RESULTS ANNOUNCEMENT 1Q17

Transcription

1 Clique para editar o título mestre Clique para editar o texto mestre RESULTS ANNOUNCEMENT Clique para editar o texto mestre Conference Call / Webcast May, 12th 2017

2 Disclaimer FORWARD-LOOKING STATEMENTS: DISCLAIMER The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of thesecurities Exchange Act of 1934,as amended, that arenotbased on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing. We undertake no obligation to publicly update or revise any forward-looking statements,whetherasaresultofnewinformationorfutureeventsorforanyother reason. Figures for 2017 on are estimates or targets. All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation. In addition, this presentation also contains certain financial measures that are not recognized under Brazilian GAAP or IFRS. These measures do not have standardized meanings and may not be comparable to similarly-titled measures provided by other companies. We are providing these measures because we use them as a measure of company performance; they should not be considered in isolation or as a substitute for other financial measures that have been disclosed in accordance with Brazilian GAAP or IFRS. NON-SEC COMPLIANT OIL AND GAS RESERVES: CAUTIONARY STATEMENT FOR US INVESTORS We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission(SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X. 2

3 Highlights Safety 26% decrease of TRI (Total Recordable Injury Frequency Rate) relative to, reaching 1.24 Constant improvement of economic and financial results Net income of R$ 4.45 Billion, reversing the loss Operating income of R$ Billion, 75% higher than 19% increase of adjusted EBITDA relative to, reaching a historic record of R$ Billion. EBITDA margin of 37%, the highest since 2009 Free cash flow of R$ Billion, positive for 8 quarters in a row and 5.6 times figures. Acceleration of deleverage process 5% decrease in gross debt in reaisand 3% in US dollars compared to 12/31/16 Increase of average debt duration to 7.61 years from 7.46 years on due to liability management Reduction in Net Debt/adjusted EBITDA to 3.24 from 3.54 and in leverage to 54% from 55% 3

4 Highlights Total production of 2,805 kboed, 7% above Average oil production in Brazil of 2,182 kbpd, 10% higher than Operating performance Oil products sales in Brazil of 1,951 kbpd, a decrease of 5% relative to Petrobras has maintained a net exporting position given the 72% increase in exports and 40% decrease in imports, relative to Oil exports at higher prices due to the increase in Brent and the appreciation of the Brazilian crude oil streams Progress in Efficiency Reductions compared to : 18% in manageable operating costs 27% in SG&A 17% decrease in headcount 4

5 OPERATIONAL HIGHLIGHTS Clique para editar o título mestre Clique para editar o texto mestre Clique para editar o texto mestre

6 Production growth of 7% compared to With a noteworthy 10% increase in Brazil +7% 2, , ,980 2,182 Oil + Gas Abroad Gas Brazil Oil Brazil Pre-salt oil production operated by Petrobras (million bpd) 1.24 In January 4 th, 2017 we reached the record of 1.34 Million barrels of oil produced per day 6 1T16 2Q16 2T16 3Q16 3T16 4T16 1T17 1Q08 3T08 2Q08 4T08 3Q08 1T09 4Q08 2T09 1Q09 3T09 2Q09 4T09 3Q09 1T10 4Q09 2T10 1Q10 3T10 2Q10 4T10 3Q10 4Q10 1T11 1Q11 2T11 2Q11 3T11 3Q11 4T11 4Q11 1T12 1Q12 2T12 2Q12 3T12 3Q12 4T12 4Q12 1T13 1Q13 2T13 2Q13 3T13 3Q13 4T13 4Q13 1T14 1Q14 2T14 2Q14 3T14 3Q14 4T14 4Q14 1T15 1Q15 2Q15 2T15 3Q15 3T15 4Q15 4T15 Oil and Gas Production (kboed/d)

7 3 new systems and1 EWT* expectedtostart operation P-66 is on location to start production P-66 LIBRA PIONEER P-67 CIDADE DE CAMPOS DOS GOYTACAZES Libra EWT Crossing the Atlantic Lula North COOEC Shipyard Tartaruga Verde e Mestiça Brasfels Shipyard Lula South On Location * Extended Well Test 7

8 Lower oil products output aligned with lower sales volumes Demand influenced by the slowdown in the domestic economy Participation of domestic oil in refineries throughput Oil products output % +7% +1% kbbl/day 1, % 0% 1,810 1, Others Gasoline Diesel Diesel, gasoline and jet fuel yield % kbbl/day Sales Volume* -5% -2% 2,056 2,001 1, Others Gasoline Diesel * Includes Downstream and BR Distribuidora sales 8

9 Exports of 779 kbpdof oil and oil products in, a net balance of 489 kbpd Imports Exports Net Balance kbbl/day 779 Oil Products Oil

10 Natural Gas Supply and Demand Higher domestic supply of natural gas and lower thermoelectric demand Natural Gas Supply Natural Gas Demand MMm³/day % % 73 2 MMm³/day 81-9% 77-5% LNG Bolivia Domestic Non-Thermoelectric Thermoelectric Downstream/Fertilizers System Gas 10

11 RESULTS 11

12 Constant increase of Brent prices and appreciation of the real since Brent (US$/bbl) +59% +9% Q15 2Q15 3Q15 4Q15 2Q16 3Q16 R$/bbl FX Rate (R$/US$) -19% -5% 2,87 3,07 3,54 3,84 3,90 3,51 3,25 3,30 3,15 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 End of Period

13 Improvement in results throughout the last quarters R$ Billion Gross Income Operating Income +13% +4% +75% +21% Net Financial Results Net Income +77%

14 EBITDA growth, with an unprecedented result Adjusted EBITDA (R$ Billion) +19% +2% Highest quarterly EBITDA ever 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 AdjustedEBITDA Margin (%) +7 p.p. +2 p.p Highest EBITDA margin (since 2009) 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 14

15 Freecash flowfor eightquartersin a row R$ Billion Operating Cash Flow +34% -2% Free Cash Flow +461% +12% Investments % -16% Cash Basis 15

16 Reduction in manageable operating costs Reducedcostslevelwillnotpersistin theupcomingquarters, mainlyduetothesaleofnts Manageable Operating Costs Workforce % % ,406-17% 68,829-5% 65,220 R$ Billion Sales Expenses General and Administrative Expenses % % % % 2.3 R$ Billion R$ Billion 16

17 Alongside operating costs under control Lifting Cost (Brazil and Abroad) Lifting Cost (Brazil and Abroad) % % % % 10.6 R$ / boe US$ / boe Refining Cost (Brazil) Refining Cost (Brazil) +9% -1% +34% +4% R$ / bbl US$ / bbl 17

18 Reduction in debt and leverage Debt R$ Billion Debt US$ Billion Q16 3Q16 2Q16 3Q16 Total Debt Net Debt Cost of debt(% p.y.) 6,0 6,2 6,2 Average duration(years) 7,04 7,46 7,61 Total Debt Net Debt Leverage(%)

19 ConvergingtotheNet Debt/ EBITDA target Net Debt/ EBITDA* (x) Q15 2Q16 3Q16 * LTM Adjusted EBITDA 19

20 Active liability management resulted in an extension of maturities US$ Billion Debt Amortization Schedule Position as of 12/31/2015 Position as of 03/31/

21 We maintain a good liquidity projection US$ Billion Tender Offer Amortizations Interest Final Cash Position Operating Cash Flow Judicial Guarantees Interest and Amortizations Investment Divestments Borrowings 2017 Final Cash Position 21

22 RESULTS ANNOUNCEMENT Information: Investor Relations