1
RESULTS ANNOUNCEMENT1st Quarter 2015__
Conference Call / WebcastMay, 18th 2015
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DISCLAIMER
FORWARD-LOOKING STATEMENTS:
DISCLAIMER
The presentation may contain forward-looking statements about futureevents within the meaning of Section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of 1934, asamended, that are not based on historical facts and are not assurances offuture results. Such forward-looking statements merely reflect theCompany’s current views and estimates of future economic circumstances,industry conditions, company performance and financial results. Suchterms as "anticipate", "believe", "expect", "forecast", "intend", "plan","project", "seek", "should", along with similar or analogous expressions, areused to identify such forward-looking statements. Readers are cautionedthat these statements are only projections and may differ materially fromactual future results or events. Readers are referred to the documents filedby the Company with the SEC, specifically the Company’s most recentAnnual Report on Form 20-F, which identify important risk factors thatcould cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to generaleconomic and business conditions, including crude oil and othercommodity prices, refining margins and prevailing exchange rates,uncertainties inherent in making estimates of our oil and gas reservesincluding recently discovered oil and gas reserves, international andBrazilian political, economic and social developments, receipt ofgovernmental approvals and licenses and our ability to obtain financing.
We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or futureevents or for any other reason. Figures for 2015 on are estimates ortargets.
All forward-looking statements are expressly qualified in their entiretyby this cautionary statement, and you should not place reliance on anyforward-looking statement contained in this presentation.
NON-SEC COMPLIANT OIL AND GAS RESERVES:
CAUTIONARY STATEMENT FOR US INVESTORS
We present certain data in this presentation, such as oil and gasresources, that we are not permitted to present in documents filed withthe United States Securities and Exchange Commission (SEC) undernew Subpart 1200 to Regulation S-K because such terms do notqualify as proved, probable or possible reserves under Rule 4-10(a) ofRegulation S-X.
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1Q15 Net Result: R$ 5.3 billion
� Lower unit import cost� Lower government take
� Provision of Voluntary Separation Incentive Program – PIDV (R$ 2.4 billion) in the 1Q14
� Reversal of provision for losses in the electricity sector (R$ 1.3 billion)
� BRL devaluation� Higher debt� Lower capitalized interest
� Lower oil products sales� Lower oil prices
R$ Billion 1Q15 1Q14 ∆%Sales Revenues 74.4 81.5 -9
Cost of Sales -51.9 -62.4 -17
Gross Profit 22.4 19.2 17
Operational Expenses -9.1 -11.6 -22
Net income before financial results and others 13.3 7.6 76
Financial Results -5.6 -0.2 2,700
Share of earning in equity-accounted investments 0.2 0.5 -67
Profit-sharing -0.3 -0.3 0
Net income before income taxes 7.6 7.6 0
Income Taxes -3.0 -1.8 68
Non-controlling interest 0.8 -0.4 -304
Net Income 5.3 5.4 -1
Adjusted EBITDA 21.5 14.3 50
Investments 17.8 20.6 -13
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Exchange Rate and Oil Prices
Average Exchange Rate(R$/US$)
End of Period FX
2.26 2.66 3.21
1Q14
2.37
+21%
1Q15
2.87
4Q14
2.54
Average Oil Prices – Brent (US$/bbl)
BrentR$/bbl
256 194 155
54
76
108
1Q15
-50%
4Q141Q14
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1Q15 Highlights
Operational
Financial
R$ Billion 1Q14 1Q15 ∆%
Gross Profit 19.2 22.4 17
Gross Margin 23% 30% 7 p.p.
Adjusted EBITDA 14.3 21.5 50
EBITDA Margin 18% 29% 11 p.p.
� Total oil and natural gas production of 2.8 million boed, 11% higher than1Q14.
� Monthly record of oil production in Pre-Salt of 672 thousand bpd in March. InApril, new monthly record of 715 thousand bpd.
� Operation start-up:
� Extended Well Test in Búzios;
� P-61 (Papa-Terra);
� Hadrian South Field (Gulf of Mexico).
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Technological Acknowledgement of Petrobras at OTCSince the 80’s, Petrobras has been innovating in ultra-deep water exploration
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Mount Everest
8,8 km
1st oil field
found in
Campos Basin
OTC
Award
1992
1st FPSO
Production
System
OTC
Award
2001
1st commercial
discovery in
Pre-Salt
OTC
Award
2015
Deepest
flexible riser
water depth
6
8 km
0 km
K2 MOUNTAIN(8.6 km)
Source: iStock/Petrobras images
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Pre-Salt Highlights
* Petrobras and partners production
0
100
200
300
400
500
600
700
800
Average Monthly Production(thousand bpd)*
Monthly Record in April/2015: 715Thousand bpd
February 2013: 300Thousand bpd
2.4 x
800 thousand bpdDaily Production Record
04/11/2015
2008 2009 2010 2011 2012 2013 2014 April
2015
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0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014
Drilling Completion
Pre-Salt Highlights
Lula and Sapinhoá field
Source: Evaluate Energy
* Without government take
54% of time reduction in well drilling and completion
Lifting Cost* in 2014 (US$/boe)
14.97
14.57
9.07
Others
PetrobrasAverage
Pre-Salt
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Exploration and Production
Operating Efficiency in Brazil
90% 91% 92%
400
453 467
106
118
2,803
2,149
100
2015Target
2,796
+10.7%
90
1Q14
2,531
1,922
91
87
4Q14
2,799
2,150Oil and NGL Brazil
Natural Gas Brazil
Oil and NGL Abroad
Natural Gas Abroad
Oil and NGL Brazil Target2,125
1Q15
Oil and Gas Production – Brazil and Abroad (thousand boed)
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Exploration and Production
1Q15: Oil and Gas Production – Petrobras x Majors (thousand boed)
554881
2,682
1,801
2,803
2,249Oil/NGL
Natural Gas 3,112
1,542
1,570
3,293
2,074
1,219
4,248
2,277
1,971
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Exploration and Production
30 34
61
14
1217
26
8
47
1Q152014
22
87
2013 Apr-Dec/15
51
2012
42
Producers
Injectors
Connection of New Wells in Brazil
PLSVs 12 11 19 16
Productivity(Km/PLSV)
94 90 97 91
69
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Oil Products Sales in Brazil
% of Imports 17 17 15
Sales Volume in Brazil(thousand bpd)
947 907
601644
573
823833
750
-5.9%
Diesel
Gasoline
Others
1Q15
2,230
4Q14
2,487
1,010
1Q14
2,371
Decrease due to:
� lower economic activity;
� increase of percentage of ethanol in gasoline and biodiesel in diesel;.
� increase in ethanol sales.
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Oil Products Output
UTILIZATION FACTOR 96% 98% 86%
Yield(Diesel, Gasoline and Jet Fuel)
66% 67% 67%
Oil Products Output in Brazil (thousand bpd)
822 867 796
483 490423
290 281264
208 219
177
130128125
105
-8%
Gasoline
Diesel
LPG
Naphtha
Jet Fuel
Fuel Oil
Others
1Q15
1.964
74100
4Q14
2.171
82104
1Q14
2.124
92 � Lower production due to scheduled stoppage in RLAM
� RNEST start-up partially offset this decrease.
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Operating Income Evolution 1Q14 x 1Q15
R$ Billion
1Q14Operating
Income
0.1
InternationalActivities
0.016.8
Gas andPower
1.5
Biofuel
-0.4
Corporate
0.0
Distribution
13.3
Elimination
+76%
1Q15Operating
Income
E&P
-11.4
Downstream
-0.8
7.6
1Q15 9.3 4.9 2.1 0.4 0.9 0.0 -4.2 0.0
1Q14 -7.4 16.2 0.6 0.5 0.8 -0.1 -3.4 0.4
∆ 16.8 -11.4 1.5 0.0 0.1 0.0 -0.8 -0.4
Contribution per Segment
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Consolidated Net Income Evolution 1Q14 x 1Q15
R$ Billion
0.1
PIDV
2.4
COGS
10.4
Revenues
-7.2
1Q14Net Income
5.4
Income Taxes
-1.2
FinancialResults
-5.4
OtherExpenses
5.3
1Q15Net Income
Others
0.8
1T15 74.4 -51.9 0.0 -9.1 -5.6 -3.0 0.6
1T14 81.5 -62.4 -2.4 -9.1 -0.2 -1,8 -0.2
∆ -7.2 10.4 2.4 0.1 -5.4 -1.2 0.8
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Costs Evolution
RefiningCost
LiftingCost*
* Excludes government take
+15%
1Q15
38.13
13.27
4Q14
36.12
14.21
1Q14
33.14
14.15
R$/boeUS$/boe
8.16
2.84
4Q14
6.90
2.71
+26%
1Q151Q14
6.48
2.75
� Higher lifting cost due to increase in workovers in 1Q15.
� Higher refining cost due to reductionin throughput in 1Q15.
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General and Administrative Expenses
R$ Billion
General and Administrative Expenses
1Q15
+6%
3.4
4Q14
2.62.7
1Q14
� Increase in line with inflation in theperiod.
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Financial Ratios - Indebtedness
LE
VE
RA
GE
ND
/ EB
ITD
A
1)Net Debt / Annualized Adjusted EBITDA (Adjusted EBITDA = EBITDA excluding earnings of equity-accounted investments and impairments)2)Net Debt / (Net Debt + Shareholders Equity)
4.00 3.94
5.024.77
3.86
39% 40%43%
48%52%
0%
10%
20%
30%
40%
50%
60%
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
1Q14 2Q14 3Q14 4Q14 1Q15
Net debt / EBITDA ¹ Net debt / Net capitalization ²
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Indebtedness
1) Includes government securities and time deposits (maturity longer than 90 days)
Indebtedness
Indebtedness (R$ Billion) 03/31/15 12/31/14
Short-term debt 39.8 31.6
Long-term debt 360.9 319.5
Total Indebtedness 400.7 351.0
(-) Cash and cash equivalents ¹ 68.2 68.9
= Net debt 332.5 282.1
Indebtedness (US$ Billion)
Net debt 103.6 106.2
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2015 Cash Flow
US$ Billion
US$ 60 /bbl (average)
R$ 3.10 /US$ (average)
Oil Prices
Exchange Rate
2013
23
25
26
-21
Interest, Amortizations
and Others
-29
InvestmentsOpeartingCash Flow
2015 Initial Cash Position
2015 Final Cash Position
Funding NeedsRolloversDivestments
2,796 kboedTotal Production
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RESULTS ANNOUNCEMENT1ST Quarter 2015__
Information:
Investor Relations
+55 21 3224-1510
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