Market Capitalization $64.3 Billion. Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F Annual Dividend Rate PBR BUSINESS DESCRIPTION Petroleo Brasileiro S.A. - Petrobras operates in the oil, natural gas, and energy industries. STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income EPS RETURN ON EQUITY (%) PBR Ind Avg S&P 500 Q Q Q P/E COMPARISON Sector: Energy Sub-Industry: Integrated Oil & Gas Source: S&P HOLD HOLD RATING SINCE 08/08/2017 Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years Rating History SELL Volume in Millions COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History HOLD n/m PBR Ind Avg S&P 500 RECOMMENDATION We rate (PBR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing nesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find nesses including unimpressive growth in net income, operating cash flow and generally higher debt management risk. EPS ALYSIS¹ ($) Q Q Q Q Q Q Q Q Q Q HIGHLIGHTS has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PETROLEO BRASILEIRO SA- PETR continued to lose money by earning -$0.75 versus -$1.31 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus -$0.75) PBR's revenue growth trails the industry average of 24.4%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. = not available NM = not meaningful 1 Compustat fiscal year convention is used for all fundamental data items % is the gross profit margin for which we consider to be. Regardless of PBR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.46% trails the industry average. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has decreased by 9.4% when compared to the same quarter one year ago, dropping from $ million to $96.00 million. Net operating cash flow has declined marginally to $6, million or 2.28% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. Report Date: PAGE 1

2 PEER GROUP ALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) 0% 30% BP IMO UNFAVORABLE 10% RDS.A CVX TOT EBITDA Margin (TTM) STO PBR SU PBR.A FAVORABLE OXY 45% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $23.9 Billion and $258.9 Billion. Companies with or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) 0% 30% UNFAVORABLE PBR.A -6% STO Earnings Yield (TTM) OXY FAVORABLE RDS.A BP SU CVX TOT IMO EC Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between 2.4% and 29.2%. Companies with or NM values do not appear. 8% INDUSTRY ALYSIS The Oil, Gas & Consumable Fuels industry is cyclical in nature and is one of the most important globally because it touches so many others. It is broken down into its component parts by the nature of activity performed. Upstream activities are related to finding and producing commodities; midstream refers to the transportation of product from the wellhead to intermediate customers; and, downstream includes the refining, transformation and marketing of related products. Coal producers are integrated, much like the players in alternative fuels like uranium. Some of the largest players in the industry are the integrated oil & gas producers (aka Big Oil). Close to two-thirds of the world s energyneeds are satisfied by hydrocarbons (crude oil and natural gas). Althoughconservation, increased efficiency and substitutes are gaining in prominence,they are not likely to significantly reduce this dependence in the near future.crude oil prices have moderated at present due to lagging economies and newsupplies coming online. In 2004, West Texas Intermediate (WTI) crude oil brokeout of its historic trading range of $10 to $40 per barrel on a steady climb tomore than $145 per barrel in June 2008 before crashing to under $40 by the endof Since then the price of spot crude has climbed back near the $90 to$110 range before falling again. Natural gas prices, responding to excesssupply, have retreated to the $2 to $4 range per million BTU (British thermalunit). Coal prices are dependent on the energy content of the type of coalconsidered and its location, but it, too, has climbed significantly over thepast few years. Following nearly 20 years of underinvestment,the supply of crude oil is now keeping pace with slackening demand. Longer term demandshould grow at about 1.8% per year, meaning it is expected to grow more than40% over the next 20 years. Natural gas demand is expected to rise over time,according to the American Petroleum Institute, as its cleaner-burningproperties increase in value for industry. Coal consumption is projected togrow at about 1.7% per year over the next 20 years, based on US EnergyInformation Administration forecasts. Analysis of companies in this industry beginsby forming a view of the global economy and geopolitics, which is combined witha supply and demand analysis that leads to commodity price forecasts. At theindividual firm level, how efficiently a company operates goes a long way indetermining its profitability. Supply management is an important factor, too,as high commodity prices are affected by how much supply the industry as awhole produces. Geographic positioning can also be important, as regionaleconomic cycles may not synch up well with each other. The so-called supermajor integrated oilcompanies include Exxon Mobil (XOM), BP Plc (BP), Chevron (CVX), Total SA(TOT), and ConocoPhillips (COP). Some of the other major Exploration &Production firms include Anadarko Petroleum (APC), DevonEnergy (DVN) and Apache (APA). On the Refining & Marketing level, majorplayers include Valero Energy (VLO), Sunoco (SUN), and Tesoro (TSO). The majoruranium producer is Cameco (CCJ). PEER GROUP: Oil, Gas & Consumable Fuels Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) PBR PETROLEO BRASILEIRO SA- PET ,271 NM 85, , STO STATOIL ASA ,113 NM 56, PBR.A ,271 NM 85, , SU SUNCOR ENERGY INC , , , OXY OCCIDENTAL PETROLEUM CORP , , IMO IMPERIAL OIL LTD , , , RDS.A ROYAL DUTCH SHELL PLC , , , EC ECOPETROL SA , , , CVX CHEVRON CORP , , , TOT TOTAL SA , , , BP BP PLC , , , The peer group comparison is based on Major Integrated Oil & Gas companies of comparable size. Report Date: PAGE 2

3 Annual Dividend Rate COMPANY DESCRIPTION Petroleo Brasileiro S.A. - Petrobras operates in the oil, natural gas, and energy industries. The company's Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of surplus crude oil and oil products produced in the natural gas processing plants to the domestic and international markets. Its Refining, Transportation and Marketing segment is involved in refining, logistics, transport, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, as well as holding interests in petrochemical companies. The company's Gas and Power segment engages in the transportation and trading of natural gas and liquid natural gas; importation of natural gas; generation and trading of electricity; holding interests in transportation and distribution of natural gas, and thermoelectric power plants; and fertilizer business. Its Biofuels segment is involved in the production of biodiesel and its co-products, as well as the equity investment, production, and trading of ethanol, sugar, and electric power generated from sugarcane bagasse. The company's Distribution segment sells oil products, ethanol, and vehicle natural gas in Brazil, as well as distributes oil products in South America. Petroleo Brasileiro S.A. - Petrobras was founded in 1953 and is headquartered in Rio de Janeiro, Brazil. Av. Republica do Chile, n 65 Rio de Janeiro BRA Employees: STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of PBR shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 1.5 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, PBR has a growth score better than 20% of the stocks we rate. Total Return 2.5 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company has beaten 40% of the companies we cover. Efficiency 1.5 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 20% of the companies we review. Price volatility 2.5 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 40% of the stocks we monitor. Solvency 1.0 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 10% of the companies we analyze. Income 0.5 out of 5 stars Measures dividend yield and payouts to shareholders. This company pays no dividends. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. Report Date: PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial 0.55 Q4 FY E 2017(E) 1.53 E 2018(E) INCOME STATEMENT Net Sales ($mil) 20, , EBITDA ($mil) 6, , EBIT ($mil) 3, , Net Income ($mil) FINCIAL ALYSIS 's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. has average liquidity. Currently, the Quick Ratio is 1.49 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year. During the same period, stockholders' equity ("net worth") has decreased by 7.53% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit BALANCE SHEET Cash & Equiv. ($mil) 24, , Total Assets ($mil) 244, , Total Debt ($mil) 112, , Equity ($mil) 78, , PROFITABILITY Gross Profit Margin 46.24% 48.13% EBITDA Margin 31.07% 28.80% Operating Margin 14.46% 11.26% Sales Turnover Return on Assets -1.27% -4.19% Return on Equity -3.98% % DEBT Current Ratio Debt/Capital Interest Expense 1, , Interest Coverage SHARE DATA Shares outstanding (mil) 6,522 6,522 Div / share EPS Book value / share Institutional Own % Avg Daily Volume 15,570,547 16,692,447 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. Report Date: PAGE 4

5 RATINGS HISTORY Our rating for has not changed since 8/8/2017. As of 11/16/2017, the stock was trading at a price of which is 14.9% below its 52-week high of $11.71 and 31.0% above its 52-week low of $ Year Chart SELL: $ HOLD: $8.90 $13 $10 MOST RECENT RATINGS CHANGES Date Price Action From To 8/8/17 $8.90 Upgrade Sell Hold 11/16/15 $4.97 No Change Sell Sell Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 11/16/2017) 43.95% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: $8 $5 VALUATION HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.83 indicates a significant discount versus the S&P 500 average of 3.16 and a significant discount versus the industry average of The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, proves to trade at a discount to investment alternatives within the industry. Price/Earnings PBR NM Peers Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. PBR's P/E is negative making this valuation measure meaningless. Price/Projected Earnings PBR 6.54 Peers Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. Price/Book PBR 0.83 Peers 4.60 Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. Price/Sales PBR 0.76 Peers 2.06 Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PBR is trading at a significant discount to its industry on this measurement. DISCLAIMER: Price/CashFlow PBR 2.25 Peers 9.57 Discount. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. Price to Earnings/Growth PBR Peers 0.50 Neutral. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. Earnings Growth lower higher PBR Peers Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, PBR is expected to significantly trail its peers on the basis of its earnings growth rate. Sales Growth lower higher PBR 2.41 Peers Lower. A sales growth rate that trails the industry implies that a company is losing market share. PBR significantly trails its peers on the basis of sales growth The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at Report Date: PAGE 5