11/04/2022 | Press release | Distributed by Public on 11/04/2022 05:55
Petrobras financial performance in 3Q22
Rio de Janeiro, November 03, 2022
Message from the CFO
Dear shareholders and investors,
Once again, I am pleased to share with you the excellent results achieved by Petrobras in the third quarter of 2022. The numbers make clear the value that a company can generate for society and shareholders by making the right choices.
Guided by this commitment, we advanced significantly in the procurement of critical facilities to enable the sustained and profitable growth in oil and gas production, focused on the pre-salt. We signed contracts for three new FPSOs (P-80, P-82 and P-83) for the Búzios field, the largest in our portfolio and which will account for about 1/3 of our production in 2026. As a result, only one of the fifteen platforms included in our 2022-2026 Strategic Plan remains to be contracted.
The relevance of these contracts is demonstrated by the fact that, in the absence of this additional capacity, we would not be able to exploit our reserves efficiently and profitably, forsaking the economic benefits. Therefore, we are increasing the levels of confidence in achieving the goals of our plan, which is even more important in a scenario of rising costs and challenges in global supply chains.
From the financial point of view, we brought our cash position to a level more compatible with the financial needs of the company, considering that besides cash balances of US$ 6.8 billion, we have access to revolving credit facilities, resulting in additional liquidity to the company should stress scenarios eventually materialize. We managed to keep the company's capital structure at extremely healthy levels. It is worth highlighting the issuance of R$ 3 billion in commercial notes in September, and the signing of a credit line with sustainability commitments in July, in the amount of US$ 1.25 billion. The relevance of ESG in our business decisions is also reflected in the approval of the first thirteen projects amounting to US$ 76 million to be incorporated in the decarbonization fund. We estimate that these projects can mitigate 1.05 million tCO2e per year. The decarbonization fund was created in the 2022-26 Strategic Plan, with US$ 248 million allocated to develop solutions, studies and implementation of projects to mitigate our carbon emissions.
Our operational cash generation alongside low debt level and solid liquidity perspectives allowed us to return to society and shareholders dividends of R$ 3.35 per common and preferred share in the third quarter of 2022, totaling R$ 13.80 per common and preferred share in 2022. It is important to highlight that Brazilian society receives about 37% of this total, the largest single portion, in addition to benefiting from tax payments, amounting to R$ 73 billion in the third quarter and reaching the record for the first nine months of the year of R$ 222 billion, an amount already surpassing the total collected in 2021 (R$ 203 billion). It is worth noting that our shares went up 1,436%[1]relative to its lowest level in the previous decade, Additionally, R$ 20.91 in shareholder remuneration was declared or paid out in this time span, including the amount approved in 3Q22. In this period, The Federal Government2 received R$ 113.8 billion in cumulative dividends. The fact that on October 21, 2022 Petrobras reached a record market value in reais of R$ 521 billion - reflecting the Company's strategic choices and management - should also not be underestimated since it results in higher wealth for society. We cannot fail to emphasize that our operating cash flow is directly related to management efficiency, our strategic decisions and our exposure and alignment to Brent prices. In a business characterized by long-term projects, that require relevant capital expenditures and investments in state-of-the-art technologies, and that depend on highly trained and motivated professionals, it is impossible to be successful if we deviate from the rationality of market prices. Moreover, it is worth remembering that not only our production taxes are referenced to international prices: our expenditures and investments also correlate to them to the extent that our industry's inflation reflects pricing contexts and our exploratory risk - a key element in deepwater and ultra-deepwater exploration - is also quantified premised on market prices.
[1] PETR4 on 01/26/16 (R$ 2.12, closing price) up to 10/28/22 (R$ 32.57, closing price)
2 Control group includes the Federal Government, BNDES, BNDESPar, Caixa Econômica Federal, and Fundo de Participação Social (FPS).
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Additional to these considerations is the fact that, obviously, we must respect the existing legal framework, represented by laws such as the corporate act, the state-owned company act and the oil law, besides the Company's governance - recently strengthened on the matter of pricing policy, through the formalization of pricing guidelines by our BoD, which establishes a set of criteria and procedures for the approval of capital expenditures, with personal liabilities to the executives involved in the decisions.
Furthermore, Petrobras is not alone in the fuel market: nowadays we have in Brazil a dynamic that encompasses private refining capacity and importers that are necessary to meet oil products demand, which exceeds Brazilian production capacity. Without market prices, there is a risk of shortage of products, with obvious negative consequences for society as a whole.
Finally, it is also worth considering another aspect of our strategy that generates social benefits. Petrobras continuously manages its portfolio of assets, holding only to the most accretive to the Company. The ones eventually divested foster a positive economic dynamic not only by diversifying market agents but also because the buyers increase investments, jobs generation and income for society.
I conclude by reiterating our deep conviction that we are building a Petrobras which is more solid, more resilient and healthier and is able to invest, generate jobs, pay taxes, and return value to society and its shareholders.
Rodrigo Araujo Alves
Main achievements:
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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 3Q22 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 audited by independent auditors in accordance with international accounting standards (IFRS).
Main items
Table 1 - Main items*
Variation (%) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Sales revenues | 170,076 | 170,960 | 121,594 | 482,677 | 318,478 | (0.5) | 39.9 | 51.6 |
Gross profit | 86,836 | 95,861 | 59,552 | 257,463 | 160,590 | (9.4) | 45.8 | 60.3 |
Operating expenses | (12,395) | 627 | 5,385 | (22,952) | (15,892) | − | − | 44.4 |
Consolidated net income (loss) attributable to the shareholders of Petrobras | 46,096 | 54,330 | 31,142 | 144,987 | 75,164 | (15.2) | 48.0 | 92.9 |
Recurring consolidated net income (loss) attributable to the shareholders of Petrobras * | 46,290 | 44,885 | 17,374 | 134,521 | 59,490 | 3.1 | 166.4 | 126.1 |
Net cash provided by operating activities | 63,207 | 71,804 | 55,100 | 187,835 | 151,734 | (12.0) | 14.7 | 23.8 |
Free cash flow | 52,982 | 63,421 | 47,243 | 156,889 | 127,006 | (16.5) | 12.1 | 23.5 |
Adjusted EBITDA | 91,421 | 98,260 | 60,744 | 267,391 | 171,631 | (7.0) | 50.5 | 55.8 |
Recurring adjusted EBITDA* | 92,268 | 99,337 | 63,873 | 269,819 | 171,603 | (7.1) | 44.5 | 57.2 |
Gross debt (US$ million) | 54,268 | 53,577 | 59,588 | 54,268 | 59,588 | 1.3 | (8.9) | (8.9) |
Net debt (US$ million) | 47,483 | 34,435 | 48,132 | 47,483 | 48,132 | 37.9 | (1.3) | (1.3) |
Net debt/LTM Adjusted EBITDA ratio ** | 0.75 | 0.60 | 1.17 | 0.75 | 1.17 | 25.0 | (35.9) | (35.9) |
Average commercial selling rate for U.S. dollar | 5.25 | 4.92 | 5.23 | 5.13 | 5.33 | 6.7 | 0.4 | (3.8) |
Brent crude (US$/bbl) | 100.85 | 113.78 | 73.47 | 105.35 | 67.73 | (11.4) | 37.3 | 55.5 |
Domestic basic oil by-products price (R$/bbl) | 692.97 | 665.50 | 421.97 | 636.06 | 393.33 | 4.1 | 64.2 | 61.7 |
TRI (total recordable injuries per million men-hour frequency rate) | 0.58 | 0.56 | - | - | 3.6 | |||
ROCE (Return on Capital Employed) | 15.0% | 12.8% | 7.0% | 15.0% | 7.0% | 2,2 p.p. | 8 p.p. | 8 p.p. |
* See reconciliation of Recurring net income and Adjusted EBITDA in the Special Items section.
* *Ratio calculated in USD.
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Consolidated results
Net revenues
Table 2 - Net revenues by products
Variation (%) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Diesel | 61,343 | 52,603 | 35,722 | 152,821 | 92,983 | 16.6 | 71.7 | 64.4 |
Gasoline | 21,575 | 21,187 | 17,690 | 62,166 | 43,197 | 1.8 | 22.0 | 43.9 |
Liquefied petroleum gas (LPG) | 7,108 | 7,074 | 6,747 | 20,354 | 17,673 | 0.5 | 5.4 | 15.2 |
Jet fuel | 8,058 | 6,899 | 3,292 | 20,133 | 7,727 | 16.8 | 144.8 | 160.6 |
Naphtha | 3,305 | 3,555 | 2,749 | 10,042 | 6,450 | (7.0) | 20.2 | 55.7 |
Fuel oil (including bunker fuel) | 2,003 | 1,734 | 2,852 | 5,648 | 6,708 | 15.5 | (29.8) | (15.8) |
Other oil products | 7,780 | 7,949 | 6,265 | 22,379 | 16,399 | (2.1) | 24.2 | 36.5 |
Oil Products | 111,172 | 101,001 | 75,317 | 293,543 | 191,137 | 10.1 | 47.6 | 53.6 |
Natural gas | 10,522 | 9,649 | 8,974 | 29,199 | 21,659 | 9.0 | 17.2 | 34.8 |
Crude oil | 10,379 | 13,251 | 137 | 32,777 | 427 | (21.7) | 7475.9 | 7576.1 |
Renewables and nitrogen products | 364 | 466 | 63 | 1,173 | 184 | (21.9) | 477.8 | 537.5 |
Revenues from non-exercised rights | 988 | 834 | 204 | 2,361 | 1,069 | 18.5 | 384.3 | 120.9 |
Electricity | 740 | 534 | 5,433 | 2,827 | 11,495 | 38.6 | (86.4) | (75.4) |
Services, agency and others | 1,333 | 1,508 | 1,243 | 4,080 | 3,019 | (11.6) | 7.2 | 35.1 |
Total domestic market | 135,498 | 127,243 | 91,371 | 365,960 | 228,990 | 6.5 | 48.3 | 59.8 |
Exports | 29,859 | 40,401 | 29,308 | 105,370 | 85,675 | (26.1) | 1.9 | 23.0 |
Crude oil | 19,031 | 27,589 | 21,582 | 71,663 | 61,803 | (31.0) | (11.8) | 16.0 |
Fuel oil (including bunker fuel) | 9,182 | 11,224 | 6,115 | 30,271 | 19,396 | (18.2) | 50.2 | 56.1 |
Other oil products and other products | 1,646 | 1,588 | 1,611 | 3,436 | 4,476 | 3.7 | 2.2 | (23.2) |
Sales abroad (*) | 4,719 | 3,316 | 915 | 11,347 | 3,813 | 42.3 | 415.7 | 197.6 |
Total foreign market | 34,578 | 43,717 | 30,223 | 116,717 | 89,488 | (20.9) | 14.4 | 30.4 |
Total | 170,076 | 170,960 | 121,594 | 482,677 | 318,478 | (0.5) | 39.9 | 51.6 |
(*) Sales revenues from operations outside of Brazil, including trading and excluding exports |
In 3Q22, revenues remained roughly stable compared to 2Q22. Revenues from oil products in the domestic market grew 10% compared to 2Q22 - despite the drop in international prices - due to higher sales volumes of all products in 3Q22. Crude oil revenues in the domestic market fell 22% due to lower sales to Acelen and the drop in Brent prices.
Exports fell 26% in 3Q22 compared to 2Q22. In addition to the global depreciation of Brent and oil products prices, there were lower volumes of oil and fuel oil exports, mostly explained by exports that remained in progress for 4Q22.
In terms of revenue composition in the domestic market, diesel and gasoline remained the main products, accounting for 74% of the oil products revenue in 3Q22.
Graph 1 - Oil products sales revenues 3Q22 - domestic market
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As the conflict in Ukraine persists, we maintained the strategy of diversifying oil flows carried out in 1H22. Russian exports, which previously supplied Europe, were diverted to Asian markets, mainly India and China. Throughout the years Petrobras has been implementing a constant search for global opportunities and the development of new clients, which was decisive for the company to change the flow of its exports as well, taking advantage of new arbitrages and maximizing value generation in its sales. In 3Q22, we continued to work on market development for pre-salt oils, focusing on Atapu and Sépia, which were the last streams added to Petrobras' export basket. In this quarter, four new clients were added, spread among Asia, Europe and South America.
In 3Q22, we had the following distribution of export destinations by volume:
Table 3 - Destination of oil exports
Country | 3Q22 | 2Q22 | 3Q21 |
China | 29% | 15% | 39% |
Europe | 29% | 39% | 29% |
Latam | 21% | 24% | 10% |
USA | 10% | 8% | 9% |
Asia (Ex China) | 9% | 12% | 11% |
Caribbean | 2% | 2% | 2% |
Table 4 - Destination of exports of oil products
Country | 3Q22 | 2Q22 | 3Q21 |
Singapore | 57% | 55% | 63% |
USA | 17% | 26% | 22% |
Europe | 9% | 7% | 0% |
Caribbean | 13% | 9% | 8% |
Others | 3% | 3% | 6% |
Cost of goods sold
Table 5 - Cost of goods sold
Variation (%) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Acquisitions | (35,902) | (26,649) | (24,095) | (86,760) | (55,933) | 34.7 | 49.0 | 55.1 |
Crude oil imports | (16,724) | (12,930) | (7,772) | (38,463) | (21,544) | 29.3 | 115.2 | 78.5 |
Oil products imports | (14,771) | (8,901) | (9,418) | (30,685) | (19,965) | 65.9 | 56.8 | 53.7 |
Natural gas imports | (4,407) | (4,818) | (6,905) | (17,612) | (14,424) | (8.5) | (36.2) | 22.1 |
Production | (41,234) | (44,117) | (33,722) | (124,461) | (93,468) | (6.5) | 22.3 | 33.2 |
Crude oil | (34,079) | (37,139) | (28,044) | (103,417) | (75,730) | (8.2) | 21.5 | 36.6 |
Production taxes | (17,773) | (20,327) | (13,229) | (54,662) | (35,344) | (12.6) | 34.3 | 54.7 |
Other costs | (16,306) | (16,812) | (14,815) | (48,755) | (40,386) | (3.0) | 10.1 | 20.7 |
Oil products | (3,448) | (3,152) | (3,402) | (9,859) | (10,399) | 9.4 | 1.4 | (5.2) |
Natural gas | (3,707) | (3,826) | (2,276) | (11,185) | (7,339) | (3.1) | 62.9 | 52.4 |
Production taxes | (1,150) | (1,282) | (738) | (3,641) | (2,218) | (10.3) | 55.8 | 64.2 |
Other costs | (2,557) | (2,544) | (1,538) | (7,544) | (5,121) | 0.5 | 66.3 | 47.3 |
Services, electricity, operations abroad and others | (6,104) | (4,333) | (4,225) | (13,993) | (8,487) | 40.9 | 44.5 | 64.9 |
Total | (83,240) | (75,099) | (62,042) | (225,214) | (157,888) | 10.8 | 34.2 | 42.6 |
In 3Q22, cost of goods sold grew 11% compared to 2Q22, mainly reflecting higher purchases and imports of crude and oil products. The depreciation of Brent prices contributed to the drop in government participation.
It is worth noting the continued decline of LNG in the composition of natural gas purchases, with a reduction of 2 MMm³/day in regasification volumes, reaching 5 MM m3/day in 3Q22, essentially explained by the low demand for gas for thermoelectric plants due to the positive hydrological scenario
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Operating expenses
Table 6 - Operating expenses
Variation (%) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Selling, General and Administrative Expenses | (8,110) | (7,725) | (7,529) | (23,553) | (21,336) | 5.0 | 7.7 | 10.4 |
Selling expenses | (6,358) | (6,136) | (5,766) | (18,653) | (16,706) | 3.6 | 10.3 | 11.7 |
Materials, third-party services, freight, rent and other related costs | (5,102) | (4,922) | (4,831) | (14,991) | (14,020) | 3.7 | 5.6 | 6.9 |
Depreciation, depletion and amortization | (1,020) | (1,066) | (831) | (3,124) | (2,384) | (4.3) | 22.7 | 31.0 |
Allowance for expected credit losses | (107) | (30) | 37 | (177) | 71 | 256.7 | − | − |
Employee compensation | (129) | (118) | (141) | (361) | (373) | 9.3 | (8.5) | (3.2) |
General and administrative expenses | (1,752) | (1,589) | (1,763) | (4,900) | (4,630) | 10.3 | (0.6) | 5.8 |
Employee compensation | (1,171) | (1,060) | (1,364) | (3,267) | (3,390) | 10.5 | (14.1) | (3.6) |
Materials, third-party services, rent and other related costs | (446) | (411) | (294) | (1,260) | (894) | 8.5 | 51.7 | 40.9 |
Depreciation, depletion and amortization | (135) | (118) | (105) | (373) | (346) | 14.4 | 28.6 | 7.8 |
Exploration costs | (565) | (196) | (696) | (1,169) | (2,897) | 188.3 | (18.8) | (59.6) |
Research and Development | (984) | (1,080) | (792) | (3,145) | (2,206) | (8.9) | 24.2 | 42.6 |
Other taxes | (489) | (455) | (1,141) | (1,255) | (1,983) | 7.5 | (57.1) | (36.7) |
Impairment of assets | (1,336) | (847) | 16,358 | (2,179) | 15,353 | 57.7 | − | − |
Other income and expenses, net | (911) | 10,930 | (815) | 8,349 | (2,823) | − | 11.8 | − |
Total | (12,395) | 627 | 5,385 | (22,952) | (15,892) | − | − | 44.4 |
In 3Q22, selling expenses grew 4% compared to 2Q22, mainly due to higher logistics expenses related to offshore trading operations.
General and Administrative expenses rose 10% compared to 2Q22, mainly reflecting wage adjustments under the Collective Bargaining Agreement.
The increase in exploration expenses is explained mostly by the reversal of expenses in 2Q22, due to the approval of the execution of a Conduct Adjustment Agreement (TAC) with the National Petroleum Agency to offset local content fines. The TAC provides for the conversion of fines into investment commitments in Exploration and Production with local content, and, under the terms of the agreement, Petrobras commits to invest in local content until 2026. In addition, there were higher expenses with geology and geophysics. The signature of the TAC does not alter the investments foreseen in the Strategic Plan 2022-26, disclosed by Petrobras on November 24, 2021, and is in line with the strategy of generating value by managing the Company's liabilities and improving its capital allocation.
In 3Q22, other expenses totaled R$ 911 million against revenues of R$ 10.9 billion in 2Q22. This variation is mainly explained by capital gain of R$ 14.2 billion in 2Q22 related to the co-participation agreements in the Sepia and Atapu fields.
Adjusted EBITDA
In 3Q22, Adjusted EBITDA reached R$ 91.4 billion, a 7% decrease compared to 2Q22, mainly due to the depreciation of Brent prices in the period and lower sales in the foreign market due to the increase in ongoing exports.
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Financial results
Table 7 - Financial results
Variation (%) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Finance income | 2,713 | 3,054 | 1,188 | 7,127 | 2,973 | (11.2) | 128.4 | 139.7 |
Income from investments and marketable securities (Government Bonds) | 1,783 | 1,821 | 519 | 4,448 | 921 | (2.1) | 243.5 | 383.0 |
Other income, net | 930 | 1,233 | 669 | 2,679 | 2,052 | (24.6) | 39.0 | 30.6 |
Finance expenses | (4,157) | (4,691) | (6,237) | (12,817) | (22,721) | (11.4) | (33.3) | (43.6) |
Interest on finance debt | (2,963) | (3,396) | (3,499) | (9,143) | (12,415) | (12.8) | (15.3) | (26.4) |
Unwinding of discount on lease liabilities | (1,773) | (1,644) | (1,579) | (4,943) | (4,768) | 7.8 | 12.3 | 3.7 |
Discount and premium on repurchase of debt securities | (54) | (404) | (1,309) | (592) | (5,813) | (86.6) | (95.9) | (89.8) |
Capitalized borrowing costs | 1,364 | 1,464 | 1,406 | 4,072 | 3,970 | (6.8) | (3.0) | 2.6 |
Unwinding of discount on the provision for decommissioning costs | (668) | (675) | (1,017) | (2,025) | (3,071) | (1.0) | (34.3) | (34.1) |
Other finance expenses and income, net | (63) | (36) | (239) | (186) | (624) | 75.0 | (73.6) | (70.2) |
Foreign exchange gains (losses) and indexation charges | (6,529) | (14,120) | (20,431) | (15,057) | (25,704) | (53.8) | (68.0) | (41.4) |
Foreign exchange gains (losses) | (4,073) | (8,184) | (15,507) | 278 | (10,659) | (50.2) | (73.7) | − |
Reclassification of hedge accounting to the Statement of Income | (5,813) | (5,442) | (5,396) | (18,476) | (17,823) | 6.8 | 7.7 | 3.7 |
Monetary restatement of anticipated dividends and dividends payable (*) | 2,085 | (1,335) | 104 | 749 | 32 | − | 1904.8 | 2240.6 |
Recoverable taxes inflation indexation income (**) | 155 | 119 | 79 | 382 | 2,587 | 30.3 | 96.2 | (85.2) |
Other foreign exchange gains (losses) and indexation charges, net | 1,117 | 722 | 289 | 2,010 | 159 | 54.7 | 286.5 | 1164.2 |
Total | (7,973) | (15,757) | (25,480) | (20,747) | (45,452) | (49.4) | (68.7) | (54.4) |
(*) In 2022, it refers to the income on the monetary restatement of paid anticipated dividends, in the amount of R$ 2.180 (R$ 105, in 2021) , and to the expense on the indexation charges on dividends payable, in the amount of R$ 1.431(R$ 73, in 2021) (**) In 2021, includes PIS and Cofins inflation indexation income - exclusion of ICMS (VAT tax) from the basis of calculation. |
The financial result in 3Q22 was negative by R$ 8 billion, a 49% improvement over 2Q22 (R$ 15.8 billion), mainly reflecting the weaker depreciation of the BRL against USD (3% in 3Q22 against 11% in 2Q22). In addition, there was an improvement in monetary variations mainly due to the monetary restatement of anticipated dividends for the fiscal year 2022. In 3Q22, we also observed lower transaction costs in the repurchase of securities and a lower goodwill compared to 2Q22, when we carried out a tender offer of US$ 2.0 billion in April 2022.
Net profit (loss) attributable to Petrobras shareholders
Net income in 3Q22 was R$ 46.1 billion, compared to R$ 54.3 billion in 2Q22. This result is mainly explained by the depreciation of Brent prices, as well as capital gain of R$ 14.2 billion related to the co-participation agreements in Sepia and Atapu in 2Q22. These factors were partially offset by the improved financial result (R$ 7.8 billion) reflecting the lower depreciation of the BRL versus the USD in 3Q22 compared to 2Q22. With the lower pre-tax income, there was a lower income tax and social contribution expense of R$ 5.8 billion.
Recurring net income attributable to Petrobras shareholders and recurring Adjusted EBITDA
In 3Q22, net income was negatively impacted by R$ 0.2 billion and would have summed up to R$ 46.3 billion without the non-recurring items. Adjusted EBITDA was negatively impacted by R$ 0.8 billion and would have summed up to R$ 92.3 billion without the non-recurring items.
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Special items
Table 8 - Special items
Variation (%) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Net income | 46,236 | 54,484 | 31,224 | 145,503 | 75,541 | (15.1) | 48.1 | 92.6 |
Non-recurring items | (299) | 14,318 | 20,752 | 15,881 | 23,834 | − | − | (33.4) |
Non-recurring items that do not affect Adjusted EBITDA | 548 | 15,395 | 23,881 | 18,309 | 23,805 | (96.4) | (97.7) | (23.1) |
Impairment of assets and investments | (1,324) | (860) | 16,313 | (2,224) | 17,256 | 54.0 | − | − |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | (1) | − | (35) | (1) | (220) | − | (97.1) | (99.5) |
Gains and losses on disposal / write-offs of assets | 1,550 | 1,828 | 613 | 5,850 | 1,235 | (15.2) | 152.9 | 373.7 |
Results from co-participation agreements in bid areas | (50) | 14,243 | 3,519 | 14,193 | 3,519 | − | − | 303.3 |
Agreements signed for the electricity sector | − | − | − | − | 436 | − | − | − |
Pis and Cofins inflation indexation charges - exclusion of ICMS (VAT tax) from the basis of calculation | − | − | (2) | − | 2,402 | − | − | − |
Discount and premium on repurchase of debt securities | 373 | 184 | (1,294) | 491 | (5,798) | 102.7 | − | − |
Non-incidence of income taxes on indexation charges (SELIC interest rate) over undue paid taxes | − | − | 4,767 | − | 4,767 | − | − | − |
Financial updating on state amnesty programs | − | − | − | − | 208 | − | − | − |
Other non-recurring items | (847) | (1,077) | (3,129) | (2,428) | 28 | (21.4) | (72.9) | − |
Voluntary Separation Plan | (4) | (9) | 9 | (33) | 52 | (55.6) | − | − |
Amounts recovered from Lava Jato investigation | 115 | − | 132 | 175 | 1,197 | − | (12.9) | (85.4) |
Gains / (losses) on decommissioning of returned/abandoned areas | (7) | (15) | (22) | (147) | (60) | (53.3) | (68.2) | 145.0 |
State amnesty programs | − | − | 137 | − | 796 | − | − | − |
Gains (losses) related to legal proceedings | (950) | (866) | (545) | (2,373) | (1,271) | 9.7 | 74.3 | 86.7 |
Equalization of expenses - Production Individualization Agreements | (1) | (187) | 98 | (50) | (190) | (99.5) | − | (73.7) |
PIS and COFINS over inflation indexation charges - exclusion of ICMS (VAT tax) from the basis of calculation | − | − | 1 | − | (111) | − | − | − |
PIS and COFINS recovered - exclusion of ICMS (VAT tax) from the basis of calculation | − | − | 61 | − | 2,554 | − | − | − |
Gains/(losses) arising from actuarial review of health care plan | − | − | (4,518) | − | (4,518) | − | − | − |
Gains/(losses) with the transfer of rights on concession agreements | − | − | 1,518 | − | 1,579 | − | − | − |
Net effect of non-recurring items on IR / CSLL | 105 | (4,873) | (6,984) | (5,415) | (8,159) | − | − | (33.6) |
Recurring net income | 46,430 | 45,039 | 17,456 | 135,037 | 59,867 | 3.1 | 166.0 | 125.6 |
Shareholders of Petrobras | 46,290 | 44,885 | 17,374 | 134,521 | 59,490 | 3.1 | 166.4 | 126.1 |
Non-controlling interests | 140 | 154 | 82 | 516 | 377 | (9.1) | 70.7 | 36.9 |
Adjusted EBITDA | 91,421 | 98,260 | 60,744 | 267,391 | 171,631 | (7.0) | 50.5 | 55.8 |
Non-recurring items | (847) | (1,077) | (3,129) | (2,428) | 28 | (21.4) | (72.9) | − |
Recurring Adjusted EBITDA | 92,268 | 99,337 | 63,873 | 269,819 | 171,603 | (7.1) | 44.5 | 57.2 |
In management's opinion, the special items presented above, although related to the Company's business, were highlighted as complementary information for a better understanding and evaluation of the result. Such items do not necessarily occur in all periods and are disclosed when relevant.
9 |
Capex
Investment (Capex) 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.
Table 9 - Capex
Variation (%) | ||||||||
US$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Exploration and Production | 1,685 | 1,674 | 1,456 | 4,734 | 5,030 | 0.7 | 15.8 | (5.9) |
Refining, Transportation and Marketing | 295 | 274 | 226 | 821 | 673 | 7.6 | 30.2 | 21.9 |
Gas and Power | 65 | 92 | 94 | 251 | 252 | (29.3) | (31.2) | (0.3) |
Others | 86 | 141 | 86 | 274 | 186 | (39.1) | (0.4) | 47.7 |
Subtotal | 2,131 | 2,181 | 1,863 | 6,080 | 6,140 | (2.3) | 14.4 | (1.0) |
Signature bonus | − | 892 | − | 892 | − | − | − | − |
Total | 2,131 | 3,073 | 1,863 | 6,972 | 6,140 | (30.6) | 14.4 | 13.5 |
In 3Q22, capex totaled US$ 2.1 billion, 31% below 2Q22, mainly due to the impact of the signature bonus of the Sépia and Atapu fields that occurred in 2Q22. In the first nine months of the year, capex totaled US$ 7.0 billion, an increase of 14% compared to 9M21, reaching 59% of the US$ 11.9 billion initially estimated for 2022, in the Strategic Plan 2022-26, including the $0.9 billion signing bonus.
Considering: (i) adjustments to the schedule of activities, (ii) optimization of exploratory expenses, and (iii) non-replacement of pipelines affected by SCC-CO2 in Búzios and Tupi, which when inspected indicated a longer useful life, we project investments between US$ 9 and US$ 10 billion for the year, with no impact on the 2022 production target.
Investments in growth correspond to 48% of total capex in 3Q22.
Growth capex are those with the primary objective of increasing the capacity of existing assets, deploying new production, offloading, and storage assets, increasing asset efficiency or profitability, and deploying essential infrastructure to enable other growth projects. It includes acquisitions of assets/companies and remaining investments in systems that started up as of 2020 and exploratory investments.
Sustaining capex, on the other hand, has the main objective of maintaining the operation of existing assets. It does not aim at increasing the capacity of the facilities. It includes investments in safety and reliability of facilities, replacement well projects, complementary development, remaining investments in systems that started up before 2020, scheduled stoppages and revitalizations (without new systems), 4D seismic, health, environment, and safety (HSE) projects, subsea line exchanges, operational infrastructure and information technology (IT).
In 3Q22, capex in the Exploration & Production segment totaled US$ 1.7 billion, in line with 2Q22. Investments in growth corresponded to 57% and were mainly concentrated on: (i) the development of ultra-deepwater production in the Santos Basin pre-salt (US$ 0.6 billion); (ii) development of new deepwater projects (US$ 0.2 billion); and (iii) exploratory investments in the pre-salt and post-salt (US$ 0.1 billion).
In the Refining, Transportation and Marketing segment, capex totaled US$ 0.3 billion in 3Q22, of which approximately 18% was related to growth. In Gas & Power, capex totaled US$ 0.1 billion in 3Q22, with approximately 10% related to growth.
10 |
The following table presents the main information about the new oil and gas production systems, already contracted.
Table 10 - Main projects
Unit | Start-up | FPSO capacity (bbl/day) |
CAPEX Petrobras Actual US$ bn |
CAPEX Petrobras Total US$ bn1 |
Petrobras Stake | Status |
Búzios 5 FPSO Alm. Barroso (Chartered unit) |
2023 | 150,000 | 0.93 | 2.0 | 92,66%2 | Project in phase of execution with production system under commisioning. 10 wells drilled and 7 completed. |
Marlim 1 FPSO Anita Garibaldi (Chartered unit) |
2023 | 80,000 | 0.15 | 1.7 | 100% | Project in phase of execution. Production system is sailing to Brazil. |
Marlim 2 FPSO Anna Nery (Chartered unit) |
2023 | 70,000 | 0.15 | 1.3 | 100% | Project in phase of execution with production system under commisioning. 2 wells drilled and completed.4 |
Mero 2 FPSO Sepetiba (Chartered unit) |
2023 | 180,000 | 0.22 | 0.8 | 38,6%3 | Project in phase of execution with production system under construction. 11 wells drilled and 4 completed |
Itapu P-71 (Owned unit) |
20235 | 150,000 | 2.11 | 3.4 | 100% | Project in phase of execution. Production system arrived in Itapu field. 4 wells drilled and 2 completed |
Mero 3 FPSO Marechal Duque de Caxias (Chartered unit) |
2024 | 180,000 | 0.07 | 0.8 | 38,6%3 | Project in phase of execution with production system under construction. 4 wells drilled and 1 completed |
Integrado Parque das Baleias (IPB) FPSO Maria Quitéria (Chartered unit) |
2024 | 100,000 | 0.30 | 1.7 | 100% | Project in phase of execution with production system under construction. 3 wells drilled and 1 completed4 |
Búzios 7 FPSO Almirante Tamandaré (Chartered unit) |
2024 | 225,000 | 0.11 | 2.1 | 92,66%2 |
Project in phase of execution with production system under construction. 3 wells drilled and 1 completed |
Búzios 6 P-78 (Owned unit) |
2025 | 180,000 | 0.37 | 4.1 | 92,66%2 | Project in phase of execution with production system under construction. |
Búzios 8 P-79 (Owned unit) |
2025 | 180,000 | 0.29 | 4.2 | 92,66%2 | Project in phase of execution with production system under construction. 3 wells drilled and 1 completed |
Mero 4 FPSO Alexandre de Gusmão (Chartered unit) |
2025 | 180,000 | 0.05 | 0.8 | 38,6%3 |
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 | 0.04 | 4.8 | 92,66%2 |
Project in phase of execution. Production system construction contract signed on August 2022. 2 wells drilled and completed |
Búzios 10 P-82 (Owned unit) |
2026 | 225,000 | 0.03 | 5.1 | 92,66%2 |
Project in phase of execution. Production system construction contract signed on October 2022. 1 well drilled |
Búzios 11 P-83 (Owned unit) |
2027 | 225,000 | 0.02 | 4.8 | 92,66%2 |
Project in phase of execution. Production system construction contract signed on September 2022. 2 wells drilled |
1 Total CAPEX with the Strategic Plan 2022-26 assumptions and Petrobras work interest (WI). Chartered units leases are not included. 2 In March 2022, Petrobras has signed the contract with the partner CNOOC Petroleum Brasil Ltda. (CPBL) for the assignment of 5% of its interest in the Production Sharing Contract of the Transfer of Rights Surplus for the Buzios field. Petrobras stake will be adjusted after the transaction's approval by the regulatory agencies. 3 Petrobras stake updated after the approval of the Production Individualization Agreement (AIP) of the Mero accumulation. As the compensation relative to the non-contracted area expenses will be paid in oil to the consortium, the work interest (WI) of the CAPEX reported will not change. 4 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. 5 Anticipation to 2022 expected |
11 |
Portfolio management
In 3Q22, cash inflows from divestments totaled US$ 537 million, including the payment for the sale of Gaspetro, in the amount of US$ 392 million. In the first nine months of the year, we received US$3.9 billion from asset sales, including deferred payments from the sales of NTS (US$1.0 billion) in 2Q22 and Bacalhau (US$950 million) in 1Q22.
From January 1, 2022, to November 02, 2022, we concluded the sale of the Alagoas and Recôncavo Clusters, exploratory blocks in Parana and Potiguar Basins and our equity interests in Deten Química and Gaspetro. Additionally, we signed the contracts for the sale of the Potiguar, Norte Capixaba, Golfinho and Camarupim Clusters, the Albacora East field and LUBNOR Refinery.
Table 11 - Main transactions by November 02nd, 2022 and respective transaction amounts (excluding deferred payments)
Assets |
Amount received (US$ million) |
Transaction amount1 (US$ million) |
Bloco PAR-T-198_Paraná Basin | 0.031 | 0.0316 |
Bloco PAR-T-218_Paraná Basin | 0.032 | 0.0326 |
Bloco POT-T-794_Potiguar Basin | 0.525 | 0.5256 |
East Albacora field | 293 | 2,201 |
Papa-Terra field | 6 | 105.66 |
Deten Química | 101.2² | 117² |
Gaspetro | 392.32 | 3946 |
Alagoas cluster | 300 | 3006 |
Carmópolis cluster | 275 | 1,1006 |
Fazenda Belém cluster | 13.4 | 355 |
Golfinho e Camarupim clusters | 3 | 75 |
Norte cluster | 35.85 | 544 |
Peroá cluster | 13.07 | 556 |
Pescada cluster | - | 25 |
Potiguar cluster | 110 | 1,380 |
Recôncavo cluster | 256 | 2505 |
LUBNOR refinery | 3.4 | 34 |
REMAN refinery | 28.4 | 189.56 |
SIX | 3 | 336 |
Total amount | 1,834 | 6,816 |
¹ Amounts agreed in the signing date, subject to adjustments upon closing
² Original amounts in BRL, converted to US$ at the PTAX rate on the day of the SPA signing or of the cash inflow
3Transaction signed in 2018 4Transaction signed in 2019 5Transaction signed in 2020 6Transaction signed in 2021
12 |
Liquidity and capital resources[2]
Table 12 - Liquidity and Capital Resources
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 |
Adjusted cash and cash equivalents at the beginning of period | 100,268 | 87,568 | 52,139 | 62,040 | 64,280 |
Government bonds and time deposits with maturities of more than 3 months at the beginning of period* | (14,957) | (5,967) | (3,013) | (3,630) | (3,424) |
Cash and cash equivalents in companies classified as held for sale at the beginning of the period | 37 | 40 | 4 | 72 | 74 |
Cash and cash equivalents at the beginning of period | 85,348 | 81,641 | 49,130 | 58,482 | 60,930 |
Net cash provided by operating activities | 63,207 | 71,804 | 55,100 | 187,835 | 151,734 |
Net cash provided by (used in) investing activities | (3,823) | 16,727 | 20,579 | 7,921 | 7,965 |
Acquisition of PP&E and intangibles assets | (10,225) | (8,383) | (7,857) | (30,946) | (24,728) |
Investments in investees | (3) | (49) | (20) | (101) | (80) |
Proceeds from disposal of assets - Divestment | 2,872 | 7,800 | 12,325 | 19,927 | 15,053 |
Financial compensation from co-participation agreements | 650 | 24,512 | 15,510 | 25,481 | 15,510 |
Dividends received | 402 | 938 | 484 | 1,615 | 1,581 |
Divestment (Investment) in marketable securities | 2,481 | (8,091) | 137 | (8,055) | 629 |
(=) Net cash provided by operating and investing activities | 59,384 | 88,531 | 75,679 | 195,756 | 159,699 |
Net cash used in financing activities | (121,013) | (89,705) | (68,216) | (227,173) | (164,565) |
Net financings | (3,297) | (20,212) | (39,404) | (33,432) | (109,620) |
Proceeds from financing | 11,677 | 863 | 452 | 13,322 | 8,921 |
Repayments | (14,974) | (21,075) | (39,856) | (46,754) | (118,541) |
Repayment of lease liability | (6,954) | (6,697) | (7,750) | (20,567) | (23,323) |
Dividends paid to shareholders of Petrobras | (111,046) | (62,027) | (20,895) | (173,075) | (31,177) |
Dividends paid to non-controlling interest | (50) | (264) | (184) | (340) | (396) |
Investments by non-controlling interest | 334 | (505) | 17 | 241 | (49) |
Effect of exchange rate changes on cash and cash equivalents | (69) | 4,881 | 2,833 | (3,415) | 3,362 |
Cash and cash equivalents at the end of period | 23,650 | 85,348 | 59,426 | 23,650 | 59,426 |
Government bonds and time deposits with maturities of more than 3 months at the end of period* | 13,038 | 14,957 | 2,920 | 13,038 | 2,920 |
Cash and cash equivalents in companies classified as held for sale at the end of the period | − | (37) | (32) | − | (32) |
Adjusted cash and cash equivalents at the end of period | 36,688 | 100,268 | 62,314 | 36,688 | 62,314 |
Reconciliation of Free Cash Flow | |||||
Net cash provided by operating activities | 63,207 | 71,804 | 55,100 | 187,835 | 151,734 |
Acquisition of PP&E and intangibles assets | (10,225) | (8,383) | (7,857) | (30,946) | (24,728) |
Free cash flow** | 52,982 | 63,421 | 47,243 | 156,889 | 127,006 |
As of September 30, 2022, cash and cash equivalents totaled R$ 23.6 billion and adjusted cash and cash equivalents totaled R$ 36.7 billion, optimizing the company's cash level.
In 3Q22, cash generated from operating activities reached R$ 63.2 billion and positive free cash flow totaled R$ 53.0 billion. This level of cash generation, along with our cash balances and the inflow of funds from the divestments of R$ 2.9 billion were used to: (a) pay remuneration to shareholders (R$ 111.0 billion) (b) prepay debt and amortize principal and interest due in the period (R$ 15.0 billion), (c) amortize lease liabilities (R$ 7.0 billion) and (d) make investments of R$ 10.2 billion.
* Includes short-term government bonds and time deposits and cash and cash equivalents of companies classified as held for sale.
** Free cash flow (FCF) is in accordance with the Shareholder Remuneration Policy, which is the result of the equation: FCF = net cash provided by operating activities less acquisitions of PP&E and intangible assets.
13 |
In 3Q22, the company settled several loans and financial debt, in the amount of R$ 15.0 billion, notably the repurchase and redemption of R$ 5.2 billion of securities in the international capital market. The company raised R$ 11.7 billion, of which (i) R$ 6.7 billion through a credit line with sustainability commitments (Sustainability-Linked Loan) in the international banking market due in 2027, and (ii) R$ 3.0 billion through the issuance of commercial notes in the domestic capital market due in 2030 and 2032.
The current level of gross debt, high cash generation and solid liquidity allowed the company to approve a shareholder remuneration payment in the amount of R$ 3.35 per common and preferred share.
14 |
Debt
As of September 30, 2022, gross debt reached US$ 54.3 billion, a variation of 1.3% compared to June 30, 2022.
Average maturity shifted from 13 years on June 30, 2022, to 12 years on September 30, 2022, mainly because of the repurchase of long-term bonds in the international market, taking advantage of falling prices.
The gross debt/EBITDA ratio reached 0.85x on September 30, 2022, compared to 0.93x on June 30, 2022.
On September 30, 2022, net debt reached US$ 47.5 billion, as a result of the cash level optimization during 3Q22. The net debt/adjusted EBITDA ratio increased from 0.60x on June 30, 2022 to 0.75x on September 30, 2022.
Table 13 - Debt indicators
US$ million | 09.30.2022 | 06.30.2022 | Δ % | 09.30.2021 |
Financial Debt | 30,855 | 31,051 | (0.6) | 36,716 |
Capital Markets | 16,800 | 18,261 | (8.0) | 22,213 |
Banking Market | 10,713 | 9,158 | 17.0 | 10,524 |
Development banks | 721 | 770 | (6.4) | 813 |
Export Credit Agencies | 2,452 | 2,688 | (8.8) | 2,972 |
Others | 169 | 174 | (2.9) | 194 |
Finance leases | 23,413 | 22,526 | 3.9 | 22,872 |
Gross debt | 54,268 | 53,577 | 1.3 | 59,588 |
Adjusted cash and cash equivalents | 6,785 | 19,142 | (64.6) | 11,456 |
Net debt | 47,483 | 34,435 | 37.9 | 48,132 |
Net Debt/(Net Debt + Market Cap) - Leverage | 38% | 32% | 18.8 | 42% |
Average interest rate (% p.a.) | 6.4 | 6.3 | 1.6 | 6.0 |
Weighted average maturity of outstanding debt (years) | 12.04 | 13.04 | (7.7) | 13.50 |
Net debt / LTM Adjusted EBITDA ratio | 0.75 | 0.60 | 25.0 | 1.17 |
Gross debt / LTM Adjusted EBITDA ratio | 0.85 | 0.93 | (7.9) | 1.45 |
R$ million | ||||
Financial Debt | 166,818 | 162,644 | 2.6 | 199,713 |
Finance Lease | 126,585 | 117,993 | 7.3 | 124,411 |
Adjusted cash and cash equivalents | 36,688 | 100,268 | (63.4) | 62,314 |
Net Debt | 256,715 | 180,369 | 42.3 | 261,810 |
15 |
Results by segment
Exploration and Production
Table 14 - E&P results
Variation (%) (*) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Sales revenues | 101,391 | 108,041 | 76,472 | 311,999 | 211,864 | (6.2) | 32.6 | 47.3 |
Gross profit | 62,342 | 67,813 | 43,489 | 192,610 | 120,578 | (8.1) | 43.4 | 59.7 |
Operating expenses | (2,316) | 12,551 | 19,572 | 9,983 | 14,276 | − | − | (30.1) |
Operating income (loss) | 60,026 | 80,364 | 63,061 | 202,593 | 134,854 | (25.3) | (4.8) | 50.2 |
Net income (loss) attributable to the shareholders of Petrobras | 39,860 | 53,327 | 41,778 | 134,504 | 89,473 | (25.3) | (4.6) | 50.3 |
Adjusted EBITDA of the segment | 73,152 | 78,534 | 54,508 | 224,661 | 149,828 | (6.9) | 34.2 | 49.9 |
EBITDA margin of the segment (%) | 72 | 73 | 71 | 72 | 71 | (1) | 1 | 1 |
ROCE (Return on Capital Employed) (%) | 19.7 | 17.4 | 8.8 | 19.7 | 8.8 | 2.3 | 10.9 | 10.9 |
Average Brent crude (US$/bbl) | 100.85 | 113.78 | 73.47 | 105.35 | 67.73 | (11.4) | 37.3 | 55.5 |
Internal Transfer Price to RTM - Crude oil (US$/bbl) | 98.81 | 106.90 | 69.54 | 99.79 | 64.19 | (7.6) | 42.1 | 55.5 |
Lifting cost - Brazil (US$/boe) | ||||||||
excluding production taxes and leases | 5.85 | 5.98 | 5.02 | 5.68 | 4.95 | (2.2) | 16.5 | 14.8 |
excluding production taxes | 7.53 | 7.68 | 6.66 | 7.39 | 6.56 | (1.9) | 13.2 | 12.6 |
Onshore and shallow waters | ||||||||
with leases | 15.44 | 17.23 | 14.27 | 16.39 | 13.35 | (10.4) | 8.2 | 22.8 |
excluding leases | 15.44 | 17.23 | 14.27 | 16.39 | 13.35 | (10.4) | 8.2 | 22.8 |
Deep and ultra-deep post-salt | ||||||||
with leases | 13.66 | 14.47 | 12.16 | 13.10 | 11.48 | (5.6) | 12.3 | 14.1 |
excluding leases | 12.52 | 13.06 | 10.72 | 11.68 | 10.07 | (4.2) | 16.8 | 16.0 |
Pre-salt | ||||||||
with leases | 5.36 | 5.19 | 4.35 | 5.22 | 4.39 | 3.2 | 23.3 | 18.9 |
excluding leases | 3.44 | 3.31 | 2.53 | 3.33 | 2.58 | 3.8 | 35.8 | 29.1 |
including production taxes and excluding leases | 23.48 | 25.95 | 18.50 | 24.59 | 17.24 | (9.5) | 27.0 | 42.6 |
including production taxes and leases | 25.16 | 27.64 | 20.13 | 26.30 | 18.86 | (9.0) | 25.0 | 39.5 |
Production taxes - Brazil | 18,925 | 19,848 | 15,590 | 59,938 | 42,455 | (4.7) | 21.4 | 41.2 |
Royalties | 10,692 | 11,062 | 8,021 | 32,905 | 21,722 | (3.3) | 33.3 | 51.5 |
Special participation | 8,168 | 8,725 | 7,513 | 26,846 | 20,580 | (6.4) | 8.7 | 30.4 |
Retention of areas | 65 | 61 | 56 | 187 | 153 | 6.6 | 16.1 | 22.2 |
(*) EBITDA margin and ROCE variations in percentage points |
In 3Q22, E&P gross profit was R$ 62.3 billion, a reduction of 8.1% when compared to 2Q22, mainly due to the lower Brent prices. Operating income was 25.3% lower, reflecting the drop in gross profit and the fact that the compensation from the co-participation agreements of Sépia and Atapu fields took place in 2Q22. We recorded a 2% reduction in the lifting cost without leasing and government take when compared to 2Q22 due to the 7% BRL depreciation against the USD, partially offset by higher expenses related to project integrity, mainly subsea inspections in the Tupi field.
In the pre-salt, there was a slight increase of 4% in lifting cost, mainly driven by the higher expenses related to the subsea inspections, partially offset by the BRL depreciation.
In the post-salt, there was a 4% reduction in the same indicator when compared to 2Q22, mainly due to the aforementioned FX effect in the period.
In onshore and shallow water assets, we observed lower lifting costs due to the effect of the BRL depreciation against USD and to the stoppage of production in Sergipe-Alagoas fields, with higher lifting costs, for operational safety procedures.
The reduction in government take per barrel in 3Q22 reflects the lower Brent prices in the period.
16 |
Refining, Transportation and Marketing
Table 15 - RTM results
Variation (%) (*) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Sales revenues | 154,035 | 157,429 | 107,188 | 439,940 | 284,257 | (2.2) | 43.7 | 54.8 |
Gross profit (loss) | 14,428 | 25,532 | 11,642 | 56,271 | 35,490 | (43.5) | 23.9 | 58.6 |
Operating expenses | (3,519) | (4,163) | (5,396) | (10,463) | (10,334) | (15.5) | (34.8) | 1.2 |
Operating Income (loss) | 10,909 | 21,369 | 6,246 | 45,808 | 25,156 | (48.9) | 74.7 | 82.1 |
Net income (loss) attributable to the shareholders of Petrobras | 7,082 | 13,629 | 5,465 | 31,056 | 21,298 | (48.0) | 29.6 | 45.8 |
Adjusted EBITDA of the segment | 14,962 | 24,308 | 9,438 | 55,492 | 33,941 | (38.4) | 58.5 | 63.5 |
EBITDA margin of the segment (%) | 10 | 15 | 9 | 13 | 12 | (6) | 1 | 1 |
ROCE (Return on Capital Employed) (%) | 12.3 | 11.0 | 4.7 | 12.3 | 4.7 | 1.3 | 7.6 | 7.6 |
Refining cost (US$/barrel) - Brazil | 2.17 | 1.84 | 1.69 | 1.93 | 1.64 | 18.1 | 28.4 | 17.7 |
Refining cost (R$/barrel) - Brazil | 11.48 | 9.19 | 8.91 | 9.95 | 8.77 | 24.9 | 28.8 | 13.5 |
Domestic basic oil by-products price (R$/bbl) | 692.97 | 665.50 | 421.97 | 636.06 | 393.33 | 4.1 | 64.2 | 61.7 |
(*) EBITDA margin and ROCE variations in percentage points |
In 3Q22, gross profit from the Refining, Transportation and Marketing (RTM) segment was R$ 14.4 billion, a decrease of 43% when compared to 2Q22, due to the negative effect of inventories turnover, because of the decline in Brent prices, in contrast to the positive effect in 2Q22. Excluding the effect of inventory turnover (-R$ 8.4 billion in 3Q22 and +R$ 5.7 billion in 2Q22) gross profit would have been R$ 22.8 billion in 3Q22 and R$ 19.9 billion in 2Q22.
There were higher margins for oil products in the domestic market, mainly diesel, due to the high international margins, besides higher sales volumes for diesel, due to the typical seasonality, and gasoline, due to higher attractiveness compared to ethanol.
In 3Q22, the operating income was lower than in 2Q22, due to the lower gross profit, partially offset by lower expenses with lawsuits.
In 3Q22, refining cost per barrel in BRL increased by 25% when compared to 2Q22, due to the increase in expenses with inputs and maintenance for the upkeep and revitalization of the refineries, in addition to readjustments in personnel costs.
17 |
Gas and Power
Table 16 - G&P results
Variation (%) (*) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Sales revenues | 21,747 | 18,390 | 18,014 | 57,792 | 44,061 | 18.3 | 20.7 | 31.2 |
Gross profit | 7,898 | 6,713 | 4,076 | 16,994 | 14,104 | 17.7 | 93.8 | 20.5 |
Operating expenses | (3,078) | (4,008) | (4,043) | (11,702) | (11,645) | (23.2) | (23.9) | 0.5 |
Operating income (loss) | 4,820 | 2,705 | 33 | 5,292 | 2,459 | 78.2 | 14506.1 | 115.2 |
Net income (loss) attributable to the shareholders of Petrobras | 3,148 | 1,796 | 20 | 3,483 | 1,752 | 75.3 | 15640.0 | 98.8 |
Adjusted EBITDA of the segment | 4,610 | 3,219 | 1,022 | 6,159 | 4,820 | 43.2 | 351.1 | 27.8 |
EBITDA margin of the segment (%) | 21 | 18 | 6 | 11 | 11 | 3.0 | 15.0 | − |
ROCE (Return on Capital Employed) (%) | (0.6) | (3.9) | 2.6 | (0.6) | 2.6 | 3.3 | (3.2) | (3.2) |
Natural gas sales price - Brazil (US$/bbl) | 75.74 | 71.16 | 46.98 | 67.02 | 41.43 | 6.4 | 61.2 | 61.8 |
Fixed revenues from power auctions | 532 | 514 | 575 | 1,546 | 1,691 | 3.5 | (7.5) | (8.6) |
Average price for power generation (R$/MWh) | 72.78 | 90.75 | 504.97 | 216.15 | 434.73 | (19.8) | (85.6) | (50.3) |
(*) EBITDA margin and ROCE variations in percentage points |
In 3Q22, gross profit was R$ 7.9 billion, an increase of 17.7% when compared to 2Q22, mainly reflecting the recovery in commercialization margins, resulting from: (a) the improvement in the natural gas sales portfolio, and; (b) the lower need for regasified LNG with the resumption of stoppages in production platforms throughout 2Q22.
In 3Q22, operating income was R$ 4.8 billion, 78.2% higher than in 2Q22, due to higher gross profit and lower operating expenses due to the capital gain related to the sale of Gaspetro.
18 |
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 17 - Reconciliation of Adjusted EBITDA
Variation (%) (*) | ||||||||
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 | 3Q22 X 2Q22 | 3Q22 X 3Q21 | 9M22 X 9M21 |
Net income (loss) | 46,236 | 54,484 | 31,224 | 145,503 | 75,541 | (15.1) | 48.1 | 92.6 |
Net finance income (expense) | 7,973 | 15,757 | 25,480 | 20,747 | 45,452 | (49.4) | (68.7) | (54.4) |
Income taxes | 20,403 | 26,193 | 9,753 | 70,194 | 31,549 | (22.1) | 109.2 | 122.5 |
Depreciation, depletion and amortization | 17,143 | 16,996 | 16,262 | 50,743 | 46,820 | 0.9 | 5.4 | 8.4 |
EBITDA | 91,755 | 113,430 | 82,719 | 287,187 | 199,362 | (19.1) | 10.9 | 44.1 |
Results in equity-accounted investments | (171) | 54 | (1,520) | (1,933) | (7,844) | − | (88.8) | (75.4) |
Impairment | 1,336 | 847 | (16,358) | 2,179 | (15,353) | 57.7 | − | − |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | 1 | − | 35 | 1 | 220 | − | (97.1) | (99.5) |
Results from co-participation agreements in bid areas | 50 | (14,243) | (3,519) | (14,193) | (3,519) | − | − | 303.3 |
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | (1,550) | (1,828) | (613) | (5,850) | (1,235) | (15.2) | 152.9 | 373.7 |
Adjusted EBITDA | 91,421 | 98,260 | 60,744 | 267,391 | 171,631 | (7.0) | 50.5 | 55.8 |
Adjusted EBITDA margin (%) | 54 | 57 | 50 | 55 | 54 | (3.0) | 4.0 | 1.0 |
(*) EBITDA Margin variations in percentage points |
19 |
Financial statements
Table 18 - Income statement - Consolidated
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 |
Sales revenues | 170,076 | 170,960 | 121,594 | 482,677 | 318,478 |
Cost of sales | (83,240) | (75,099) | (62,042) | (225,214) | (157,888) |
Gross profit | 86,836 | 95,861 | 59,552 | 257,463 | 160,590 |
Selling expenses | (6,358) | (6,136) | (5,766) | (18,653) | (16,706) |
General and administrative expenses | (1,752) | (1,589) | (1,763) | (4,900) | (4,630) |
Exploration costs | (565) | (196) | (696) | (1,169) | (2,897) |
Research and development expenses | (984) | (1,080) | (792) | (3,145) | (2,206) |
Other taxes | (489) | (455) | (1,141) | (1,255) | (1,983) |
Impairment of assets | (1,336) | (847) | 16,358 | (2,179) | 15,353 |
Other income and expenses | (911) | 10,930 | (815) | 8,349 | (2,823) |
(12,395) | 627 | 5,385 | (22,952) | (15,892) | |
Operating income (loss) | 74,441 | 96,488 | 64,937 | 234,511 | 144,698 |
Finance income | 2,713 | 3,054 | 1,188 | 7,127 | 2,973 |
Finance expenses | (4,157) | (4,691) | (6,237) | (12,817) | (22,721) |
Foreign exchange gains (losses) and inflation indexation charges | (6,529) | (14,120) | (20,431) | (15,057) | (25,704) |
Net finance income (expense) | (7,973) | (15,757) | (25,480) | (20,747) | (45,452) |
Results in equity-accounted investments | 171 | (54) | 1,520 | 1,933 | 7,844 |
Income (loss) before income taxes | 66,639 | 80,677 | 40,977 | 215,697 | 107,090 |
Income taxes | (20,403) | (26,193) | (9,753) | (70,194) | (31,549) |
Net Income (loss) | 46,236 | 54,484 | 31,224 | 145,503 | 75,541 |
Net income (loss) attributable to: | |||||
Shareholders of Petrobras | 46,096 | 54,330 | 31,142 | 144,987 | 75,164 |
Non-controlling interests | 140 | 154 | 82 | 516 | 377 |
20 |
Table 19 - Statement of financial position - Consolidated
ASSETS - R$ million | 09.30.2022 | 12.31.2021 |
Current assets | 159,327 | 168,247 |
Cash and cash equivalents | 23,650 | 58,410 |
Marketable securities | 13,038 | 3,630 |
Trade and other receivables, net | 22,026 | 35,538 |
Inventories | 52,825 | 40,486 |
Recoverable taxes | 7,763 | 7,511 |
Assets classified as held for sale | 28,684 | 13,895 |
Other current assets | 11,341 | 8,777 |
Non-current assets | 788,247 | 804,704 |
Long-term receivables | 92,717 | 79,992 |
Trade and other receivables, net | 10,516 | 10,603 |
Marketable securities | 264 | 247 |
Judicial deposits | 54,317 | 44,858 |
Deferred taxes | 2,673 | 3,371 |
Other tax assets | 19,871 | 18,197 |
Other non-current assets | 5,076 | 2,716 |
Investments | 9,041 | 8,427 |
Property, plant and equipment | 671,067 | 699,406 |
Intangible assets | 15,422 | 16,879 |
Total assets | 947,574 | 972,951 |
LIABILITIES - R$ million | 09.30.2022 | 12.31.2021 |
Current liabilities | 135,807 | 134,913 |
Trade payables | 28,164 | 30,597 |
Finance debt | 17,873 | 20,316 |
Lease liability | 28,855 | 30,315 |
Taxes payable | 24,063 | 26,414 |
Short-term employee benefits | 11,924 | 11,967 |
Liabilities related to assets classified as held for sale | 8,963 | 4,840 |
Other current liabilities | 15,965 | 10,464 |
Non-current liabilities | 437,662 | 448,457 |
Finance debt | 148,945 | 178,908 |
Lease liability | 97,730 | 98,279 |
Income taxes payable | 1,604 | 1,676 |
Deferred taxes | 35,472 | 6,857 |
Employee benefits | 47,260 | 52,310 |
Provision for legal and administrative proceedings | 13,621 | 11,263 |
Provision for decommissioning costs | 80,502 | 87,160 |
Other non-current liabilities | 12,528 | 12,004 |
Shareholders' equity | 374,105 | 389,581 |
Share capital (net of share issuance costs) | 205,432 | 205,432 |
Profit reserves and others | 167,066 | 181,897 |
Non-controlling interests | 1,607 | 2,252 |
Total liabilities and shareholders´ equity | 947,574 | 972,951 |
21 |
Table 20 - Statement of cash flow - Consolidated
R$ million | 3Q22 | 2Q22 | 3Q21 | 9M22 | 9M21 |
Cash flow from operating activities | |||||
Net income (loss) for the period | 46,236 | 54,484 | 31,224 | 145,503 | 75,541 |
Adjustments for: | |||||
Pension and medical benefits (actuarial expense) | 1,605 | 1,605 | 6,152 | 4,815 | 9,586 |
Results of equity-accounted investments | (171) | 54 | (1,520) | (1,933) | (7,844) |
Depreciation, depletion and amortization | 17,143 | 16,996 | 16,262 | 50,743 | 46,820 |
Impairment of assets (reversal) | 1,336 | 847 | (16,358) | 2,179 | (15,353) |
Inventory write-down (write-back) to net realizable value | 19 | 49 | − | 34 | (5) |
Allowance (reversals) for credit loss on trade and other receivables | 18 | 90 | (54) | 213 | (100) |
Exploratory expenditures write-offs | 177 | 341 | 142 | 632 | 1,178 |
Disposal/write-offs of assets and remeasurement of investment retained with loss of control | (1,550) | (1,828) | (578) | (5,850) | (1,015) |
Foreign exchange, indexation and finance charges | 9,698 | 16,618 | 24,001 | 23,876 | 44,143 |
Deferred income taxes, net | 1,222 | 136 | 620 | 11,493 | 21,247 |
Revision and unwinding of discount on the provision for decommissioning costs | 675 | 691 | 1,040 | 2,172 | 3,131 |
PIS and COFINS recovery - exclusion of ICMS (VAT tax) from the basis of calculation | 18 | (18) | (57) | − | (4,955) |
Results from co-participation agreements in bid areas | 50 | (14,243) | (3,519) | (14,193) | (3,519) |
Assumption of interest in concessions | − | − | (520) | − | (520) |
Early termination and cash outflows revision of lease agreements | (826) | (882) | (632) | (2,848) | (1,846) |
Gains (losses) with legal, administrative and arbitration proceedings | 1,377 | 1,485 | 1,416 | 4,169 | 2,797 |
Decrease (Increase) in assets | |||||
Trade and other receivables, net | 3,576 | (2,876) | (3,922) | 3,823 | (7,504) |
Inventories | (3,007) | (489) | (3,052) | (13,259) | (11,764) |
Judicial deposits | (2,392) | (2,248) | (1,839) | (6,760) | (4,454) |
Other assets | (518) | (3,214) | 292 | (3,483) | (836) |
Increase (Decrease) in liabilities | |||||
Trade payables | (1,048) | 175 | 2,621 | (2,140) | 4,459 |
Other taxes payable | 11,572 | 20,429 | 10,459 | 46,022 | 23,128 |
Income taxes paid | (19,412) | (17,522) | (4,346) | (44,861) | (4,998) |
Pension and medical benefits | (945) | (1,044) | (2,062) | (9,666) | (10,821) |
Provision for legal proceedings | (412) | (610) | (460) | (1,292) | (1,923) |
Short-term benefits | 1,591 | (1,006) | 481 | (184) | (795) |
Provision for decommissioning costs | (861) | (722) | (1,055) | (2,285) | (2,798) |
Other liabilities | (1,964) | 4,506 | 364 | 915 | 754 |
Net cash provided by operating activities | 63,207 | 71,804 | 55,100 | 187,835 | 151,734 |
Cash flows from Investing activities | |||||
Acquisition of PP&E and intangible assets | (10,225) | (8,383) | (7,857) | (30,946) | (24,728) |
Investments in investees | (3) | (49) | (20) | (101) | (80) |
Proceeds from disposal of assets - Divestment | 2,872 | 7,800 | 12,325 | 19,927 | 15,053 |
Financial compensation from co-participation agreements | 650 | 24,512 | 15,510 | 25,481 | 15,510 |
Divestment (Investment) in marketable securities | 2,481 | (8,091) | 137 | (8,055) | 629 |
Dividends received | 402 | 938 | 484 | 1,615 | 1,581 |
Net cash provided (used) by investing activities | (3,823) | 16,727 | 20,579 | 7,921 | 7,965 |
Cash flows from Financing activities | |||||
Changes in non-controlling interest | 334 | (505) | 17 | 241 | (49) |
Financing and loans, net: | |||||
Proceeds from financing | 11,677 | 863 | 452 | 13,322 | 8,921 |
Repayment of principal - finance debt | (12,215) | (19,357) | (36,501) | (39,255) | (108,399) |
Repayment of interest - finance debt | (2,759) | (1,718) | (3,355) | (7,499) | (10,142) |
Repayment of lease liability | (6,954) | (6,697) | (7,750) | (20,567) | (23,323) |
Dividends paid to Shareholders of Petrobras | (111,046) | (62,027) | (20,895) | (173,075) | (31,177) |
Dividends paid to non-controlling interests | (50) | (264) | (184) | (340) | (396) |
Net cash provided (used) by financing activities | (121,013) | (89,705) | (68,216) | (227,173) | (164,565) |
Effect of exchange rate changes on cash and cash equivalents | (69) | 4,881 | 2,833 | (3,415) | 3,362 |
Net change in cash and cash equivalents | (61,698) | 3,707 | 10,296 | (34,832) | (1,504) |
Cash and cash equivalents at the beginning of the period | 85,348 | 81,641 | 49,130 | 58,482 | 60,930 |
Cash and cash equivalents at the end of the period | 23,650 | 85,348 | 59,426 | 23,650 | 59,426 |
22 |
Financial information by business areas
Table 21 - 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 | 9,983 | (10,463) | (11,702) | (10,710) | (60) | (22,952) |
Selling expenses | (65) | (6,703) | (11,778) | (47) | (60) | (18,653) |
General and administrative expenses | (163) | (657) | (247) | (3,833) | − | (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 of assets | (642) | (1,535) | 4 | (6) | − | (2,179) |
Other income and expenses | 14,938 | (1,461) | 520 | (5,648) | − | 8,349 |
Operating income (loss) | 202,593 | 45,808 | 5,292 | (10,741) | (8,441) | 234,511 |
Net finance income (expense) | − | − | − | (20,747) | − | (20,747) |
Results in equity-accounted investments | 776 | 823 | 354 | (20) | − | 1,933 |
Income (loss) before income taxes | 203,369 | 46,631 | 5,646 | (31,508) | (8,441) | 215,697 |
Income taxes | (68,882) | (15,575) | (1,799) | 13,192 | 2,870 | (70,194) |
Net income (loss) | 134,487 | 31,056 | 3,847 | (18,316) | (5,571) | 145,503 |
Net income (loss) attributable to: | ||||||
Shareholders of Petrobras | 134,504 | 31,056 | 3,483 | (18,485) | (5,571) | 144,987 |
Non-controlling interests | (17) | − | 364 | 169 | − | 516 |
Table 22 - Consolidated income by segment - 9M21
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Sales revenues | 211,864 | 284,257 | 44,061 | 1,929 | (223,633) | 318,478 |
Intersegments | 207,677 | 5,349 | 9,755 | 852 | (223,633) | − |
Third parties | 4,187 | 278,908 | 34,306 | 1,077 | − | 318,478 |
Cost of sales | (91,286) | (248,767) | (29,957) | (1,906) | 214,028 | (157,888) |
Gross profit | 120,578 | 35,490 | 14,104 | 23 | (9,605) | 160,590 |
Expenses | 14,276 | (10,334) | (11,645) | (8,103) | (86) | (15,892) |
Selling expenses | (4) | (6,146) | (10,410) | (60) | (86) | (16,706) |
General and administrative expenses | (597) | (574) | (275) | (3,184) | − | (4,630) |
Exploration costs | (2,897) | − | − | − | − | (2,897) |
Research and development expenses | (1,631) | (28) | (101) | (446) | − | (2,206) |
Other taxes | (616) | (543) | (530) | (294) | − | (1,983) |
Impairment of assets | 16,329 | (69) | (914) | 7 | − | 15,353 |
Other income and expenses | 3,692 | (2,974) | 585 | (4,126) | − | (2,823) |
Operating income (loss) | 134,854 | 25,156 | 2,459 | (8,080) | (9,691) | 144,698 |
Net finance income (expense) | − | − | − | (45,452) | − | (45,452) |
Results in equity-accounted investments | 451 | 4,695 | 450 | 2,248 | − | 7,844 |
Income (loss) before income taxes | 135,305 | 29,851 | 2,909 | (51,284) | (9,691) | 107,090 |
Income taxes | (45,850) | (8,553) | (836) | 20,395 | 3,295 | (31,549) |
Net income (loss) | 89,455 | 21,298 | 2,073 | (30,889) | (6,396) | 75,541 |
Net income (loss) attributable to: | ||||||
Shareholders of Petrobras | 89,473 | 21,298 | 1,752 | (30,963) | (6,396) | 75,164 |
Non-controlling interests | (18) | − | 321 | 74 | − | 377 |
23 |
Table 23 - Quarterly consolidated income by segment - 3Q22
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Sales revenues | 101,391 | 154,035 | 21,747 | 657 | (107,754) | 170,076 |
Intersegments | 99,712 | 2,773 | 5,262 | 7 | (107,754) | − |
Third parties | 1,679 | 151,262 | 16,485 | 650 | − | 170,076 |
Cost of sales | (39,049) | (139,607) | (13,849) | (711) | 109,976 | (83,240) |
Gross profit | 62,342 | 14,428 | 7,898 | (54) | 2,222 | 86,836 |
Expenses | (2,316) | (3,519) | (3,078) | (3,463) | (19) | (12,395) |
Selling expenses | (36) | (2,297) | (3,989) | (17) | (19) | (6,358) |
General and administrative expenses | (34) | (253) | (78) | (1,387) | − | (1,752) |
Exploration costs | (565) | − | − | − | − | (565) |
Research and development expenses | (828) | (8) | (7) | (141) | − | (984) |
Other taxes | (47) | 53 | (83) | (412) | − | (489) |
Impairment of assets | (24) | (1,313) | 1 | − | − | (1,336) |
Other income and expenses | (782) | 299 | 1,078 | (1,506) | − | (911) |
Operating income (loss) | 60,026 | 10,909 | 4,820 | (3,517) | 2,203 | 74,441 |
Net finance income (expense) | − | − | − | (7,973) | − | (7,973) |
Results in equity-accounted investments | 237 | (118) | 62 | (10) | − | 171 |
Income (loss) before income taxes | 60,263 | 10,791 | 4,882 | (11,500) | 2,203 | 66,639 |
Income taxes | (20,409) | (3,709) | (1,639) | 6,103 | (749) | (20,403) |
Net income (loss) | 39,854 | 7,082 | 3,243 | (5,397) | 1,454 | 46,236 |
Net income (loss) attributable to: | ||||||
Shareholders of Petrobras | 39,860 | 7,082 | 3,148 | (5,448) | 1,454 | 46,096 |
Non-controlling interests | (6) | − | 95 | 51 | − | 140 |
Table 24 - Quarterly consolidated income by segment - 2Q22
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Sales revenues | 108,041 | 157,429 | 18,390 | 743 | (113,643) | 170,960 |
Intersegments | 106,229 | 2,449 | 4,971 | (6) | (113,643) | − |
Third parties | 1,812 | 154,980 | 13,419 | 749 | − | 170,960 |
Cost of sales | (40,228) | (131,897) | (11,677) | (729) | 109,432 | (75,099) |
Gross profit | 67,813 | 25,532 | 6,713 | 14 | (4,211) | 95,861 |
Expenses | 12,551 | (4,163) | (4,008) | (3,732) | (21) | 627 |
Selling expenses | (19) | (2,267) | (3,815) | (14) | (21) | (6,136) |
General and administrative expenses | (61) | (208) | (85) | (1,235) | − | (1,589) |
Exploration costs | (196) | − | − | − | − | (196) |
Research and development expenses | (939) | (10) | (3) | (128) | − | (1,080) |
Other taxes | (117) | (90) | (42) | (206) | − | (455) |
Impairment of assets | (625) | (222) | − | − | − | (847) |
Other income and expenses | 14,508 | (1,366) | (63) | (2,149) | − | 10,930 |
Operating income (loss) | 80,364 | 21,369 | 2,705 | (3,718) | (4,232) | 96,488 |
Net finance income (expense) | − | − | − | (15,757) | − | (15,757) |
Results in equity-accounted investments | 282 | (474) | 143 | (5) | − | (54) |
Income (loss) before income taxes | 80,646 | 20,895 | 2,848 | (19,480) | (4,232) | 80,677 |
Income taxes | (27,324) | (7,266) | (919) | 7,877 | 1,439 | (26,193) |
Net income (loss) | 53,322 | 13,629 | 1,929 | (11,603) | (2,793) | 54,484 |
Net income (loss) attributable to: | ||||||
Shareholders of Petrobras | 53,327 | 13,629 | 1,796 | (11,629) | (2,793) | 54,330 |
Non-controlling interests | (5) | − | 133 | 26 | − | 154 |
24 |
Table 25 - 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) |
Losses with legal, administrative and arbitration proceedings | (1,980) | (948) | (302) | (939) | − | (4,169) |
Pension and medical benefits - retirees (*) | − | − | − | (4,083) | − | (4,083) |
Performance award program | (838) | (438) | (101) | (684) | − | (2,061) |
Losses with Commodities Derivatives | − | − | − | (627) | − | (627) |
Operating expenses with thermoelectric power plants | − | − | (555) | − | − | (555) |
Profit sharing | (220) | (130) | (25) | (155) | − | (530) |
Transfer of rights on concession agreements | − | − | − | − | − | − |
Amounts recovered from Lava Jato investigation | 90 | − | − | 85 | − | 175 |
Recovery of taxes | − | 45 | 1 | 224 | − | 270 |
Fines imposed on suppliers | 634 | 80 | 171 | 19 | − | 904 |
Government grants | 18 | − | − | 1,669 | − | 1,687 |
Expenses/Reimbursements from E&P partnership operations | 2,314 | − | − | − | − | 2,314 |
Early termination and changes to cash flow estimates of leases | 2,602 | 244 | 86 | (84) | − | 2,848 |
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 4,458 | 534 | 839 | 19 | − | 5,850 |
Results from the compensation of investments in bid areas (**) | 14,193 | − | − | − | − | 14,193 |
Others | 175 | (760) | 520 | (940) | − | (1,005) |
14,938 | (1,461) | 520 | (5,648) | − | 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. | ||||||
(**) It refers to the gain related to the Co-participation Agreements of Atapu and Sépia. |
Table 26 - Other income and expenses by segment - 9M21
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Unscheduled stoppages and pre-operating expenses | (5,073) | (56) | (104) | (48) | − | (5,281) |
Losses with legal, administrative and arbitration proceedings | (972) | (2,201) | (10) | 386 | − | (2,797) |
Pension and medical benefits - retirees | − | − | − | (6,663) | − | (6,663) |
Performance award program | (743) | (407) | (90) | (617) | − | (1,857) |
Losses with Commodities Derivatives | − | − | − | (294) | − | (294) |
Operating expenses with thermoelectric power plants | − | − | (334) | − | − | (334) |
Profit sharing | (202) | (131) | (19) | (144) | − | (496) |
Transfer of rights on concession agreements | 1,579 | − | − | − | − | 1,579 |
Amounts recovered from Lava Jato investigation (*) | 39 | − | − | 1,158 | − | 1,197 |
Recovery of taxes (**) | − | 49 | 169 | 2,635 | − | 2,853 |
Fines imposed on suppliers | 517 | 82 | 33 | 32 | − | 664 |
Government grants | 15 | 6 | − | 137 | − | 158 |
Expenses/Reimbursements from E&P partnership operations | 2,254 | − | − | − | − | 2,254 |
Early termination and changes to cash flow estimates of leases | 1,864 | 156 | (123) | (51) | − | 1,846 |
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 817 | 21 | 296 | 101 | − | 1,235 |
Results from the compensation of investments in bid areas | 3,519 | − | − | − | − | 3,519 |
Others | 78 | (493) | 767 | (758) | − | (406) |
3,692 | (2,974) | 585 | (4,126) | − | (2,823) | |
(*) The total amount recovered from Lava Jato Investigation through December 31, 2021 was R$ 6,220 million, recognized through collaboration and leniency agreements entered into with individuals and legal entities. | ||||||
(**) In the nine-month period ended September 30, 2021, 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. |
25 |
Table 27 - Other income and expenses by segment - 3Q22
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Unscheduled stoppages and pre-operating expenses | (2,220) | (32) | (62) | (76) | − | (2,390) |
Gains / (losses) related to legal, administrative and arbitration proceedings | (1,296) | 288 | (7) | (362) | − | (1,377) |
Pension and medical benefits - retirees (*) | − | − | − | (1,596) | − | (1,596) |
Variable compensation program | (322) | (178) | (35) | (270) | − | (805) |
Gains/(losses) with Commodities Derivatives | − | − | − | 464 | − | 464 |
Operating expenses with thermoelectric power plants | − | − | (196) | − | − | (196) |
Profit Share | (84) | (50) | (9) | (58) | − | (201) |
Transfer of rights on concession agreements | − | − | − | − | − | − |
Amounts recovered from Lava Jato investigation | 90 | − | − | 25 | − | 115 |
PIS and Cofins recovered - VAT tax exclusion from PIS and Cofins tax basis | − | 12 | − | 51 | − | 63 |
Fines imposed on suppliers | 196 | 15 | 114 | (15) | − | 310 |
Government grants | 10 | − | − | 640 | − | 650 |
Expenses/Reimbursements from E&P partnership operations | 1,538 | − | − | − | − | 1,538 |
Early Contract Terminations | 713 | 93 | 70 | (50) | − | 826 |
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 383 | 290 | 876 | 1 | − | 1,550 |
Results from the compensation of investments in bid areas (**) | (50) | − | − | − | − | (50) |
Others | 260 | (139) | 327 | (260) | − | 188 |
(782) | 299 | 1,078 | (1,506) | − | (911) | |
(*) 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. | ||||||
(**) It refers to the gain related to the Co-participation Agreements of Atapu and Sépia. |
Table 28 - Other income and expenses by segment - 2Q22
R$ million | E&P | RTM | GAS & POWER | CORP. | ELIMIN. | TOTAL |
Unscheduled stoppages and pre-operating expenses | (2,428) | (34) | (16) | (42) | − | (2,520) |
Gains / (losses) related to legal, administrative and arbitration proceedings | (365) | (894) | (21) | (205) | − | (1,485) |
Pension and medical benefits - retirees | − | − | − | (1,245) | − | (1,245) |
Variable compensation program | (266) | (134) | (34) | (204) | − | (638) |
Gains/(losses) with Commodities Derivatives | − | − | − | (809) | − | (809) |
Operating expenses with thermoelectric power plants | − | − | (194) | (1) | − | (195) |
Profit Share | (69) | (40) | (8) | (51) | − | (168) |
Transfer of rights on concession agreements | − | − | − | − | − | − |
Amounts recovered from Lava Jato investigation | − | − | − | − | − | − |
PIS and Cofins recovered - VAT tax exclusion from PIS and Cofins tax basis | − | 30 | 1 | 87 | − | 118 |
Fines imposed on suppliers | 196 | 17 | 4 | 22 | − | 239 |
Government grants | 4 | − | − | 648 | − | 652 |
Expenses/Reimbursements from E&P partnership operations | 638 | − | − | − | − | 638 |
Early Contract Terminations | 869 | 46 | − | (33) | − | 882 |
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 1,913 | (55) | (33) | 3 | − | 1,828 |
Results from the compensation of investments in bid areas (*) | 14,243 | − | − | − | − | 14,243 |
Others | (227) | (302) | 238 | (319) | − | (610) |
14,508 | (1,366) | (63) | (2,149) | − | 10,930 | |
(*) It refers to the gain related to the Co-participation Agreements of Atapu and Sépia. |
26 |
Table 29 - Consolidated assets by segment - 09.30.2022
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Total assets | 620,045 | 215,766 | 59,969 | 103,285 | (51,491) | 947,574 |
Current assets | 45,211 | 94,689 | 19,688 | 51,231 | (51,492) | 159,327 |
Non-current assets | 574,834 | 121,077 | 40,281 | 52,054 | 1 | 788,247 |
Long-term receivables | 33,526 | 15,124 | 3,240 | 40,826 | 1 | 92,717 |
Investments | 2,160 | 5,815 | 893 | 173 | − | 9,041 |
Property, plant and equipment | 526,147 | 99,567 | 35,763 | 9,590 | − | 671,067 |
Operating assets | 471,372 | 85,864 | 25,152 | 7,762 | − | 590,150 |
Assets under construction | 54,775 | 13,703 | 10,611 | 1,828 | − | 80,917 |
Intangible assets | 13,001 | 571 | 385 | 1,465 | − | 15,422 |
Table 30 - Consolidated assets by segment - 12.31.2021
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Total assets | 631,412 | 191,898 | 59,087 | 122,215 | (31,661) | 972,951 |
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 |
Assets under construction | 65,978 | 13,018 | 13,961 | 1,473 | − | 94,430 |
Intangible assets | 14,756 | 534 | 383 | 1,206 | − | 16,879 |
27 |
Table 31 - Reconciliation of Adjusted EBITDA by segment - 9M22
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Net income (loss) | 134,487 | 31,056 | 3,847 | (18,316) | (5,571) | 145,503 |
Net finance income (expense) | − | − | − | 20,747 | − | 20,747 |
Income taxes | 68,882 | 15,575 | 1,799 | (13,192) | (2,870) | 70,194 |
Depreciation, depletion and amortization | 40,077 | 8,682 | 1,710 | 274 | − | 50,743 |
EBITDA | 243,446 | 55,313 | 7,356 | (10,487) | (8,441) | 287,187 |
Results in equity-accounted investments | (776) | (823) | (354) | 20 | − | (1,933) |
Impairment | 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 and on remeasurement of investment retained with loss of control | (4,458) | (534) | (839) | (19) | − | (5,850) |
Adjusted EBITDA | 224,661 | 55,492 | 6,159 | (10,480) | (8,441) | 267,391 |
Table 32 - Reconciliation of Adjusted EBITDA by segment - 9M21
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Net income (loss) | 89,455 | 21,298 | 2,073 | (30,889) | (6,396) | 75,541 |
Net finance income (expense) | − | − | − | 45,452 | − | 45,452 |
Income taxes | 45,850 | 8,553 | 836 | (20,395) | (3,295) | 31,549 |
Depreciation, depletion and amortization | 35,639 | 8,737 | 1,743 | 701 | − | 46,820 |
EBITDA | 170,944 | 38,588 | 4,652 | (5,131) | (9,691) | 199,362 |
Results in equity-accounted investments | (451) | (4,695) | (450) | (2,248) | − | (7,844) |
Impairment losses / (reversals) | (16,329) | 69 | 914 | (7) | − | (15,353) |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | − | − | 220 | − | 220 |
Results from co-participation agreements in bid areas | (3,519) | − | − | − | − | (3,519) |
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | (817) | (21) | (296) | (101) | − | (1,235) |
Adjusted EBITDA | 149,828 | 33,941 | 4,820 | (7,267) | (9,691) | 171,631 |
Table 33 - Reconciliation of Adjusted EBITDA by segment - 3Q22
R$ million | E&P | RTM | GAS & POWER | CORP. AND OTHERS | ELIMIN. | TOTAL |
Net income (loss) | 39,854 | 7,082 | 3,243 | (5,397) | 1,454 | 46,236 |
Net finance income (expense) | − | − | − | 7,973 | − | 7,973 |
Income taxes | 20,409 | 3,709 | 1,639 | (6,103) | 749 | 20,403 |
Depreciation, depletion and amortization | 13,435 | 3,029 | 667 | 12 | − | 17,143 |
EBITDA | 73,698 | 13,820 | 5,549 | (3,515) | 2,203 | 91,755 |
Results in equity-accounted investments | (237) | 118 | (62) | 10 | − | (171) |
Impairment | 24 | 1,313 | (1) | − | − | 1,336 |
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments | − | 1 | − | − | − | 1 |
Results from co-participation agreements in bid areas | 50 | − | − | − | − | 50 |
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | (383) | (290) | (876) | (1) | − | (1,550) |
Adjusted EBITDA | 73,152 | 14,962 | 4,610 | (3,506) | 2,203 | 91,421 |