,316,000 |
| 2.01.04.03 | Lease Obligations | 25,361,000 | 30,315,000 |
| 2.01.05 | Other Liabilities | 35,181,000 | 32,789,000 |
| 2.01.05.02 | Others | 35,181,000 | 32,789,000 |
| 2.01.05.02.04 | Other Taxes Payable | 22,673,000 | 22,325,000 |
| 2.01.05.02.06 | Other liabilities | 12,508,000 | 10,464,000 |
| 2.01.06 | Provisions | 3,687,000 | 3,632,000 |
| 2.01.06.02 | Other Provisions | 3,687,000 | 3,632,000 |
| 2.01.06.02.04 | Pension and Medical Benefits | 3,687,000 | 3,632,000 |
| 2.01.07 | Liabilities Associated with Non-Current Assets Held for Sale and Discontinued | 7,369,000 | 4,840,000 |
| 2.01.07.01 | Liabilities Associated with Non-Current Assets Held for Sale | 7,369,000 | 4,840,000 |
| 2.02 | Non-Current Liabilities | 431,379,000 | 448,457,000 |
| 2.02.01 | Non-Current Debt and Finance Lease Obligations | 234,100,000 | 277,187,000 |
| 2.02.01.01 | Non-Current Debt | 149,862,000 | 178,908,000 |
| 2.02.01.03 | Lease Obligations | 84,238,000 | 98,279,000 |
| 2.02.02 | Other Liabilities | 1,646,000 | 1,676,000 |
| 2.02.02.02 | Others | 1,646,000 | 1,676,000 |
| 2.02.02.02.03 | Income Tax and Social Contribution | 1,646,000 | 1,676,000 |
| 2.02.03 | Deferred Taxes | 43,185,000 | 6,857,000 |
| 2.02.03.01 | Deferred Taxes | 43,185,000 | 6,857,000 |
| 2.02.04 | Provisions | 152,448,000 | 162,737,000 |
| 2.02.04.01 | Provisions for Tax Social Security, Labor and Civil Lawsuits | 12,107,000 | 11,263,000 |
| 2.02.04.02 | Other Provisions | 140,341,000 | 151,474,000 |
| 2.02.04.02.04 | Pension and Medical Benefits | 45,319,000 | 51,498,000 |
| 2.02.04.02.05 | Provision for Decommissioning Costs | 83,737,000 | 87,160,000 |
| 2.02.04.02.06 | Employee Benefits | 617,000 | 812,000 |
| 2.02.04.02.07 | Other Provisions | 10,668,000 | 12,004,000 |
| 2.03 | Shareholders' Equity | 437,061,000 | 389,581,000 |
| 2.03.01 | Share Capital | 205,432,000 | 205,432,000 |
| 2.03.02 | Capital Reserves | 3,097,000 | 3,097,000 |
| 2.03.04 | Profit Reserves | 208,805,000 | 164,244,000 |
| 2.03.08 | Other Comprehensive Income | 16,860,000 | 14,556,000 |
| 2.03.09 | Non-controlling interests | 2,867,000 | 2,252,000 |
| 12 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Income (R$ Thousand) |
| |
| Account Code | Account Description | Accumulated of the Current Year 01/01/2022 to 03/31/2022 | Accumulated of the Previous Year 01/01/2021 to 03/31/2021 |
| 3.01 | Sales Revenues | 141,641,000 | 86,174,000 |
| 3.02 | Cost of Sales | (66,875,000) | (42,141,000) |
| 3.03 | Gross Profit | 74,766,000 | 44,033,000 |
| 3.04 | Operating Expenses / Income | (9,368,000) | (10,129,000) |
| 3.04.01 | Selling Expenses | (6,159,000) | (5,198,000) |
| 3.04.02 | General and Administrative Expenses | (1,559,000) | (1,496,000) |
| 3.04.05 | Other Operating Expenses | (3,466,000) | (4,454,000) |
| 3.04.05.01 | Other Taxes | (311,000) | (581,000) |
| 3.04.05.02 | Research and Development Expenses | (1,081,000) | (639,000) |
| 3.04.05.03 | Exploration Costs | (408,000) | (1,196,000) |
| 3.04.05.05 | Other Operating Expenses, Net | (1,670,000) | (1,530,000) |
| 3.04.05.07 | Impairment of Assets Charges / Reversals | 4,000 | (508,000) |
| 3.04.06 | Share of Profit / Gains on Interest in Equity-Accounted Investments | 1,816,000 | 1,019,000 |
| 3.05 | Net Income Before Financial Results and Income Taxes | 65,398,000 | 33,904,000 |
| 3.06 | Finance Income (Expenses), Net | 2,983,000 | (30,748,000) |
| 3.06.01 | Finance Income | 1,360,000 | 676,000 |
| 3.06.01.01 | Finance Income | 1,360,000 | 676,000 |
| 3.06.02 | Finance Expenses | 1,623,000 | (31,424,000) |
| 3.06.02.01 | Finance Expenses | (3,969,000) | (6,613,000) |
| 3.06.02.02 | Foreign Exchange and Inflation Indexation Charges, Net | 5,592,000 | (24,811,000) |
| 3.07 | Net Income Before Income Taxes | 68,381,000 | 3,156,000 |
| 3.08 | Income Tax and Social Contribution | (23,598,000) | (1,880,000) |
| 3.08.01 | Current | (13,463,000) | (649,000) |
| 3.08.02 | Deferred | (10,135,000) | (1,231,000) |
| 3.09 | Net Income | 44,783,000 | 1,276,000 |
| 3.11 | Income / (Loss) for the Period | 44,783,000 | 1,276,000 |
| 3.11.01 | Attributable to Shareholders of Petrobras | 44,561,000 | 1,167,000 |
| 3.11.02 | Attributable to Non-Controlling Interests | 222,000 | 109,000 |
| 3.99 | Income per Share | ||
| 3.99.01 | Income per Share | ||
| 3.99.01.01 | Ordinary Shares | 3.42 | 0.09 |
| 3.99.01.02 | Preferred Shares | 3.42 | 0.09 |
| 3.99.02 | Diluted Income per Share | ||
| 3.99.02.01 | Ordinary Shares | 3.42 | 0.09 |
| 3.99.02.02 | Preferred Shares | 3.42 | 0.09 |
| 13 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Comprehensive Income (R$ Thousand) |
| |
| Account Code | Account Description | Accumulated of the Current Year 01/01/2022 to 03/31/2022 | Accumulated of the Previous Year 01/01/2021 to 03/31/2021 |
| 4.01 | Net Income for the Period | 44,783,000 | 1,276,000 |
| 4.02 | Other Comprehensive Income | 2,300,000 | 7,925,000 |
| 4.02.01 | Actuarial Losses on Post-employment Defined Benefits Plans | − | (15,000) |
| 4.02.03 | Cumulative Translation Adjustments | (43,300,000) | 24,676,000 |
| 4.02.07 | Unrealized Gains / (Losses) on Cash Flow Hedge - Recognized in Shareholders' Equity | 59,908,000 | (30,521,000) |
| 4.02.08 | Unrealized Gains / (Losses) on Cash Flow Hedge - Reclassified to Profit and Loss | 7,221,000 | 6,094,000 |
| 4.02.09 | Deferred Income Tax and Social Contribution on Cash Flow Hedge | (22,824,000) | 8,305,000 |
| 4.02.10 | Share of Other Comprehensive Income of Equity-Accounted Investments | 1,295,000 | (614,000) |
| 4.03 | Total Comprehensive Income for the Period | 47,083,000 | 9,201,000 |
| 4.03.01 | Attributable to Shareholders of Petrobras | 46,865,000 | 8,701,000 |
| 4.03.02 | Attributable to Non-controlling Interests | 218,000 | 500,000 |
| 14 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2022 to 03/31/2022 (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 | − | − | − | − | − | − | 397,000 | 397,000 |
| 5.04.06 | Dividends | − | − | − | − | − | − | (12,000) | (12,000) |
| 5.04.08 | Change of interest in controlled companies | − | − | − | − | − | − | 409,000 | 409,000 |
| 5.05 | Total Comprehensive income | − | − | − | 44,561,000 | 2,304,000 | 46,865,000 | 218,000 | 47,083,000 |
| 5.05.01 | Net Income for the Period | − | − | − | 44,561,000 | − | 44,561,000 | 222,000 | 44,783,000 |
| 5.05.02 | Other Comprehensive Income | − | − | − | − | 2,304,000 | 2,304,000 | (4,000) | 2,300,000 |
| 5.07 | Balance at the End of the Period | 205,432,000 | 3,313,000 | 164,028,000 | 44,561,000 | 16,860,000 | 434,194,000 | 2,867,000 | 437,061,000 |
| 15 |
Petróleo Brasileiro S.A. – Petrobras Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021 (R$ Thousand) |
| |
| Account Code | Account Description | Share Capital |
Capital Reserves, Granted Options and Treasury Shares |
Profit Reserves |
Retained Earnings / Accumulated Losses |
Other Comprehensive Income |
Shareholders' Equity |
Non-controlling interest |
Shareholders' Equity Consolidated |
| 5.01 | Balance at the Beginning of the Period | 205,432,000 | 2,665,000 | 127,296,000 | − | (26,983,000) | 308,410,000 | 2,740,000 | 311,150,000 |
| 5.03 | Adjusted Opening Balance | 205,432,000 | 2,665,000 | 127,296,000 | − | (26,983,000) | 308,410,000 | 2,740,000 | 311,150,000 |
| 5.04 | Capital Transactions with Owners | − | (3,716,000) | − | − | − | (3,716,000) | 3,610,000 | (106,000) |
| 5.04.01 | Capital Increases | − | − | − | − | − | − | 11,000 | 11,000 |
| 5.04.06 | Dividends | − | − | − | − | − | − | (14,000) | (14,000) |
| 5.04.08 | Change of interest in controlled companies | − | (3,716,000) | − | − | − | (3,716,000) | 3,613,000 | (103,000) |
| 5.05 | Total of Comprehensive Income | − | − | − | 1,167,000 | 7,534,000 | 8,701,000 | 500,000 | 9,201,000 |
| 5.05.01 | Net Income for the Period | − | − | − | 1,167,000 | − | 1,167,000 | 109,000 | 1,276,000 |
| 5.05.02 | Other Comprehensive Income | − | − | − | − | 7,534,000 | 7,534,000 | 391,000 | 7,925,000 |
| 5.07 | Balance at the End of the Period | 205,432,000 | (1,051,000) | 127,296,000 | 1,167,000 | (19,449,000) | 313,395,000 | 6,850,000 | 320,245,000 |
| 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 01/01/2022 to 03/31/2022 | Accumulated of the Previous Year 01/01/2021 to 03/31/2021 |
| 6.01 | Net cash provided by operating activities | 52,824,000 | 40,070,000 |
| 6.01.01 | Cash provided by operating activities | 66,246,000 | 50,837,000 |
| 6.01.01.01 | Net Income for the period | 44,783,000 | 1,276,000 |
| 6.01.01.02 | Pension and medical benefits (actuarial expense) | 1,605,000 | 1,726,000 |
| 6.01.01.03 | Results of equity-accounted investments | (1,816,000) | (1,019,000) |
| 6.01.01.04 | Depreciation, depletion and amortization | 16,604,000 | 15,630,000 |
| 6.01.01.05 | Impairment of assets (reversal) | (4,000) | 508,000 |
| 6.01.01.06 | Exploratory expenditures write-offs | 114,000 | 740,000 |
| 6.01.01.08 | Foreign exchange, indexation and finance charges | (2,440,000) | 30,244,000 |
| 6.01.01.09 | Deferred income taxes, net | 10,135,000 | 1,231,000 |
| 6.01.01.10 | Allowance for expected credit losses | 105,000 | (86,000) |
| 6.01.01.11 | Inventory write-down (write-back) to net realizable value | (34,000) | (6,000) |
| 6.01.01.13 | Revision and unwinding of discount on the provision for decommissioning costs | 806,000 | 1,062,000 |
| 6.01.01.17 | Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA | (2,472,000) | (74,000) |
| 6.01.01.19 | Early termination and cash outflows revision of lease agreements | (1,140,000) | (395,000) |
| 6.01.02 | Decrease / (increase) in assets / increase/ (decrease) in liabilities | (13,422,000) | (10,767,000) |
| 6.01.02.01 | Trade and other receivables, net | 3,123,000 | (479,000) |
| 6.01.02.02 | Inventories | (9,763,000) | (10,793,000) |
| 6.01.02.03 | Judicial deposits | (2,002,000) | (839,000) |
| 6.01.02.05 | Other assets | 249,000 | 137,000 |
| 6.01.02.06 | Trade payables | (1,267,000) | 3,375,000 |
| 6.01.02.07 | Other taxes payable | 14,021,000 | 6,106,000 |
| 6.01.02.08 | Pension and medical benefits | (7,677,000) | (5,253,000) |
| 6.01.02.09 | Provisions for legal proceedings | 919,000 | (1,159,000) |
| 6.01.02.10 | Short-term benefits | (769,000) | (468,000) |
| 6.01.02.11 | Income tax and social contribution paid | (7,927,000) | (710,000) |
| 6.01.02.12 | Provision for Decommissioning Costs | (702,000) | (887,000) |
| 6.01.02.14 | Other liabilities | (1,627,000) | 203,000 |
| 6.02 | Net cash used in investing activities | (4,983,000) | (7,427,000) |
| 6.02.01 | Acquisition of PP&E and intangibles assets | (12,338,000) | (8,981,000) |
| 6.02.02 | Decrease (increase) in investments in assets | (49,000) | (4,000) |
| 6.02.03 | Proceeds from disposal of assets – Divestment | 9,255,000 | 1,054,000 |
| 6.02.04 | Divestment (investment) in marketable securities | (2,445,000) | 138,000 |
| 6.02.05 | Dividends received | 275,000 | 366,000 |
| 6.02.08 | Financial compensation for the Búzios Co-participation Agreement | 319,000 | − |
| 6.03 | Net cash used in financing activities | (16,455,000) | (30,822,000) |
| 6.03.01 | Changes in non-controlling interest | 412,000 | (102,000) |
| 6.03.02 | Proceeds from financing | 782,000 | 299,000 |
| 6.03.03 | Repayment of principal - finance debt | (7,683,000) | (17,080,000) |
| 6.03.04 | Repayment of interest - finance debt | (3,022,000) | (5,898,000) |
| 6.03.05 | Dividends paid to shareholders of Petrobras | (2,000) | − |
| 6.03.06 | Dividends paid to non-controlling interests | (26,000) | (1,000) |
| 6.03.08 | Settlement of lease liabilities | (6,916,000) | (8,040,000) |
| 6.04 | Effect of exchange rate changes on cash and cash equivalents | (8,227,000) | 5,408,000 |
| 6.05 | Net increase/ (decrease) in cash and cash equivalents | 23,159,000 | 7,229,000 |
| 6.05.01 | Cash and cash equivalents at the beginning of the period | 58,482,000 | 60,930,000 |
| 6.05.02 | Cash and cash equivalents at the end of the period | 81,641,000 | 68,159,000 |
| 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 01/01/2022 to 03/31/2022 | Accumulated of the Previous Year 01/01/2021 to 03/31/2021 |
| 7.01 | Sales Revenues | 185,271,000 | 121,529,000 |
| 7.01.01 | Sales of Goods and Services | 172,383,000 | 108,137,000 |
| 7.01.02 | Other Revenues | 4,652,000 | 4,225,000 |
| 7.01.03 | Revenues Related to the Construction of Assets to be Used in Own Operations | 8,341,000 | 9,081,000 |
| 7.01.04 | Allowance for expected credit losses | (105,000) | 86,000 |
| 7.02 | Inputs Acquired from Third Parties | (50,911,000) | (34,614,000) |
| 7.02.01 | Cost of Sales | (32,760,000) | (20,262,000) |
| 7.02.02 | Materials, Power, Third-Party Services and Other Operating Expenses | (8,007,000) | (5,988,000) |
| 7.02.03 | Impairment Charges / Reversals of Assets | 4,000 | (508,000) |
| 7.02.04 | Others | (10,148,000) | (7,856,000) |
| 7.02.04.01 | Tax Credits on Inputs Acquired from Third Parties | (10,182,000) | (7,862,000) |
| 7.02.04.02 | Inventory Write-Down to Net Realizable Value | 34,000 | 6,000 |
| 7.03 | Gross Added Value | 134,360,000 | 86,915,000 |
| 7.04 | Retentions | (18,502,000) | (16,805,000) |
| 7.04.01 | Depreciation, Amortization and Depletion | (18,502,000) | (16,805,000) |
| 7.05 | Net Added Value Produced | 115,858,000 | 70,110,000 |
| 7.06 | Transferred Added Value | 3,845,000 | 1,877,000 |
| 7.06.01 | Share of Profit of Equity-Accounted Investments | 1,816,000 | 1,019,000 |
| 7.06.02 | Finance Income | 1,360,000 | 676,000 |
| 7.06.03 | Others | 669,000 | 182,000 |
| 7.06.03.01 | Rentals, royalties and others | 669,000 | 182,000 |
| 7.07 | Total Added Value to be Distributed | 119,703,000 | 71,987,000 |
| 7.08 | Distribution of Added Value | 119,703,000 | 71,987,000 |
| 7.08.01 | Employee Compensation | 6,776,000 | 6,763,000 |
| 7.08.01.01 | Salaries | 4,323,000 | 4,283,000 |
| 7.08.01.02 | Fringe Benefits | 2,189,000 | 2,227,000 |
| 7.08.01.03 | Unemployment Benefits (FGTS) | 264,000 | 253,000 |
| 7.08.02 | Taxes and Contributions | 66,883,000 | 30,229,000 |
| 7.08.02.01 | Federal | 54,447,000 | 22,910,000 |
| 7.08.02.02 | State | 12,203,000 | 7,171,000 |
| 7.08.02.03 | Municipal | 233,000 | 148,000 |
| 7.08.03 | Return on Third-Party Capital | 1,261,000 | 33,719,000 |
| 7.08.03.01 | Interest | (400,000) | 32,582,000 |
| 7.08.03.02 | Rental Expenses | 1,661,000 | 1,137,000 |
| 7.08.04 | Return on Shareholders' Equity | 44,783,000 | 1,276,000 |
| 7.08.04.03 | Retained Earnings / (Losses) for the Period | 44,561,000 | 1,167,000 |
| 7.08.04.04 | Non-controlling Interests on Retained Earnings / (Losses) | 222,000 | 109,000 |
| 18 |
| Table of Contents |
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, 2021, which include the full set of notes.
The Company’s consolidated and individual interim financial information was prepared and presented in accordance with IAS 34 Interim Financial Reporting (Technical Pronouncement – CPC 21 (R1) – Interim Statements), in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and also in accordance with accounting practices adopted in Brazil by the Accounting Pronouncements Committee (CPC), approved by the Brazilian Securities Commission (CVM). All relevant information specific to the financial statements, and only them, are being highlighted, and corresponds to the ones used by 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 May 5, 2022.
| 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, 2021.
The accounting standards that came into effect on January 1st, 2022 did not have a material effect on these individual and consolidated quarterly information.
Regarding the reform of the reference interest rates (IBOR Reform), the Company continues to monitor the pronouncements of the regulatory authorities, as well as the measures that have been adopted, aimed at adapting the various financial instruments to the new benchmarks. Petrobras and its subsidiaries have debts indexed to Libor (London Interbank Offered Rate), the amount of which corresponds to approximately 32% of their financings. Debts indexed to Libor are presented in Note 23.3.
| 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 recommended in accounting practice.
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Cash at bank and in hand | 1,222 | 1,666 |
| Short-term financial investments | ||
| - In Brazil | ||
| Brazilian interbank deposit rate investment funds and other short-term deposits | 27,974 | 10,885 |
| Other investment funds | 928 | 911 |
| 28,902 | 11,796 | |
| - Abroad | ||
| Time deposits | 33,633 | 24,050 |
| Automatic investing accounts and interest checking accounts | 17,700 | 20,826 |
| Other financial investments | 144 | 72 |
| 51,477 | 44,948 | |
| Total short-term financial investments | 80,379 | 56,744 |
| Total cash and cash equivalents | 81,601 | 58,410 |
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.
These investments were substantially provided by an operating cash generation of R$52,824, receipts from the sale of assets and interests of R$ 9,255, with emphasis on the receipt of the sale of the interest in the BM-S-8 exploratory block in the amount of R$ 5,066 and proceeds from financing in the amount of R$782.
| 19 |
| Table of Contents |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
The main use of these funds in the period ended March 31, 2022 were for debt service, repurchase and redemption of securities in the international capital market and lease payments totaling R$ 17,621, as well as for realization of investments in the amount of R$ 12,338 and the exchange effect on the balances of cash and cash equivalents arising from investments abroad in the amount of R$ 8,227.
| 3.2. | Marketable securities |
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Fair value through profit or loss | 3,595 | 3,630 |
| Amortized cost | 2,629 | 247 |
| Total | 6,224 | 3,877 |
| Current | 5,967 | 3,630 |
| Non-current | 257 | 247 |
Marketable securities classified as fair value through profit or loss refer mainly to investments in Brazilian Federal Government Bonds. These financial investments have maturities of more than three months and are generally classified as current assets due to their maturity or the expectation of their realization in the short term. Securities classified as amortized cost mainly refer to investments abroad in time deposits with maturities exceeding three months from the contracting date.
| 20 |
| Table of Contents |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
| 4. | Sales revenues |
| Consolidated | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Gross sales | 172,383 | 108,137 |
| Sales taxes (*) | (30,742) | (21,963) |
| Sales revenues | 141,641 | 86,174 |
| Diesel | 38,875 | 25,161 |
| Gasoline | 19,404 | 11,068 |
| Liquefied petroleum gas | 6,172 | 5,018 |
| Jet fuel | 5,176 | 2,328 |
| Naphtha | 3,182 | 1,812 |
| Fuel oil (including bunker fuel) | 1,911 | 1,829 |
| Other oil products | 6,650 | 4,815 |
| Subtotal oil products | 81,370 | 52,031 |
| Natural gas | 9,028 | 5,678 |
| Crude oil | 9,147 | 290 |
| Nitrogen products and renewables | 343 | 74 |
| Breakage | 539 | 365 |
| Electricity | 1,553 | 2,970 |
| Services, agency and others | 1,239 | 876 |
| Domestic market | 103,219 | 62,284 |
| Exports | 35,110 | 22,800 |
| Crude oil | 25,043 | 15,462 |
| Fuel oil (including bunker fuel) | 9,865 | 6,598 |
| Other oil products and other products | 202 | 740 |
| Sales abroad (**) | 3,312 | 1,090 |
| Foreign Market | 38,422 | 23,890 |
| Sales revenues | 141,641 | 86,174 |
| (*) Includes, mainly, CIDE, PIS, COFINS and ICMS (VAT). | ||
| (**) Sales revenues from operations outside of Brazil, including trading and excluding exports. | ||
In the period from January to March 2022 and 2021, Vibra Energia, formerly BR Distribuidora, represents more than 10% of the company's total sales, mainly impacting the Refining, Transportation and Marketing (RTM) segment.
| 5. | Costs and expenses by nature |
| 5.1. | Cost of sales |
| Consolidated | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Raw material, products for resale, materials and third-party services (*) | (30,257) | (14,593) |
| Depreciation, depletion and amortization | (13,416) | (12,242) |
| Production taxes | (21,146) | (12,911) |
| Employee compensation | (2,056) | (2,395) |
| Total | (66,875) | (42,141) |
| (*) It Includes short-term leases and inventory turnover. | ||
| 5.2. | Selling expenses |
| Consolidated | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Materials, third-party services, freight, rent and other related costs | (4,967) | (4,299) |
| Depreciation, depletion and amortization | (1,038) | (814) |
| Allowance for expected credit losses | (40) | 31 |
| Employee compensation | (114) | (116) |
| Total | (6,159) | (5,198) |
| 5.3. | General and administrative expenses |
| Consolidated | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Employee compensation | (1,036) | (1,013) |
| Materials, third-party services, rent and other related costs | (403) | (351) |
| Depreciation, depletion and amortization | (120) | (132) |
| Total | (1,559) | (1,496) |
| 21 |
| Table of Contents |
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) |
| 6. | Other income and expenses |
| Consolidated | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Unscheduled stoppages and pre-operating expenses | (1,952) | (1,641) |
| Gains / (losses) related to legal, administrative and arbitration proceedings | (1,307) | 294 |
| Pension and medical benefits – retirees | (1,242) | (1,189) |
| Variable compensation program | (618) | (528) |
| Gains/(losses) with Commodities Derivatives | (282) | (126) |
| Profit Sharing | (161) | (157) |
| Gains / (losses) on decommissioning of returned/abandoned areas | (125) | (35) |
| Amounts recovered from Lava Jato investigation (**) | 60 | 790 |
| Tax recovery (*) | 89 | 116 |
| Equalization of expenses – Production Individualization Agreements | 138 | (244) |
| Expenses/Reimbursements from E&P partnership operations | 138 | 552 |
| Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | (183) |
| Fines imposed on suppliers | 355 | 160 |
| Early termination and cash outflows revision of lease agreements | 1,140 | 395 |
| Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 2,472 | 257 |
| Others | (375) | 9 |
| Total | (1,670) | (1,530) |
| (*) It Includes the effects of the exclusion of ICMS (VAT tax) from the basis of calculation of sales taxes PIS and COFINS, except for the effects of inflation indexation, as set out in note 11. | ||
| (**) The total amount recovered from Lava Jato Investigation through December 31, 2021 was R$ 6,220, recognized through collaboration and leniency agreements entered into with individuals and legal entities. | ||
| 7. | Net finance income (expense) |
| Consolidated | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Finance income | 1,360 | 676 |
| Income from investments and marketable securities (Government Bonds) | 844 | 160 |
| Others | 516 | 516 |
| Finance expenses | (3,969) | (6,613) |
| Interest on finance debt | (2,784) | (4,119) |
| Unwinding of discount on lease liabilities | (1,526) | (1,607) |
| Discount and premium on repurchase of debt securities | (134) | (1,013) |
| Capitalized borrowing costs | 1,244 | 1,154 |
| Unwinding of discount on the provision for decommissioning costs | (682) | (1,027) |
| Other finance expenses and income, net | (87) | (1) |
| Foreign exchange gains (losses) and indexation charges | 5,592 | (24,811) |
| Foreign Exchange (*) | 12,535 | (18,727) |
| Reclassification of hedge accounting to the Statement of Income (*) | (7,221) | (6,094) |
| Recoverable taxes inflation indexation income | 108 | 71 |
| Others | 170 | (61) |
| Total | 2,983 | (30,748) |
|
(*) For more information, see notes 27.3.a and 27.3.c.
| ||
| 22 |
| Table of Contents |
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. | Net income by operating segment |
Consolidated Statement of Income by operating segment – Jan-Mar/2022
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and ther business | Eliminations | Total | |
| Sales revenues | 102,567 | 128,476 | 17,655 | 658 | (107,715) | 141,641 |
| Intersegments | 100,949 | 2,258 | 4,490 | 18 | (107,715) | − |
| Third parties | 1,618 | 126,218 | 13,165 | 640 | − | 141,641 |
| Cost of sales | (40,112) | (112,165) | (15,272) | (649) | 101,323 | (66,875) |
| Gross profit | 62,455 | 16,311 | 2,383 | 9 | (6,392) | 74,766 |
| Expenses | (252) | (2,781) | (4,616) | (3,515) | (20) | (11,184) |
| Selling | (10) | (2,139) | (3,974) | (16) | (20) | (6,159) |
| General and administrative | (68) | (196) | (84) | (1,211) | − | (1,559) |
| Exploration costs | (408) | − | − | − | − | (408) |
| Research and development | (909) | (13) | (14) | (145) | − | (1,081) |
| Other taxes | (76) | (39) | (52) | (144) | − | (311) |
| Impairment | 7 | − | 3 | (6) | − | 4 |
| Other income and expenses | 1,212 | (394) | (495) | (1,993) | − | (1,670) |
| Net income (loss) before financial results and income taxes | 62,203 | 13,530 | (2,233) | (3,506) | (6,412) | 63,582 |
| Net finance income (expenses) | − | − | − | 2,983 | − | 2,983 |
| Results in equity-accounted investments | 257 | 1,415 | 149 | (5) | − | 1,816 |
| Net Income (loss) before income taxes | 62,460 | 14,945 | (2,084) | (528) | (6,412) | 68,381 |
| Income taxes | (21,149) | (4,600) | 759 | (788) | 2,180 | (23,598) |
| Net income (loss) of the period | 41,311 | 10,345 | (1,325) | (1,316) | (4,232) | 44,783 |
| Attributable to: | ||||||
| Shareholders of Petrobras | 41,317 | 10,345 | (1,461) | (1,408) | (4,232) | 44,561 |
| Non-controlling interests | (6) | − | 136 | 92 | − | 222 |
| 41,311 | 10,345 | (1,325) | (1,316) | (4,232) | 44,783 |
| 23 |
| Table of Contents |
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-Mar/2021
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and ther business | Eliminations | Total | |
| Sales revenues | 63,952 | 76,741 | 12,087 | 836 | (67,442) | 86,174 |
| Intersegments | 62,783 | 1,282 | 3,026 | 351 | (67,442) | − |
| Third parties | 1,169 | 75,459 | 9,061 | 485 | − | 86,174 |
| Cost of sales | (28,636) | (64,975) | (7,271) | (823) | 59,564 | (42,141) |
| Gross profit | 35,316 | 11,766 | 4,816 | 13 | (7,878) | 44,033 |
| Expenses | (2,888) | (2,186) | (4,103) | (1,943) | (28) | (11,148) |
| Selling | (1) | (1,839) | (3,301) | (29) | (28) | (5,198) |
| General and administrative | (178) | (180) | (94) | (1,044) | − | (1,496) |
| Exploration costs | (1,196) | − | − | − | − | (1,196) |
| Research and development | (467) | (11) | (27) | (134) | − | (639) |
| Other taxes | (91) | (220) | (127) | (143) | − | (581) |
| Impairment | (538) | − | − | 30 | − | (508) |
| Other income and expenses | (417) | 64 | (554) | (623) | − | (1,530) |
| Net income (loss) before financial results and income taxes | 32,428 | 9,580 | 713 | (1,930) | (7,906) | 32,885 |
| Net finance income (expenses) | − | − | − | (30,748) | − | (30,748) |
| Results in equity-accounted investments | 126 | 616 | 215 | 62 | − | 1,019 |
| Net Income (loss) before income taxes | 32,554 | 10,196 | 928 | (32,616) | (7,906) | 3,156 |
| Income taxes | (11,025) | (3,257) | (242) | 9,956 | 2,688 | (1,880) |
| Net income (loss) of the period | 21,529 | 6,939 | 686 | (22,660) | (5,218) | 1,276 |
| Attributable to: | ||||||
| Shareholders of Petrobras | 21,533 | 6,939 | 558 | (22,645) | (5,218) | 1,167 |
| Non-controlling interests | (4) | − | 128 | (15) | − | 109 |
| 21,529 | 6,939 | 686 | (22,660) | (5,218) | 1,276 |
The balance of depreciation, depletion and amortization by business segment is set forth as follows:
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate and other business | Total | |
| Jan-Mar/2022 | 12,941 | 2,991 | 562 | 110 | 16,604 |
| Jan-Mar/2021 | 11,872 | 2,950 | 582 | 226 | 15,630 |
| 9. | Trade and other receivables |
| 9.1. | Trade and other receivables, net |
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Receivables from contracts with customers | ||
| Third parties | 24,294 | 27,005 |
| Related parties | ||
| Investees (note 28.4) | 1,771 | 2,152 |
| Subtotal | 26,065 | 29,157 |
| Other trade receivables | ||
| Third parties | ||
| Receivables from divestments (*) | 8,684 | 14,951 |
| Lease receivables | 2,038 | 2,428 |
| Other receivables | 3,999 | 4,866 |
| Related parties | ||
| Petroleum and alcohol accounts – receivables from Brazilian Government | 2,919 | 2,822 |
| Subtotal | 17,640 | 25,067 |
| Total trade receivables | 43,705 | 54,224 |
| Expected credit losses (ECL) – Third parties | (7,431) | (7,971) |
| Expected credit losses (ECL) – Related parties | (136) | (112) |
| Total trade receivables, net | 36,138 | 46,141 |
| Current | 26,849 | 35,538 |
| Non-current | 9,289 | 10,603 |
|
(*)Refers mainly to the amount receivable for the divestment in Nova Transportadora do Sudeste (NTS), received in April 2022, as per explanatory note 30, in addition to Rio Ventura, Roncador, Pampo Enchova, Baúna, Miranga and Maromba.
| ||
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 March 31, 2022 totaled R$3,343 (R$6,445 as of December 31, 2021).
| 24 |
| Table of Contents |
NOTES TO THE FINANCIAL STATEMENTS PETROBRAS This interim financial information should be read together with the Company’s audited annual financial statements (Expressed in millions of reais, unless otherwise indicated) |
In the first quarter of 2022, the average term for receiving receivables from contracts from third-party customers, referring to the sale of derivatives in the domestic market, is approximately 1.9 days (1.6 days in 2021). Fuel oil and petroleum exports have an average term of receipt of approximately 11.6 days and 7 days, respectively (15 days and 6.5 days in 2021).
The balance of receivables from divestments was reduced mainly by the receipt of US$ 950 million (R$ 5,066), from the sale of its interest in the exploration block BM-S-8, as per explanatory note 31.4 of the financial statements of December 31, 2021.
| 9.2. | Aging of trade and other receivables – third parties |
| Consolidated | ||||
| 03.31.2022 | 12.31.2021 | |||
| Trade receivables | Expected credit losses (ECL) | Trade receivables | Expected credit losses (ECL) | |
| Current | 29,819 | (381) | 39,392 | (428) |
| Overdue: | ||||
| Until 3 months | 1,303 | (177) | 1,214 | (144) |
| 3 – 6 months | 149 | (105) | 221 | (36) |
| 6 – 12 months | 287 | (183) | 286 | (164) |
| More than 12 months | 7,457 | (6,585) | 8,137 | (7,199) |
| Total | 39,015 | (7,431) | 49,250 | (7,971) |
| 9.3. | Changes in provision for expected credit losses |
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Opening balance | 8,083 | 8,293 |
| Additions | 215 | 374 |
| Reversals | (133) | (611) |
| Write-offs | (24) | (213) |
| Transfer of assets held for sale | − | (42) |
| Cumulative translation adjustment | (574) | 282 |
| Closing balance | 7,567 | 8,083 |
| Current | 990 | 880 |
| Non-current | 6,577 | 7,203 |
| 10. | Inventories |
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Crude oil | 22,163 | 17,012 |
| Oil products | 14,611 | 13,922 |
| Intermediate products | 3,336 | 2,967 |
| Natural gas and LNG (*) | 3,216 | 1,946 |
| Biofuels | 94 | 106 |
| Fertilizers | 47 | 43 |
| Total products | 43,467 | 35,996 |
| Materials, supplies and others | 4,884 | 4,490 |
| Total | 48,351 | 40,486 |
| (*) 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 derivatives and, they are recognized in the statement of income for the period as cost of sales. In the period from January to March 2022, there was a reversal of the provision of R$34 (reversal of R$6 in the period from January to March 2021).
On March 31, 2022, the company had a volume of oil and/or oil product inventory given as guarantee of the Financial Commitment Terms - TCF, signed in 2008 with Petros, in the amount of R$ 14,891. This amount of guarantee is in the process of adjustment due to the partial early settlement of the TCF Pension Difference and TCF Pre-70, carried out in February 2022, which seeks to converge with the current value of the debt, which on March 31, 2022 is R$ 3,027.
| 25 |
| Table of Contents |
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. | Taxes |
11.1. Income tax and social contribution
Current taxes
|
Income tax and social contribution |
Consolidated | |||||
| Current assets | Current liabilities | Non-current liabilities | ||||
| 03.31.2022 | 12.31.2021 | 03.31.2022 | 12.31.2021 | 03.31.2022 | 12.31.2021 | |
| Taxes in Brazil | ||||||
| Income taxes | 748 | 745 | 4,123 | 3,803 | − | − |
| Income taxes – Tax settlement programs | − | − | 245 | 241 | 1,646 | 1,676 |
| 748 | 745 | 4,368 | 4,044 | 1,646 | 1,676 | |
| Taxes abroad | 145 | 166 | 527 | 45 | − | − |
| Total | 893 | 911 | 4,895 | 4,089 | 1,646 | 1,676 |
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 | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Net income before income taxes | 68,381 | 3,156 |
| Nominal income taxes computed based on Brazilian statutory corporate tax rates (34%) | (23,250) | (1,073) |
| Adjustments to arrive at the effective tax rate: | ||
| Different jurisdictional tax rates for companies abroad | 1,034 | 115 |
| Brazilian income taxes on income of companies incorporated outside Brazil (*) | (1,542) | (1,156) |
| Tax loss carryforwards (unrecognized tax losses) | 12 | (166) |
| Non-taxable income (non-deductible expenses), net (**) | 134 | 229 |
| Post-retirement benefit | (722) | (242) |
| Results of equity-accounted investments in Brazil and abroad | 633 | 413 |
| Others | 103 | − |
| Income tax expenses | (23,598) | (1,880) |
| Deferred income taxes | (10,135) | (1,231) |
| Current income taxes | (13,463) | (649) |
| Income tax expenses | (23,598) | (1,880) |
| Effective tax rate of income taxes | 34.5% | 59.6% |
| (*) 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. | ||
|
(**) Includes effect on judicial agreements.
| ||
Deferred income taxes - non-current
| Consolidated | ||||
| 2022 | 2021 | |||
| Balance at January 1st | (3,486) | 32,509 | ||
| Recognized in the statement of income for the period | (10,135) | (21,644) | ||
| Recognized in shareholders’ equity | (22,824) | (8,235) | ||
| Cumulative translation adjustment | (30) | 20 | ||
| Use of tax credits | (3,767) | (6,350) | ||
| Others | 19 | 214 | ||
| Balance at the end of the period | (40,223) | (3,486) | ||
| Deferred tax assets | 2,962 | 3,371 | ||
| Deferred tax liabilities (*) | (43,185) | (6,857) | ||
| Balance at the end of the period | (40,223) | (3,486) | ||
| (*) The balance of deferred tax liabilities increased in the period, mainly due to the offsetting of tax losses and negative basis of social contribution, the use of the benefit of accelerated tax depreciation and the appreciation of the Real against the U.S. Dollar. | ||||
The table below shows the composition and basis for realization of deferred tax assets and liabilities:
| 26 |
| Table of Contents |
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) |
| Nature | Basis for realization | 03.31.2022 | 12.31.2021 | ||||
| Property, plant and equipment - Cost of prospecting and dismantling areas |
Depreciation, Amortization and Write-off of Assets |
(6,461) | (7,601) | ||||
| Property, plant and equipment - Impairment | Amortization, Write-off of Assets and Impairment Reversal | 23,730 | 24,455 | ||||
| Property, plant and equipment – Depreciation, accelerated and linear x unit produced and capitalized charges | Depreciation, Amortization and Write-off of Assets | (76,102) | (72,123) | ||||
| Loans, accounts receivable / payable and financing | Payments, Receipts and Consideration | (789) | 19,475 | ||||
| Leases | Appropriation of consideration | (61) | 6,942 | ||||
| Provision for lawsuits | Payment and reversal of the provision | 3,674 | 3,378 | ||||
| Tax losses | Compensation of 30% of taxable income | 5,951 | 10,193 | ||||
| Inventories | Sale, Write-Off and Loss | 1,343 | 1,271 | ||||
| Employee benefits, mainly pension plan | Payment and reversal of the provision | 6,620 | 6,976 | ||||
| Others | 1,872 | 3,548 | |||||
| Total | (40,223) | (3,486) | |||||
| 11.2. | Other taxes |
Consolidated
| Other taxes | Current assets | Non-current assets | Current liabilities | Non-current liabilities (*) | ||||
| 03.31.2022 | 12.31.2021 | 03.31.2022 | 12.31.2021 | 03.31.2022 | 12.31.2021 | 03.31.2022 | 12.31.2021 | |
| Taxes in Brazil: | ||||||||
| Current / Deferred VAT Rate (VAT) | 2,926 | 3,712 | 2,094 | 2,114 | 4,445 | 5,554 | − | − |
| Current / Deferred PIS and COFINS (**) | 1,878 | 2,330 | 11,683 | 11,329 | 1,963 | 2,786 | 303 | 251 |
| PIS and COFINS - Law 9,718/98 | − | − | 3,337 | 3,313 | − | − | − | − |
| CIDE | 10 | 31 | − | − | 204 | 235 | − | − |
| Production taxes/Royalties | − | − | − | 14,502 | 11,984 | 117 | 117 | |
| Withholding income taxes | − | − | − | − | 486 | 481 | − | − |
| Tax settlement programs | − | − | − | − | 299 | 374 | 36 | 36 |
| Others | 238 | 272 | 1,390 | 1,393 | 660 | 781 | 392 | 392 |
| Total in Brazil | 5,052 | 6,345 | 18,504 | 18,149 | 22,559 | 22,195 | 848 | 796 |
| Taxes abroad | 230 | 255 | 43 | 48 | 114 | 130 | − | − |
| Total | 5,282 | 6,600 | 18,547 | 18,197 | 22,673 | 22,325 | 848 | 796 |
| (*) Other non-current liabilities are classified as other liabilities. | ||||||||
| (**) As of March 31, 2022, includes R$443 (R$576 as of December 31, 2021) in current assets, referring to the exclusion of VAT tax in the PIS and COFINS calculation basis. | ||||||||
PIS and COFINS Law 9,718/98
The company filed common actions against the Federal Government referring to the recovery of amounts paid as PIS/COFINS on financial income and active exchange variations, considering the unconstitutionality of §1 of art. 3 of Law 9,718/98, in the periods between February 1999 and January 2004.
All actions were upheld with a final and unappealable decision. Currently, two actions are in the precatory stage, with values as claimed by the company. Regarding the two remaining cases, both have favorable reports, and in one of them, the Union has already expressed its agreement.
As of March 31, 2022, the amount monetarily restated is R$3,337 (R$3,313 as of December 31, 2021).
| 12. | 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 | ||
| 03.31.2022 | 12.31.2021 | |
| Liabilities | ||
| Short-term employee benefits | 7,066 | 7,197 |
| Termination benefits | 1,294 | 1,950 |
| Post-retirement benefits | 49,006 | 55,130 |
| Total | 57,366 | 64,277 |
| Current | 11,430 | 11,967 |
| Non-current | 45,936 | 52,310 |
| Total | 57,366 | 64,277 |
12.1. Short-term benefits
| 27 |
| Table of Contents |
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) |
Short-term benefits are employee benefits (other than termination benefits) that are expected to be settled wholly before twelve months after the end of the reporting period in which the employees render the related service.
| Consolidated | ||||
| 03.31.2022 | 12.31.2021 | |||
| Variable compensation program - PPP | 2,549 | 2,574 | ||
| Accrued vacation and Christmas bonus | 2,713 | 2,453 | ||
| Salaries and related charges and other provisions | 1,183 | 1,505 | ||
| Profit sharing | 621 | 665 | ||
| Total | 7,066 | 7,197 | ||
| Current | 7,048 | 7,178 | ||
| Non-current | 18 | 19 | ||
| Total | 7,066 | 7,197 | ||
In the period from January to March, in relation to short-term benefits, the company recognized the following amounts in the income statement:
| Consolidated | ||||
| Jan-Mar/2022 | Jan-Mar/2021 | |||
| Costs/Expenses in the statement of income | ||||
| Salaries, vacation, christmas bonus, charges over provisions and others | 3,529 | 3,579 | ||
| Variable compensation program | 618 | 528 | ||
| Profit sharing | 161 | 157 | ||
| Manager compensations and charges | 15 | 19 | ||
| Total | 4,323 | 4,283 | ||
12.1.1Variable compensation program
Performance award program (PPP)
On September 17, 2021, the Company’s Board of Directors approved changes in the criteria for granting PPP 2021 to employees.
The PPP 2021 model presents, for the activation of the program, in addition to the net income for the year, the declaration and payment of remuneration to shareholders for the year in question approved by the Board of Directors.
The company paid the PPP 2021 to employees in the amount of R$ 640 in March 2022 and R$ 1,755 (R$ 1,641 in the parent company) in April 2022, totaling R$ 2,395, considering compliance with the company's performance metrics company and the individual performance of all employees.
On December 15, 2021, the Board of Directors approved the PPP 2022 for employees. The criteria of the PPP21 model for activating the program were maintained.
In the period from January to March 2022, the company provisioned R$618 (R$581 in the parent company) referring to the employees' variable compensation for the year 2022, recorded in other operating expenses.
Profit Sharing (PLR)
On December 29, 2020, the 17 labor unions representing employees of onshore bases signed the agreement for PLR 2021/2022, within the period determined by the Collective Bargaining Agreement (ACT). Among the maritime bases, three labor union entities signed the agreement within the deadline defined by the ACT.
The PLR 2021/2022 regulation, approved by the Secretariat for Coordination and Governance of State-owned Companies (Sest), of the Federal Government, covers employees who do not occupy remunerated functions and provides for individual limits according to the participants' remuneration. In order for the PLR to be activated in 2021 and 2022, in addition to the PLR agreement having been signed, the following triggers/requirements must be met: i) approval of the distribution of dividends by the Annual General Meeting (AGO); ii) calculation of net income in the reference year; and iii) achievement of the average percentage, weighted by weight, of the set of indicators' targets of at least 80%.
The maximum amount of PLR to be distributed is limited to 5% of Adjusted EBITDA, to 6.25% of net income and to 25% of dividends distributed to shareholders, in each year, whichever is lower.
| 28 |
| Table of Contents |
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 January 2022, the company advanced part of the PLR 2021 amount to employees with an estimated discharge for May 30, 2022, in the amount of R$209 (R$191 in the parent company).
In the period from January to March 2022, the company provisioned R$ 161 (R$ 147 in the parent company) referring to the employees' participation in the net income for the year 2022, recorded in other operating expenses.
12.2. Termination benefits
Termination benefits are those provided in exchange for the termination of labor contract as a result of either: i) an entity’s decision to terminate the labor contract before the employee’s normal retirement date; or ii) an employee’s decision to accept an offer of benefits in exchange for the termination of its employment.
The company has voluntary termination programs (PDV), incentive retirement programs (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 advantages whose enrollment deadlines have already been closed, totaling 11,431 adhesions accumulated until March 31, 2022 (11,418 adhesions until December 31, 2021).
The change in the provision as of March 31, 2022 is shown below:
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Opening Balance | 1,950 | 4,678 |
| Effects in the statement of income | 20 | (62) |
| Enrollments | 23 | 168 |
| Revision of provisions | (3) | (230) |
| Effect in cash and cash equivalents | (676) | (2,666) |
| Use due to termination | (676) | (2,666) |
| Saldo final | 1,294 | 1,950 |
| Current | 695 | 1,157 |
| Non Current | 599 | 793 |
The recognition of the provision for expenses with the retirement programs occurs as the employees join.
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.
As of March 31, 2022, of the total provisioned, the amount of R$284 corresponds to the second installment of 947 terminated employees and the amount of R$1,010 corresponds to 1,842 employees enrolled in the voluntary termination programs scheduled to leave by December 2023.
12.3. Post-employment benefits
The Company maintains a health care plan for its employees in Brazil (active and retiree) and their dependents, and five other major types of post-retirement pension benefits (collectively referred to as “pension plans”).
The balances related to post-employment benefits granted to employees are shown below:
| Consolidated | ||||
| 03.31.2022 | 12.31.2021 | |||
| Liabilities | ||||
| Health Care Plan: Saúde Petrobras | 25,392 | 25,029 | ||
| Petros Pension Plan - Renegotiated (PPSP-R) | 16,214 | 18,042 | ||
| Petros Pension Plan - Non-renegotiated (PPSP-NR) | 3,704 | 3,672 | ||
| Petros Pension Plan - Renegotiated - Pre-70 (PPSP-R Pré 70) | 1,477 | 4,557 | ||
| Petros Pension Plan - Non-renegotiated - Pre-70 (PPSP-NR Pré 70) | 1,250 | 2,851 | ||
| Petros 2 Pension Plan (PP-2) | 960 | 918 | ||
| Other plans | 9 | 61 | ||
| 29 |
| Table of Contents |
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) |
| Total | 49,006 | 55,130 | ||
| Current | 3,687 | 3,632 | ||
| Non-current | 45,319 | 51,498 | ||
Health Care Plan
The health care plan, named “Saúde Petrobras” by the beneficiaries, is managed by the Petrobras Health Association (APS), a non-profit civil association and includes prevention and health care programs.
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), 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 are shown below:
| 12.31.2021 | ||
| PPSP-R | PPSP-NR | |
| Accumulated deficit according to CNPC – Petros Foundation | 7,746 | 776 |
| Financial assumptions (interest rate and inflation) | (6,252) | (2,033) |
| Ordinary and extraordinary sponsor contributions | 12,223 | 3,636 |
| Changes in value of plan assets (*) | 8,074 | 3,029 |
| Others (calculation methodology, etc.) | 808 | 1,115 |
| Net actuarial liability according to CVM - Sponsor Company | 22,599 | 6,523 |
| (*) Includes balance of accounts receivable arising from the Financial Commitment Term - TCF signed with Petrobras, which Petros recognizes as equity. | ||
On March 28, 2022, the Petros Deliberative Council approved the financial statements of the pension plans for the year 2021, sponsored by the company.
| 12.3.1. | Amounts in the financial statements related to defined benefit plans |
Represents the company's obligation, net of collateral assets when applicable, discounted to present value and calculated annually by an independent actuary, in accordance with the methodology established in IAS 39/CPC 33 (R1) - Employee Benefits, approved by CVM Deliberation No. 695/2012.
The movement of obligations with pension and health plans with a defined benefit feature is shown below:
| Consolidated | ||||||
| 2022 | ||||||
| Pension plans | Health Care Plan | Other plans | ||||
| PPSP-R (*) | PPSP-NR (*) | PP2 | Saúde Petrobras | Total | ||
| Balance on January 1st | 22,599 | 6,523 | 918 | 25,029 | 61 | 55,130 |
| Recognized in income – cost and expenses | 591 | 187 | 42 | 785 | − | 1,605 |
| Current service cost | 12 | 2 | 17 | 135 | − | 166 |
| Interest cost, net | 579 | 185 | 25 | 650 | − | 1,439 |
| Cash effects | (5,499) | (1,756) | − | (422) | − | (7,677) |
| Contributions paid | (284) | (89) | − | (422) | − | (795) |
| Payments related to Term of financial commitment (TFC) | (5,215) | (1,667) | − | − | − | (6,882) |
| Other changes | − | − | − | − | (52) | (52) |
| Balance of actuarial liability as of March 31 | 17,691 | 4,954 | 960 | 25,392 | 9 | 49,006 |
| (*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. | ||||||
| Consolidated | ||||||
| 2021 | ||||||
| Pension plans | Health Care Plan | Other plans | ||||
| PPSP-R (*) | PPSP-NR (*) | PP2 | Saúde Petrobras | Total | ||
| Balance on January 1st (**) | 39,102 | 14,012 | 2,477 | 27,836 | 76 | 83,503 |
| Recognized in income – cost and expenses | 2,510 | 947 | 383 | 7,420 | (45) | 11,215 |
| Past service cost | (5) | (1) | − | 4,518 | − | 4,512 |
| Current service cost | 72 | 5 | 198 | 844 | (50) | 1,069 |
| Interest cost, net | 2,345 | 914 | 185 | 2,058 | 5 | 5,507 |
| 30 |
| Table of Contents |
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) |
| Interest on the obligations with contribution for the revision of the lump sum death benefit | 98 | 29 | − | − | − | 127 |
| Recognized in Equity - other comprehensive income | (11,929) | (5,308) | (1,942) | (8,590) | 34 | (27,735) |
| Remeasurement: actuarial (gains)/losses | (11,929) | (5,308) | (1,942) | (8,590) | 34 | (27,735) |
| Cash effects | (7,084) | (3,128) | − | (1,633) | (3) | (11,848) |
| Contributions paid (***) | (2,514) | (453) | − | (1,633) | (3) | (4,603) |
| Payments of obligations with contribution for the revision of the lump sum death benefit | (1,797) | (536) | − | − | − | (2,333) |
| Payments related to Term of financial commitment (TFC) | (2,773) | (2,139) | − | − | − | (4,912) |
| Other changes | − | − | − | (4) | (1) | (5) |
| Balance of actuarial liability as of December 31 | 22,599 | 6,523 | 918 | 25,029 | 61 | 55,130 |
| (*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. | ||||||
| (**)Includes obligation with contributory contribution for reviewing the lump sum death benefit. | ||||||
| (***) Includes the payment of the contribution for migration to the defined contribution plan PP3 of R$ 1,274. | ||||||
The net expense with pension and health plans is presented below:
| Pension Plans | Health Care Plan | Other Plans | ||||
| PPSP-R (*) | PPSP-NR (*) | PP2 |
Saúde Petrobras |
Total | ||
| Related to active employees (cost and expenses) | 45 | 7 | 24 | 287 | − | 363 |
| Related to retired employees (other income and expenses) | 546 | 180 | 18 | 498 | − | 1,242 |
| Expense in the statement of income - Jan-Mar/2022 | 591 | 187 | 42 | 785 | − | 1,605 |
| Related to active employees (cost and expenses) | 72 | 13 | 80 | 371 | 1 | 537 |
| Related to retired employees (other income and expenses) | 551 | 210 | 19 | 341 | − | 1,121 |
| Obligations with contribution for the revision of the lump sum death benefit | 52 | 16 | − | − | − | 68 |
| Expense in the statement of income - Jan-Mar/2021 | 675 | 239 | 99 | 712 | 1 | 1,726 |
| (*) It includes amounts of PPSP-R pre-70 and PPSP-NR pre-70 | ||||||
12.3.2. Contributions
In the period from January to March 2022, the company contributed a total of R$7,677 to the defined benefit plans, which reduced the balance of obligations, as shown in Note 12.3.1. Of this amount, it includes the partial early settlement of the Financial Commitment Term, in the amount of R$6,882, carried out on February 25, 2022.
Additionally, there was a contribution of R$ 242 (R$ 217 for the period from January to March 2021) to the defined contribution portion of the PP2 plan and R$ 2 of the PP3 plan, which were recognized in costs and income for the year.
The collection of contributions to the PP3 plan began in August 2021.
| 13. | Provisions for legal proceedings |
13.1 Provisions for legal proceedings, judicial deposits and contingent liabilities
The Company recognizes provisions based on the best estimate of the costs of proceedings for which it is probable that an outflow of resources embodying economic benefits will be required and that can be reliably estimated. These proceedings mainly include:
| · | Labor claims, in particular: (i) opt-out claims related to 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; and (ii) actions of outsourced employees; |
| · | Tax claims including: (i) claims relating to Brazilian federal tax credits applied that were disallowed; (ii) non-payment of social security contributions on bonuses; |
| · | Civil claims, in particular: (i) lawsuits related to contracts; (ii) royalties and production taxes, including royalties over shale extraction; and (iii) penalties applied by ANP relating to measurement systems. |
| · | Environmental claims, specially: (i) compensation and 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 State of São Paulo Park. |
Provisions for legal proceedings are set out as follows:
| 31 |
| Table of Contents |
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 | ||
| Current and Non-current liabilities | 03.31.2022 | 12.31.2021 |
| Labor claims | 4,093 | 3,995 |
| Tax claims | 1,903 | 1,705 |
| Civil claims | 5,026 | 4,581 |
| Environmental claims | 1,085 | 982 |
| Total | 12,107 | 11,263 |
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Opening Balance | 11,263 | 11,427 |
| Additions, net of reversals | 1,070 | 2,864 |
| Use of provision | (421) | (3,894) |
| Accruals and charges | 253 | 809 |
| Others | (58) | 57 |
| Closing balance | 12,107 | 11,263 |
In the preparation of the interim financial information for the period ended on March 31, 2022, 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 March 2022, the increase in liabilities is mainly due to changes in the following cases: (i) R$268 for the transfer to probable loss in a lawsuit that discusses the state monopoly of piped gas services; (ii) R$262 in the provision for civil litigation involving contractual matters; and (iii) R$123 in the provision for fines for non-compliance with ancillary obligations.
13.2 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 | 03.31.2022 | 12.31.2021 |
| Tax | 34,257 | 32,310 |
| Labor | 4,501 | 4,443 |
| Civil | 7,939 | 7,113 |
| Environmental | 564 | 566 |
| Others | 341 | 426 |
| Total | 47,602 | 44,858 |
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Opening Balance | 44,858 | 37,838 |
| Additions | 2,117 | 6,160 |
| Use | (119) | (593) |
| Accruals and charges | 833 | 1,428 |
| Others | (87) | 25 |
| Closing balance | 47,602 | 44,858 |
In the period from January to March 2022, the company made judicial deposits in the amount of R$2,117, including: (i) R$650 referring to the unification of fields (Cernambi, Tupi, Tartaruga Verde and Tartaruga Mestiça); (ii) R$395 referring to Corporate Income Tax and Social Contribution for not adding the income of subsidiaries and affiliates domiciled abroad to the parent company's Corporate Income Tax and Social Contribution calculation basis; (iii) R$ 323 referring to the levy of CIDE and PIS/COFINS, related to the charter of platforms; (iv) R$ 172 referring to Corporate Income Tax and Social Contribution in the deduction of expenses with Petros; (v) R$152 referring to tax regularization on municipal tax credits; and (vi) R$232 referring to several judicial deposits of a tax nature.
13.3 Contingent liabilities
As of March 31, 2022, 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 | 03.31.2022 | 12.31.2021 |
| Tax | 154,116 | 138,312 |
| Labor | 41,061 | 40,022 |
| Civil – General | 32,907 | 31,921 |
| Civil – Environmental | 6,851 | 6,652 |
| Total | 234,935 | 216,907 |
The main contingent liabilities are:
| 32 |
| Table of Contents |
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) |
| · | 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 (Corporate Income Tax and Social Contribution); (iii) tax on services provided offshore (ISS); (iv) requests to compensate federal taxes disallowed by the Brazilian Federal Tax Authority; (v) collection and crediting of ICMS VAT tax by several states; (vi) collection of social security contributions over payments of bonuses, and (vii) collection of custom duties and fines related to imports under the Repetro regime in the Frade consortium. |
| · | Labor matters comprising collective 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 lawsuits, highlighting: (i) administrative and legal proceedings that discuss differences in special participations and royalties in different fields; (ii) fines from regulatory agencies; and (iii) claims involving contracts; |
| · | Environmental matters with emphasis on indemnities and reparations for environmental damages and fines related to the company's operation. |
In the period from January to March 2022, the increase in liabilities arises mainly from: (i) R$ 11,612 referring to the notice of infraction, for the collection, by joint liability, of customs taxes and fines arising from the importation of goods under the Repetro regime, for use in the Frade consortium; (ii) R$1,866 referring to administrative and judicial proceedings that discuss the difference in special participation and royalties in different fields, including unification of fields; (iii) R$1,036 referring to lawsuits involving VAT Tax collection on imports in operations with liquefied petroleum gas derived from natural gas; (iv) R$952 referring to class actions that require a review of the methodology used to calculate the Minimum Remuneration by Level and Regime (RMNR); (v) R$ 673 related to the collection of Service Tax (ISS) on services in maritime waters; (vi) R$ 516 referring to the levy of CIDE and PIS/COFINS related to the chartering of platforms; (vii) R$436 referring to actions involving the collection of VAT Tax on state funds; (viii) R$378 referring to lawsuits involving the levy of PIS and COFINS on ship or pay contracts and charters of aircraft and vessels; (ix) R$452 referring to civil litigation involving contractual matters. These effects were partially offset by: (x) R$1,576 for the review of amounts and transfer to probable loss and remote loss in lawsuits that discuss the state monopoly of piped gas services.
13.4 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 only three years after its implementation.
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 judgment of the grievances filed by the plaintiff and several amici curiae began. The judgment is currently underway 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 Petrobras and the unions. Considering that the last minister to speak up requested a view, the trial was suspended pending the presentation of the vote by Minister Vistor.
As of March 31, 2022, there are several lawsuits related to the Minimum Remuneration by Level and Work Regime (RMNR) reflected in the company's interim financial information, R$ 798 of which classified as probable loss, recognized in liabilities as a provision for legal and administrative proceedings , and R$33,957 classified as possible loss.
| 33 |
| Table of Contents |
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) |
13.5 Class action and related proceedings
On May 26, 2021, the District Court of Rotterdam ruled that the class action 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 must proceed and that the arbitration clause in 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. 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 collective action moved to the phase of discussion of the merits issues. For more information, see explanatory note 18.4.1 to the financial statements for the year ended December 31, 2021.
In the Argentine arbitration, in which Petrobras is held liable for an alleged loss of market value of Petrobras' shares in Argentina, due to the unfolding of Lava Jato Operation, detailed in item 18.5 of the financial statements for the year ended on December 2021, the appeal presented by the Association has not yet been judged by the Argentine Supreme Court.
As for the criminal actions in Argentina, detailed in item 18.6 of the financial statements for the year ended December 31, 2021, with regard to the criminal action related to an alleged fraudulent offer of securities, aggravated by the fact that Petrobras allegedly declared false data in its pre-2015 financial statements, on October 21, 2021, after an appeal by the Association, the Court of Appeals overturned the lower court decision that had recognized Petrobras' immunity from jurisdiction and recommended that the lower court take some steps to certify whether the company could be considered criminally immune in Argentina for a later reassessment of the matter. Petrobras appealed against this decision, but the appeal was not admitted by the Court of Cassation on April 20, 2022, so immunity from jurisdiction will be reassessed by the lower court. On that same occasion, the Court of Appeals 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, still pending judgment. Petrobras presented other procedural defenses, which are still subject to appeals before the Argentine Court of Appeal. This criminal action is being processed before the Economic Criminal Court No. 2 of the City of Buenos Aires.
Regarding the other criminal action for alleged non-compliance with the obligation to publish as a “material fact” in the Argentine market the existence of a class action brought by Consumidores Financieros Asociación Civil para su Defensa before the Commercial Court, there were no relevant events in the period from January to March of 2022.
13.6Arbitrations in Brazil
In the period from January to March 2022, there were no events that changed the assessment and information about arbitrations in Brazil.
For more information, see note 18.4.2 to the financial statements for the year ended December 31, 2021.
13.7Tax recoveries under dispute
13.7.1. Compulsory Loan – Eletrobrás
During the period from January to March 2022, there were no events that modified the evaluation of this process. For more information, see explanatory note 18.7.2 to the financial statements for the year ended December 31, 2021.
13.7.2. Lawsuits brought by Natural Gas Distributors and others
During the period from January to March 2022, Petrobras obtained, in the Superior Court of Justice, the suspension of the preliminary decision obtained by CEGÁS, which granted the extension of its contract for 6 months. For more information, see explanatory note 18.7.3 to the financial statements for the year ended December 31, 2021.
| 14. | Provision for decommissioning costs |
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Opening balance | 87,160 | 97,595 |
| Adjustment to provision | 179 | (6,628) |
| Transfers related to liabilities held for sale (*) | (3,125) | (3,804) |
| Payments made | (1,041) | (3,935) |
| Interest accrued | 635 | 3,902 |
| Others | (71) | 30 |
| Total | 83,737 | 87,160 |
| 34 |
| Table of Contents |
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 the period from January to March 2022, refers to transfers of R$ 165 related to the North Capixaba Pole, in Espírito Santo, and R$ 2,960 related to the Potiguar Pole, in Rio Grande do Norte, as per explanatory note 22 . In 2021, it mainly refers to concessions in Sergipe-Alagoas, in the Campos Basin and in Espírito Santo, as per explanatory note 31.
| 15. | Property, plant and equipment |
| 15.1 | By class of assets |
| Consolidated | Parent | ||||||
|
Land, buildings and improvement |
Equipment and other assets (*) |
Assets under construction (**) |
Exploration and development costs (oil and gas producing properties) (***) | Right-of-use assets | Total | Total | |
| Balance at January 1,2021 | 15,812 | 304,940 | 80,255 | 161,958 | 82,469 | 645,434 | 670,088 |
| Additions | − | 8,914 | 31,073 | 22 | 37,179 | 77,188 | 77,702 |
| Additions to / review of estimates of decommissioning costs | − | − | − | (6,046) | − | (6,046) | (6,056) |
| Capitalized borrowing costs | 2 | − | 5,217 | − | − | 5,219 | 5,145 |
| Signing bonus transfer | − | − | − | 61,395 | − | 61,395 | 61,395 |
| Write-offs | (214) | (3,082) | (3,217) | (8,692) | (1,506) | (16,711) | (16,706) |
| Transfers | (1,472) | 16,039 | (16,967) | 9,382 | 11 | 6,993 | (179) |
| Transfers to assets held for sale | (292) | (15,451) | (3,046) | (4,406) | (84) | (23,279) | (17,423) |
| Depreciation, amortization and depletion | (532) | (22,833) | − | (23,472) | (23,070) | (69,907) | (74,558) |
| Impairment recognition | − | (2,089) | (9) | (152) | (23) | (2,273) | (2,272) |
| Impairment reversal | − | 9,623 | 615 | 9,953 | 180 | 20,371 | 20,219 |
| Cumulative translation adjustment | (2) | 410 | 509 | 104 | 1 | 1,022 | − |
| 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, amortization, depletion and impairment (****) | (9,468) | (250,894) | (50,401) | (145,424) | (52,065) | (508,252) | (437,126) |
| Balance at December 31, 2021 | 13,302 | 296,471 | 94,430 | 200,046 | 95,157 | 699,406 | 717,355 |
| Additions | − | 991 | 8,043 | 5 | 5,142 | 14,181 | 13,888 |
| Additions to / review of estimates of decommissioning costs | − | − | − | 54 | − | 54 | − |
| Capitalized borrowing costs | − | − | 1,236 | − | − | 1,236 | 1,221 |
| Write-offs | (1) | (142) | (344) | (20) | (176) | (683) | (349) |
| Transfers | 282 | 5,502 | (11,804) | 6,161 | (6) | 135 | 117 |
| Transfers to assets held for sale | (50) | (3,001) | (910) | (3,439) | 2 | (7,398) | (7,400) |
| Depreciation, amortization and depletion | (111) | (6,093) | − | (6,640) | (5,713) | (18,557) | (19,342) |
| Impairment reversal (note 17) | − | 4 | − | − | − | 4 | 4 |
| Cumulative translation adjustment | (4) | (47) | (1,077) | (195) | (4) | (1,327) | − |
| Balance at March 31, 2022 | 13,418 | 293,685 | 89,574 | 195,972 | 94,402 | 687,051 | 705,494 |
| Accumulated cost | 22,651 | 544,277 | 138,040 | 340,629 | 146,902 | 1,192,499 | 1,141,885 |
| Accumulated depreciation, amortization, depletion and impairment (****) | (9,233) | (250,592) | (48,466) | (144,657) | (52,500) | (505,448) | (436,391) |
| Balance at March 31, 2022 | 13,418 | 293,685 | 89,574 | 195,972 | 94,402 | 687,051 | 705,494 |
| Weighted average useful life in years |
40 (25 to 50) (except land) |
20 (3 to 31)
|
Units of production method |
8 (2 to 47) |
|||
|
(*) Composed of production platforms, refineries, thermoelectric plants, gas treatment units, pipelines and other operating, storage and production facilities, including subsea production equipment and flow of oil and gas depreciated by the method of the units produced. (**) Balances by business segment are presented in note 21. (***) Composed of exploration and production assets related to wells, abandonment of areas, signature bonuses associated with proven reserves and other expenses directly linked to exploration and production, except production platforms. (****) In the case of lands and assets under construction, it refers only to impairment losses. | |||||||
The rights-of-use comprise the following underlying assets:
| Consolidated | Parent Company | |||||
| Platforms | Vessels | Buildings and others | Total | Total | ||
| 2021 | ||||||
| Accumulated cost | 74,562 | 62,875 | 9,785 | 147,222 | 160,538 | |
| Accumulated depreciation, amortization, depletion and impairment | (19,652) | (29,410) | (3,003) | (52,065) | (54,117) | |
| Balance at December 31, 2021 | 54,910 | 33,465 | 6,782 | 95,157 | 106,421 | |
| 2022 | ||||||
| Accumulated cost | 73,730 | 64,397 | 8,775 | 146,902 | 160,212 | |
| Accumulated depreciation, amortization, depletion and impairment | (20,024) | (29,979) | (2,497) | (52,500) | (54,822) | |
| Balance at March 31, 2022 | 53,706 | 34,418 | 6,278 | 94,402 | 105,390 | |
15.2Production 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 Atapu, Berbigão, Sururu, Albacora Leste, Tartaruga Verde and others.
| 35 |
| Table of Contents |
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 change in the amount payable, classified in trade payables, is shown below:
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Initial balance | 2,033 | 1,925 |
| Additions/write-offs in Property, Plant and Equipment | (169) | (359) |
| Other operating (income) expenses | (138) | 467 |
| Final balance | 1,726 | 2,033 |
As of March 31, 2022, Petrobras has an estimate of amounts payable for the execution of the AIP submitted for approval by the ANP of R$1,726 (R$2,033 as of December 31, 2021). In the period from January to March 2022, these agreements resulted in the recognition of additions and write-offs to property, plant and equipment, in addition to other net income of R$138 (R$244 in other operating expenses in the same period in 2021), reflecting the best estimate available of the assumptions used in the estimation of the calculation basis and the sharing of relevant assets in areas to be equalized.
15.3Capitalization rate used to determine the amount of borrowing costs eligible for capitalization
The weighted average rate of financial charges used to determine the amount of borrowing costs without a specific destination, to be capitalized as an integral part of assets under construction, was 6.01% p.a. in the period from January to March 2022 (5.55% p.a. in the period from January to March 2021).
| 16 | Intangible assets |
| 16.1 | By class of assets |
| Consolidated | Parent Company | ||||
| Rights and Concessions (*) | Software | Goodwill | Total | Total | |
| Balance at January 1st, 2021 | 76,464 | 1,089 | 125 | 77,678 | 77,258 |
| Addition | 568 | 893 | − | 1,461 | 1,357 |
| Capitalized borrowing costs | − | 25 | − | 25 | 25 |
| Write-offs | (63) | (19) | (2) | (84) | (62) |
| Transfers | (513) | 17 | − | (496) | (206) |
| Signature Bonuses Transfers | (61,395) | − | − | (61,395) | (61,395) |
| Amortization | (29) | (292) | − | (321) | (295) |
| Impairment reversal | − | 6 | − | 6 | − |
| Cumulative translation adjustment | 5 | − | − | 5 | − |
| 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) |
| Balance at December 31, 2021 | 15,037 | 1,719 | 123 | 16,879 | 16,682 |
| Addition | 20 | 192 | − | 212 | 186 |
| Capitalized borrowing costs | − | 8 | − | 8 | 8 |
| Write-offs | (4) | (4) | − | (8) | (4) |
| Transfers | (17) | 1 | − | (16) | − |
| Amortization | (5) | (89) | − | (94) | (89) |
| Impairment accrual | − | (6) | − | (6) | − |
| Cumulative translation adjustment | (7) | (1) | (1) | (9) | − |
| Balance at March 31, 2022 | 15,024 | 1,820 | 122 | 16,966 | 16,783 |
| Accumulated Cost | 15,301 | 7,484 | 122 | 22,907 | 21,957 |
| Accumulated amortization and impairment | (277) | (5,664) | − | (5,941) | (5,174) |
| Balance at March 31, 2022 | 15,024 | 1,820 | 122 | 16,966 | 16,783 |
| Estimated useful life in years | (**) | 5 | Indefinite | ||
(*) Comprised 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.
(**) Comprised mainly of assets with an indefinite useful life whose valuation is reviewed annually to determine whether it remains justifiable.
| 36 |
| Table of Contents |
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) |
| 16.2 | Surpluses from Transfer of Rights |
Búzios
The expenses incurred by Petrobras in the ordinary operations of the area bid for the benefit of the consortium, carried out prior to the start of the Agreement, and not included in the total amount of compensation, in the updated amount of R$ 319, were reimbursed to Petrobras by the partners CNODC and CNOOC in February 2022.
Additionally, on March 4, 2022, Petrobras signed an agreement with its partner CNOOC Petroleum Brasil Ltda. (CPBL) for the transfer of 5% of its interest in the Production Sharing Contract for the Surplus Volume of the Assignment Agreement in the Búzios field, in the pre-salt layer of the Santos basin. The agreement results from the share purchase option exercised by CPBL on September 29, 2021.
The amount to be received in cash by Petrobras at the closing of the transaction is US$ 2,120 million, referring to the compensation and reimbursement of the signing bonus for the additional participation of CPBL, subject to the usual adjustments in this type of contract between the base date and the date of closing and compliance with conditions precedent, such as authorization by the Administrative Council for Economic Defense (CADE), recommendation for approval of the Assignment by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and approval by the Ministry of Mines and Energy (MME ).
After the completion of the transaction, Petrobras will hold an 85% interest in the Production Sharing Agreement for the Excess Volume of the Assignment Agreement for the Búzios field, CPBL will hold a 10% interest and CNODC Brasil Petróleo e Gás Ltda., 5 %. The total interest in this Búzios Co-participation Agreement, including the installments of the Assignment Agreement and the BS-500 Concession Agreement (100% of Petrobras) will be 88.99% of Petrobras, 7.34% of CPBL and 3, 67% of CNODC.
As of March 31, 2022, the assets related to these operations are classified as assets held for sale. For more information, see explanatory note 31 to the financial statements for the year ended December 31, 2021.
| 17 | Impairment |
The company assesses the recoverability of assets annually, or when there is an indication of devaluation. In the period from January to March 2022, net reversals due to devaluation of property, plant and equipment were recognized in the income statement, in the amount of R$ 4, mainly due to the sale of drilling rigs that were out of operation and leased by UTE Termocaçari.
In the period from January to March 2021, net losses due to devaluation of property, plant and equipment were recognized in the income statement for the period, in the amount of R$ 508:
| · | Equipment and facilities linked to production activity – Brazil: the company decided to permanently stop the P-33 platform in the Marlim field, which led to its exclusion from the CGU Polo Norte and classification as an isolated asset, with the recognition of losses for devaluation in the amount of R$689; and |
| · | Equipment and facilities linked to production activities – Abroad: the company decided to relocate equipment from platforms P-72 and P-73 to producing fields in the Santos Basin. As a result, considering the expectation of future cash generation, it recognized a reversal of impairment losses in the amount of R$151. |
| 18 | Exploration and evaluation of oil and gas reserves |
Changes in capitalized costs related to exploratory wells and the balances of amounts paid for obtaining rights and concessions for oil and natural gas exploration, both directly related to exploratory activities in unproved reserves, are presented in the following table:
| Consolidated | ||
| Capitalized Exploratory Well Costs / Capitalized Acquisition Costs (*) | 03.31.2022 | 12.31.2021 |
| Property plant and equipment | ||
| Opening Balance | 11,127 | 15,716 |
| Additions | 344 | 2,492 |
| Write-offs | (68) | (1,025) |
| Transfers | (48) | (6,099) |
| Cumulative translation adjustment | (97) | 43 |
| Closing Balance | 11,258 | 11,127 |
| Intangible Assets | 14,376 | 14,376 |
| Capitalized Exploratory Well Costs / Capitalized Acquisition Costs | 25,634 | 25,503 |
| (*) Amounts capitalized and subsequently expensed in the same period have been excluded from this table. | ||
Exploration costs recognized in the statement of income and cash flows used related to oil and gas exploration and evaluation activities are set out in the following table:
| 37 |
| Table of Contents |
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 | ||
| 2022 | 2021 | |
| Exploration costs recognized in the statement of income | Jan-Mar | Jan-Mar |
| Geological and geophysical expenses | 278 | 369 |
| Exploration expenditures written off (includes dry wells and signature bonuses) | 114 | 740 |
| Contractual penalties | 9 | 84 |
| Other exploration expenses | 7 | 3 |
| 408 | 1,196 | |
| Cash used in: | ||
| Operating activities | 285 | 372 |
| Investment activities | 395 | 628 |
| 680 | 1,000 | |
| 19 | Collateral for crude oil exploration concession agreements |
The Company has granted collateral to ANP in connection with the performance of the Minimum Exploration Programs established in the concession agreements for petroleum exploration areas in the total amount of R$ 8,818 of which R$ 8,818 were still in force, net of commitments undertaken. The collateral comprises crude oil from previously identified producing fields, pledged as collateral, amounting to R$ 6,933 and bank guarantees of R$ 1,885.
| 20 | Investments |
| 20.1 | Changes in investment (Parent Company) |
| Balance at 12.31.2021 | Investments | Restructuring, capital decrease and others | Results in equity-accounted investments | Cumulative translation adjustments (CTA) | Other comprehensive income | Dividends | Balance at 03.31.2022 | |
| Subsidiaries | 264,102 | − | (295) | 5,725 | (42,024) | − | 1 | 227,509 |
| Joint operations | 180 | − | − | 13 | − | − | − | 193 |
| Joint ventures | 109 | 45 | − | 30 | − | (1) | (6) | 177 |
| Associates (*) | 5,416 | − | − | 1,403 | (1,272) | 1,296 | − | 6,843 |
| Total | 269,807 | 45 | (295) | 7,171 | (43,296) | 1,295 | (5) | 234,722 |
| Other investments | 18 | − | − | − | − | − | − | 18 |
| Total | 269,825 | 45 | (295) | 7,171 | (43,296) | 1,295 | (5) | 234,740 |
| Results of companies classified as held for sale | 42 | − | ||||||
| 7,213 | 1,295 | |||||||
| (*) Includes Braskem. | ||||||||
| 20.2 | Changes in investment (Consolidated) |
| Balance at 12.31.2021 | Investments | Restructuring, capital decrease and others | Transfer to held for sale | Results in equity-accounted investments | Cumulative translation adjustments (CTA) | Other comprehensive income | Dividends | Balance at 03.31.2022 | |
| Joint ventures | 2,839 | 46 | 47 | (12) | 359 | (416) | (1) | (254) | 2,608 |
| Associates (*) | 5,569 | 3 | (56) | − | 1,457 | (1,295) | 1,296 | − | 6,974 |
| Other investments | 19 | − | − | − | − | − | − | − | 19 |
| Total | 8,427 | 49 | (9) | (12) | 1,816 | (1,711) | 1,295 | (254) | 9,601 |
| (*) Includes Braskem S / A. | |||||||||
| 21 | Assets by operating segment |
The segmented information reflects the evaluation structure of senior management in relation to performance and the allocation of resources to the business.
| 38 |
| Table of Contents |
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 assets by operating segment - 03.31.2022 | ||||||
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate | Eliminations | Total | |
| Current assets | 35,602 | 82,586 | 18,524 | 100,639 | (37,839) | 199,512 |
| Non-current assets | 591,582 | 122,785 | 39,619 | 45,164 | − | 799,150 |
| Long-term receivables | 33,284 | 13,937 | 3,189 | 35,122 | − | 85,532 |
| Investments | 1,909 | 6,892 | 662 | 138 | − | 9,601 |
| Property, plant and equipment | 541,606 | 101,417 | 35,380 | 8,648 | − | 687,051 |
| Operating assets | 477,877 | 87,276 | 25,211 | 7,113 | − | 597,477 |
| Under construction | 63,729 | 14,141 | 10,169 | 1,535 | − | 89,574 |
| Intangible assets | 14,783 | 539 | 388 | 1,256 | − | 16,966 |
| Total Assets | 627,184 | 205,371 | 58,143 | 145,803 | (37,839) | 998,662 |
| Consolidated assets by operating segment - 12.31.2021 | ||||||
| Exploration and Production | Refining, Transportation & Marketing |
Gas & Power |
Corporate | Eliminations | Total | |
| Current assets | 33,672 | 70,822 | 21,418 | 73,995 | (31,660) | 168,247 |
| Non-current assets | 597,740 | 121,076 | 37,669 | 48,220 | (1) | 804,704 |
| Long-term receivables | 28,136 | 12,342 | 1,795 | 37,720 | (1) | 79,992 |
| Investments | 2,194 | 5,412 | 662 | 159 | − | 8,427 |
| Property, plant and equipment | 552,654 | 102,788 | 34,829 | 9,135 | − | 699,406 |
| Operating assets | 486,676 | 89,770 | 20,868 | 7,662 | − | 604,976 |
| Under construction | 65,978 | 13,018 | 13,961 | 1,473 | − | 94,430 |
| Intangible assets | 14,756 | 534 | 383 | 1,206 | − | 16,879 |
| Total Assets | 631,412 | 191,898 | 59,087 | 122,215 | (31,661) | 972,951 |
| 22 | Disposal of assets and other changes in organizational structure |
The Company has an active partnership and divestment portfolio, which takes into account opportunities for 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.
The divestment projects and strategic partnerships follow the procedures aligned with the guidelines of the Brazilian Federal Auditor’s Office (Tribunal de Contas da União – TCU) and the current legislation.
The major classes of assets and related liabilities classified as held for sale are shown in the following table:
| Consolidated | ||||||
| 03.31.2022 | 12.31.2021 | |||||
| E&P | RT&M | Gas & Power | Corporate and other segments | Total | Total | |
| Assets classified as held for sale | ||||||
| Cash and Cash Equivalents | − | − | 40 | − | 40 | 72 |
| Trade receivables | − | − | 189 | − | 189 | 175 |
| Inventories | − | 447 | 3 | − | 450 | 408 |
| Investments | 1 | 1 | 1,567 | − | 1,569 | 1,599 |
| Property, plant and equipment | 17,239 | 739 | 4 | − | 17,982 | 11,023 |
| Others | − | 9 | 666 | 5 | 680 | 618 |
| Total | 17,240 | 1,196 | 2,469 | 5 | 20,910 | 13,895 |
| Liabilities on assets classified as held for sale | ||||||
| Trade Payables | − | − | 6 | − | 6 | 9 |
| Finance debt | − | − | − | 5 | 5 | 5 |
| Provision for decommissioning costs | 7,164 | − | − | − | 7,164 | 4,646 |
| Others | − | − | 194 | − | 194 | 180 |
| Total | 7,164 | − | 200 | 5 | 7,369 | 4,840 |
22.1 Transactions pending closing at March 31, 2022
In operations carried out in previous periods, the main assets and liabilities classified as held for sale include: (i) all of its interest in the Peroá Complex; (ii) total interest in the Papa-Terra production field; (iii) onshore fields in Bahia, Ceará, Espírito Santo and Sergipe; (iv) Gaspetro; (iv) REMAN Refinery; (v) SIX; and (vi) additional interest of 5% related to Assignment of Right Surpluses - Búzios (explanatory note 16.2 – Intangible assets).
The description of these operations was presented in note 31 of the financial statements as of December 31, 2021.
| 39 |
| Table of Contents |
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 relation to the divestment in REMAN, on March 8, 2022, CADE published a statement declaring the Concentration Act to be complex and ordering the performance of due diligence on the process of selling the REMAN refinery to Ream Participações S.A., whose agreement was signed in August 2021. The Concentration Act process requires due diligence related to a more in-depth analysis of the transaction and its effects on downstream refining markets and possible competitive impacts. The conclusion of this process is expected to take place between 240 and 330 days from November 2021. Petrobras is collaborating with CADE to obtain approval for the transaction within the legal deadline.
Additionally, in the period from January to March 2022, new contracts were signed and, together with the operations carried out in previous periods, comprise the assets and liabilities held for sale on March 31, 2022, as shown below:
| Transaction | Buyer | Approval date for signature | Amount (*) | Other information |
| Sale of the entire interest in a set of 22 concessions for onshore and shallow water production fields, together with their processing, refining, logistics, storage, transport and outflow of oil and natural gas infrastructure, located in the Potiguar Basin, in the state of Rio Grande do Norte, jointly called Pole Potiguar. | 3R Potiguar S.A., wholly-owned subsidiary of 3R Petroleum Óleo e Gás S.A. | Jan/2022 | US$ 1,385 million | a |
| Sale of the entire interest in a set of 4 concessions of onshore production fields, with integrated facilities, located in the state of Espírito Santo, jointly called Polo Norte Capixaba. | Seacrest Petróleo SPE Norte Capixaba Ltda., wholly-owned subsidiary of Seacrest Exploração e Produção de Petróleo Ltda. | Feb/2022 | US$ 478 million | b |
| (*) Transaction value, which does not include contingent assets, when contractually provided. | ||||
a) Sale of assets of the Potiguar Pole
The conditions and terms of receipt will be as follows: (a) US$ 110 million received on the date of execution of the purchase and sale agreement; (b) US$1.04 billion upon closing of the transaction and (c) US$235 million to be paid in 4 annual installments of US$58.75 million, beginning in March 2024.
The amounts do not consider the adjustments due until the closing of the transaction, which is subject to the fulfillment of conditions precedent, such as approval by the ANP.
b) Sale of assets in the Capixaba North Pole
The conditions and terms of receipt will be as follows: (a) US$ 35.85 million received on the date of execution of the agreement; (b) US$442.15 million at the closing of the transaction and (c) up to US$66 million in contingent payments provided for in contracts, depending on future Brent quotations.
The amounts do not consider the adjustments due until the closing of the transaction, which is subject to the fulfillment of certain conditions precedent, such as approval by the ANP.
22.2 Completed operations
The main asset sales operations are presented below:
| Transaction | Buyer |
Signature date (S) and closing date (C) |
Sale amount (*) (**) |
Closing amount in other currencies (***) |
Gain (loss) (****) |
Other information (*****) |
| Sale of the entire interest in a set of seven land and shallow water concessions called Alagoas Pole and the Natural Gas Processing Unit in Alagoas. | Petromais Global Exploração e Produção S.A., currently Origem Energia S.A. |
Jul/2021 Feb/2022 |
1,564 | US$ 300 million | 1,740 | a |
| 40 |
| Table of Contents |
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) |
| 1,564 | 1,740 | |||||
| (*) Amount agreed upon signing the transaction, plus closing price adjustment, when provided for in the contract. | ||||||
| (**) The amount of “Receipts from the sale of assets (Disinvestments) in the Statement of Cash Flows” is mainly composed of amounts from the Divestment Program: partial receipt of operations this year, installments of operations from previous years and advances related to uncompleted operations. | ||||||
| (***) Contractual value and price adjustments of operations traded in a currency other than the Brazilian real. | ||||||
|
(****) Recognized in "Income from disposals, write-off of assets and result on remeasurement of equity interests" - explanatory note 6 - Other (expenses) net operating income. (*****) Describes terms, conditions precedent and other information. | ||||||
The operations were concluded after the fulfillment of conditions precedent.
a) Sale of Polo Alagoas assets
The transaction was concluded with the receipt of US$ 60 million on the date of execution of the purchase and sale agreement and US$ 240 million at the closing of the transaction.
22.3 Price adjustments – Transactions completed in previous years
a) Sale of RLAM
On November 30, 2021, Petrobras finalized the sale of its entire interest in Refinaria de Mataripe S.A., the company that owns Refinaria Landulpho Alves (RLAM) to the company MC Brazil Downstream Participações S.A., as per explanatory note 31.2 of the financial statements for the year ended on December 31, 2021. As part of the negotiation, which provided for a final adjustment of the acquisition price, Petrobras recognized in February 2022 the amount of R$368 (US$68 million) in other operating income.
The amount is still subject to eventual residual adjustment between the parties based on the documentation to be presented.
22.4 Contingent assets on asset sales – Transactions completed in prior years
a) Pampo and Enchova
On July 15, 2020, Petrobras finalized the sale of its entire interest in the ten fields that make up the Pampo and Enchova Complexes to Trident Energy do Brasil Ltda, as per explanatory note 32.2 of the financial statements for the year ended December 31, 2020 Among the conditions agreed are receipts conditioned to Brent scenarios, with a value of up to US$ 650 million. Of this contingent amount, the company recognized in 2021 the amount of R$ 194 (equivalent to US$ 36 million), in other operating income. This amount was updated by the exchange rate for the period and received by the company on March 31, 2022 in the amount of R$169.
In March 2022, the company recognized an additional amount of R$370 (equivalent to US$77 million) in other operating income. This amount will be updated until receipt, which is scheduled for March 31, 2023.
b) Miranga Pole
In December 2021, Petrobras completed the full sale of its interest in the nine onshore exploration and production fields, called Polo Miranga, located in the State of Bahia to SPE Miranga S.A., a subsidiary of PetroRecôncavo S.A., as per explanatory note 31.2 to the financial statements as of December 31, 2021.
Among the agreed conditions are expected receipts conditioned to Brent scenarios in the total amount of US$ 85 million. Of this contingent amount, the company recorded in 2021 the amount of R$ 84 (equivalent to US$ 15 million), as other operating income. In March 2022, an additional amount of R$60 (equivalent to US$12.5 million) was recognized. The amounts will be updated according to the Brent variation and their receipt is scheduled for March 31, 2023.
c) Baúna Field
In November 2020, Petrobras finalized the sale of its entire stake in the Baúna field (concession area BM-S-40), located in shallow waters in the Santos Basin, to Karoon Petróleo e Gás Ltda., a subsidiary of Karoon Energy Ltd, as per explanatory note 32.2 of the financial statements as of December 31, 2020.
Among the agreed conditions are receipts conditioned to Brent scenarios, with a value of up to US$ 285 million. Of this contingent amount, the company recognized in 2021 the amount of R$95 (equivalent to US$17 million), in other operating income. In March 2022, the company recognized an additional amount of R$313 (equivalent to US$61 million) in other operating income. This amount will be updated until receipt, which is scheduled for January 31, 2023.
| 41 |
| Table of Contents |
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) |
22.5 Other Operations
On March 23, 2022, the process of closing Participações em Complexos Bioenergéticos S.A. - PCBios was concluded, in which Petrobras held 50%. The dissolution and liquidation of PCBios were approved at the company's Extraordinary General Meeting. There were no effects on the statement of income.
| 23 | Finance debt |
| 23.1 | Balance by type of finance debt |
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Banking Market | 6,411 | 6,904 |
| Capital Market | 14,129 | 13,975 |
| Development banks (*) | 4,162 | 4,291 |
| Others | 36 | 39 |
| Total | 24,738 | 25,209 |
| Banking Market | 40,826 | 47,573 |
| Capital Market | 88,601 | 108,968 |
| Export Credit Agency | 12,828 | 16,468 |
| Others | 826 | 1,006 |
| Total | 143,081 | 174,015 |
| Total finance debt | 167,819 | 199,224 |
| Current | 17,957 | 20,316 |
| Noncurrent | 149,862 | 178,908 |
(*) Includes BNDES, FINAME, FINEP and New Development Bank (NDB)
The amount classified in current liabilities is composed of:
| Consolidated | ||
| 03.31.2022 | 12.31.2021 | |
| Short-term debt | 621 | 602 |
| Current portion of long-term debt | 15,295 | 17,093 |
| Accrued interest on short and long-term debt | 2,041 | 2,621 |
| Total | 17,957 | 20,316 |
The capital market balance is mainly composed of R$85,365 in global notes, issued abroad by PGF, and R$13,243 in debentures, 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%, 3% and 10% of the total of global notes, respectively.
The debentures, with maturities between 2024 and 2034 and without guarantees, are not convertible into shares.
As of March 31, 2022, 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, 2021.
| 23.2 | Changes in finance debt and reconciliation with cash flows from financing activities |
| Balance at 12.31.2020 | Proceeds from financings | Principal amortization (*) | Interest amortization (*) | Accrued interest (**) | Foreign exchange/ inflation indexation charges | Cummulative Translation Adjustment | Transfer to Liabilities associated with Assets Held for Sale | Modification of contractual cash flows | Balance at 12.31.2021 | ||||||
| In Brazil | 46,009 | − | (22,346) | (1,425) | 1,706 | 1,265 | − | − | − | 25,209 | |||||
| Abroad | 234,029 | 9,647 | (85,125) | (10,922) | 12,959 | 1,074 | 12,353 | − | − | 174,015 | |||||
| Total | 280,038 | 9,647 | (107,471) | (12,347) | 14,665 | 2,339 | 12,353 | − | − | 199,224 | |||||
| Debt restructuring | (5,838) | ||||||||||||||
| Deposits linked (***) | (240) | 192 |
| ||||||||||||
| Net cash of financing activities | 9,647 | (113,549) | (12,155) | ||||||||||||
(*) Includes prepayments.
(**) Includes allocations of goodwill, discounts and associated transaction costs.
(***) Amounts deposited for payment of obligations related to financing obtained from the China Development Bank (CDB), with semi-annual settlements in June and December.
| 42 |
| Table of Contents |
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) |
| Balance at 12.31.2021 | Proceeds from financings | Principal amortization (*) | Interest amortization (*) | Accrued interest (**) | Foreign exchange/ inflation indexation charges | Cummulative Translation Adjustment | Modification of contractual cash flows | Transfer to Liabilities associated with Assets Held for Sale | Balance at 03.31.2022 | |
| In Brazil | 25,209 | − | (749) | (479) | 516 | 241 | − | − | − | 24,738 |
| Abroad | 174,015 | 782 | (5,423) | (2,291) | 2,177 | (3,891) | (22,288) | − | − | 143,081 |
| Total | 199,224 | 782 | (6,172) | (2,770) | 2,693 | (3,650) | (22,288) | − | − | 167,819 |
| Debt restructuring | (134) | |||||||||
| Deposits linked (***) | (1,377) | (252) | ||||||||
| Net cash of financing activities | 782 | (7,683) | (3,022) | |||||||
| (*) Includes prepayments. | ||||||||||
| (**) Includes allocations of goodwill, discounts and associated transaction costs. | ||||||||||
| (***) Amounts deposited for payment of obligations related to financing obtained from the China Development Bank (CDB), with semi-annual settlements in June and December. | ||||||||||
In the period from January to March 2022, liability management was carried out in order to improve the debt profile and better adapt to the maturation terms of long-term investments.
The company settled several loans and financing, in the amount of R$10,705, highlighting the repurchase and redemption of R$3,482 of securities in the international capital market.
| 23.3 | Summarized information on current and non-current finance debt |
| Consolidated | ||||||||||
| Maturity in | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 onwards | Total (**) | Fair value | ||
| Financing in U.S. Dollars (US$)(*): | 11,041 | 12,131 | 15,768 | 12,681 | 7,892 | 69,561 | 129,074 | 134,347 | ||
| Floating rate debt | 10,022 | 12,131 | 12,677 | 9,159 | 5,415 | 4,251 | 53,655 | |||
| Fixed rate debt | 1,019 | − | 3,091 | 3,522 | 2,477 | 65,310 | 75,419 | |||
| Average interest rate (p.a) | 5.2% | 5.8% | 6.0% | 5.9% | 6.4% | 6.6% | 6.4% | |||
| Financing in Brazilian Reais (R$): | 4,865 | 2,505 | 3,477 | 1,162 | 2,255 | 10,474 | 24,738 | 25,181 | ||
| Floating rate debt | 3,595 | 1,473 | 1,468 | 725 | 725 | 2,767 | 10,753 | |||
| Fixed rate debt | 1,270 | 1,032 | 2,009 | 437 | 1,530 | 7,707 | 13,985 | |||
| Average interest rate (p.a) | 5.9% | 5.6% | 5.1% | 4.5% | 4.1% | 4.6% | 4.9% | |||
| Financing in Euro (€): | 84 | 31 | 63 | 2,282 | − | 3,079 | 5,539 | 5,867 | ||
| Fixed rate debt | 84 | 31 | 63 | 2,282 | − | 3,079 | 5,539 | |||
| Average interest rate (p.a) | 4.7% | 4.7% | 4.7% | 4.7% | − | 4.7% | 4.7% | |||
| Financing in Pound Sterling (£): | 123 | 37 | − | − | 3,436 | 4,872 | 8,468 | 8,623 | ||
| Fixed rate debt | 123 | 37 | − | − | 3,436 | 4,872 | 8,468 | |||
| Average interest rate (p.a) | 6.2% | 6.2% | − | − | 6.2% | 6.4% | 6.3% | |||
| Total on March 31, 2022 | 16,113 | 14,704 | 19,308 | 16,125 | 13,583 | 87,986 | 167,819 | 174,018 | ||
| Average interest rate (p.a) | 5.3% | 5.7% | 5.8% | 5.7% | 6.0% | 6.5% | 6.2% | − | ||
| Total on December 31, 2021 | 20,315 | 16,591 | 22,253 | 19,247 | 15,809 | 105,009 | 199,224 | 211,453 | ||
| Average interest rate (p.a) | 5.2% | 5.3% | 5.5% | 5.6% | 5.9% | 6.5% | 6.2% | − | ||
| (*) Includes debt raised in Brazil (in Brazilian reais) indexed to the U.S. dollar. | ||||||||||
| (**)The average maturity of outstanding debt as of March 31, 2022 is 13.22 years (13.39 years as of December 31, 2021). | ||||||||||
As of March 31, 2022, the fair values of financing are mainly determined by using:
Level 1 - prices quoted in active markets, when applicable, in the amount of R$ 89,293 (R$ 115,906, on December 31, 2021); 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$ 84,725 (R$ 95,547, on December 31, 2021).
The sensitivity analysis for financial instruments subject to foreign exchange variation is set out in note 27.3.
The nominal (undiscounted) flow of principal and interest on financing, by maturity, is shown below:
| Consolidated | ||||||||
| Maturity | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 onwards | 03.31.2022 | 12.31.2021 |
| Principal | 13,962 | 15,195 | 20,065 | 16,846 | 14,303 | 94,543 | 174,914 | 204,007 |
| Interest | 6,503 | 8,276 | 7,660 | 6,650 | 6,130 | 107,493 | 142,712 | 170,524 |
| Total (*) | 20,465 | 23,471 | 27,725 | 23,496 | 20,433 | 202,036 | 317,626 | 374,531 |
|
(*)The nominal flow of leases is found in note 24. . | ||||||||
| 43 |
| Table of Contents |
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) |
| 23.4 | Lines of credit |
| 03.31.2022 | ||||||||||
| 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 (*) | Syndicate of banks | 03/27/2019 | 02/27/2024 | 3,250 | − | 3,250 | ||||
| Total | 8,250 | - | 8,250 | |||||||
| In Brazil | ||||||||||
| Petrobras | Banco do Brasil | 03/23/2018 | 09/26/2026 | 2,000 | − | 2,000 | ||||
| Petrobras | Bradesco | 06/01/2018 | 05/31/2023 | 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 | 6,329 | − | 6,329 | |||||||
| (*) In April 2021, PGT extended part of the Revolving Credit Facility. As such, US$2,050 million will be available for withdrawal from February 28, 2024 through February 27, 2026. | ||||||||||
| 24 | Lease liabilities |
Changes in lease agreements recognized as liabilities are shown below:
| Consolidated | ||||||||
| Balance at 12.31.2021 | Remeasurement / new contracts | Payment of principal and interest | Interest expenses | Foreign exchange gains and losses | Cumulative translation adjustment | Transfers | Balance at 03.31.2022 | |
| Brazil | 25,695 | 2,133 | (1,952) | 380 | (2,067) | − | − | 24,189 |
| Abroad | 102,899 | 1,618 | (4,964) | 1,218 | (15,017) | (344) | − | 85,410 |
| Total | 128,594 | 3,751 | (6,916) | 1,598 | (17,084) | (344) | − | 109,599 |
| Current | 25,361 | |||||||
| Non-current | 84,238 | |||||||
As of March 31, 2022, the lease liability of Petrobras Holding is R$117,955 (R$138,238 as of December 31, 2021), 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:
| Consolidated | |||||||
| Maturity in | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 onwards | Total |
| Nominal value on March 31, 2022 | 20,120 | 21,200 | 16,158 | 11,824 | 9,575 | 70,145 | 149,022 |
| Nominal value on December 31, 2021 | 31,077 | 22,011 | 16,895 | 12,885 | 11,004 | 81,520 | 175,392 |
In certain contracts, during the lease term, there are payments that vary due to changes in facts or circumstances that occurred after the commencement date, in addition to the passage of time. Such payments are not included in the measurement of lease obligations. In the period from January to March 2022, these amounts were R$1,308 and represented 19% in relation to fixed payments (R$1,013 and represented 13% in relation to fixed payments in the period from January to March 2021).
In the period from January to March 2022, the company recognized leasing expenses in the amount of R$351 (R$124 in the period from January to March 2021), referring to contracts with a term of less than one year.
As of March 31, 2022, the nominal value of lease agreements that had not yet been initiated, due to the related assets being under construction or not having been made available for use, represent the amount of R$383,135 (R$443,967 in 31 December 2021). The reduction basically corresponds to the appreciation of the Real against the U.S Dollar.
The sensitivity analysis of financial instruments subject to exchange variation is presented in Note 27.3.
| 44 |
| Table of Contents |
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) |
| 25 | Equity |
| 25.1 | Share capital |
As of March 31, 2022 and December 31, 2021, the subscribed and paid-in capital in the amount of R$205,432 is represented by 13,044,496,930 shares, of which 7,442,454,142 are common shares and 5,602,042,788 are preferred shares, all registered, book-entry shares 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 held by Petrobras that are held in treasury, represented by 295,669 shares, of which 222,760 are common shares and 72,909 are preferred shares.
| 25.2 | Distributions proposed and payable |
As of March 31, 2022, there was no balance of dividends payable to the parent company's shareholders.
On April 13, 2022, the Annual Shareholders' Meeting approved dividends for fiscal year 2021, in the amount of R$101,395, corresponding to R$7.773202 per outstanding preferred and common share. This amount includes advance payments to shareholders in the amount of R$63,400 which, monetarily restated by the Selic rate variation from the date of payment to December 31, 2021, total R$64,075, and the supplementary dividend of R$37,320 that is highlighted in shareholders’ equity as an additional dividend proposed since December 31, 2021.
Complementary dividends of R$ 37,320, equivalent to R$ 2.8610762 per outstanding preferred and common share, will be recognized as a liability on the date of approval of the Annual Shareholders' Meeting and paid with the Selic rate variation from December 31, 2021 until the payment date, May 16, 2022.
| 25.3 | Earnings per share |
| Consolidated and Parent Company | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Basic and diluted denominator – Net income (loss) attributable to shareholders of Petrobras attributable equally between share classes | ||
| Net income of the period | ||
| Common | 25,424 | 666 |
| Preferred | 19,137 | 501 |
| 44,561 | 1,167 | |
| Basic and diluted denominator - Weighted average number of outstanding shares (number of shares) | ||
| Common | 7,442,231,382 | 7,442,231,382 |
| Preferred | 5,601,969,879 | 5,601,969,879 |
| 13,044,201,261 | 13,044,201,261 | |
| Basic and diluted earnings per share (R$ per share) | ||
| Common | 3.42 | 0.09 |
| Preferred | 3.42 | 0.09 |
Basic earnings per share are calculated by dividing the net income (loss) attributable to shareholders of Petrobras by the weighted average number of outstanding shares during the period.
Diluted earnings (losses) per share are calculated by adjusting the net income (loss) 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 (losses) are identical as the Company has no potential shares in issue.
| 45 |
| Table of Contents |
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) |
| 26 | Fair value of financial assets and liabilities |
| Fair value measured based on | ||||
| Level I | Level II | Level III |
Total fair value recorded | |
| Assets | ||||
| Marketable securities | 3,595 | − | − | 3,595 |
| Commodity derivatives | 4 | 6 | − | 10 |
| Foreign currency derivatives | − | 47 | − | 47 |
| Interest rate derivatives | − | 40 | − | 40 |
| Balance at March 31, 2022 | 3,599 | 93 | − | 3,692 |
| Balance at December 31, 2021 | 3,630 | 128 | − | 3,758 |
| Liabilities | ||||
| Foreign currency derivatives | − | (796) | − | (796) |
| Balance at March 31, 2022 | − | (796) | − | (796) |
| Balance at December 31, 2021 | (6) | (1,519) | − | (1,525) |
The estimated fair value for the company's financing, calculated at current market rates, is set out in note 23.
Certain receivables are classified as fair value through profit or loss, as presented in note 9.
The fair values of cash and cash equivalents, short-term debt and other financial assets and liabilities are equivalent or do not differ significantly from their carrying amounts.
| 27 | Risk management |
| 27.1 | Derivative financial instruments |
A summary of the positions of the derivative financial instruments held by the Company and recognized in other current assets and liabilities as of March 31, 2022 , as well as the amounts recognized in the statement of income and other comprehensive income and the guarantees given is set out as follows:
| Statement of Financial Position | |||||
| Notional value |
Fair value Asset Position (Liability) |
Maturity | |||
| 03.31.2022 | 12.31.2021 | 03.31.2022 | 12.31.2021 | ||
| Derivatives not designated for hedge accounting | |||||
| Future contracts (*) | (1,643) | (1,308) | 4 | (6) | |
| Long position/Crude oil and oil products | 1,232 | 1,380 | − | − | 2022 |
| Short position/ Crude oil and oil products | (2,875) | (2,688) | − | − | 2022 |
| SWAP (**) | |||||
| Long position/Soy oil (**) | (16) | (11) | 5 | (2) | 2022 |
| Options contracts | |||||
| Long position/Soy oil (**) | (7) | − | 1 | − | 2022 |
| Forward contracts | |||||
| Long position/Foreign currency(Reais/U.S. dollars) (***) | (39) | 15 | 13 | 1 | 2022 |
| SWAP | |||||
| Foreign currency - cross currency swap (***) | 583 pound sterling | 583 pound Sterling | 34 | 127 | 2026 |
| Foreign currency - cross currency swap (***) | 442 pound sterling | 442 pound sterling | (373) | (277) | 2034 |
| Swap – IPCA inflation | 3,008 | 3,008 | 40 | (6) | 2029/2034 |
| Foreign currency - cross currency swap (***) | US$ 729 | US$ 729 | (423) | (1,234) | 2024/2029 |
| Total recognized in the Statement of Income | (699) | (1,397) | |||
| (*) Notional value in thousands of bbl. | |||||
| (**) Notional value in thousands of tons (PBIO operations). | |||||
| (***) Amounts in dollars and pound sterlings are presented in million. | |||||
| 46 |
| Table of Contents |
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) |
| Gains/ (losses) recognized in the statement of income | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Commodity derivatives | ||
| Other operations- 27.2 (a) | (282) | (126) |
| Recognized in Other Income and Expenses | (282) | (126) |
| Currency derivatives | ||
| Swap Pounds Sterling x Dollar - 27.3 (b) | (158) | 157 |
| NDF – Pounds Sterling x Dollar - 27.3 (b) | − | 20 |
| Swap CDI x Dollar - 27.3 (b) | 879 | (154) |
| Others | (1) | 4 |
| 720 | 27 | |
| Interest rate derivatives | ||
| Swap - CDI X IPCA | (19) | (154) |
| (19) | (154) | |
| Cash flow hedge on exports (*) | (7,221) | (6,094) |
| Recognized in Net finance income (expense) | (6,520) | (6,221) |
| Total | (6,802) | (6,347) |
| (*)As presented in note 27.3. | ||
| Gains/ (losses) recognized in other comprehensive income | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Cash flow hedge on exports (*) | 67,129 | (24,426) |
| (*)As presented in note 27.3. | ||
| Guarantees given (received) as collateral | ||
| 03.31.2022 | 12.31.2021 | |
| Commodity derivatives | 289 | 86 |
| Currency derivatives | 355 | 150 |
| 644 | 236 | |
A sensitivity analysis of the derivative financial instruments for the different types of market risks as of March 31, 2022 is set out as follows:
| Consolidated | ||||
| Financial Instruments | Risk | Probable Scenario |
Reasonably possible Scenario (∆ of 25%) |
Remote Scenario (∆ of 50%) |
| Derivatives not designated for hedge accounting | ||||
| Future and Swap contracts | Crude oil and oil products - price changes | − | (379) | (759) |
| Future and Swap contracts | Soy oil - price changes | − | (26) | (57) |
| Options | Soy oil | − | (26) | (52) |
| NDF | Exchange rate – Depreciation of the Real compared to USD | − | (118) | (237) |
| − | (549) | (1,105) | ||
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 March 31, 2022, 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 25% and 50%, 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.
| 27.2 | Risk management of crude oil and oil products prices |
Petrobras prefers exposure to the price cycle to the systematic protection of transactions for the purchase or sale of goods, whose objective is to meet its operating needs, using 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 protection 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.
| 47 |
| Table of Contents |
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) |
| 27.3 | Foreign 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 March 31, 2022, 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 4.7378, are shown below:
|
Present value of hedging instrument at 03.31.2022 | ||||||||||||
| 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 Apr/2022 to Mar/2031 | 71,676 | 339,587 | |||||||
| Changes in the present value of hedging instrument | US$ million | R$ |
| Amounts designated as of December 31, 2021 | 72,640 | 405,370 |
| Additional hedging relationships designated, designations revoked and hedging instruments re-designated | 5,894 | 30,379 |
| Exports affecting the statement of income | (2,548) | (13,632) |
| Principal repayments / amortization | (4,310) | (22,498) |
| Foreign exchange variation | − | (60,032) |
| Amount on March 31, 2022 | 71,676 | 339,587 |
| Nominal value of hedging instrument (finance debt and lease liability) on March 31, 2022 | 82,513 | 390,929 |
.
In the period from January to March 2022, an exchange gain of R$125 was recognized referring to the ineffectiveness in the exchange variation line (loss of R$2 in the same period in 2021).
Future exports designated as hedged items in cash flow hedge relationships represent, on average, 70.48% of highly probable future exports.
The movement in exchange variation accumulated in other comprehensive income as of March 31, 2022, to be realized by future exports, is presented below:
| Exchange rate | Tax effect | Total | |
| Balance at January 1,2021 | (126,645) | 43,062 | (83,583) |
| Recognized in shareholders' equity | (21,754) | 7,396 | (14,358) |
| Reclassified to the statement of income - occurred exports | 24,777 | (8,424) | 16,353 |
| Balance at December 31, 2021 | (123,622) | 42,034 | (81,588) |
| Recognized in shareholders' equity | 59,908 | (20,369) | 39,539 |
| Reclassified to the statement of income - occurred exports | 7,221 | (2,455) | 4,766 |
| Balance at March 31, 2022 | (56,493) | 19,210 | (37,283) |
Changes in expectations of realization of export prices and volumes in future reviews of business plans may determine the need for additional reclassifications of accumulated exchange variation in shareholders' equity to the statement of income. A sensitivity analysis with an average Brent oil price lower in US$ 10/barrel than considered in the last revision of the Strategic Plan 2022-2026, would not indicate the need to reclassify the deferred 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 March 31, 2022 is shown below:
| Consolidated | |||||||||
| 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 to 2031 | Total | ||
| Expected realization | (15,677) | (16,493) | (11,293) | (5,321) | (4,150) | (5,309) | 1,750 | (56,493) | |
b) Information on ongoing contracts
As of March 31, 2022, the company has swap contracts - IPCA x CDI and CDI x Dollar, in addition to swap - Pound Sterling x Dollar outstanding.
| 48 |
| Table of Contents |
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) |
Swap contracts – IPCA x CDI and CDI x Dollar
Changes in future interest rate curves (CDI) may have an impact on the Company's results, due to the market value of these swap contracts. The value of the shock on the curve was defined as a function of the average maturity of the swaps, and is approximately 25% of the future rate of the average maturity. A sensitivity analysis on CDI with a constant increase (parallel shock) all other variables remaining constant, would result in the following impacts:
| Sensitivity analysis | Result |
| Constant increase of 300 basis points | (160) |
| Constant decrease of 300 basis points | 264 |
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 estimated for the close of the next quarter. In addition to the possible and remote scenarios that consider the appreciation of the quarterly closing exchange rate (risk) by 25% and 50%, respectively, except for the balances of assets and liabilities in foreign currency of foreign subsidiaries, when carried out in a currency equivalent to their respective functional currencies. These analyzes only cover the exchange variation and keep all other variables constant.
| Financial Instruments | Exposure at 03.31.2022 | Risk | Probable Scenario (*) |
Reasonably possible scenario (∆ of 25%) |
Remote Scenario (∆ of 50%) |
| Assets | 25,236 | Dolllar / Real | 2,142 | 6,309 | 12,618 |
| Liabilities | (428,288) | (36,358) | (107,072) | (214,144) | |
| Exchange rate - Cross currency swap | (3,008) | (255) | (752) | (1,504) | |
| Cash flow hedge on exports | 339,587 | 28,828 | 84,897 | 169,794 | |
| (66,473) | (5,643) | (16,618) | (33,236) | ||
| Assets | 10 | Euro / Real | 1 | 3 | 5 |
| Liabilities | (77) | (6) | (19) | (39) | |
| (67) | (5) | (16) | (34) | ||
| Assets | 5,718 | Euro / Dollar | (51) | 1,430 | 2,859 |
| Liabilities | (11,180) | 101 | (2,795) | (5,590) | |
| (5,462) | 50 | (1,365) | (2,731) | ||
| Assets | 11 | Pound sterling / Real | 1 | 3 | 6 |
| Liabilities | (101) | (9) | (25) | (51) | |
| (90) | (8) | (22) | (45) | ||
| Assets | 8,586 | Pound sterling / Dollar | 35 | 2,147 | 4,293 |
| Liabilities | (16,875) | (70) | (4,219) | (8,438) | |
| Exchange rate - Cross currency swap | 6,382 | 26 | 1,596 | 3,191 | |
| (1,907) | (9) | (476) | (954) | ||
| Total | (73,999) | (5,615) | (18,497) | (37,000) | |
⁽*⁾ The probable scenarios were calculated considering the following variations for the risks: Real x Dollar - 8.49% depreciation of the Real / Yen x Dollar - Yen appreciation by 1.2% / Euro x Dollar - devaluation of the euro by 0.8% / Pound x Dollar - appreciation of the pound by 0.38% / Real x Euro - devaluation of the real by 7.6% / Real x Pound - devaluation of the real by 8.9%. Source: Focus and Thomson Reuters.
| 27.4 | Interest rate risk management |
The company preferably does not use derivative financial instruments to manage exposure to fluctuations in interest rates, as they do not have significant 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 if there is a variation of 25% and 50% in these interest rates, respectively, keeping all other variables constant.
The table below shows, in the probable scenario, the amount to be disbursed by Petrobras with the payment of interest referring to debts with floating interest rates on March 31, 2022.
| 49 |
| Table of Contents |
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 (*) |
Reasonably possible scenario (∆ of 25%) |
Remote Scenario (∆ of 50%) |
| LIBOR 3M | 26 | 32 | 37 |
| LIBOR 6M | 1,941 | 2,232 | 2,522 |
| CDI | 687 | 858 | 1,030 |
| TJLP | 342 | 427 | 513 |
| IPCA | 482 | 602 | 723 |
| 3,478 | 4,151 | 4,825 | |
| (*) The probable scenario was calculated considering the quotations of currencies and floating rates to which the debts are indexed. | |||
| 27.5 | Liquidity risk |
The possibility of insufficient cash or other financial assets to settle obligations on the scheduled dates is managed by the company. In Petrobras' individual interim financial information for the period ended March 31, 2022, net working capital was negative, mainly due to transactions with subsidiaries, as per explanatory note 28. In the same period, considering the integrated view of cash, capital net current assets were positive in the consolidated interim financial information.
The company regularly assesses market conditions and may carry out repurchase transactions for its securities or those of its subsidiaries in the international capital markets, by various means, including repurchase offers, securities 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 the cost of debt.
| 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.
| 28.1 | Commercial transactions per operation with investees (Parent Company) |
| 03.31.2022 | 12.31.2021 | |||||
| Current | Non-current | Total | Current | Non-current | Total | |
| Assets | ||||||
| Trade and other receivables | ||||||
| Trade and other receivables, mainly from sales | 13,113 | − | 13,113 | 13,451 | − | 13,451 |
| Dividends receivable | 103 | − | 103 | 175 | − | 175 |
| Amounts related to construction of natural gas pipeline | − | 538 | 538 | − | 727 | 727 |
| Other operations | 628 | 297 | 925 | 736 | 332 | 1,068 |
| Advances to suppliers | 614 | 1,096 | 1,710 | 594 | 1,163 | 1,757 |
| Total | 14,458 | 1,931 | 16,389 | 14,956 | 2,222 | 17,178 |
| Liabilities | ||||||
| Lease liabilities (*) | (2,382) | (5,368) | (7,750) | (2,689) | (5,860) | (8,549) |
| Prepayment of exports | (77,269) | (213,082) | (290,351) | (87,387) | (272,855) | (360,242) |
| Accounts payable to suppliers | (14,889) | − | (14,889) | (8,707) | − | (8,707) |
| Purchases of crude oil, oil products and others | (12,533) | − | (12,533) | (4,800) | − | (4,800) |
| Affreightment of platforms | (536) | − | (536) | (854) | − | (854) |
| Advances from clientes | (1,798) | − | (1,798) | (3,035) | − | (3,035) |
| Other operations | (22) | − | (22) | (18) | − | (18) |
| Total | (94,540) | (218,450) | (312,990) | (98,783) | (278,715) | (377,498) |
(*) Includes amounts referring to lease and sub-lease transactions between investees required by IFRS 16 / CPC 06 (R1) - Leases.
| 50 |
| Table of Contents |
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) |
| 2022 2021 | ||||
| Jan-Mar | Jan-Mar | |||
| Result | ||||
| Revenues, mainly sales revenues | 39,383 | 51,396 | ||
| Foreign exchange and inflation indexation charges, net (**) | 6,009 | (18,065) | ||
| Finance income (expenses), net (**) | (5,224) | (5,749) | ||
| Total | 40,168 | 27,582 | ||
| (**) Includes the amounts of R$344 of active exchange variation and R$160 of financial expenses related to leases and subleases required by IFRS 16/ CPC 06 (R1) (R$294 of passive exchange variation and R$93 of financial expenses for the period from January to March 2021). | ||||
| 28.2 | Non-standardized credit rights investment fund (FIDC-NP) |
The parent company maintains funds invested in the FIDC-NP that are mainly used for the acquisition of performing and / or non-performing credit rights for operations carried out by affiliates. The amounts invested are recorded in accounts receivable.
Assignments of credit rights, performed and not performed, are recorded as financing in current liabilities.
| Parent Company | ||
| 03.31.2022 | 12.31.2021 | |
| Accounts receivable, net | 62,596 | 59,651 |
| Credit rights assignments | (45,790) | (58,545) |
| 2022 2021 | ||||
| Jan-Mar | Jan-Mar | |||
| Financial Income FIDC-NP | 1,050 | 100 | ||
| Financial Expenses FIDC-NP | (746) | (98) | ||
| Net finance income (expense) | 304 | 2 | ||
| 28.3 | Guarantees |
Petrobras has the procedure of granting guarantees to its equity interests for certain financial operations carried out in Brazil and abroad. As a result of the strategy of early settlement of debts during the year, the financial operations carried out by these equity interests and guaranteed by Petrobras present a balance of R$ 128,856 to be settled on March 31, 2022 (R$ 153,611 on December 31, 2021).
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.
The financial operations carried out by the subsidiaries and guaranteed by Petrobras are presented in explanatory note 37.5 of Petrobras' financial statements as of December 31, 2021.
| 28.4 | Transactions 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 | ||||
| 03.31.2022 | 12.31.2021 | |||
| Asset | Liability | Asset | Liability | |
| Joint ventures and associates | ||||
| State-controlled gas distributors (joint ventures) | 1,281 | 234 | 1,422 | 237 |
| Petrochemical companies (associates) | 75 | 209 | 144 | 67 |
| Other associates and joint ventures | 415 | 162 | 586 | 66 |
| Subtotal | 1,771 | 605 | 2,152 | 370 |
| Brazilian government | ||||
| Government bonds | 8,195 | − | 8,069 | − |
| Banks controlled by the Brazilian Government | 48,900 | 6,784 | 46,970 | 7,073 |
| Petroleum and alcohol account - receivables from the Brazilian Government | 2,919 | − | 2,822 | − |
| Others | 400 | 349 | 161 | 305 |
| Subtotal | 60,414 | 7,133 | 58,022 | 7,378 |
| Pension plans | 302 | 168 | 282 | 338 |
| Total | 62,487 | 7,906 | 60,456 | 8,086 |
| Current assets | 13,884 | 1,691 | 11,777 | 1,760 |
| Non-current assets | 48,603 | 6,215 | 48,679 | 6,326 |
| 51 |
| Table of Contents |
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 effect on the result of significant transactions is presented below:
| Consolidated | ||||
| 2022 2021 | ||||
| Jan-Mar | Jan-Mar | |||
| Joint ventures and associates | ||||
| Petrobras Distribuidora (BR), currently Vibra Energia | − | 18,152 | ||
| Natural Gas Transportation Companies | − | (1,345) | ||
| State-controlled gas distributors (joint ventures) | 3,002 | 2,461 | ||
| Petrochemical companies (associates) | 5,882 | 4,210 | ||
| Other associates and joint ventures | 153 | 234 | ||
| Subtotal | 9,037 | 23,712 | ||
| Brazilian government | ||||
| Government bonds | 220 | 37 | ||
| Banks controlled by the Brazilian Government | 109 | (347) | ||
| Receivables from the Electricity sector | − | 83 | ||
| Petroleum and alcohol account - receivables from the Brazilian Government | 97 | 63 | ||
| Empresa Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S,A, – PPSA | (203) | (169) | ||
| Others | 61 | 54 | ||
| Subtotal | 284 | (279) | ||
| Total | 9,321 | 23,433 | ||
| Revenues, mainly sales revenues | 9,312 | 25,960 | ||
| Purchases and services | 22 | (2,083) | ||
| Operating income and expense | (463) | (235) | ||
| Foreign exchange and inflation indexation charges, net | 65 | (219) | ||
| Finance income (expenses), net | 385 | 10 | ||
| Total | 9,321 | 23,433 | ||
Information on the precatories issued in favor of the company arising from the Petróleo e Álcool Account is disclosed in note 13.1 of Petrobras' financial statements as of December 31, 2021.
Liabilities with pension plans of the company's employees and managed by Fundação Petros, which include debt instruments, are presented in note 12.
| 28.5 | Compensation 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 Economy, and by the Ministry of Mines and Energy and are presented as follows:
Parent Company
| Jan-Mar/2022 | Jan-Mar/2021 | |||||
| Officers | Board Members | Total | Officers | Board Members | Total | |
| Wages and short-term benefits | 3.8 | 0.1 | 3.9 | 3.8 | 0.2 | 4.0 |
| Social security and other employee-related taxes | 1.1 | − | 1.1 | 1.1 | − | 1.1 |
| Post-employment benefits (pension plan) | 0.3 | − | 0.3 | 0.3 | − | 0.3 |
| Benefits due to termination of tenure | − | − | − | 0.2 | − | 0.2 |
| Total compensation recognized in the statement of income | 5.2 | 0.1 | 5.3 | 5.4 | 0.2 | 5.6 |
| Total compensation paid (*) | 6.6 | 0.1 | 6.7 | 5.6 | 0.2 | 5.8 |
| Average number of members in the period (**) | 9.00 | 11.00 | 20.00 | 9.00 | 10.00 | 19.00 |
| Average number of paid members in the period (***) | 9.00 | 3.33 | 12.33 | 9.00 | 5.00 | 14.00 |
|
(*) Includes the PPP for Administrators in the Executive Board. (**) Monthly average number of members. | ||||||
| (***) Monthly average number of paid members. | ||||||
In the period from January to March 2022, the consolidated expense with the total compensation of the company's officers and directors totaled R$15.11 (R$19.15 in the period from January to March 2021).
On April 13, 2022, the Annual Shareholders' Meeting set the compensation of managers (Executive Board and Board of Directors) at up to R$ 39.5 as the global limit of compensation to be paid in the period between April 2022 and March 2023.
The compensation of the members of the Advisory Committees to the Board of Directors must be considered apart from the global compensation limit set for the managers, that is, the amounts received are not classified as compensation for the managers.
The members of the Board of Directors who participate in the Statutory Audit Committee waive the remuneration of the Board of Directors, as established in art. 38, § 8 of Decree No. 8,945, of December 27, 2016, and they were entitled to a total remuneration of R$ 799.5 thousand in the period from January to March 2022 (R$ 959.4 thousand, considering the social charges). In the period from January to March 2021, the remuneration accrued in the period was R$ 618 thousand (R$ 741.3 thousand, considering social charges).
| 52 |
| Table of Contents |
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 | ||
| 2022 | 2021 | |
| Jan-Mar | Jan-Mar | |
| Amounts paid/received during the period | ||
| Withholding income tax paid on behalf of third-parties | 845 | 1,029 |
| Transactions that does not involve cash | ||
| Lease | 5,100 | 2,106 |
| Provision/(reversals) for decommissioning costs | 54 | (7) |
| Use of tax credits and judicial deposits to pay the contingency | 3,767 | − |
| 30 | Subsequent events |
Receipt for the sale of NTS
On April 4, 2022, Petrobras received from Nova Infraestrutura Gasodutos Participações S.A. (NISA), a company owned by Nova Infraestrutura Fundo de Investimentos em Participações Multiestratégia (FIP), the amount of US$ 1 billion, after updates provided for in the agreement. This amount corresponds to the last installment of the sale of 90% of Petrobras shares in Nova Transportadora do Sudeste (NTS), with receipt scheduled for 5 years after the closing, which took place on April 4, 2017. The amount is recorded in accounts receivable - disinvestment receivables.
Receipt of Atapu and Sepia
On April 27, 2022, Petrobras entered into the Production Sharing Agreement for the Surplus Volumes of the Assignment of Atapu in partnership with Shell Brasil Petróleo Ltda (Shell - 25%) and TotalEnergies EP Brasil Ltda. (TotalEnergies - 22.5%), and the Production Sharing Contract for the Surplus Volumes of the Sepia Assignment, in consortium with the companies TotalEnergies (28%), Petronas Petróleo Brasil Ltda. (Petronas - 21%) and QP Brasil Ltda. (QP - 21%), due to the 2nd bidding round for the Surplus of the Assignment of Rights in the Production Sharing regime, which took place on December 17, 2021.
The compensations owed to Petrobras for Atapu and Sépia were received as follows:
• April 13, 2022: R$ 5.26 billion received from Shell and corresponding to the 25% share in the Atapu compensation;
• April 26, 2022, updated amount of R$ 4.7 billion, received from Total and referring to the 22.5% portion in the compensation of Atapu;
• April 27, 2022, amount of R$ 14.55 billion, received from TotalEnergies, from Petronas Petróleo Brasil Ltda. (Petronas) and QP Brasil Ltda. (QP), referring to the 70% share of these companies in the Sépia compensation, a block acquired by the consortium composed of Petrobras (30%), TotalEnergies (28%), Petronas (21%) and QP (21%).
These amounts already include the preliminary estimate of the gross-up of the taxes levied, pursuant to Ordinance No. 08 of 04/19/2021 of the Ministry of Mines and Energy (MME), and may be updated when Petrobras calculates the capital gain from the transfer of assets to the Production Sharing regime.
As provided for in the Public Notice, the Co-participation Agreements and the Addendums to the Agreement for the Individualization of Atapu and Sepia Production (AIPs) were also signed, necessary to manage the coincident deposits contained in the area of the transfer of rights agreement and in the area of the sharing agreement production of the surplus from the transfer of rights.
The agreements became effective on May 2, 2022.
Petrobras completes the offer to repurchase global bonds
On April 14, 2022, Petrobras concluded the offer to repurchase global bonds, with maturities between 2024 and 2051, carried out by its wholly-owned subsidiary Petrobras Global Finance B.V. (PGF). The total amount offered by investors, excluding capitalized and unpaid interest, was US$ 1,952 million. The total amount paid to these investors was US$ 1,997 million, considering the prices offered by Petrobras and excluding capitalized interest up to the settlement date.
Sale of the Albacora Leste field
On April 27, 2022, Petrobras' Board of Directors approved the sale of its entire interest in the Albacora Leste concession, located predominantly in deep waters in the Campos Basin, to the company Petro Rio Jaguar Petróleo Ltda. (PetroRio), a subsidiary of Petro Rio S.A. The execution of the purchase and sale agreement and the subsequent steps will be disclosed to the market in due course.
| 53 |
| Table of Contents |
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 total value of the sale is up to US$ 2.20 billion, of which (a) US$ 292.7 million will be paid on the date of execution of the agreement; (b) US$ 1.66 billion at the closing of the transaction and (c) up to US$ 250 million in contingent payments, depending on future Brent quotations. The amounts do not consider the adjustments due until the closing of the transaction, which is subject to the fulfillment of certain conditions precedent, such as the non-exercise of the preemptive right by the current consortium member Repsol Sinopec Brasil, the approval by the Administrative Council for Economic Defense (CADE) and by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
Sale of DETEN
On April 27, 2022, Petrobras' Board of Directors approved the sale of its entire interest (27.88%) in Deten Química S.A (Deten), located in the Camaçari industrial complex, in the state of Bahia, to the company Cepsa Química S.A., which already has an indirect interest in Deten of 69.94%. The execution of the purchase and sale agreement and the subsequent steps will be disclosed to the market in due course.
The sale price is R$ 585, payable at the closing of the transaction, with a deposit of 5% of the amount (R$ 29.25) on the date of signature of the purchase and sale agreement, which will be deducted from the total amount upon payment. The amount does not consider the adjustments due until the closing of the transaction. Furthermore, the transaction is subject to the fulfillment of conditions precedent, such as the approval by the Administrative Council for the Defense of Competition.
Distribution of remuneration to shareholders
On May 5, 2022, Petrobras’s Board of Directors approved the distribution of remuneration to shareholders in the amount of R$ 48,466 (R$ 3.715490 per outstanding preferred and common shares), as an anticipation based on the net income for the three-month period ended March 31, 2022 and as an intermediate distribution by use of the profit retention reserve account, as presented in the following table:
| Shareholders remuneration | |||
| Date of shareholder position | Amount per common and preferred share (R$) | Amount | |
| Anticipation of dividends | 05.23.2022 | 2.708577 | 35,331 |
| Anticipation of interest on capital | 05.23.2022 | 0.430177 | 5,612 |
| Total anticipations based on the net income of Jan-Mar/2022 | 3.138754 | 40,943 | |
| Intermediate dividends by use of profit retention reserve of 12.31.2021 | 05.23.2022 | 0.576736 | 7,523 |
| Total distribution to shareholders | 3.715490 | 48,466 | |
| Outstanding preferred shares | 3.715490 | 20,814 | |
| Outstanding common shares | 3.715490 | 27,652 | |
These dividends and interest on capital will be paid in two equal installments, on June 20, 2022 and July 20, 2022, and will be deducted from the remuneration that will be distributed to shareholders relating to the fiscal year 2022.
These amounts will be adjusted by the Selic rate from the date of the payment to the end of the fiscal year.
| 54 |
| Table of Contents |
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, 2021 and the ones of March 31, 2022 |
| Number of notes | ||
| Notes to the Financial Statements |
Annual for 2021 |
Quarterly information for 1Q-22 |
| 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 – Statement of Income | 12 | 8 |
| Trade and other receivables | 13 | 9 |
| Inventories | 14 | 10 |
| Taxes | 16 | 11 |
| Employee benefits (Post-Employment) | 17 | 12 |
| Provisions for legal proceedings | 18 | 13 |
| Provision for decommissioning costs | 19 | 14 |
| Property, plant and equipment | 23 | 15 |
| Intangible assets | 24 | 16 |
| Impairment | 25 | 17 |
| Exploration and evaluation of oil and gas reserves | 26 | 18 |
| Collateral for crude oil exploration concession agreements | 27 | 19 |
| Investments | 29 | 20 |
| Segment information – Asset | 30 | 21 |
| Disposal of Assets and other changes in organizational structure | 31 | 22 |
| Finance debt | 32 | 23 |
| Leases | 33 | 24 |
| Equity | 34 | 25 |
| Fair value of financial assets and liabilities | 35 | 26 |
| Risk management | 36 | 27 |
| Related-party transactions | 37 | 28 |
| Supplemental information on statement of cash flows | 38 | 29 |
| Subsequent events | 39 | 30 |
The notes to the annual report 2021 that were suppressed in the interim financial statements of March 31, 2022 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 |
| Trade payables | 15 |
| Other assets and liabilities | 20 |
| “Lava Jato Operation” and the reflects on the Company | 21 |
| Commitment to purchase natural gas | 22 |
| Partnerships in exploration and production activities | 28 |
| 55 |
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 25 of CVM Instruction 480, of December 7, 2009, 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 March 31, 2022;
(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 March 31, 2022.
Rio de Janeiro, May 5, 2022.
| José Mauro Ferreira Coelho | Rafael Chaves Santos | |
|
Chief Executive Officer |
Chief Institutional Relations and Sustainability Executive Officer | |
| Cláudio Rogério Linassi Mastella | Rodrigo Araujo Alves | |
|
Chief Commercialization and Logistics Executive Officer |
Chief Financial and Investor Relations Executive Officer | |
| Fernando Assumpção Borges | Rodrigo Costa Lima e Silva | |
|
Chief Exploration and Production Executive Officer |
Chief Refining and Natural Gas Executive Officer
| |
| João Henrique Rittershaussen | Salvador Dahan | |
| Chief Production Development Executive Officer | Chief Governance and Compliance Executive Officer | |
| Juliano de Carvalho Dantas | ||
| Chief Digital Transformation and Innovation Executive Officer |
| 56 |
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 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”), identified as Parent Company and Consolidated, respectively, included in the quarterly information form - ITR for the quarter ended March 31, 2022, which comprises the statement of financial position as of March 31, 2022 and the respective statements of income and comprehensive income and statements of changes in shareholders' equity and of cash flows for the three-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) and the 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. |
| 57 |
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 interim financial information included in the Quarterly Information (ITR) referred to above has not been prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34, applicable to the preparation of Quarterly Information (ITR), and presented in accordance with the standards issued by the Brazilian Securities Commission - CVM.
Other matters - Statements of added value
The quarterly information referred to above includes the individual and consolidated statements of added value (DVA) for the three-month period ended at March 31, 2022, 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 Technical Pronouncement - 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, May 5, 2022
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. |
| 58 |
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: May 5, 2022
PETRÓLEO BRASILEIRO S.A–PETROBRAS
By: /s/ Rodrigo Araujo Alves
______________________________
Rodrigo Araujo Alves
Chief Financial Officer and Investor Relations Officer