11/13/2023 | Press release | Distributed by Public on 11/13/2023 05:33
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 November, 2023
Commission File Number 1-15106
PETRÓLEO BRASILEIRO S.A. - PETROBRAS
(Exact name of registrant as specified in its charter)
Brazilian Petroleum Corporation - PETROBRAS
(Translation of Registrant's name into English)
Avenida Henrique Valadares, 28 - 19th floor
20231-030 - Rio de Janeiro, RJ
Federative Republic of Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
Petrobras financial performance in 3Q23
Rio de Janeiro, November 09, 2023
Main achievements:
Disclaimer
This report may contain forward-looking statements. Such forward-looking statements only reflect expectations of the Company's managers regarding future economic conditions, as well as the Company's performance, financial performance and results, among others. The terms "anticipates", "believes", "expects", "predicts", "intends", "plans", "projects", "objective", "should", and similar terms, which evidently involve risks and uncertainties that may or may not be anticipated by the Company and therefore are not guarantees of future results of the Company's operations that may differ from current expectations. The readers should not rely exclusively on any forward-looking statement contained herein. The Company does not undertake any responsibility to update the presentations and forecasts in the light of new information or its future developments, and the figures reported for 3Q23 onwards are estimates or targets. These indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by others. We provide these indicators because we use them as measures of company performance; they should not be considered in isolation or as a substitute for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA and Net Indebtedness in the Glossary and their reconciliations in the Liquidity and Capital Resources sections, Reconciliation of Adjusted EBITDA and Net Indebtedness. Consolidated accounting information in accordance with International Accounting Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) and revised by independent auditors.
*
* See reconciliation of Recurring net income and Adjusted EBITDA in the Special Items section.
* *Ratio calculated in USD.
2 |
Main items
Table 1 - Main items
Variation (%) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Sales revenues | 124,828 | 113,840 | 170,076 | 377,736 | 482,677 | 9.7 | (26.6) | (21.7) |
Gross profit | 66,315 | 57,681 | 86,836 | 197,307 | 257,463 | 15.0 | (23.6) | (23.4) |
Operating expenses | (17,557) | (15,604) | (12,395) | (46,456) | (22,952) | 12.5 | 41.6 | 102.4 |
Consolidated net income (loss) attributable to the shareholders of Petrobras | 26,625 | 28,782 | 46,096 | 93,563 | 144,987 | (7.5) | (42.2) | (35.5) |
Recurring consolidated net income (loss) attributable to the shareholders of Petrobras * | 27,226 | 29,383 | 46,571 | 95,028 | 135,707 | (7.3) | (41.5) | (30.0) |
Net cash provided by operating activities | 56,528 | 47,751 | 63,207 | 158,038 | 187,835 | 18.4 | (10.6) | (15.9) |
Free cash flow | 40,966 | 33,315 | 52,979 | 115,407 | 156,788 | 23.0 | (22.7) | (26.4) |
Adjusted EBITDA | 66,188 | 56,690 | 91,421 | 195,375 | 267,391 | 16.8 | (27.6) | (26.9) |
Recurring adjusted EBITDA* | 66,887 | 59,071 | 92,695 | 201,571 | 271,615 | 13.2 | (27.8) | (25.8) |
Gross debt (US$ million) | 60,997 | 57,971 | 54,268 | 60,997 | 54,268 | 5.2 | 12.4 | 12.4 |
Net debt (US$ million) | 43,725 | 42,177 | 47,483 | 43,725 | 47,483 | 3.7 | (7.9) | (7.9) |
Net debt/LTM Adjusted EBITDA ratio ** | 0.83 | 0.74 | 0.75 | 0.83 | 0.75 | 12.2 | 10.7 | 10.7 |
Average commercial selling rate for U.S. dollar | 4.88 | 4.95 | 5.25 | 5.01 | 5.13 | (1.4) | (7.0) | (2.3) |
Brent crude (US$/bbl) | 86.76 | 78.39 | 100.85 | 82.14 | 105.35 | 10.7 | (14.0) | (22.0) |
Domestic basic oil by-products price (R$/bbl) | 464.08 | 475.28 | 692.97 | 501.35 | 636.06 | (2.4) | (33.0) | (21.2) |
TRI (total recordable injuries per million men-hour frequency rate) | - | - | - | 0.80 | 0.70 | - | - | 14.3 |
ROCE (Return on Capital Employed) | 11.5% | 12.8% | 14.8% | 11.5% | 14.8% | -1,3 p.p. | -3,3 p.p. | -3,3 p.p. |
3 |
Consolidated results
Net revenues
Table 2 - Net revenues by products
Variation (%) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Diesel | 39,988 | 35,099 | 61,343 | 118,237 | 152,821 | 13.9 | (34.8) | (22.6) |
Gasoline | 16,660 | 18,700 | 21,575 | 54,549 | 62,166 | (10.9) | (22.8) | (12.3) |
Liquefied petroleum gas (LPG) | 4,107 | 4,712 | 7,108 | 13,648 | 20,354 | (12.8) | (42.2) | (32.9) |
Jet fuel | 5,706 | 5,461 | 8,058 | 18,469 | 20,133 | 4.5 | (29.2) | (8.3) |
Naphtha | 2,194 | 2,132 | 3,305 | 6,811 | 10,042 | 2.9 | (33.6) | (32.2) |
Fuel oil (including bunker fuel) | 1,401 | 1,294 | 2,003 | 4,181 | 5,648 | 8.3 | (30.1) | (26.0) |
Other oil products | 5,621 | 5,584 | 7,780 | 16,838 | 22,379 | 0.7 | (27.8) | (24.8) |
Subtotal oil products | 75,677 | 72,982 | 111,172 | 232,733 | 293,543 | 3.7 | (31.9) | (20.7) |
Natural gas | 6,592 | 7,083 | 10,522 | 21,602 | 29,199 | (6.9) | (37.4) | (26.0) |
Crude oil | 6,253 | 6,756 | 10,379 | 20,025 | 32,777 | (7.4) | (39.8) | (38.9) |
Renewables and nitrogen products | 77 | 122 | 364 | 308 | 1,173 | (36.9) | (78.8) | (73.7) |
Revenues from non-exercised rights | 1,010 | 1,072 | 988 | 3,224 | 2,361 | (5.8) | 2.2 | 36.6 |
Electricity | 782 | 756 | 740 | 2,108 | 2,827 | 3.4 | 5.7 | (25.4) |
Services, agency and others | 1,330 | 1,394 | 1,333 | 3,991 | 4,080 | (4.6) | (0.2) | (2.2) |
Total domestic market | 91,721 | 90,165 | 135,498 | 283,991 | 365,960 | 1.7 | (32.3) | (22.4) |
Exports | 32,222 | 21,950 | 29,859 | 89,186 | 105,370 | 46.8 | 7.9 | (15.4) |
Crude oil | 23,478 | 14,416 | 19,031 | 66,703 | 71,663 | 62.9 | 23.4 | (6.9) |
Fuel oil (including bunker fuel) | 6,687 | 6,580 | 9,182 | 18,639 | 30,271 | 1.6 | (27.2) | (38.4) |
Other oil products and other products | 2,057 | 954 | 1,646 | 3,844 | 3,436 | 115.6 | 25.0 | 11.9 |
Sales abroad (*) | 885 | 1,725 | 4,719 | 4,559 | 11,347 | (48.7) | (81.2) | (59.8) |
Total foreign market | 33,107 | 23,675 | 34,578 | 93,745 | 116,717 | 39.8 | (4.3) | (19.7) |
Total | 124,828 | 113,840 | 170,076 | 377,736 | 482,677 | 9.7 | (26.6) | (21.7) |
(*) Sales revenues from operations outside of Brazil, including trading and excluding exports |
The increase in revenues in 3Q23 compared to 2Q23 is mainly due to the 11% appreciation of Brent and higher sales volumes of oil products in the domestic market and oil exports.
In 3Q23, revenues from oil products in the domestic market increased mainly as a result of higher sales volumes, especially diesel. This effect was partially offset by lower gasoline sales, which lost market share to hydrous ethanol in the supply of flex-fuel vehicles.
During 3Q23, the principal products traded continued to be diesel and gasoline, equivalent to approximately 75% of oil product sales revenue in the domestic market.
The decrease in natural gas revenues in 3Q23 is mainly explained by the lower average selling price of natural gas, due to the lower benchmark (Brent). The lower oil revenues in the domestic markets were due to lower sales volumes to Acelen, which were partly offset by higher average prices, in line with the rise in international prices.
The increase in export revenues is mainly explained by the growth in revenues from oil exports. This is due to the increase in volumes exported during 3Q23, driven by higher production, coupled with the appreciation in Brent in the period.
Cost of goods sold *
Table 3 - Cost of goods sold
Variation (%) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Acquisitions | (20,080) | (21,598) | (35,902) | (67,059) | (86,760) | (7.0) | (44.1) | (22.7) |
Crude oil imports | (10,893) | (10,335) | (16,724) | (35,088) | (38,463) | 5.4 | (34.9) | (8.8) |
Oil products imports | (7,646) | (7,760) | (14,771) | (24,819) | (30,685) | (1.5) | (48.2) | (19.1) |
Natural gas imports | (1,541) | (3,503) | (4,407) | (7,152) | (17,612) | (56.0) | (65.0) | (59.4) |
Production | (36,277) | (32,094) | (41,234) | (105,537) | (124,461) | 13.0 | (12.0) | (15.2) |
Crude oil | (29,946) | (26,812) | (34,079) | (89,222) | (103,417) | 11.7 | (12.1) | (13.7) |
Production taxes | (13,365) | (12,280) | (17,773) | (39,723) | (54,662) | 8.8 | (24.8) | (27.3) |
Other costs | (16,581) | (14,532) | (16,306) | (49,499) | (48,755) | 14.1 | 1.7 | 1.5 |
Oil products | (3,583) | (2,787) | (3,448) | (8,653) | (9,859) | 28.6 | 3.9 | (12.2) |
Natural gas | (2,748) | (2,495) | (3,707) | (7,662) | (11,185) | 10.1 | (25.9) | (31.5) |
Production taxes | (542) | (455) | (1,150) | (1,474) | (3,641) | 19.1 | (52.9) | (59.5) |
Other costs | (2,206) | (2,040) | (2,557) | (6,188) | (7,544) | 8.1 | (13.7) | (18.0) |
Services, electricity, operations abroad and others | (2,156) | (2,467) | (6,104) | (7,833) | (13,993) | (12.6) | (64.7) | (44.0) |
Total | (58,513) | (56,159) | (83,240) | (180,429) | (225,214) | 4.2 | (29.7) | (19.9) |
* Managerial information (non-revised).
4 |
In 3Q23, the cost of goods sold was higher than in 2Q23, mainly due to higher volumes of oil exports, higher government take and higher sales of oil products in the domestic market, especially diesel. This effect was partially offset by lower volumes of natural gas imports.
Operating expenses
Table 4 - Operating expenses
Variation (%) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Selling, General and Administrative Expenses | (8,216) | (7,868) | (8,110) | (24,283) | (23,553) | 4.4 | 1.3 | 3.1 |
Selling expenses | (6,289) | (5,947) | (6,358) | (18,580) | (18,653) | 5.8 | (1.1) | (0.4) |
Materials, third-party services, freight, rent and other related costs | (5,382) | (5,070) | (5,102) | (15,781) | (14,991) | 6.2 | 5.5 | 5.3 |
Depreciation, depletion and amortization | (788) | (764) | (1,020) | (2,329) | (3,124) | 3.1 | (22.7) | (25.4) |
Allowance for expected credit losses | 14 | 21 | (107) | (72) | (177) | (33.3) | − | (59.3) |
Employee compensation | (133) | (134) | (129) | (398) | (361) | (0.7) | 3.1 | 10.2 |
General and administrative expenses | (1,927) | (1,921) | (1,752) | (5,703) | (4,900) | 0.3 | 10.0 | 16.4 |
Employee compensation | (1,337) | (1,209) | (1,171) | (3,735) | (3,267) | 10.6 | 14.2 | 14.3 |
Materials, third-party services, rent and other related costs | (447) | (555) | (446) | (1,531) | (1,260) | (19.5) | 0.2 | 21.5 |
Depreciation, depletion and amortization | (143) | (157) | (135) | (437) | (373) | (8.9) | 5.9 | 17.2 |
Exploration costs | (2,364) | (945) | (565) | (4,126) | (1,169) | 150.2 | 318.4 | 253.0 |
Research and Development | (908) | (850) | (984) | (2,558) | (3,145) | 6.8 | (7.7) | (18.7) |
Other taxes | (557) | (1,632) | (489) | (3,228) | (1,255) | (65.9) | 13.9 | 157.2 |
Impairment of assets | (386) | (1,946) | (1,336) | (2,348) | (2,179) | (80.2) | (71.1) | 7.8 |
Other income and expenses, net | (5,126) | (2,363) | (911) | (9,913) | 8,349 | 116.9 | 462.7 | − |
Total | (17,557) | (15,604) | (12,395) | (46,456) | (22,952) | 12.5 | 41.6 | 102.4 |
The increase in sales expenses in 3Q23 compared to 2Q23 reflects the higher exports of oil and oil products.
The higher exploration expenses in 3Q23 were due to losses on write-offs related to exploratory blocks C-M-210, C-M-277, C-M-344, C-M-346, C-M-411 and C-M-413, located in Campos Basin pre-salt, due to production development projects proving economically unfeasible. This effect was partially offset by lower geology and geophysics expenses, mainly due to lower spending in Equatorial Margin, especially in the Foz do Amazonas Basin.
In other operating net expenses, the increase in 3Q23 is mainly explained by lower capital gains from the sale of assets, due to the closing of the Potiguar and Norte Capixaba Cluster in 2Q23. This effect was partially offset by lower expenses with legal contingencies in the period.
Conversely, there were lower tax expenses, explained by the end of the tax on oil exports, effective from March to June 2023, and lower impairment losses.
Adjusted EBITDA
In 3Q23, Adjusted EBITDA amounted to R$ 66.2 billion, up 17% compared to 2Q23. This result was mainly due to the 11% appreciation of Brent, higher oil exports and sales of oil products in domestic market and lower imports of LNG.
5 |
Financial results
Table 5 - Financial results
Variation (%) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Finance income | 2,934 | 2,553 | 2,713 | 7,906 | 7,127 | 14.9 | 8.1 | 10.9 |
Income from investments and marketable securities (Government Bonds) | 2,218 | 2,101 | 1,783 | 6,051 | 4,448 | 5.6 | 24.4 | 36.0 |
Other finance income | 716 | 452 | 930 | 1,855 | 2,679 | 58.4 | (23.0) | (30.8) |
Finance expenses | (5,680) | (4,295) | (4,157) | (14,362) | (12,817) | 32.2 | 36.6 | 12.1 |
Interest on finance debt | (3,236) | (2,537) | (2,963) | (8,585) | (9,143) | 27.6 | 9.2 | (6.1) |
Unwinding of discount on lease liabilities | (2,418) | (1,973) | (1,773) | (6,253) | (4,943) | 22.6 | 36.4 | 26.5 |
Discount and premium on repurchase of debt securities | (11) | − | (54) | (11) | (592) | − | (79.6) | (98.1) |
Capitalized borrowing costs | 1,651 | 1,573 | 1,364 | 4,632 | 4,072 | 5.0 | 21.0 | 13.8 |
Unwinding of discount on the provision for decommissioning costs | (1,056) | (1,085) | (668) | (3,240) | (2,025) | (2.7) | 58.1 | 60.0 |
Other finance expenses | (610) | (273) | (63) | (905) | (186) | 123.4 | 868.3 | 386.6 |
Foreign exchange gains (losses) and indexation charges | (7,014) | 1,473 | (6,529) | (6,773) | (15,057) | − | 7.4 | (55.0) |
Foreign exchange gains (losses) | (4,632) | 7,402 | (4,073) | 6,940 | 278 | − | 13.7 | 2396.4 |
Reclassification of hedge accounting to the Statement of Income | (3,691) | (5,337) | (5,813) | (15,020) | (18,476) | (30.8) | (36.5) | (18.7) |
Monetary restatement of anticipated dividends and dividends payable | 6 | (1,987) | 2,085 | (2,145) | 749 | − | (99.7) | − |
Recoverable taxes inflation indexation income | 84 | 150 | 155 | 569 | 382 | (44.0) | (45.8) | 49.0 |
Other foreign exchange gains (losses) and indexation charges, net | 1,219 | 1,245 | 1,117 | 2,883 | 2,010 | (2.1) | 9.1 | 43.4 |
Total | (9,760) | (269) | (7,973) | (13,229) | (20,747) | 3528.3 | 22.4 | (36.2) |
In 3Q23, the financial result was mainly impacted by the loss on the exchange rate variation of the BRL against the USD, which depreciated by 3.9% in 3Q23 (from R$4.82/US$ on 06/30/23 to R$5.01/US$ on 09/30/23), as opposed to the appreciation of 5.1% in 2Q23. In addition to this effect, higher interest expenses on financing and leasing contributed to a more negative financial result compared to 2Q23. These effects were partly offset by lower hedge accounting and by the effect of monetary restatement by the Selic rate in 2Q23 on the complementary dividends for 2022.
Net profit (loss) attributable to Petrobras shareholders
In 3Q23, net profit was R$ 26.6 billion, compared to R$ 28.8 billion in 2Q23.
Despite the higher gross profit, mainly influenced by the appreciation of Brent and by higher volumes of oil exports, sales of oil products and lower imports of LNG, the lower net profit observed in 3Q23 compared to 2Q23 is mainly explained by the financial result, which was impacted by the depreciation of the BRL against USD, and higher operating expenses, especially higher exploration costs and lower gains on the sale of assets. These effects were partially offset by lower income tax expenses due to the lower pre-tax result.
Recurring net income attributable to Petrobras shareholders and recurring Adjusted EBITDA
Net income had a negative impact of R$ 0.6 billion, mainly influenced by legal contingencies and asset impairment. Excluding non-recurring items, net income in 3Q23 would have been R$ 27.2 billion.
Adjusted EBITDA had a negative impact of R$ 0.7 billion, mainly influenced by legal contingencies. Excluding this effect, it would have reached R$ 69.9 billion in 3Q23.
6 |
Special items
Table 6 - Special items
Variation (%) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Net income | 26,760 | 28,936 | 46,236 | 94,003 | 145,503 | (7.5) | (42.1) | (35.4) |
Non-recurring items | (930) | (910) | (726) | (2,243) | 14,085 | 2.2 | 28.1 | − |
Non-recurring items that do not affect Adjusted EBITDA | (231) | 1,471 | 548 | 3,953 | 18,309 | − | − | (78.4) |
Impairment of assets and investments | (349) | (1,946) | (1,324) | (2,303) | (2,224) | (82.1) | (73.6) | 3.6 |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | − | (1) | − | (1) | − | − | − |
Gains and losses on disposal / write-offs of assets | (182) | 3,416 | 1,550 | 5,811 | 5,850 | − | − | (0.7) |
Results from co-participation agreements in bid areas | 93 | (1) | (50) | 236 | 14,193 | − | − | (98.3) |
Discount and premium on repurchase of debt securities | 207 | 2 | 373 | 209 | 491 | 10250.0 | (44.5) | (57.4) |
Other non-recurring items | (699) | (2,381) | (1,274) | (6,196) | (4,224) | (70.6) | (45.1) | 46.7 |
Voluntary Separation Plan | 4 | 10 | (4) | 31 | (33) | (60.0) | − | − |
Amounts recovered from Lava Jato investigation | 29 | 20 | 115 | 512 | 175 | 45.0 | (74.8) | 192.6 |
Gains / (losses) on decommissioning of returned/abandoned areas | (13) | (58) | (7) | (74) | (147) | (77.6) | 85.7 | (49.7) |
Gains / (losses) related to legal proceedings | (689) | (1,361) | (1,377) | (3,369) | (4,169) | (49.4) | (50.0) | (19.2) |
Equalization of expenses - Production Individualization Agreements | (76) | (29) | (1) | (196) | (50) | 162.1 | 7500.0 | 292.0 |
Compensation for the termination of a vessel charter agreement | − | − | − | (1,654) | − | − | − | − |
Export tax on crude oil | 46 | (963) | − | (1,446) | − | − | − | − |
Net effect of non-recurring items on IR / CSLL | 329 | 309 | 251 | 778 | (4,805) | 6.5 | 31.1 | − |
Recurring net income | 27,361 | 29,537 | 46,711 | 95,468 | 136,223 | (7.4) | (41.4) | (29.9) |
Shareholders of Petrobras | 27,226 | 29,383 | 46,571 | 95,028 | 135,707 | (7.3) | (41.5) | (30.0) |
Non-controlling interests | 135 | 154 | 140 | 440 | 516 | (12.3) | (3.6) | (14.7) |
Adjusted EBITDA | 66,188 | 56,690 | 91,421 | 195,375 | 267,391 | 16.8 | (27.6) | (26.9) |
Non-recurring items | (699) | (2,381) | (1,274) | (6,196) | (4,224) | (70.6) | (45.1) | 46.7 |
Recurring Adjusted EBITDA | 66,887 | 59,071 | 92,695 | 201,571 | 271,615 | 13.2 | (27.8) | (25.8) |
In management's opinion, the special items presented above, although related to the Company's business, were highlighted as complementary information for a better understanding and evaluation of the result. Such items do not necessarily occur in all periods and are disclosed when relevant.
7 |
Capex
Table 7 - Capex
Variation (%) | ||||||||
US$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Exploration and Production | 2,892 | 2,599 | 1,685 | 7,531 | 4,734 | 11.3 | 71.6 | 59.1 |
Refining, Transportation and Marketing | 322 | 365 | 295 | 1,029 | 821 | (11.7) | 9.3 | 25.4 |
Gas and Power | 67 | 43 | 65 | 143 | 251 | 56.7 | 3.3 | (43.0) |
Others | 111 | 93 | 86 | 271 | 274 | 18.9 | 29.2 | (1.1) |
Subtotal | 3,392 | 3,100 | 2,131 | 8,974 | 6,080 | 9.4 | 59.2 | 47.6 |
Signature bonus | − | 141 | − | 141 | 892 | − | − | − |
Total | 3,392 | 3,241 | 2,131 | 9,115 | 6,972 | 4.7 | 59.2 | 30.7 |
In 3Q23, capex totaled US$ 3.4 billion, 4.7% above 2Q23. In the first nine months of the year, capex totaled US$ 9.1 billion, an increase of 31% compared to 9M22. Even with the challenging scenario faced by suppliers in the post-pandemic inflationary context, which has influenced the capacity to supply the growing demand for critical resources for the oil and gas industry, we plan to end the year with a level of US$ 13 billion in capex, without compromising the production target planned for 2023.
In the Exploration and Production segment, capex totaled US$ 2.9 billion, 11% above 2Q23, due to the increase in investments in major pre-salt projects, especially in the new production units in Búzios, progress in well campaigns and subsea activities. Investments in 3Q23 were mainly focused on: (i) the development of pre-salt production in the Santos Basin (US$ 1.5 billion); (ii) the development of post-salt deepwater production (US$ 0.4 billion); (iii) exploratory investments (US$ 0.2 billion).
In the Refining, Transportation and Marketing segment, capex totaled US$ 0.3 billion, 12% below 2Q23, mainly due to lower spending on scheduled stoppages in Refining and on maintenance and adaptation of ships abroad (Transpetro).
In the Gas and Energy segment, capex totaled US$ 0.07 billion, 57% above 2Q23, due to higher investments in major corrective maintenance and in the Route 3 Natural Gas processing unit.
Additionally, it is worth highlighting the entry into operation of the chartered FPSO Anita Garibaldi (Marlim 1), whose lease contract amount totaled US$ 2.4 billion. Just like owned units, leased FPSOs are recognized in the Company's assets and constitute an investment effort to expand production capacity with new units, but are not considered under Capex.
8 |
The following table presents the main information about the new oil and gas production systems, already contracted.
Table 8 - Main projects
Unit | Start-up | FPSO capacity (bbl/day) |
Petrobras Actual Investment US$ bn |
Petrobras Total Investment US$ bn1 |
Petrobras Stake | Status |
Mero 2 FPSO Sepetiba (Chartered unit) |
2023 | 180,000 | 0.42 | 0.8 | 38.6% | Project in phase of execution. Production system at Mero field. 13 wells drilled and 13 completed. |
Mero 3 FPSO Marechal Duque de Caxias (Chartered unit) |
2024 | 180,000 | 0.22 | 0.8 | 38.6% | Project in phase of execution with production system under construction. 9 wells drilled and 4 completed. |
Integrado Parque das Baleias (IPB) FPSO Maria Quitéria (Chartered unit) |
2025 | 100,000 | 0.47 | 1.7 | 100% | Project in phase of execution with production system under construction. 3 wells drilled and 2 completed.2 |
Búzios 7 FPSO Almirante Tamandaré (Chartered unit) |
2025 | 225,000 | 0.36 | 2.0 | 88.99% |
Project in phase of execution with production system under construction. 6 wells drilled and 2 completed. |
Búzios 6 P-78 (Owned unit) |
2025 | 180,000 | 1.07 | 4.2 | 88.99% | Project in phase of execution with production system under construction. 3 wells drilled and 1 completed. |
Búzios 8 P-79 (Owned unit) |
2025 | 180,000 | 0.89 | 4.3 | 88.99% | Project in phase of execution with production system under construction. 7 wells drilled and 2 completed. |
Mero 4 FPSO Alexandre de Gusmão (Chartered unit) |
2025 | 180,000 | 0.05 | 0.8 | 38.6% |
Project in phase of execution with production system under construction. 6 wells drilled and 2 completed. |
Búzios 9 P-80 (Owned unit) |
2026 | 225,000 | 0.48 | 4.9 | 88.99% |
Project in phase of execution with production system under construction. 2 wells drilled and 2 completed. |
Búzios 10 P-82 (Owned unit) |
2027 | 225,000 | 0.31 | 5.5 | 88.99% |
Project in phase of execution with production system under construction 1 well drilled. |
Búzios 11 P-83 (Owned unit) |
2027 | 225,000 | 0.20 | 4.8 | 88.99% | Project in phase of execution with production system under construction. 2 wells drilled. |
BM-C-33 Non-operated project |
2028 | 126,000 | 0.22 | 2,3 3 | 30% | Project in phase of execution. |
1 Total investment with the Strategic Plan 2023-27 assumptions and Petrobras work interest (WI). Chartered units leases are not included. 2 Production Unit for revitalization project. Refers only to new wells. The scope of the project also includes the relocation of some wells of the units being decommissioned. 3 It is included investment in the FPSO, contracted on a lump sum turnkey modality, which includes engineering, procurement, construction and installation for the unit. The contractor will also provide FPSO operation and maintenance services during the first year from the start of production. |
9 |
Liquidity and capital resources[1]
Table 9 - Liquidity and capital resources
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 |
Adjusted cash and cash equivalents at the beginning of period | 76,115 | 80,068 | 100,268 | 64,092 | 62,040 |
Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the beginning of period* | (26,233) | (27,791) | (14,957) | (22,369) | (3,630) |
Cash and cash equivalents in companies classified as held for sale at the beginning of the period | − | − | 37 | − | 72 |
Cash and cash equivalents at the beginning of period | 49,882 | 52,277 | 85,348 | 41,723 | 58,482 |
Net cash provided by operating activities | 56,528 | 47,751 | 63,207 | 158,038 | 187,835 |
Net cash (used in) provided by investing activities | (13,777) | (4,003) | (3,823) | (23,518) | 7,921 |
Acquisition of PP&E and intangible assets | (15,540) | (14,389) | (10,225) | (42,521) | (30,946) |
Acquisition of equity interests | (22) | (47) | (3) | (110) | (101) |
Proceeds from disposal of assets - Divestment | 504 | 7,875 | 2,872 | 18,025 | 19,927 |
Financial compensation from co-participation agreements | − | − | 650 | 2,032 | 25,481 |
Dividends received | 31 | 289 | 402 | 375 | 1,615 |
Investment in marketable securities | 1,250 | 2,269 | 2,481 | (1,319) | (8,055) |
(=) Net cash provided by operating and investing activities | 42,751 | 43,748 | 59,384 | 134,520 | 195,756 |
Net cash used in financing activities | (34,742) | (43,504) | (121,013) | (114,507) | (227,173) |
Net financings | (1,738) | (5,759) | (3,297) | (14,092) | (33,432) |
Proceeds from finance debt | 5,942 | 52 | 11,677 | 6,257 | 13,322 |
Repayments | (7,680) | (5,811) | (14,974) | (20,349) | (46,754) |
Repayment of lease liability | (7,974) | (7,277) | (6,954) | (22,474) | (20,567) |
Dividends paid to shareholders of Petrobras | (23,803) | (30,595) | (111,046) | (76,201) | (173,075) |
Dividends paid to non-controlling interests | − | (1) | (50) | (249) | (340) |
Share repurchase program** | (975) | − | − | (975) | − |
Changes in non-controlling interest | (252) | 128 | 334 | (516) | 241 |
Effect of exchange rate changes on cash and cash equivalents | 2,751 | (2,639) | (69) | (1,094) | (3,415) |
Cash and cash equivalents at the end of period | 60,642 | 49,882 | 23,650 | 60,642 | 23,650 |
Government bonds, bank deposit certificates and time deposits with maturities of more than 3 months at the end of period* | 25,851 | 26,233 | 13,038 | 25,851 | 13,038 |
Cash and cash equivalents in companies classified as held for sale at the end of the period | − | − | − | − | − |
Adjusted cash and cash equivalents at the end of period | 86,493 | 76,115 | 36,688 | 86,493 | 36,688 |
Reconciliation of Free Cash Flow | |||||
Net cash provided by operating activities | 56,528 | 47,751 | 63,207 | 158,038 | 187,835 |
Acquisition of PP&E and intangible assets | (15,540) | (14,389) | (10,225) | (42,521) | (30,946) |
Acquisition of equity interests | (22) | (47) | (3) | (110) | (101) |
Free cash flow*** | 40,966 | 33,315 | 52,979 | 115,407 | 156,788 |
As of September 30, 2023, cash and cash equivalents totaled R$ 60.6 billion and adjusted cash and cash equivalents totaled R$ 86.5 billion.
In 3Q23, cash generated from operating activities reached R$ 56.5 billion and positive free cash flow totaled R$ 41.0 billion. This level of cash generation was used to: (a) pay remuneration to shareholders (R$ 23.8 billion), (b) make investments (R$ 15.5 billion), (c) amortize lease liabilities (R$ 8.0 billion), and (d) amortize principal and interest due in the period (R$ 7.7 billion).
In 3Q23, the company raised R$ 5.9 billion by offering bonds on the international capital market (Global Notes), maturing in 2033.
* Includes government bonds, bank deposit certificates and time deposits of companies classified as held for sale.
** Includes R$ 292 thousand of transaction costs on the repurchase of shares.
*** Free cash flow (FCF) is in accordance with the new Shareholder Remuneration Policy ("Policy") approved on 07/28/2023 and corresponds to operating cash flow minus acquisitions of property, plant and equipment, intangible assets and equity interests. For comparative purposes, figures prior to 2Q23 have been adjusted in accordance with the new Policy.
10 |
Debt indicators
As of 09/30/2023, gross debt reached US$ 61.0 billion, an increase of 5.2% compared to 06/30/2023, mainly due to the increase in leases in the period with the entry into operation of the leased FPSO Anita Garibaldi in 3Q23, which added US$ 2.4 billion to the company's lease liabilities compared to 06/30/2023. On the other hand, financial debt remained stable compared to June 30, 2023, reaching US$ 29.5 billion on September 30, 2023.
Average maturity went from 12.1 to 11.4 years and its average cost varied from 6.6% p.a. to 6.5% p.a. over the same period.
The gross debt/adjusted EBITDA ratio reached 1.15x on 09/30/2023 compared to 1.02x on 06/30/2023.
On 09/30/2023, net debt reached US$43.7 billion, an increase of 3.7% compared to 06/30/2023, mainly due to the increase in leases in the period.
Table 10 - Debt indicators
US$ million | 09.30.2023 | 06.30.2023 | Δ % | 09.30.2022 |
Financial Debt | 29,462 | 29,228 | 0.8 | 30,855 |
Capital Markets | 17,769 | 17,363 | 2.3 | 16,800 |
Banking Market | 8,863 | 8,775 | 1.0 | 10,713 |
Development banks | 690 | 735 | (6.1) | 721 |
Export Credit Agencies | 1,978 | 2,190 | (9.7) | 2,452 |
Others | 162 | 165 | (1.8) | 169 |
Finance leases | 31,535 | 28,743 | 9.7 | 23,413 |
Gross debt | 60,997 | 57,971 | 5.2 | 54,268 |
Adjusted cash and cash equivalents | 17,272 | 15,794 | 9.4 | 6,785 |
Net debt | 43,725 | 42,177 | 3.7 | 47,483 |
Net Debt/(Net Debt + Market Cap) - Leverage | 32% | 33% | (3.0) | 38% |
Average interest rate (% p.a.) | 6.5 | 6.6 | (1.5) | 6.4 |
Weighted average maturity of outstanding debt (years) | 11.43 | 12.12 | (5.7) | 12.04 |
Net debt/LTM Adjusted EBITDA ratio | 0.83 | 0.74 | 12.2 | 0.75 |
Gross debt/LTM Adjusted EBITDA ratio | 1.15 | 1.02 | 12.9 | 0.85 |
R$ million | ||||
Financial Debt | 147,538 | 140,856 | 4.7 | 166,818 |
Finance Lease | 157,913 | 138,519 | 14.0 | 126,585 |
Adjusted cash and cash equivalents | 86,493 | 76,115 | 13.6 | 36,688 |
Net Debt | 218,958 | 203,260 | 7.7 | 256,715 |
11 |
Results by segment
Exploration and Production
Table 11 - E&P results
Variation (%) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Sales revenues | 87,530 | 72,922 | 101,391 | 242,174 | 311,999 | 20.0 | (13.7) | (22.4) |
Gross profit | 52,619 | 42,646 | 62,342 | 143,844 | 192,610 | 23.4 | (15.6) | (25.3) |
Operating expenses | (5,691) | (2,707) | (2,509) | (9,036) | 9,765 | 110.2 | 126.8 | − |
Operating income | 46,928 | 39,939 | 59,833 | 134,808 | 202,375 | 17.5 | (21.6) | (33.4) |
Net income (loss) attributable to the shareholders of Petrobras | 30,644 | 26,456 | 39,732 | 88,842 | 134,360 | 15.8 | (22.9) | (33.9) |
Adjusted EBITDA of the segment | 60,351 | 48,950 | 72,959 | 165,893 | 224,443 | 23.3 | (17.3) | (26.1) |
EBITDA margin of the segment (%)* | 69 | 67 | 72 | 69 | 72 | 2 | (3) | (3) |
ROCE (Return on Capital Employed) (%)* | 14.5 | 15.5 | 19.4 | 14.5 | 19.4 | (1.0) | (4.9) | (4.9) |
Average Brent crude (US$/bbl) | 86.76 | 78.39 | 100.85 | 82.14 | 105.35 | 10.7 | (14.0) | (22.0) |
Production taxes Brazil | 16,498 | 13,346 | 18,925 | 44,305 | 59,938 | 23.6 | (12.8) | (26.1) |
Royalties | 9,675 | 7,691 | 10,692 | 25,728 | 32,905 | 25.8 | (9.5) | (21.8) |
Special participation | 6,771 | 5,597 | 8,168 | 18,405 | 26,846 | 21.0 | (17.1) | (31.4) |
Retention of areas | 52 | 58 | 65 | 172 | 187 | (10.3) | (20.0) | (8.0) |
Lifting cost Brazil (US$/boe) | 5.39 | 5.96 | 5.85 | 5.61 | 5.68 | (9.6) | (8.0) | (1.3) |
Pre-salt | 3.49 | 3.72 | 3.44 | 3.64 | 3.33 | (6.4) | 1.5 | 9.1 |
Deep and ultra-deep post-salt | 12.18 | 14.56 | 12.52 | 12.66 | 11.68 | (16.3) | (2.6) | 8.4 |
Onshore and shallow waters | 16.22 | 15.71 | 15.44 | 15.51 | 16.39 | 3.2 | 5.0 | (5.4) |
Lifting cost + Leases | 7.64 | 7.92 | 7.53 | 7.61 | 7.39 | (3.6) | 1.5 | 3.0 |
Pre-salt | 5.61 | 5.71 | 5.36 | 5.64 | 5.22 | (1.7) | 4.7 | 8.0 |
Deep and ultra-deep post-salt | 15.35 | 16.85 | 13.66 | 15.00 | 13.10 | (8.9) | 12.3 | 14.4 |
Onshore and shallow waters | 16.22 | 15.71 | 15.44 | 15.51 | 16.39 | 3.2 | 5.0 | (5.4) |
Lifting cost + Production taxes | 20.40 | 19.29 | 23.48 | 19.65 | 24.59 | 5.8 | (13.1) | (20.1) |
Lifting cost + Production taxes + Leases | 22.65 | 21.25 | 25.16 | 21.66 | 26.30 | 6.6 | (10.0) | (17.7) |
(*) EBITDA margin and ROCE variations in percentage points. |
In 3Q23, there was an improvement in E&P gross profit compared to 2Q23. This increase was mainly due to higher Brent prices and higher production in the period.
Operating income in 3Q23 was also higher than in 2Q23, reflecting higher gross profit and lower tax expenses related to export tax on oil operations. This increase in operating income was partially offset by the sales of the Potiguar and Norte Capixaba Poles in the previous quarter, as well as higher exploration expenses in 3Q23.
Lifting costs in 3Q23 were US$ 5.39/boe, a 10% reduction compared to 2Q23, mainly due to the ramp-up of new production systems.
Lifting costs in the pre-salt were 6% lower than 2Q23, mainly due to the ramp-up of production at P-71 and FPSO Almirante Barroso, respectively in the Itapu and Búzios fields in the Santos Basin.
In the post-salt, the 16% reduction in lifting costs was due to the ramp-up of FPSO Anna Nery, in the Marlim field, in the Campos Basin.
In onshore and shallow water assets, there was a 3% increase in lifting costs, because the operation resumption of some onshore fields in Bahia, as of May, partially offset by the divestment of fields in Rio Grande do Norte and Ceará.
It should be noted that in 3Q23, there was an increase in government take in dollars, explained by the increase in Brent prices compared to 2Q23, which led to an increase in the lifting cost plus production taxes of around 6% in the period.
As we had a good performance in the quarter, our expectation is to surpass the original guidance for 2023 average production, of 2.6 MMboed for total production, 2.3 MMboed for commercial production and 2.1 MMbpd for oil and NGL production, with a variation of 4%, to the level of 2.8 MMboed for total production, 2.4 MMboed for commercial production and 2.2 MMbpd for oil and NGL production, with a variation of 2%.
12 |
Refining, Transportation and Marketing
Table 12 - RTM results
Variation (%) (*) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Sales revenues | 115,750 | 104,328 | 154,035 | 349,130 | 439,940 | 10.9 | (24.9) | (20.6) |
Gross profit (loss) | 11,235 | 8,619 | 14,428 | 35,303 | 56,271 | 30.4 | (22.1) | (37.3) |
Operating expenses | (3,850) | (5,682) | (3,185) | (15,673) | (11,469) | (32.2) | 20.9 | 36.7 |
Operating Income | 7,385 | 2,937 | 11,243 | 19,630 | 44,802 | 151.4 | (34.3) | (56.2) |
Net income (loss) attributable to the shareholders of Petrobras | 4,017 | 1,599 | 7,302 | 11,825 | 30,392 | 151.2 | (45.0) | (61.1) |
Adjusted EBITDA of the segment | 10,363 | 7,940 | 15,296 | 30,654 | 54,486 | 30.5 | (32.3) | (43.7) |
EBITDA margin of the segment (%) | 9 | 8 | 10 | 9 | 12 | 1 | (1) | (4) |
ROCE (Return on Capital Employed) (%) | 6.7 | 7.6 | 11.9 | 6.7 | 11.9 | (0.9) | (5.2) | (5.2) |
Refining cost (US$/barrel) - Brazil | 2.38 | 2.24 | 2.17 | 2.25 | 1.93 | 6.2 | 9.7 | 16.6 |
Refining cost (R$/barrel) - Brazil | 11.62 | 11.04 | 11.48 | 11.25 | 9.95 | 5.3 | 1.2 | 13.1 |
Domestic basic oil by-products price (R$/bbl) | 464.08 | 475.28 | 692.97 | 501.35 | 636.06 | (2.4) | (33.0) | (21.2) |
(*) EBITDA margin and ROCE variations in percentage points. |
In 3Q23, gross profit increased compared to 2Q23, mainly due to the effect of inventory turnover as Brent prices went higher in this quarter (US$ 87/bbl against US$ 78/bbl in 2Q23), as opposed to the previous quarter. The estimated effect in 3Q23 was + R$ 6.69 billion versus - US$ 2.28 billion in 2Q23. Excluding this effect, gross profit would have been R$ 4.55 billion in 3Q23 versus R$ 10.90 billion in 2Q23.
In addition, there was a higher volume of sales of oil products domestically, mainly diesel due to the seasonality of demand because of the planting of summer grains crop and greater industrial activity, and a higher volume of jet fuel sales due to seasonality. There was also a higher volume of oil exports due to higher production.
In 3Q23, operating income was higher than in 2Q23, reflecting the higher gross profit and lower operating expenses, due to the impairment expenses of the second RNEST train in 2Q23.
In 3Q23, the refining cost per barrel in reais was higher than in 2Q23. In the period, we observed an increase in absolute costs, mainly due to the higher consumption of chemical products and outlay on maintenance. The feedstock was 2.8% higher than in 2Q23, partially offsetting the increase in cost per barrel.
13 |
Gas and Power
Table 13 - G&P results
Variation (%) (*) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Sales revenues | 12,813 | 13,701 | 21,747 | 41,337 | 57,792 | (6.5) | (41.1) | (28.5) |
Gross profit | 7,119 | 5,650 | 7,898 | 19,971 | 16,994 | 26.0 | (9.9) | 17.5 |
Operating expenses | (4,429) | (3,795) | (2,965) | (12,275) | (11,515) | 16.7 | 49.4 | 6.6 |
Operating income | 2,690 | 1,855 | 4,933 | 7,696 | 5,479 | 45.0 | (45.5) | 40.5 |
Net income (loss) attributable to the shareholders of Petrobras | 1,664 | 1,212 | 3,222 | 4,886 | 3,606 | 37.3 | (48.4) | 35.5 |
Adjusted EBITDA of the segment | 3,591 | 2,467 | 4,723 | 9,891 | 6,346 | 45.6 | (24.0) | 55.9 |
EBITDA margin of the segment (%) | 28 | 18 | 22 | 24 | 11 | 10 | 6 | 13 |
ROCE (Return on Capital Employed) (%) | 9.5 | 10.0 | (0.5) | 9.5 | (0.5) | (0.5) | 10.0 | 10.0 |
Natural gas sales price - Brazil (US$/bbl) | 66.20 | 70.96 | 75.74 | 70.16 | 67.02 | (6.7) | (12.6) | 4.7 |
Natural gas sales price - Brazil (US$/MMBtu) | 11.16 | 11.96 | 12.77 | 11.83 | 11.30 | (6.7) | (12.6) | 4.7 |
Fixed revenues from power auctions (**) | 435 | 430 | 533 | 1,289 | 1,547 | 1.2 | (18.4) | (16.7) |
Average price of electricity (R$/MWh) | 92.51 | 61.52 | 83.98 | 71.28 | 258.55 | 50.4 | 10.2 | (72.4) |
(*) EBITDA margin and ROCE variations in percentage points. | ||||||||
(**) The fixed revenue from auctions takes into account the remuneration for thermal availability and inflexible electricity committed in auctions. |
In 3Q23, gross profit increased compared to 2Q23, mainly due to natural gas lower cost of acquisition, which resulted from lower LNG prices, the greater supply of domestic gas and the lower regasification of LNG. This effect offset the reduction in revenues in the period, impacted by both the lower average selling price of natural gas, due to the reduction in Brent prices and the appreciation of BRL against USD, and by the lower demand for natural gas.
In 3Q23, operating income was also higher than in 2Q23, mainly due to the higher gross profit, which more than offset the increase in operating expenses, due to non-recurring effects of fines and legal fees.
14 |
Reconciliation of Adjusted EBITDA
EBITDA is an indicator calculated as the net income for the period plus taxes on profit, net financial result, depreciation and amortization. Petrobras announces EBITDA, as authorized by CVM Resolution 156 of June 2022.
In order to reflect the management view regarding the formation of the company's current business results, EBITDA is also presented adjusted (Adjusted EBITDA) as a result of: results in equity-accounted investments; impairment, reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments, results with co-participation agreement in production fields and gains/losses on disposal/write-offs of assets.
Adjusted EBITDA, reflecting the sum of the last twelve months (Last Twelve Months), also represents an alternative to the company's operating cash generation. This measure is used to calculate the Gross Debt and Net Debt to Adjusted EBITDA metric, helping to evaluate the company's leverage and liquidity.
EBITDA and adjusted EBITDA are not provided for in International Financial Reporting Standards (IFRS) and should not serve as a basis for comparison with those disclosed by other companies and should not be considered as a substitute for any other measure calculated in accordance with IFRS. These measures should be considered in conjunction with other measures and indicators for a better understanding of the company's performance and financial condition.
Table 14 - Reconciliation of Adjusted EBITDA
Variation (%) (*) | ||||||||
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 | 3Q23 X 2Q23 | 3Q23 X 3Q22 | 9M23 X 9M22 |
Net income | 26,760 | 28,936 | 46,236 | 94,003 | 145,503 | (7.5) | (42.1) | (35.4) |
Net finance (expense) income | 9,760 | 269 | 7,973 | 13,229 | 20,747 | 3528.3 | 22.4 | (36.2) |
Income taxes | 11,026 | 12,766 | 20,403 | 42,482 | 70,194 | (13.6) | (46.0) | (39.5) |
Depreciation, depletion and amortization | 16,955 | 16,082 | 17,143 | 48,223 | 50,743 | 5.4 | (1.1) | (5.0) |
EBITDA | 64,501 | 58,053 | 91,755 | 197,937 | 287,187 | 11.1 | (29.7) | (31.1) |
Results in equity-accounted investments | 1,212 | 106 | (171) | 1,137 | (1,933) | 1043.4 | − | − |
Impairment of assets (reversals) | 386 | 1,946 | 1,336 | 2,348 | 2,179 | (80.2) | (71.1) | 7.8 |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | − | 1 | − | 1 | − | − | − |
Results from co-participation agreements in bid areas | (93) | 1 | 50 | (236) | (14,193) | − | − | (98.3) |
Results on disposal/write-offs of assets | 182 | (3,416) | (1,550) | (5,811) | (5,850) | − | − | (0.7) |
Adjusted EBITDA | 66,188 | 56,690 | 91,421 | 195,375 | 267,391 | 16.8 | (27.6) | (26.9) |
Adjusted EBITDA margin (%) | 53 | 50 | 54 | 52 | 55 | 3.0 | (0.8) | (3.0) |
(*) EBITDA Margin variations in percentage points. |
15 |
Financial statements
Table 15 - Income statement - Consolidated
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 |
Sales revenues | 124,828 | 113,840 | 170,076 | 377,736 | 482,677 |
Cost of sales | (58,513) | (56,159) | (83,240) | (180,429) | (225,214) |
Gross profit | 66,315 | 57,681 | 86,836 | 197,307 | 257,463 |
Selling expenses | (6,289) | (5,947) | (6,358) | (18,580) | (18,653) |
General and administrative expenses | (1,927) | (1,921) | (1,752) | (5,703) | (4,900) |
Exploration costs | (2,364) | (945) | (565) | (4,126) | (1,169) |
Research and development expenses | (908) | (850) | (984) | (2,558) | (3,145) |
Other taxes | (557) | (1,632) | (489) | (3,228) | (1,255) |
Impairment (losses) reversals | (386) | (1,946) | (1,336) | (2,348) | (2,179) |
Other income and expenses, net | (5,126) | (2,363) | (911) | (9,913) | 8,349 |
(17,557) | (15,604) | (12,395) | (46,456) | (22,952) | |
Operating income | 48,758 | 42,077 | 74,441 | 150,851 | 234,511 |
Finance income | 2,934 | 2,553 | 2,713 | 7,906 | 7,127 |
Finance expenses | (5,680) | (4,295) | (4,157) | (14,362) | (12,817) |
Foreign exchange gains (losses) and inflation indexation charges | (7,014) | 1,473 | (6,529) | (6,773) | (15,057) |
Net finance income (expense) | (9,760) | (269) | (7,973) | (13,229) | (20,747) |
Results of equity-accounted investments | (1,212) | (106) | 171 | (1,137) | 1,933 |
Income before income taxes | 37,786 | 41,702 | 66,639 | 136,485 | 215,697 |
Income taxes | (11,026) | (12,766) | (20,403) | (42,482) | (70,194) |
Net Income | 26,760 | 28,936 | 46,236 | 94,003 | 145,503 |
Net income attributable to: | |||||
Shareholders of Petrobras | 26,625 | 28,782 | 46,096 | 93,563 | 144,987 |
Non-controlling interests | 135 | 154 | 140 | 440 | 516 |
16 |
Table 16 - Statement of financial position - Consolidated
ASSETS - R$ million | 09.30.2023 | 12.31.2022 |
Current assets | 147,311 | 163,052 |
Cash and cash equivalents | 60,642 | 41,723 |
Marketable securities | 6,505 | 14,470 |
Trade and other receivables, net | 25,502 | 26,142 |
Inventories | 39,510 | 45,804 |
Recoverable taxes | 5,965 | 6,819 |
Assets classified as held for sale | 295 | 18,823 |
Other current assets | 8,892 | 9,271 |
Non-current assets | 878,185 | 813,657 |
Long-term receivables | 131,247 | 110,722 |
Trade and other receivables, net | 7,795 | 12,729 |
Marketable securities | 19,600 | 8,159 |
Judicial deposits | 67,213 | 57,671 |
Deferred taxes | 4,916 | 4,342 |
Other tax assets | 21,269 | 19,715 |
Other non-current assets | 10,454 | 8,106 |
Investments | 6,879 | 8,172 |
Property, plant and equipment | 725,456 | 679,182 |
Intangible assets | 14,603 | 15,581 |
Total assets | 1,025,496 | 976,709 |
LIABILITIES - R$ million | 09.30.2023 | 12.31.2022 |
Current liabilities | 154,571 | 163,731 |
Trade payables | 23,383 | 28,507 |
Finance debt | 21,935 | 18,656 |
Lease liability | 33,204 | 28,994 |
Taxes payable | 27,310 | 30,951 |
Dividends payable | 21,694 | 21,762 |
Short-term employee benefits | 12,641 | 11,555 |
Liabilities related to assets classified as held for sale | 548 | 7,646 |
Other current liabilities | 13,856 | 15,660 |
Non-current liabilities | 483,435 | 448,593 |
Finance debt | 125,603 | 137,630 |
Lease liability | 124,709 | 95,423 |
Income taxes payable | 1,484 | 1,578 |
Deferred taxes | 50,932 | 35,220 |
Employee benefits | 58,321 | 55,701 |
Provision for legal and administrative proceedings | 16,850 | 15,703 |
Provision for decommissioning costs | 96,166 | 97,048 |
Other non-current liabilities | 9,370 | 10,290 |
Shareholders' equity | 387,490 | 364,385 |
Share capital (net of share issuance costs) | 205,432 | 205,432 |
Capital reserve and capital transactions | 2,131 | 3,102 |
Profit reserves | 146,422 | 128,562 |
Accumulated other comprehensive deficit | 32,022 | 25,498 |
Non-controlling interests | 1,483 | 1,791 |
Total liabilities and shareholders´ equity | 1,025,496 | 976,709 |
17 |
Table 17 - Statement of cash flow - Consolidated
R$ million | 3Q23 | 2Q23 | 3Q22 | 9M23 | 9M22 |
Cash flows from operating activities | |||||
Net income for the period | 26,760 | 28,936 | 46,236 | 94,003 | 145,503 |
Adjustments for: | |||||
Pension and medical benefits - actuarial losses | 1,922 | 1,924 | 1,605 | 5,770 | 4,815 |
Results of equity-accounted investments | 1,212 | 106 | (171) | 1,137 | (1,933) |
Depreciation, depletion and amortization | 16,955 | 16,082 | 17,143 | 48,223 | 50,743 |
Impairment of assets (reversals) | 386 | 1,946 | 1,336 | 2,348 | 2,179 |
Inventory write down (write-back) to net realizable value | (48) | 66 | 19 | (26) | 34 |
Allowance for credit loss on trade and other receivables | 73 | 49 | 18 | 247 | 213 |
Exploratory expenditure write-offs | 1,834 | 32 | 177 | 2,031 | 632 |
Gain on disposal/write-offs of assets | 182 | (3,416) | (1,550) | (5,811) | (5,850) |
Foreign exchange, indexation and finance charges | 9,674 | 1,106 | 9,698 | 14,157 | 23,876 |
Income taxes | 11,026 | 12,766 | 20,403 | 42,482 | 70,194 |
Revision and unwinding of discount on the provision for decommissioning costs | 1,069 | 1,143 | 675 | 3,314 | 2,172 |
PIS and COFINS recovery - exclusion of ICMS (VAT tax) from the basis of calculation | − | − | 18 | − | − |
Results from co-participation agreements in bid areas | (93) | 1 | 50 | (236) | (14,193) |
Early termination and cash outflows revision of lease agreements | (509) | (445) | (826) | (1,822) | (2,848) |
Losses with legal, administrative and arbitration proceedings, net | 689 | 1,361 | 1,377 | 3,369 | 4,169 |
Decrease (Increase) in assets | |||||
Trade and other receivables | (2,902) | 3,794 | 3,576 | 3,038 | 3,823 |
Inventories | 237 | 502 | (3,007) | 5,866 | (13,259) |
Judicial deposits | (1,544) | (1,888) | (2,392) | (5,525) | (6,760) |
Other assets | (506) | 801 | (518) | 865 | (3,483) |
Increase (Decrease) in liabilities | |||||
Trade payables | (3,509) | 926 | (1,048) | (5,050) | (2,140) |
Other taxes payable | 2,724 | (3,729) | (7,609) | (2,134) | (12,679) |
Pension and medical benefits | (1,132) | (1,348) | (945) | (3,405) | (9,666) |
Provisions for legal proceedings | (711) | (667) | (412) | (1,822) | (1,292) |
Other employee benefits | 1,859 | (1,273) | 1,591 | 767 | (184) |
Provision for decommissioning costs | (1,266) | (859) | (861) | (2,980) | (2,285) |
Other liabilities | (1,176) | (123) | (1,964) | (1,813) | 915 |
Income taxes paid | (6,678) | (10,042) | (19,412) | (38,955) | (44,861) |
Net cash provided by operating activities | 56,528 | 47,751 | 63,207 | 158,038 | 187,835 |
Cash flows from investing activities | |||||
Acquisition of PP&E and intangible assets | (15,540) | (14,389) | (10,225) | (42,521) | (30,946) |
Acquisition of equity interests | (22) | (47) | (3) | (110) | (101) |
Proceeds from disposal of assets - Divestment | 504 | 7,875 | 2,872 | 18,025 | 19,927 |
Financial compensation from co-participation agreements | − | − | 650 | 2,032 | 25,481 |
Investment in marketable securities | 1,250 | 2,269 | 2,481 | (1,319) | (8,055) |
Dividends received | 31 | 289 | 402 | 375 | 1,615 |
Net cash (used in) provided by investing activities | (13,777) | (4,003) | (3,823) | (23,518) | 7,921 |
Cash flows from financing activities | |||||
Changes in non-controlling interest | (252) | 128 | 334 | (516) | 241 |
Share repurchase program (*) | (975) | − | − | (975) | − |
Financing and loans, net: | |||||
Proceeds from finance debt | 5,942 | 52 | 11,677 | 6,257 | 13,322 |
Repayment of principal - finance debt | (4,913) | (3,660) | (12,215) | (12,467) | (39,255) |
Repayment of interest - finance debt | (2,767) | (2,151) | (2,759) | (7,882) | (7,499) |
Repayment of lease liability | (7,974) | (7,277) | (6,954) | (22,474) | (20,567) |
Dividends paid to Shareholders of Petrobras | (23,803) | (30,595) | (111,046) | (76,201) | (173,075) |
Dividends paid to non-controlling interests | − | (1) | (50) | (249) | (340) |
Net cash used in financing activities | (34,742) | (43,504) | (121,013) | (114,507) | (227,173) |
Effect of exchange rate changes on cash and cash equivalents | 2,751 | (2,639) | (69) | (1,094) | (3,415) |
Net change in cash and cash equivalents | 10,760 | (2,395) | (61,698) | 18,919 | (34,832) |
Cash and cash equivalents at the beginning of the period | 49,882 | 52,277 | 85,348 | 41,723 | 58,482 |
Cash and cash equivalents at the end of the period | 60,642 | 49,882 | 23,650 | 60,642 | 23,650 |
(*) It includes R$ 292 thousand of transaction costs on the repurchase of shares. |
18 |
Financial information by business areas
Table 18 - Consolidated income by segment - 9M23
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Sales revenues | 242,174 | 349,130 | 41,337 | 1,270 | (256,175) | 377,736 |
Intersegments | 238,935 | 5,383 | 11,827 | 30 | (256,175) | − |
Third parties | 3,239 | 343,747 | 29,510 | 1,240 | − | 377,736 |
Cost of sales | (98,330) | (313,827) | (21,366) | (1,274) | 254,368 | (180,429) |
Gross profit | 143,844 | 35,303 | 19,971 | (4) | (1,807) | 197,307 |
Expenses | (9,036) | (15,673) | (12,275) | (9,472) | − | (46,456) |
Selling expenses | (56) | (7,906) | (10,505) | (113) | − | (18,580) |
General and administrative expenses | (195) | (1,215) | (263) | (4,030) | − | (5,703) |
Exploration costs | (4,126) | − | − | − | − | (4,126) |
Research and development expenses | (1,999) | (78) | (19) | (462) | − | (2,558) |
Other taxes | (1,805) | (127) | (141) | (1,155) | − | (3,228) |
Impairment (losses) reversals | (462) | (2,031) | − | 145 | − | (2,348) |
Other income and expenses, net | (393) | (4,316) | (1,347) | (3,857) | − | (9,913) |
Operating income (loss) | 134,808 | 19,630 | 7,696 | (9,476) | (1,807) | 150,851 |
Net finance income (expense) | − | − | − | (13,229) | − | (13,229) |
Results of equity-accounted investments | (148) | (1,131) | 86 | 56 | − | (1,137) |
Income (loss) before income taxes | 134,660 | 18,499 | 7,782 | (22,649) | (1,807) | 136,485 |
Income taxes | (45,835) | (6,674) | (2,617) | 12,030 | 614 | (42,482) |
Net income (loss) | 88,825 | 11,825 | 5,165 | (10,619) | (1,193) | 94,003 |
Net income (loss) attributable to: | ||||||
Shareholders of Petrobras | 88,842 | 11,825 | 4,886 | (10,797) | (1,193) | 93,563 |
Non-controlling interests | (17) | − | 279 | 178 | − | 440 |
Table 19 - Consolidated income by segment - 9M22
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Sales revenues | 311,999 | 439,940 | 57,792 | 2,058 | (329,112) | 482,677 |
Intersegments | 306,890 | 7,480 | 14,723 | 19 | (329,112) | − |
Third parties | 5,109 | 432,460 | 43,069 | 2,039 | − | 482,677 |
Cost of sales | (119,389) | (383,669) | (40,798) | (2,089) | 320,731 | (225,214) |
Gross profit | 192,610 | 56,271 | 16,994 | (31) | (8,381) | 257,463 |
Expenses | 9,765 | (11,469) | (11,515) | (9,673) | (60) | (22,952) |
Selling expenses | (65) | (6,712) | (11,590) | (226) | (60) | (18,653) |
General and administrative expenses | (163) | (1,046) | (247) | (3,444) | − | (4,900) |
Exploration costs | (1,169) | − | − | − | − | (1,169) |
Research and development expenses | (2,676) | (31) | (24) | (414) | − | (3,145) |
Other taxes | (240) | (76) | (177) | (762) | − | (1,255) |
Impairment (losses) reversals | (642) | (1,535) | 4 | (6) | − | (2,179) |
Other income and expenses, net | 14,720 | (2,069) | 519 | (4,821) | − | 8,349 |
Operating income (loss) | 202,375 | 44,802 | 5,479 | (9,704) | (8,441) | 234,511 |
Net finance income (expense) | − | − | − | (20,747) | − | (20,747) |
Results of equity-accounted investments | 776 | 823 | 354 | (20) | − | 1,933 |
Income (loss) before income taxes | 203,151 | 45,625 | 5,833 | (30,471) | (8,441) | 215,697 |
Income taxes | (68,808) | (15,233) | (1,863) | 12,840 | 2,870 | (70,194) |
Net income (loss) | 134,343 | 30,392 | 3,970 | (17,631) | (5,571) | 145,503 |
Net income (loss) attributable to: | ||||||
Shareholders of Petrobras | 134,360 | 30,392 | 3,606 | (17,800) | (5,571) | 144,987 |
Non-controlling interests | (17) | − | 364 | 169 | − | 516 |
19 |
Table 20 - Quarterly consolidated income by segment - 3Q23
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Sales revenues | 87,530 | 115,750 | 12,813 | 452 | (91,717) | 124,828 |
Intersegments | 86,898 | 1,098 | 3,708 | 13 | (91,717) | − |
Third parties | 632 | 114,652 | 9,105 | 439 | − | 124,828 |
Cost of sales | (34,911) | (104,515) | (5,694) | (445) | 87,052 | (58,513) |
Gross profit | 52,619 | 11,235 | 7,119 | 7 | (4,665) | 66,315 |
Expenses | (5,691) | (3,850) | (4,429) | (3,631) | 44 | (17,557) |
Selling expenses | (1) | (2,606) | (3,727) | 1 | 44 | (6,289) |
General and administrative expenses | (23) | (393) | (99) | (1,412) | − | (1,927) |
Exploration costs | (2,364) | − | − | − | − | (2,364) |
Research and development expenses | (729) | (9) | (9) | (161) | − | (908) |
Other taxes | (81) | (51) | (51) | (374) | − | (557) |
Impairment (losses) reversals | (384) | (2) | − | − | − | (386) |
Other income and expenses, net | (2,109) | (789) | (543) | (1,685) | − | (5,126) |
Operating income (loss) | 46,928 | 7,385 | 2,690 | (3,624) | (4,621) | 48,758 |
Net finance income (expense) | − | − | − | (9,760) | − | (9,760) |
Results of equity-accounted investments | (334) | (857) | (20) | (1) | − | (1,212) |
Income (loss) before income taxes | 46,594 | 6,528 | 2,670 | (13,385) | (4,621) | 37,786 |
Income taxes | (15,956) | (2,511) | (915) | 6,785 | 1,571 | (11,026) |
Net income (loss) | 30,638 | 4,017 | 1,755 | (6,600) | (3,050) | 26,760 |
Net income (loss) attributable to: | ||||||
Shareholders of Petrobras | 30,644 | 4,017 | 1,664 | (6,650) | (3,050) | 26,625 |
Non-controlling interests | (6) | − | 91 | 50 | − | 135 |
Table 21 - Quarterly consolidated income by segment - 2Q23
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Sales revenues | 72,922 | 104,328 | 13,701 | 430 | (77,541) | 113,840 |
Intersegments | 71,770 | 1,823 | 3,938 | 10 | (77,541) | − |
Third parties | 1,152 | 102,505 | 9,763 | 420 | − | 113,840 |
Cost of sales | (30,276) | (95,709) | (8,051) | (431) | 78,308 | (56,159) |
Gross profit | 42,646 | 8,619 | 5,650 | (1) | 767 | 57,681 |
Expenses | (2,707) | (5,682) | (3,795) | (3,399) | (21) | (15,604) |
Selling expenses | (20) | (2,525) | (3,388) | 7 | (21) | (5,947) |
General and administrative expenses | (86) | (417) | (85) | (1,333) | − | (1,921) |
Exploration costs | (945) | − | − | − | − | (945) |
Research and development expenses | (625) | (59) | (3) | (163) | − | (850) |
Other taxes | (1,634) | 482 | (44) | (436) | − | (1,632) |
Impairment (losses) reversals | (148) | (1,943) | − | 145 | − | (1,946) |
Other income and expenses, net | 751 | (1,220) | (275) | (1,619) | − | (2,363) |
Operating income (loss) | 39,939 | 2,937 | 1,855 | (3,400) | 746 | 42,077 |
Net finance income (expense) | − | − | − | (269) | − | (269) |
Results of equity-accounted investments | 92 | (340) | 83 | 59 | − | (106) |
Income (loss) before income taxes | 40,031 | 2,597 | 1,938 | (3,610) | 746 | 41,702 |
Income taxes | (13,579) | (998) | (631) | 2,695 | (253) | (12,766) |
Net income (loss) | 26,452 | 1,599 | 1,307 | (915) | 493 | 28,936 |
Net income (loss) attributable to: | ||||||
Shareholders of Petrobras | 26,456 | 1,599 | 1,212 | (978) | 493 | 28,782 |
Non-controlling interests | (4) | − | 95 | 63 | − | 154 |
20 |
Table 22 - Other income and expenses by segment - 9M23
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Unscheduled stoppages and pre-operating expenses | (7,930) | (79) | (184) | (117) | − | (8,310) |
Pension and medical benefits - retirees | − | − | − | (4,388) | − | (4,388) |
Gains (losses) with legal, administrative and arbitration proceedings | (1,295) | (1,666) | (1) | (407) | − | (3,369) |
Performance award program | (905) | (691) | (123) | (636) | − | (2,355) |
Operating expenses with thermoelectric power plants | − | − | (671) | − | − | (671) |
Profit sharing | (240) | (129) | (28) | (139) | − | (536) |
Losses on decommissioning of returned/abandoned areas | (74) | − | − | − | − | (74) |
Gains (losses) with Commodities Derivatives | − | (67) | (1) | (1) | − | (69) |
Results from co-participation agreements in bid areas | 236 | − | − | − | − | 236 |
Amounts recovered from Lava Jato investigation | − | − | − | 512 | − | 512 |
Fines imposed on suppliers | 693 | 106 | 14 | 76 | − | 889 |
Government grants | 66 | 1 | − | 1,225 | − | 1,292 |
Early termination and changes to cash flow estimates of leases | 1,369 | 469 | (1) | (15) | − | 1,822 |
Reimbursements from E&P partnership operations | 2,153 | − | − | − | − | 2,153 |
Results on disposal/write-offs of assets | 6,073 | (53) | (265) | 56 | − | 5,811 |
Others (*) | (539) | (2,207) | (87) | (23) | − | (2,856) |
(393) | (4,316) | (1,347) | (3,857) | − | (9,913) | |
(*) It includes, in 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of R$ 1,654. | ||||||
Table 23 - Other income and expenses by segment - 9M22
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Unscheduled stoppages and pre-operating expenses | (6,508) | (88) | (114) | (152) | − | (6,862) |
Pension and medical benefits - retirees (*) | − | − | − | (4,083) | − | (4,083) |
Gains (losses) with legal, administrative and arbitration proceedings | (1,980) | (948) | (302) | (939) | − | (4,169) |
Performance award program | (838) | (438) | (101) | (684) | − | (2,061) |
Operating expenses with thermoelectric power plants | − | − | (555) | − | − | (555) |
Profit sharing | (220) | (130) | (25) | (155) | − | (530) |
Losses on decommissioning of returned/abandoned areas | (147) | − | − | − | − | (147) |
Gains (losses) with Commodities Derivatives | − | (627) | − | − | − | (627) |
Results from co-participation agreements in bid areas (**) | 14,193 | − | − | − | − | 14,193 |
Amounts recovered from Lava Jato investigation (***) | 90 | − | − | 85 | − | 175 |
Fines imposed on suppliers | 634 | 80 | 171 | 19 | − | 904 |
Government grants | 18 | − | − | 1,593 | − | 1,611 |
Early termination and changes to cash flow estimates of leases | 2,602 | 244 | 86 | (84) | − | 2,848 |
Reimbursements from E&P partnership operations | 2,314 | − | − | − | − | 2,314 |
Results on disposal/write-offs of assets | 4,458 | 534 | 839 | 19 | − | 5,850 |
Others | 104 | (696) | 520 | (440) | − | (512) |
14,720 | (2,069) | 519 | (4,821) | − | 8,349 | |
(*) In 2022, it includes R$ 352 referring to the payment of a contribution as provided for in the Pre-70 Term of Financial Commitment (TFC) for the administrative funding of the PPSP-R pre-70 and PPSP-NR pre-70 plans. | ||||||
(**) In 2022, it mainly refers to capital gains with the results of the co-participation agreements related to the transfer of rights surplus of Sépia and Atapu. | ||||||
(***) Through December 31, 2022, the amount recovered of R$ 6,719 was recognized through collaboration and leniency agreements entered into with individuals and legal entities. |
21 |
Table 24 - Other income and expenses by segment - 3Q23
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Unscheduled stoppages and pre-operating expenses | (2,610) | (25) | (71) | (39) | − | (2,745) |
Pension and medical benefits - retirees | − | − | − | (1,463) | − | (1,463) |
Gains (losses) with legal, administrative and arbitration proceedings | (460) | (33) | (18) | (178) | − | (689) |
Performance award program | (357) | (371) | (54) | (199) | − | (981) |
Operating expenses with thermoelectric power plants | − | − | (239) | − | − | (239) |
Profit sharing | (87) | (64) | (10) | (37) | − | (198) |
Losses on decommissioning of returned/abandoned areas | (13) | − | − | − | − | (13) |
Gains (losses) with Commodities Derivatives | − | (430) | − | (2) | − | (432) |
Results from co-participation agreements in bid areas | 93 | − | − | − | − | 93 |
Amounts recovered from Lava Jato investigation | − | − | − | 29 | − | 29 |
Fines imposed on suppliers | 256 | 43 | 4 | 35 | − | 338 |
Government grants | 3 | 1 | − | 392 | − | 396 |
Early termination and changes to cash flow estimates of leases | 435 | 76 | 1 | (3) | − | 509 |
Reimbursements from E&P partnership operations | 730 | − | − | − | − | 730 |
Results on disposal/write-offs | (21) | 93 | (259) | 5 | − | (182) |
Others | (78) | (79) | 103 | (225) | − | (279) |
(2,109) | (789) | (543) | (1,685) | − | (5,126) | |
Table 25 - Other income and expenses by segment - 2Q23
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Unscheduled stoppages and pre-operating expenses | (2,842) | (27) | (59) | (43) | − | (2,971) |
Pension and medical benefits - retirees | − | − | − | (1,465) | − | (1,465) |
Gains (losses) with legal, administrative and arbitration proceedings | (533) | (532) | (19) | (277) | − | (1,361) |
Performance award program | (260) | (159) | (33) | (197) | − | (649) |
Operating expenses with thermoelectric power plants | − | − | (220) | − | − | (220) |
Profit sharing | (80) | (20) | (9) | (49) | − | (158) |
Losses on decommissioning of returned/abandoned areas | (58) | − | − | − | − | (58) |
Gains (losses) with Commodities Derivatives | − | (78) | 35 | (4) | − | (47) |
Results from co-participation agreements in bid areas | (1) | − | − | − | − | (1) |
Amounts recovered from Lava Jato investigation | − | − | − | 20 | − | 20 |
Fines imposed on suppliers | 243 | 41 | 10 | 33 | − | 327 |
Government grants | 56 | − | − | 302 | − | 358 |
Early termination and changes to cash flow estimates of leases | 495 | (27) | (7) | (16) | − | 445 |
Reimbursements from E&P partnership operations | 588 | − | − | − | − | 588 |
Results on disposal/write-offs | 3,457 | (88) | 33 | 14 | − | 3,416 |
Others | (314) | (330) | (6) | 63 | − | (587) |
751 | (1,220) | (275) | (1,619) | − | (2,363) | |
22 |
Table 26 - Consolidated assets by segment - 09.30.2023
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Total assets | 651,547 | 170,080 | 33,080 | 197,798 | (27,009) | 1,025,496 |
Current assets | 10,894 | 56,719 | 2,179 | 104,528 | (27,009) | 147,311 |
Non-current assets | 640,653 | 113,361 | 30,901 | 93,270 | − | 878,185 |
Long-term receivables | 40,015 | 10,000 | 503 | 80,729 | − | 131,247 |
Investments | 1,639 | 4,173 | 777 | 290 | − | 6,879 |
Property, plant and equipment | 587,218 | 98,558 | 29,216 | 10,464 | − | 725,456 |
Operating assets | 512,931 | 84,507 | 17,621 | 8,130 | − | 623,189 |
Assets under construction | 74,287 | 14,051 | 11,595 | 2,334 | − | 102,267 |
Intangible assets | 11,781 | 630 | 405 | 1,787 | − | 14,603 |
Table 27 - Consolidated assets by segment - 12.31.2022
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Total assets | 606,994 | 179,652 | 39,574 | 177,953 | (27,464) | 976,709 |
Current assets | 27,259 | 62,794 | 2,041 | 98,422 | (27,464) | 163,052 |
Non-current assets | 579,735 | 116,858 | 37,533 | 79,531 | − | 813,657 |
Long-term receivables | 33,140 | 9,450 | 492 | 67,640 | − | 110,722 |
Investments | 1,976 | 5,098 | 905 | 193 | − | 8,172 |
Property, plant and equipment | 531,550 | 101,728 | 35,747 | 10,157 | − | 679,182 |
Operating assets | 480,481 | 87,925 | 25,085 | 8,267 | − | 601,758 |
Assets under construction | 51,069 | 13,803 | 10,662 | 1,890 | − | 77,424 |
Intangible assets | 13,069 | 582 | 389 | 1,541 | − | 15,581 |
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Table 28 - Reconciliation of Adjusted EBITDA by segment - 9M23
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Net income (loss) | 88,825 | 11,825 | 5,165 | (10,619) | (1,193) | 94,003 |
Net finance income (expense) | − | − | − | 13,229 | − | 13,229 |
Income taxes | 45,835 | 6,674 | 2,617 | (12,030) | (614) | 42,482 |
Depreciation, depletion and amortization | 36,932 | 8,940 | 1,930 | 421 | − | 48,223 |
EBITDA | 171,592 | 27,439 | 9,712 | (8,999) | (1,807) | 197,937 |
Results in equity-accounted investments | 148 | 1,131 | (86) | (56) | − | 1,137 |
Impairment of assets (reversals) | 462 | 2,031 | − | (145) | − | 2,348 |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | − | − | − | − | − |
Results from co-participation agreements in bid areas | (236) | − | − | − | − | (236) |
Results on disposal/write-offs of assets | (6,073) | 53 | 265 | (56) | − | (5,811) |
Adjusted EBITDA | 165,893 | 30,654 | 9,891 | (9,256) | (1,807) | 195,375 |
Table 29 - Reconciliation of Adjusted EBITDA by segment - 9M22
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Net income (loss) | 134,343 | 30,392 | 3,970 | (17,631) | (5,571) | 145,503 |
Net finance income (expense) | − | − | − | 20,747 | − | 20,747 |
Income taxes | 68,808 | 15,233 | 1,863 | (12,840) | (2,870) | 70,194 |
Depreciation, depletion and amortization | 40,077 | 8,682 | 1,710 | 274 | − | 50,743 |
EBITDA | 243,228 | 54,307 | 7,543 | (9,450) | (8,441) | 287,187 |
Results in equity-accounted investments | (776) | (823) | (354) | 20 | − | (1,933) |
Impairment of assets (reversals) | 642 | 1,535 | (4) | 6 | − | 2,179 |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | 1 | − | − | − | 1 |
Results from co-participation agreements in bid areas | (14,193) | − | − | − | − | (14,193) |
Results on disposal/write-offs of assets | (4,458) | (534) | (839) | (19) | − | (5,850) |
Adjusted EBITDA | 224,443 | 54,486 | 6,346 | (9,443) | (8,441) | 267,391 |
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Table 30 - Reconciliation of Adjusted EBITDA by segment - 3Q23
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Net income (loss) | 30,638 | 4,017 | 1,755 | (6,600) | (3,050) | 26,760 |
Net finance income (expense) | − | − | − | 9,760 | − | 9,760 |
Income taxes | 15,956 | 2,511 | 915 | (6,785) | (1,571) | 11,026 |
Depreciation, depletion and amortization | 13,111 | 3,069 | 642 | 133 | − | 16,955 |
EBITDA | 59,705 | 9,597 | 3,312 | (3,492) | (4,621) | 64,501 |
Results in equity-accounted investments | 334 | 857 | 20 | 1 | − | 1,212 |
Impairment of assets (reversals) | 384 | 2 | − | − | − | 386 |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | − | − | − | − | − |
Results from co-participation agreements in bid areas | (93) | − | − | − | − | (93) |
Results on disposal/write-offs of assets | 21 | (93) | 259 | (5) | − | 182 |
Adjusted EBITDA | 60,351 | 10,363 | 3,591 | (3,496) | (4,621) | 66,188 |
Table 31 - Reconciliation of Adjusted EBITDA by segment - 2Q23
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Net income (loss) | 26,452 | 1,599 | 1,307 | (915) | 493 | 28,936 |
Net finance income (expense) | − | − | − | 269 | − | 269 |
Income taxes | 13,579 | 998 | 631 | (2,695) | 253 | 12,766 |
Depreciation, depletion and amortization | 12,319 | 2,972 | 645 | 146 | − | 16,082 |
EBITDA | 52,350 | 5,569 | 2,583 | (3,195) | 746 | 58,053 |
Results in equity-accounted investments | (92) | 340 | (83) | (59) | − | 106 |
Impairment of assets (reversals) | 148 | 1,943 | − | (145) | − | 1,946 |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | − | − | − | − | − |
Results from co-participation agreements in bid areas | 1 | − | − | − | − | 1 |
Results on disposal/write-offs of assets | (3,457) | 88 | (33) | (14) | − | (3,416) |
Adjusted EBITDA | 48,950 | 7,940 | 2,467 | (3,413) | 746 | 56,690 |
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Glossary ACL -Ambiente de Contratação Livre (Free contracting market) in the electricity system. ACR -Ambiente de Contratação Regulada (Regulated contracting market) in the electricity system. Adjusted cash and cash equivalents - Sum of cash and cash equivalents and investments in securities in domestic and international markets that have high liquidity, i.e., convertible into cash within 3 months, even if maturity is longer than 12 months, held for the purpose of complying with cash commitments. This measure is not defined under the International Financial Reporting Standards - IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents computed in accordance with IFRS. It may not be comparable to adjusted cash and cash equivalents of other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity and supports leverage management. Adjusted EBITDA - Adjusted EBITDA (a non-GAAP measure defined as net income plus net finance income (expense); income taxes; depreciation, depletion and amortization; results in equity-accounted investments; impairment of assets (reversals); results on disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA; and results from co-participation agreements in bid areas). Adjusted EBITDA margin - Adjusted EBITDA divided by sales revenues. Basic and diluted earnings (losses) per share - Calculated based on the weighted average number of shares. CAPEX - Capital Expenditure - investments that encompasses acquisition of property, plant, and equipment, including costs with leasing, intangible assets, investments in subsidiaries and affiliates, costs with geology and geophysics and pre-operating costs. Consolidated Structured Entities - Entities that have been designated so that voting rights or the like are not the determining factor in deciding who controls the entity. Petrobras has no equity interest in certain structured entities that are consolidated in the Company's financial statements, but control is determined by the power it has over its relevant operating activities. As there is no equity interest, the income from certain consolidated structured entities is attributable to non-controlling shareholders in the income statement, and disregarding the profit or loss attributable to Petrobras shareholders. CTA - Cumulative translation adjustment - The cumulative amount of exchange variation arising on translation of foreign operations that is recognized in Shareholders' Equity and will be transferred to profit or loss on the disposal of the investment. Effect of average cost in the Cost of Sales - In view of the average inventory term of 60 days, the crude oil and oil products international prices movement, as well as foreign exchange effect over imports, production taxes and other factors that impact costs, do not entirely influence the cost of sales in the current period, having their total effects only in the following period. Free cash flow - Corresponds to operating cash flow minus acquisitions of property, plant and equipment, intangible assets and equity interests. Free cash flow is not defined under the IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents calculated in accordance with IFRS. It may not be comparable to free cash flow of other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity and supports leverage management. Investments - Capital expenditures based on the cost assumptions and financial methodology adopted in our Business and Management Plan, which include acquisition of PP&E, including expenses with leasing, intangibles assets, investment in investees and other items that do not necessarily qualify as cash flows used in investing activities, primarily geological and geophysical expenses, pre-operating charges, purchase of property, plant and equipment on credit and borrowing costs directly attributable to works in progress. Leverage - Ratio between the Net Debt and the sum of Net Debt and Shareholders' Equity. Leverage is not a measure defined in the IFRS and it is possible that it may not be comparable to similar measures reported by other companies, however management believes that it is an appropriate supplemental measure to assess our liquidity. Lifting Cost - An indicator that represents the lifting cost per barrel of oil equivalent, considering the ratio between production and costs. It includes expenses for the execution and maintenance of production. Costs related to the leasing of third-party platforms, production taxes, and depreciation, depletion, and amortization are not considered in this indicator. Lifting Cost + Leases - An indicator that includes costs related to the leasing of third-party platforms in the calculation of Lifting Cost. Costs related to production taxes and depreciation, depletion, and amortization are not considered. |
Lifting Cost + Production Taxes - An indicator that includes costs related to production taxes in the calculation of Lifting Cost. Costs related to the leasing of third-party platforms and depreciation, depletion, and amortization are not considered. Lifting Cost + Production Taxes + Leases - An indicator that includes costs related to the leasing of third-party platforms and production taxes in the calculation of Lifting Cost. Costs related to depreciation, depletion, and amortization are not considered. LTM Adjusted EBITDA - Sum of the last 12 months (Last Twelve Months) of Adjusted EBITDA. This metric is not foreseen in the international accounting standards - IFRS and it is possible that it is not comparable with similar indexes reported by other companies, however Management believes that it is supplementary information to assess liquidity and helps manage leverage. Adjusted EBITDA should be considered in conjunction with other metrics to better understand the Company's liquidity. OCF - Net Cash provided by (used in) operating activities (operating cash flow), presented in the consolidated cash flow statement. Net Debt - Gross debt less adjusted cash and cash equivalents. Net debt is not a measure defined in the IFRS and should not be considered in isolation or as a substitute for total long-term debt calculated in accordance with IFRS. Our calculation of net debt may not be comparable to the calculation of net debt by other companies, however our management believes that net debt is an appropriate supplemental measure that helps investors assess our liquidity and supports leverage management. Net Income by Business Segment - The information by the company's business segment is prepared based on available financial information that is directly attributable to the segment or that can be allocated on a reasonable basis, being presented by business activities used by the Executive Board to make resource allocation decisions. and performance evaluation. When calculating segmented results, transactions with third parties, including jointly controlled and associated companies, and transfers between business segments are considered. Transactions between business segments are valued at internal transfer prices calculated based on methodologies that take into account market parameters, and these transactions are eliminated, outside the business segments, for the purpose of reconciling the segmented information with the consolidated financial statements of the company. company. PLD (differences settlement price) - Electricity price in the spot market. Weekly weighed prices per output level (light, medium and heavy), number of hours and related market capacity. Refining - includes crude oil refining, logistics, transportation, acquisition and export activities, as well as the purchase and sale of petroleum and ethanol products in Brazil and abroad. Additionally, this segment includes the petrochemical area, which includes investments in companies in the petrochemical sector, shale exploration and processing. ROCE - operating profit after taxes / average capital employed, both measured in US$ on a LTM basis Operating profit after taxes: Adjusted EBITDA, minus DD&A of assets booked at historical exchange rates and 34% income tax rate. Average capital employed: quarterly average considering inventories, intangibles and fixed assets at historical exchange rates. Sales Price of Petroleum in Brazil - Average internal transfer prices from the E&P segment to the Refining segment. Total net liabilities - Total liability less adjusted cash and cash equivalents. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 9, 2023
PETRÓLEO BRASILEIRO S.A-PETROBRAS
By: /s/ Sergio Caetano Leite
______________________________
Sergio Caetano Leite
Chief Financial Officer and Investor Relations Officer