SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of May, 2015
Commission File Number 1-15106
PETRÓLEO BRASILEIRO S.A. - PETROBRAS
(Exact name of registrant as specified in its charter)
Brazilian Petroleum Corporation - PETROBRAS
(Translation of Registrant's name into English)
Avenida República do Chile, 65
20031-912 - Rio de Janeiro, RJ
Federative Republic of Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
FIRST QUARTER OF 2015
RESULTS
Rio de Janeiro – May 15, 2015
Petrobras announces today its consolidated results for the 1Q-2015 reviewed by independent auditors, stated in millions of U.S. dollars, prepared in accordance with International Financial Reporting Standards - IFRS issued by the International Accounting Standards Board - IASB.
Consolidated net income attributable to the shareholders of Petrobras and Adjusted EBITDA in the 1Q-2015 were US$ 1,862 million and US$ 7,516 million, respectively.
Key events
US$ million |
|
|
|
|
|
|
Jan-Mar |
|
|
2015 |
2014 |
2015 x 2014 (%) |
|
4Q-2014 |
1Q15 X 4Q14 (%) |
|
|
|
|
|
|
1,862 |
2,280 |
(18) |
Consolidated net income (loss) attributable to the shareholders of Petrobras |
(9,722) |
(119) |
2,803 |
2,531 |
11 |
Total domestic and international crude oil and natural gas production (Mbbl/d) |
2,799 |
− |
7,516 |
6,068 |
24 |
Adjusted EBITDA |
7,881 |
(5) |
|
|
|
|
|
|
The Company reported net income of US$ 1,862 million in the 1Q-2015 compared to a US$ 9,722 million loss in the 4Q-2014, mainly due to the following events:
· Diesel (5%) and gasoline (3%) price increases on November 7, 2014;
· Lower cost of sales due to decreased crude oil and oil product import costs and volumes;
· Lower export revenues, affected by a decrease in international crude oil prices (average Brent prices decreased by 29% in the 1Q-2015 compared to the 4Q-2014);
· Decreased domestic oil product sales (10%) due to the seasonal consumption in the 4Q-2014 and lower economic activity in Brazil;
· US$ 1,963 million net finance expense in the 1Q-2015 compared to US$ 713 million in the 4Q-2014;
· The Company reached a monthly average crude oil production record level of 672 thousand barrels per day in the pre-salt layer in the first quarter of 2015 (on April 11, 2015 the Company reached a crude oil production record level of 800 thousand barrels per day at the pre-salt layer); and
· Production start-up of P-61 platform in Papa-Terra field in the Campos Basin and of the early production system in Búzios field (Santos Basin), as well as the production start-up of Hadrian South field in ultra-deep waters of the Gulf of Mexico.
Comments from the CEO |
Page 2 |
Financial and Operating Highlights |
Page 3 |
|
|
1
|
Comments from the
CEO
Mr. Aldemir
Bendine
Dear Shareholders and
Investors,
During the first quarter
of 2015 we reached an operating income of US$ 4.7 billion and an adjusted EBITDA
of US$ 7.5 billion, an increase of 45% and 24%, respectively, when compared to
the first quarter of 2014. This result is mainly explained by the higher oil
production, higher fuel sales margins in Brazil and lower production taxes and
imports. Our net income decreased 18% relative to the first quarter of 2014,
mainly as a result of the exchange rate devaluation in the
period.
We are working to
maintain our financial and economic performances at high levels. In previous
opportunities, I have mentioned that our goal is to develop a profitable
Company, with excellence in Corporate Governance, and that is able to
efficiently utilize its assets to generate the highest value to shareholders and
investors. With that in mind, we are preparing a new business plan that will
outline our vision for the future of Petrobras.
An important element of
this plan is the deleveraging of the Company. We intend to accomplish it
gradually, respecting the existing contracts and establishing a balance with the
production growth.
Finally, I would like to
once again congratulate the Company´s employees, the ones responsible for
another “OTC Distinguished Achievement Award for Companies, Organizations, and
Institutions”, the most important international offshore industry award. Such
recognition proves that Petrobras has the necessary expertise, technology and
resources for the construction of a company that aims at creating maximum value
in its operations.
Aldemir Bendine,
CEO.
2
|
FINANCIAL AND OPERATING
HIGHLIGHTS
Main
Items and Consolidated Economic Indicators
|
|
|
Jan-Mar |
|
4Q-2014 |
1Q15 X 4Q14 (%) |
|
2015 |
2014 |
2015 x 2014 (%) |
|
|
|
|
|
|
33,409 |
(22) |
Sales
revenues |
25,967 |
34,494 |
(25) |
8,649 |
(10) |
Gross
profit |
7,827 |
8,106 |
(3) |
(12,168) |
138 |
Net income (loss)
before finance income (expense), share of earnings in equity-accounted
investments, profit sharing and income taxes |
4,658 |
3,203 |
45 |
(713) |
(175) |
Net
finance income (expense) |
(1,963) |
(73) |
(2,589) |
(9,722) |
119 |
Consolidated net
income (loss) attributable to the shareholders of
Petrobras |
1,862 |
2,280 |
(18) |
(0.75) |
119 |
Basic and diluted
earnings (losses) per share 1 |
0.14 |
0.17 |
(18) |
|
|
|
|
|
|
26 |
4 |
Gross
margin (%) 2 |
30 |
23 |
7 |
(36) |
54 |
Operating margin (%)
2 |
18 |
9 |
9 |
(29) |
36 |
Net
margin (%) 2 |
7 |
7 |
− |
7,881 |
(5) |
Adjusted EBITDA –
U.S.$ million 3 |
7,516 |
6,068 |
24 |
|
|
|
|
|
|
|
|
Net income (loss)
before finance income (expense), share of earnings in equity-accounted
investments, profit sharing and income taxes by business
segment |
|
|
|
1,688 |
1 |
.
Exploration & Production |
1,706 |
6,871 |
(75) |
(12,087) |
127 |
.
Refining, Transportation and Marketing |
3,265 |
(3,140) |
204 |
179 |
310 |
. Gas
& Power |
734 |
268 |
174 |
(22) |
36 |
.
Biofuel |
(14) |
(28) |
50 |
262 |
14 |
.
Distribution |
298 |
320 |
(7) |
(1,013) |
114 |
.
International |
140 |
192 |
(27) |
(1,759) |
16 |
.
Corporate |
(1,471) |
(1,430) |
(3) |
|
|
|
|
|
|
9,664 |
(36) |
Capital
expenditures and investments |
6,233 |
8,708 |
(28) |
|
|
|
|
|
|
|
|
Financial and economic
indicators |
|
|
|
76.27 |
(29) |
Brent crude
(U.S.$/bbl) |
53.97 |
108.22 |
(50) |
2.54 |
13 |
Average commercial
selling rate for U.S. dollar (R$/U.S.$) |
2.87 |
2.37 |
21 |
2.66 |
21 |
Period-end
commercial selling rate for U.S. dollar (R$/U.S.$) |
3.21 |
2.26 |
42 |
8.4 |
12 |
Variation of the
period-end commercial selling rate for U.S. dollar (%) |
20.8 |
(3.4) |
24 |
11.22 |
1 |
Selic
interest rate - average (%) |
12.19 |
10.40 |
2 |
|
|
|
|
|
|
|
|
Average
price indicators |
|
|
|
90.01 |
(14) |
Domestic basic oil
products price (U.S.$/bbl) |
77.80 |
96.25 |
(19) |
|
|
Domestic Sales price |
|
|
|
66.49 |
(35) |
. Crude oil
(U.S.$/bbl) 4 |
43.40 |
98.02 |
(56) |
45.54 |
(11) |
. Natural gas
(U.S.$/bbl) |
40.76 |
47.33 |
(14) |
|
|
International Sales
price |
|
|
|
73.66 |
(21) |
. Crude oil
(U.S.$/bbl) |
58.40 |
84.18 |
(31) |
22.26 |
1 |
. Natural gas
(U.S.$/bbl) |
22.40 |
23.28 |
(4) |
|
|
|
|
|
|
1 Net income (loss) per
share calculated based on the weighted average number of shares.
2 Gross margin equals
sales revenues less cost of sales divided by sales revenues; Operating margin
equals net income (loss) before finance income (expense), share of earnings in
equity-accounted investments, profit sharing and income taxes divided by sales
revenues; Net margin equals consolidated net income (loss) attributable to the
shareholders of Petrobras divided by sales revenues.
3 Adjusted EBITDA equals
net income plus net finance income (expense); income taxes; depreciation,
depletion and amortization; share of earnings in equity-accounted investments
and impairment. Adjusted EBITDA is not a measure defined by IFRS and it is
possible that it may not be comparable to similar measures reported by other
companies. It should not be considered as a substitute for income before taxes,
finance income (expense), profit sharing and share of earnings in
equity-accounted investments or as a better measure of liquidity than cash flow
provided by operations, both of which are calculated in accordance with IFRS.
The Company reports its Adjusted EBITDA to give additional information about its
ability to pay debt, carry out investments and cover working capital
needs. See Consolidated Adjusted EBITDA by Business Segment and a
reconciliation of Adjusted EBITDA to net income on page 22.
4 Average
between the exports prices and the internal transfer prices from Exploration
& Production to Refining, Transportation and Marketing.
3
|
FINANCIAL AND OPERATING
HIGHLIGHTS
RESULTS OF
OPERATIONS
1Q-2015
compared to the 1Q-2014:
Virtually all revenues
and expenses of our Brazilian operations are denominated and payable in
Brazilian Reais. When the Brazilian Real depreciates relative to the U.S.
dollar, as it did during the first quarter of 2015 (a 21% depreciation),
revenues and expenses decrease when translated into U.S. dollars. Nevertheless,
the depreciation of the Brazilian Real against the U.S. dollar affects the line
items discussed below in different ways.
Gross
Profit
Gross profit decreased
by 3% (US$ 279 million) in the 1Q-2015 compared to the
1Q-2014, mainly due
to:
Ø Sales
revenues of US$ 25,967 million, a decrease of 25% compared to the 1Q-2014 (US$
34,494 million), resulting from:
·
Lower export prices and a decrease in the price
of oil products sold in the Brazilian market that were adjusted to reflect a
decrease in international crude oil and oil product prices (Brent prices
decreased by 50%). These effects were partially offset by the positive impact of
the depreciation of the Real (21%) on the price (in reais) of oil
products that were adjusted to reflect international prices, along with higher
diesel and gasoline prices following a price increase on November 7, 2014; and
·
Decreased domestic oil product demand (6%),
mainly of naphtha (30%), diesel (4%) and gasoline (5%), due to a decrease in
economic activity in Brazil.
·
Foreign currency translation effects
(depreciation of the Brazilian Real against the U.S. dollar) reduced sales
revenues expressed in U.S. dollars. Sales revenues were 9% lower in
Reais.
These effects were
partially offset by higher crude oil export volumes (44%).
Ø Cost of sales was US$
18,140 million in the 1Q-2015, a decrease of 31%
compared to the 1Q-2014 (US$ 26,388 million),
due to:
·
Lower import costs and production taxes
attributable to a decrease in international crude oil prices (50%), partially
offset by the impact of the depreciation of the Brazilian Real against the U.S.
dollar (21%) on those costs;
·
Decreased domestic oil product sales volumes,
lower share of crude oil imports on feedstock processing and a lower share of
oil product imports in the sales mix; and.
·
Foreign currency translation effects. Cost of
sales was 17% lower in reais.
Net income
before finance income (expense), share of earnings in equity-accounted
investments, profit sharing and income taxes
Net income before
finance income (expense), share of earnings in equity-accounted investments,
profit sharing and income taxes reached US$ 4,658 million in the 1Q-2015, US$ 1,455 million
higher compared to US$ 3,203 million in the 1Q-2014 (a 45% increase),
despite a lower gross profit, due to a gain resulting from the reversal of an
allowance for impairment of trade receivables from companies in the isolated
electricity system in the northern region of Brazil (US$ 452 million) and to the
negative impact in the 1Q-2014 of the Company’s
Voluntary Separation Incentive Plan - PIDV (US$ 1,014 million).
Net
finance expense
Net
finance expense reached US$ 1,963 million in the 1Q-2015, US$ 1,890 million
higher when compared to the 1Q-2014, resulting from:
· Exchange
rate variation charges on our liabilities in U.S. dollars attributable to a
20.8% depreciation of the Brazilian Real against the U.S. dollar in the
1Q-2015 (compared to a 3.4%
appreciation of the Real in the 1Q-2014). This effect was
partially offset by our cash flow hedge of highly probable future exports; and
· Higher
interest expenses due to an increase in our net debt and a decrease in
capitalized borrowing costs resulting from a decrease in the balance of assets
under construction.
These effects were
partially offset by an exchange rate variation gain due to the appreciation of
the U.S. dollar against the Euro (appreciation of 11.6% in the 1Q-2015 compared to a flat
exchange rate during the 1Q-2014).
Net income attributable to the shareholders of
Petrobras
Net income
attributable to the shareholders of Petrobras reached US$ 1,862 million in the
1Q-2015, compared to US$
2,280 million in the 1Q-2014. This 18% decrease
mainly results from higher net finance expenses, lower gross profit and an
increase in income taxes, partially offset by lower operating expenses.
4
|
FINANCIAL AND OPERATING
HIGHLIGHTS
NET INCOME BY BUSINESS
SEGMENT
Petrobras is an
integrated energy company and most of the crude oil and natural gas production
from the Exploration & Production segment is transferred to other business
segments of the Company. Our results by business segment
include transactions carried out with third parties, transactions between
companies of Petrobras’s Group and transfers between Petrobras’s business
segments that are calculated using internal transfer prices defined through
methodologies based on market parameters.
EXPLORATION &
PRODUCTION
|
U.S.$
million |
|
Jan-Mar |
|
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Net Income
Attributable to the Shareholders of Petrobras |
1,097 |
4,505 |
(76) |
|
|
|
|
Net income was US$ 1,097
million in Jan-Mar/2015, a 76% decrease when compared to Jan-Mar/2014 (US$4,505
million), mainly due to lower crude oil sales/transfer prices resulting from a
50% decrease of international crude oil prices, partially offset by an increase
in crude oil and NGL production in Brazil (12%), lower write-offs of dry and
subcommercial wells and by the negative impact of the Company’s Voluntary
Separation Incentive Plan (PIDV) in 2014.
The spread between the
average domestic oil price (sale/transfer) and the average Brent price increased
from US$10.20/bbl in Jan-Mar/2014 to U.S.$ 10.57/bbl in Jan-Mar/2015.
|
Jan-Mar |
Exploration &
Production - Brazil (Mbbl/d) (*) |
2015 |
2014 |
2015 x 2014 (%) |
|
|
|
|
Crude
oil and NGLs |
2,149 |
1,922 |
12 |
Natural
gas 5 |
467 |
400 |
17 |
Total |
2,616 |
2,322 |
13 |
|
|
|
|
Crude oil and NGL
production increased by 12% as a result of the start-up of P-62 platform
(Roncador), Cidade de Mangaratiba (Iracema Sul area) and Cidade de Ilhabela
(Sapinhoá) FPSOs, along with the ramp-up of P-55 (Roncador), P-58 (Parque das
Baleias) and P-63 (Papa-Terra) production systems, as well as Cidade de Paraty
(Lula NE) and Cidade de São Paulo (Sapinhoá) FPSOs. The natural decline of
certain fields partially offset these effects.
The 17% increase in
natural gas production is attributable to the production start-up of Cidade de
Mangaratiba (Iracema Sul area) and Cidade de Ilhabela (Sapinhoá) FPSOs and to
the higher productivity of P-58 (Parque das Baleias) and Mexilhão platforms and
of Cidade de Paraty (Lula NE), Cidade de São Paulo (Sapinhoá), Cidade de Santos
(Uruguá-Tambaú) and Cidade de Angra dos Reis (Lula) FPSOs. This increase
was partially offset by the natural decline of certain fields.
* Not reviewed by
independent auditor.
5 Does not
include LNG. Includes gas reinjection.
5
|
FINANCIAL AND OPERATING
HIGHLIGHTS
|
Jan-Mar |
Lifting Cost - Brazil (*)
|
2015 |
2014 |
2015 x 2014 (%) |
|
|
|
|
U.S.$/barrel: |
|
|
|
Excluding production taxes |
13.27 |
14.15 |
(6) |
Including production taxes |
20.05 |
33.00 |
(39) |
|
|
|
|
Lifting Cost - Excluding production taxes
Lifting cost excluding
production taxes was 6% lower in Jan-Mar/2015 compared to Jan-Mar/2014.
Excluding the impact of the depreciation of the Brazilian Real against the U.S.
dollar, it increased by 6% due to higher well intervention expenses and higher
subsea engineering and subsea maintenance costs in the Campos Basin, along with
the start-up of the FPSO Cidade de Ilhabela (Sapinhoá), which has higher costs
per unit produced during the start-up period.
Lifting Cost - Including production
taxes
The 39%
decrease in lifting cost including production taxes in Jan-Mar/2015 compared to
Jan-Mar/2014 is attributable to a lower average reference price for domestic
crude oil in U.S. dollars (a 54% decrease), which is used as parameter to
calculate production taxes in Brazil, as a result of lower international crude
oil prices.
* Not reviewed by
independent auditor.
6
|
FINANCIAL AND OPERATING
HIGHLIGHTS
REFINING,
TRANSPORTATION AND MARKETING
|
U.S.$
million |
|
Jan-Mar |
|
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Net Income
Attributable to the Shareholders of Petrobras |
2,159 |
(2,035) |
(206) |
|
|
|
|
The US$ 2,159 million
net income in the 1Q-2015 compared to a US$ 2,035 million loss in the 1Q-2014
was due to a decrease in crude oil acquisition/transfer costs resulting from
lower international prices (a 50% decrease), to the lower share of crude oil
imports on feedstock processed and of oil product imports on our sales mix, and
also to diesel (5%) and gasoline (3%) price increases occurred on November 7,
2014.
|
Jan-Mar |
Imports and
Exports of Crude Oil and Oil Products (Mbbl/d)
(*) |
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Crude oil
imports |
277 |
359 |
(23) |
Oil product
imports |
345 |
424 |
(19) |
Imports of crude
oil and oil products |
622 |
783 |
(21) |
Crude oil exports
6 |
281 |
195 |
44 |
Oil product
exports |
116 |
171 |
(32) |
Exports of crude
oil and oil products |
397 |
366 |
8 |
Exports (imports)
net of crude oil and oil products |
(225) |
(417) |
46 |
Other
exports |
− |
3 |
(100) |
|
|
|
|
Crude oil export volumes
were higher and import volumes were lower due to an increase in crude oil
production and a decrease in feedstock processing in our domestic refineries.
Oil product imports were
lower due to a decrease in domestic demand. Oil product exports decreased due to
lower feedstock processing in our domestic refineries.
* Not reviewed by
independent auditor.
6 It includes
crude oil export volumes made both by our Refining, Transportation and Marketing
segment and by our Exploration & Production segment.
7
|
FINANCIAL AND OPERATING
HIGHLIGHTS
|
Jan-Mar |
Refining
Operations (Mbbl/d) (*) |
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Output of oil
products |
1,964 |
2,124 |
(8) |
Reference
feedstock 7 |
2,176 |
2,102 |
4 |
Refining plants
utilization factor (%) 8 |
86 |
96 |
(10) |
Feedstock
processed (excluding NGL) - Brazil 9 |
1,879 |
2,017 |
(7) |
Feedstock
processed - Brazil 10 |
1,922 |
2,058 |
(7) |
Domestic crude oil
as % of total feedstock processed |
86 |
83 |
3 |
|
|
|
|
Daily feedstock
processed was 7% lower, due to a scheduled stoppage in the distillation unit of
the Landulpho Alves refinery (RLAM), partially offset by the full operational
capacity of the Paulínia refinery (REPLAN), where a scheduled stoppage occurred
in the 1Q-2014.
|
Jan-Mar |
Refining Cost -
Brazil (*) |
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Refining cost
(U.S.$/barrel) |
2.84 |
2.75 |
3 |
|
|
|
|
Refining cost per unit
was 3% higher in Jan-Mar/2015 compared to Jan-Mar/2014 due to the depreciation
of the Brazilian Real against the U.S. dollar. Excluding the impact of the
depreciation of the Brazilian Real, our refining cost per unit increased by 26%,
mainly resulting from higher employee compensation costs arising from the 2014
Collective Bargaining Agreement and to lower feedstock processing.
* Not reviewed by
independent auditor.
7
Reference feedstock or Installed
capacity of primary processing considers the maximum sustainable feedstock
processing reached at the distillation units at the end of each period,
respecting the project limits of equipment and the safety, environment and
product quality requirements. It is lower than the authorized capacity set by
ANP (including temporary authorizations) and by environmental protection
agencies.
8 Refining
plants utilization factor is the feedstock processed (excluding NGL) divided by
the reference feedstock.
9 Feedstock
processed (excluding NGL) – Brazil is the volume of crude oil processed in the
Company´s refineries and is factored into the calculation of the Refining Plants
Utilization Factor.
10 Feedstock
processed - Brazil includes crude oil and NGL processing.
8
|
FINANCIAL AND OPERATING
HIGHLIGHTS
GAS &
POWER
|
U.S.$
million |
|
Jan-Mar |
|
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Net Income
Attributable to the Shareholders of Petrobras |
481 |
220 |
119 |
|
|
|
|
Net income was US$ 481
million in Jan-Mar/2015, a 119% increase when compared to Jan-Mar/2014 (US$ 220
million), mainly due to a reversal of an allowance for impairment of trade
receivables from electricity companies in the northern region of Brazil, an
increase in average natural gas sales margins (due to lower LNG import costs and
to the higher domestic natural gas supply), partially offset by the effect of a
decrease in electricity average margins due to a reduction of electricity spot
prices and the gain on disposal of 100% of our interest in Brasil PCH S.A. (US$
274 million), recognized only in 2014.
|
Jan-Mar |
Physical and
Financial Indicators (*) |
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Electricity sales
(Free contracting market - ACL) - average MW |
911 |
1,252 |
(27) |
Electricity sales
(Regulated contracting market - ACR) - average MW |
3,263 |
1,891 |
73 |
Generation of
electricity - average MW |
5,110 |
4,117 |
24 |
Imports of LNG
(Mbbl/d) |
113 |
119 |
(5) |
Imports of natural
gas (Mbbl/d) |
208 |
204 |
2 |
Electricity price
in the spot market - Differences settlement price (PLD) - US$/MWh
11 |
135 |
275 |
(51) |
|
|
|
|
Electricity sales
volumes were 27% lower resulting from a shift of the sale of a portion of our
available capacity (1,049 average MW) towards the Brazilian electricity
regulated market (Ambiente de Contratação Regulada – ACR).
Electricity generation
was 24% higher due to an increase in thermoelectric demand in the domestic
market and to an increase in our installed thermoelectric capacity (due to the
execution of a lease agreement for UTE Cuiabá and to the conclusion of the cycle
of UTE Baixada Fluminense).
Electricity prices in
the spot market decreased by 51% due to a reduction in the maximum spot price
authorized by the Brazilian National Electricity Agency (ANEEL) beginning on
December 27, 2014.
The 5% decrease on LNG
imports was due to higher domestic natural gas supply attributable to a higher
production.
Natural gas imports from
Bolivia were 2% higher to meet the higher thermoelectric demand in
Brazil.
* Not reviewed by
independent auditor.
11
Differences settlement price is the price of electricity in the spot market and
is computed based on weekly weighed prices per output level (light, medium and
heavy), number of hour and submarket capacity.
9
|
FINANCIAL AND OPERATING
HIGHLIGHTS
BIOFUEL
|
U.S.$
million |
|
Jan-Mar |
|
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Net Income
Attributable to the Shareholders of Petrobras |
(15) |
(31) |
(52) |
|
|
|
|
Biofuel losses were
lower in Jan-Mar/2015, when compared to Jan-Mar/2014, due to a decrease in the
share of losses from biodiesel investees and to the improved biodiesel
margins.
DISTRIBUTION
|
U.S.$
million |
|
Jan-Mar |
|
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Net Income
Attributable to the Shareholders of Petrobras |
194 |
204 |
(5) |
|
|
|
|
Net income was US$ 194
million in Jan-Mar/2015, a 5% decrease when compared to Jan-Mar/2014 (US$ 204
million), mainly due to foreign currency translation effects. Excluding foreign
currency translation effects, net income was 15% higher in Reais, due to higher
average fuel trading margins, to higher sales volumes (1%) and to the negative
impact of the Company’s Voluntary Separation Incentive Plan (PIDV) in
2014.
|
Jan-Mar |
Market Share
(*)12 |
2015 |
2014 |
2015 x
2014 (%) |
|
36.7% |
37.0% |
− |
|
|
|
|
The Company’s
market share was lower in 2015 mainly due to a 2% decrease in the market
for diesel, in which BR Distribuidora has a significant share. Despite the
increase of BR Distribuidora’s market share in diesel volumes, the change
in the sales mix of the Brazilian market led to an overall decrease in its
market share.
* Not reviewed by
independent auditors. Our market share in the Distribution Segment in Brazil is
based on estimates made by Petrobras Distribuidora.
12 Beginning in
2015, our market share excludes sales made to wholesalers. Market share for
prior periods was revised pursuant to the changes made by the Brazilian
National Petroleum, Natural Gas and Biofuels Agency (ANP) and by the Brazilian
Wholesalers and Fuel Traders Syndicate (Sindicom). Prior periods are presented
based on the new methodology.
10
|
FINANCIAL AND OPERATING
HIGHLIGHTS
INTERNATIONAL
As an outcome of the creation of the position
of Chief Governance, Risk and Compliance Officer, which replaced the position of
Chief International Officer, the Company has recently approved the
organizational structure adjustments in other business areas to allocate the
international activities to other business segments. Considering the necessary
steps to integrate the management of those activities, the Company is still
presenting the results of international activities separately.
|
U.S.$
million |
|
Jan-Mar |
|
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Net Income
Attributable to the Shareholders of Petrobras |
35 |
319 |
(89) |
|
|
|
|
Net income was lower in the 1Q-2015 when
compared to the 1Q-2014 due to a decrease in international crude oil prices and
the lower share of earnings in African investees attributable to a decrease in
international crude oil and oil product prices. Crude oil sales volumes were
also lower, resulting from the disposal of onshore operations in Colombia and in
Peru in 2014. The Company also recognized tax credits in the Netherlands in the
1Q-2014. These effects were partially offset by gains on the disposal of fields
in the Austral Basin in Argentina in the 1Q-2015.
|
Jan-Mar |
Exploration &
Production-International (Mbbl/d)13 (*) |
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Consolidated
international production |
|
|
|
Crude oil and
NGLs |
69 |
87 |
(21) |
Natural
gas |
87 |
91 |
(4) |
Total consolidated
international production |
156 |
178 |
(12) |
Non-consolidated
international production |
31 |
31 |
− |
Total
international production |
187 |
209 |
(11) |
|
|
|
|
Consolidated crude oil
and NGL production decreased by 21%, due to the disposal of onshore areas in
Peru in November 2014 and in Colombia in April 2014. These effects were
partially offset by an increase in production due to the start-up of Saint Malo
field in December 2014 and Lucius in January 2015 in the United States.
Natural gas production
decreased by 4%, mainly in Peru, due to the disposal of onshore assets.
* Not reviewed by
independent auditor.
13 Some of
the countries that comprise the international production are operating under the
production-sharing model, with the production taxes charged in crude oil
barrels.
11
|
FINANCIAL AND OPERATING
HIGHLIGHTS
|
Jan-Mar |
Lifting Cost -
International (U.S.$/barrel) (*) |
2015 |
2014 |
2015 x
2014 (%) |
|
8.86 |
7.85 |
13 |
|
|
|
|
|
|
|
|
International lifting
cost was 13% higher, mainly in Argentina, resulting from higher operation and
maintenance service costs, partially offset by the disposal of assets in Peru
and Colombia in 2014, which had higher-than-average operational
costs.
|
Jan-Mar |
Refining
Operations - International (Mbbl/d) (*) |
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Total feedstock
processed 14 |
127 |
165 |
(23) |
Output of oil
products |
155 |
175 |
(11) |
Reference
feedstock 15 |
230 |
230 |
− |
Refining plants
utilization factor (%) 16 |
54 |
70 |
(16) |
|
|
|
|
Our total international
feedstock processed was 23% lower due to a decrease in oil product production
and lower capacity utilization, mainly in the United States, due to a scheduled
stoppage in the distillation unit during March 2015.
|
Jan-Mar |
Refining Cost -
International (U.S.$/barrel) (*) |
2015 |
2014 |
2015 x
2014 (%) |
|
3.90 |
3.66 |
7 |
|
|
|
|
|
|
|
|
International refining
cost per unit was 7% higher, mainly in Argentina, due to higher employee
compensation costs and in Japan due to lower feedstock processed attributable to
decreased fuel oil demand.
* Not reviewed by
independent auditor.
14 Total
feedstock processed is the crude oil processed abroad at the atmospheric
distillation plants, plus the intermediate products acquired from third parties
and used as feedstock in other refining units.
15 Reference
feedstock is the maximum sustainable crude oil feedstock processing reached at
distillation plants.
16 Refining
Plants Utilization Factor is the crude oil processed at the distillation plant
divided by the reference feedstock.
12
|
FINANCIAL AND OPERATING
HIGHLIGHTS
Sales Volumes –
(Mbbl/d) (*)
|
Jan-Mar |
|
2015 |
2014 |
2015 x
2014 (%) |
|
|
|
|
Diesel |
907 |
947 |
(4) |
Gasoline |
573 |
601 |
(5) |
Fuel
oil |
119 |
110 |
8 |
Naphtha |
124 |
178 |
(30) |
LPG |
223 |
222 |
− |
Jet
fuel |
113 |
111 |
2 |
Others |
171 |
202 |
(15) |
Total oil
products |
2,230 |
2,371 |
(6) |
Ethanol, nitrogen
fertilizers, renewables and other products |
115 |
97 |
19 |
Natural
gas |
448 |
427 |
5 |
Total domestic
market |
2,793 |
2,895 |
(4) |
Exports |
397 |
369 |
8 |
International
sales |
518 |
560 |
(8) |
Total
international market |
915 |
929 |
(2) |
Total |
3,708 |
3,824 |
(3) |
|
|
|
|
Our domestic sales
volumes decreased by 4%, primarily due to:
· Diesel (a 4%
decrease) – lower consumption by infrastructure construction projects in Brazil
and a higher percentage of mandatory biodiesel content requirement in diesel
(diesel/biodiesel mix). These effects were partially offset by an increase in
the Brazilian diesel-moved light vehicle fleet (vans, pick-ups and SUVs) and
higher thermoelectric consumption by thermoelectric plants that complement the
Brazilian Integrated Electricity System;
· Gasoline (a
5% decrease) – an increase in the anhydrous ethanol content requirement for Type
C gasoline (from 25% to 27%), a decrease in the automotive gasoline-moved fleet
and higher share of gasoline sales from other market players;
· Naphtha (a
30% decrease) – due to lower demand by domestic customers, mainly Braskem;
and
· Natural gas
(a 5% increase) – due to a higher demand on the electricity sector.
* Not reviewed by
independent auditor.
13
|
FINANCIAL AND OPERATING
HIGHLIGHTS
LIQUIDITY
AND CAPITAL RESOURCES
Consolidated Statement of Cash Flows – Summary
17
U.S.$
million |
|
|
Jan-Mar |
4Q-2014 |
|
2015 |
2014 |
|
|
|
|
28,665 |
Adjusted cash and
cash equivalents at the beginning of period
18 |
25,957 |
19,746 |
(8,419) |
Government bonds
and time deposits at the beginning of period |
(9,302) |
(3,878) |
20,246 |
Cash and cash
equivalents at the beginning of period 17 |
16,655 |
15,868 |
5,885 |
Net cash provided
by (used in) operating activities |
5,739 |
3,981 |
(6,670) |
Net cash provided
by (used in) investing activities |
(7,450) |
(8,540) |
(8,717) |
Capital
expenditures and investments in operating segments |
(6,175) |
(8,601) |
3,160 |
Proceeds from
disposal of assets (divestment) |
180 |
368 |
(1,113) |
Investments in
marketable securities |
(1,455) |
(307) |
(785) |
(=) Net cash
flow |
(1,711) |
(4,559) |
(2,421) |
Net
financings |
(3,600) |
18,613 |
1,502 |
Proceeds from
long-term financing |
1,304 |
22,803 |
(3,923) |
Repayments |
(4,904) |
(4,190) |
6 |
Dividends paid to
shareholders |
− |
− |
(76) |
Acquisition of
non-controlling interest |
138 |
(46) |
(315) |
Effect of exchange
rate changes on cash and cash equivalents |
(743) |
379 |
16,655 |
Cash and cash
equivalents at the end of period 17 |
10,739 |
30,255 |
9,302 |
Government bonds
and time deposits at the end of period |
10,515 |
4,424 |
25,957 |
Adjusted cash and
cash equivalents at the end of period 18 |
21,254 |
34,679 |
|
|
|
|
As of March 31, 2015,
the balance of cash and cash equivalents decreased by 36% when compared to the
balance as of December 31, 2014 and the balance of adjusted cash and cash
equivalents18 decreased by 18%. Our principal uses of funds
in the 1Q-2015 were for capital expenditures and repayment of long-term
financing. We met these requirements with cash provided by operating activities
(amounting to US$ 5,739 million) and a decrease in our balance of adjusted cash
and cash equivalents.
Net cash provided by
operating activities increased by 44% in Jan-Mar/2015 when compared to
Jan-Mar/2014 mainly due to a higher operating profit and a decrease in the level
of inventories and trade receivables.
Capital expenditures
and investments were lower in the 1Q-2015, mainly due to a decrease in capital
expenditures in our Refining, Transportation and Marketing (RTM) segment. We
also repaid long-term financings in the 1Q-2015, mainly because of our inability
to access new sources in the international capital markets.
Due to the limitations
on funding sources, complications due to contractor insolvency or to a lack of
availability of qualified suppliers (mainly as a result of the Lava Jato
investigation) the Company has recently decided to postpone certain projects for
an extended period of time.
The Company intends to
use different funding sources (banking markets, export credit agency - ECAs and
capital markets) in 2015 to obtain the necessary funding to repay debt and fund
its capital expenditures. In addition, the Company’s divestment program (of US$
13.7 billion) will contribute to its funding needs.
17 For more
details, see the Consolidated Statement of Cash Flows on page
19.
18 Our
adjusted cash and cash equivalents include government bonds and time deposits
from highly rated financial institutions abroad with maturities of more than 3
months from the date of acquisition, considering the expected realization of
those financial investments in the short-term. This measure is not defined under
the International Financial Reporting Standards – IFRS and should not be
considered in isolation or as a substitute for cash and cash equivalents
computed in accordance with IFRS. It may not be comparable to adjusted cash and
cash equivalents of other companies, however management believes that it is an
appropriate supplemental measure that helps investors assess our liquidity and
supports leverage management.
14
FINANCIAL AND OPERATING
HIGHLIGHTS
Capital expenditures and
investments
|
US$ million |
|
Jan-Mar |
|
2015 |
% |
2014 |
% |
Δ% |
|
|
|
|
|
|
Exploration &
Production |
4,888 |
78 |
5,602 |
65 |
(13) |
Refining, Transportation and
Marketing |
632 |
10 |
2,109 |
24 |
(70) |
Gas
& Power |
228 |
4 |
485 |
6 |
(53) |
International |
344 |
6 |
301 |
3 |
14 |
Exploration &
Production |
297 |
87 |
232 |
77 |
28 |
Refining, Transportation and
Marketing |
41 |
12 |
63 |
21 |
(35) |
Gas
& Power |
1 |
− |
1 |
− |
− |
Distribution |
5 |
1 |
3 |
1 |
67 |
Other |
− |
− |
2 |
1 |
(100) |
Distribution |
61 |
1 |
92 |
1 |
(34) |
Biofuel |
2 |
− |
1 |
− |
100 |
Corporate |
78 |
1 |
118 |
1 |
(34) |
Total capital
expenditures and investments |
6,233 |
100 |
8,708 |
100 |
(28) |
|
|
|
|
|
|
Pursuant to the
Company’s strategic objectives, it operates through joint ventures in Brazil and
abroad, as a concessionaire of oil and gas exploration, development and
production rights.
In the 1Q-2015, we
invested a total of US$ 6,233 million, primarily aiming at increasing production
capacity and modernizing and expanding our refineries.
15
|
FINANCIAL AND OPERATING
HIGHLIGHTS
Consolidated debt
|
U.S.$ million |
|
|
|
|
|
03.31.2015 |
12.31.2014 |
Δ% |
|
|
|
|
Current
debt 19 |
12,382 |
11,884 |
4 |
Non-current debt
20 |
112,506 |
120,274 |
(6) |
Total |
124,888 |
132,158 |
(6) |
Cash
and cash equivalents |
10,739 |
16,655 |
(36) |
Government
securities and time deposits (maturity of more than 3
months) |
10,515 |
9,302 |
13 |
Adjusted cash and
cash equivalents |
21,254 |
25,957 |
(18) |
Net
debt 21 |
103,634 |
106,201 |
(2) |
Net debt/(net
debt+shareholders' equity) |
52% |
48% |
4 |
Total
net liabilities 22 |
238,081 |
272,730 |
(13) |
Capital
structure |
|
|
|
(Net third parties
capital / total net liabilities) |
60% |
57% |
3 |
Net debt/Adjusted
EBITDA ratio |
3.45 |
4.25 |
(19) |
|
|
|
|
|
US$ million |
|
|
|
|
|
03.31.2015 |
12.31.2014 |
Δ% |
|
|
|
|
Summarized information on
financing |
|
|
|
Floating rate debt |
62,752 |
65,494 |
(4) |
Fixed
rate debt |
62,072 |
66,592 |
(7) |
Total |
124,824 |
132,086 |
(5) |
|
|
|
|
Reais |
19,707 |
23,425 |
(16) |
US
Dollars |
93,234 |
95,173 |
(2) |
Euro |
8,371 |
9,719 |
(14) |
Other
currencies |
3,512 |
3,769 |
(7) |
Total |
124,824 |
132,086 |
(5) |
|
|
|
|
2015 |
9,340 |
11,868 |
(21) |
2016 |
12,093 |
12,572 |
(4) |
2017 |
11,557 |
11,948 |
(3) |
2018 |
16,991 |
17,789 |
(4) |
2019 |
23,487 |
24,189 |
(3) |
2020
and thereafter |
51,356 |
53,720 |
(4) |
Total |
124,824 |
132,086 |
(5) |
|
|
|
|
As of March 31, 2015,
net debt in U.S. dollars was 2% lower when compared to December 31, 2014.
Excluding the impact of the 20.8% depreciation of the Real against the U.S.
dollar, net debt in Reais increased by 18% when compared to December 31,
2014.
19 Includes
finance lease obligations (Current debt: US$ 14 million on March 31, 2015 and
US$16 million on December 31, 2014).
20 Includes
finance lease obligations (Non-current debt: US$ 50 million on March 31, 2015
and US$56 million on December 31, 2014).
21 Net debt
is not a measure defined in the International Standards -IFRS and should not be
considered in isolation or as a substitute for total long-term debt calculated
in accordance with IFRS. Our calculation of net debt may not be comparable
to the calculation of net debt by other companies. Management believes that net
debt is an appropriate supplemental measure that helps investors assess our
liquidity and supports leverage management.
22 Total
liabilities net of adjusted cash and cash equivalents.
16
|
FINANCIAL AND OPERATING
HIGHLIGHTS
FINANCIAL
STATEMENTS
Income Statement - Consolidated
23
U.S.$
million |
|
|
Jan-Mar |
4Q-2014 |
|
2015 |
2014 |
|
|
|
|
33,409 |
Sales
revenues |
25,967 |
34,494 |
(24,760) |
Cost of
sales |
(18,140) |
(26,388) |
8,649 |
Gross
profit |
7,827 |
8,106 |
(1,471) |
Selling
expenses |
(602) |
(1,154) |
(1,326) |
General and
administrative expenses |
(946) |
(1,083) |
(587) |
Exploration
costs |
(343) |
(646) |
(287) |
Research and
development expenses |
(197) |
(250) |
(239) |
Other
taxes |
(263) |
(138) |
(16,907) |
Other income and
expenses, net (*) |
(818) |
(1,632) |
(20,817) |
|
(3,169) |
(4,903) |
(12,168) |
Net income (loss)
before finance income (expense), share of earnings in equity-accounted
investments, profit sharing and income taxes |
4,658 |
3,203 |
652 |
Finance
income |
256 |
441 |
(1,132) |
Finance
expenses |
(1,289) |
(782) |
(233) |
Foreign exchange
and inflation indexation charges |
(930) |
268 |
(713) |
Net finance income
(expense) |
(1,963) |
(73) |
(212) |
Share of earnings
in equity-accounted investments |
60 |
221 |
(106) |
Profit-sharing |
(117) |
(142) |
(13,199) |
Net income (loss)
before income taxes |
2,638 |
3,209 |
3,335 |
Income
taxes |
(1,056) |
(763) |
(9,864) |
Net income
(loss) |
1,582 |
2,446 |
|
Net income (loss)
attributable to: |
|
|
(9,722) |
Shareholders of
Petrobras |
1,862 |
2,280 |
(142) |
Non-controlling
interests |
(280) |
166 |
(9,864) |
|
1,582 |
2,446 |
|
(*) Includes
impairment charges of US$ 16,695 million in the 4Q-2014, US$ 1 million in
the 1Q-2015 and a reversal of US$ 6 million in the 1Q-2014. |
|
|
23
Beginning in 2014, the amount of inventory write-downs to net realizable value
(market value) was reclassified from Other Income and Expenses to Cost of
Sales.
17
|
FINANCIAL AND OPERATING
HIGHLIGHTS
Statement of Financial Position –
Consolidated
ASSETS |
U.S.$ million |
|
|
|
|
03.31.2015 |
12.31.2014 |
|
|
|
Current
assets |
42,881 |
50,832 |
Cash
and cash equivalents |
10,739 |
16,655 |
Marketable securities |
10,545 |
9,323 |
Trade and other
receivables, net |
6,464 |
7,969 |
Inventories |
9,985 |
11,466 |
Recoverable taxes |
3,015 |
3,811 |
Assets classified
as held for sale |
3 |
5 |
Other
current assets |
2,130 |
1,603 |
|
|
|
Non-current assets |
216,454 |
247,855 |
Long-term receivables |
17,117 |
18,863 |
Trade and other
receivables, net |
4,991 |
4,832 |
Marketable securities |
92 |
109 |
Judicial deposits |
2,373 |
2,682 |
Deferred taxes |
916 |
1,006 |
Other
tax assets |
3,329 |
4,008 |
Advances to suppliers |
2,199 |
2,409 |
Other
non-current assets |
3,217 |
3,817 |
Investments |
4,943 |
5,753 |
Property, plant and
equipment |
190,579 |
218,730 |
Intangible assets |
3,815 |
4,509 |
Total
assets |
259,335 |
298,687 |
|
|
|
LIABILITIES |
U.S.$ million |
|
|
|
|
03.31.2015 |
12.31.2014 |
|
|
|
Current
liabilities |
28,167 |
31,118 |
Trade
payables |
7,814 |
9,760 |
Current
debt |
12,382 |
11,884 |
Taxes
payable |
3,558 |
4,311 |
Employee
compensation (payroll, profit-sharing and related charges) |
1,923 |
2,066 |
Pension
and medical benefits |
700 |
796 |
Other
current liabilities |
1,790 |
2,301 |
Non-current liabilities |
135,872 |
150,591 |
Non-current debt |
112,506 |
120,274 |
Deferred taxes |
262 |
3,031 |
Pension
and medical benefits |
14,020 |
16,491 |
Provision for decommissioning
costs |
6,757 |
8,267 |
Provisions for legal
proceedings |
1,496 |
1,540 |
Other
non-current liabilities |
831 |
988 |
Shareholders' equity |
95,296 |
116,978 |
Share capital (net
of share issuance costs) |
107,101 |
107,101 |
Profit
reserves and others |
(12,414) |
9,171 |
Non-controlling interests |
609 |
706 |
Total liabilities
and shareholders' equity |
259,335 |
298,687 |
|
|
|
18
|
FINANCIAL AND OPERATING
HIGHLIGHTS
Statement of Cash Flows –
Consolidated
US$ million |
|
|
|
|
|
|
Jan-Mar |
4Q-2014 |
|
2015 |
2014 |
|
|
|
|
(9,722) |
Net income (loss)
attributable to the shareholders of Petrobras |
1,862 |
2,280 |
15,607 |
(+)
Adjustments for: |
3,877 |
1,701 |
3,460 |
Depreciation, depletion and
amortization |
2,974 |
3,013 |
1,161 |
Foreign exchange
and inflation indexation and finance charges |
2,198 |
599 |
(142) |
Non-controlling interests |
(280) |
166 |
212 |
Share of earnings
in equity-accounted investments |
(60) |
(221) |
547 |
Allowance for
impairment of trade receivables |
(301) |
14 |
(1,188) |
(Gains) / losses
on disposal / write-offs of non-current assets, returned areas and
cancelled projects |
(141) |
(222) |
(4,011) |
Deferred income taxes, net |
714 |
290 |
309 |
Exploration expenditures
writen-off |
201 |
447 |
17,225 |
Impairment of
property, plant and equipment, intangible and other assets |
101 |
117 |
639 |
Pension and
medical benefits (actuarial expense) |
588 |
440 |
467 |
Inventories |
(358) |
(1,045) |
(520) |
Trade and other
receivables, net |
25 |
(1,078) |
(720) |
Trade
payables |
(795) |
(205) |
(256) |
Pension
and medical benefits |
(145) |
(142) |
(1,133) |
Taxes
payable |
113 |
(539) |
(443) |
Other
assets and liabilities |
(957) |
67 |
5,885 |
(=) Net cash
provided by (used in) operating activities |
5,739 |
3,981 |
(6,670) |
(-) Net cash
provided by (used in) investing activities |
(7,450) |
(8,540) |
(8,717) |
Capital
expenditures and investments in operating segments |
(6,175) |
(8,601) |
3,160 |
Proceeds from
disposal of assets (divestment) |
180 |
368 |
(1,113) |
Divestments
(investments) in marketable securities |
(1,455) |
(307) |
(785) |
(=) Net
cash flow |
(1,711) |
(4,559) |
(2,491) |
(-) Net cash
provided by (used in) financing activities |
(3,462) |
18,567 |
1,502 |
Proceeds from
long-term financing |
1,304 |
22,803 |
(2,488) |
Repayment of principal |
(2,948) |
(2,595) |
(1,435) |
Repayment of interest |
(1,956) |
(1,595) |
6 |
Dividends paid to
shareholders |
− |
− |
(76) |
Acquisition of
non-controlling interest |
138 |
(46) |
(315) |
Effect of exchange
rate changes on cash and cash equivalents |
(743) |
379 |
(3,591) |
(=) Net increase
(decrease) in cash and cash equivalents in the period |
(5,916) |
14,387 |
20,246 |
Cash and cash
equivalents at the beginning of period |
16,655 |
15,868 |
16,655 |
Cash and cash
equivalents at the end of period |
10,739 |
30,255 |
|
|
|
|
19
|
FINANCIAL AND OPERATING
HIGHLIGHTS
SEGMENT INFORMATION
Consolidated Income Statement by Segment –
Jan/Mar-2015
|
U.S.$
million |
|
|
|
E&P |
RTM |
GAS
& POWER |
BIOFUEL |
DISTRIB. |
INTER. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Sales
revenues |
8,981 |
18,952 |
3,715 |
55 |
8,401 |
2,302 |
− |
(16,439) |
25,967 |
Intersegments |
8,834 |
6,757 |
581 |
53 |
175 |
39 |
− |
(16,439) |
− |
Third
parties |
147 |
12,195 |
3,134 |
2 |
8,226 |
2,263 |
− |
− |
25,967 |
Cost of
sales |
(6,671) |
(15,006) |
(3,126) |
(57) |
(7,684) |
(1,976) |
− |
16,380 |
(18,140) |
Gross
profit |
2,310 |
3,946 |
589 |
(2) |
717 |
326 |
− |
(59) |
7,827 |
Expenses |
(604) |
(681) |
145 |
(12) |
(419) |
(186) |
(1,471) |
59 |
(3,169) |
Selling, general
and administrative expenses |
(116) |
(574) |
223 |
(9) |
(434) |
(199) |
(499) |
60 |
(1,548) |
Exploration
costs |
(306) |
− |
− |
− |
− |
(37) |
− |
− |
(343) |
Research and
development expenses |
(77) |
(33) |
(15) |
(2) |
− |
(1) |
(69) |
− |
(197) |
Other
taxes |
(11) |
(58) |
(68) |
− |
(5) |
(30) |
(91) |
− |
(263) |
Other income and
expenses, net |
(94) |
(16) |
5 |
(1) |
20 |
81 |
(812) |
(1) |
(818) |
Net income (loss)
before finance income (expense), share of earnings in equity-accounted
investments, profit sharing and income taxes |
1,706 |
3,265 |
734 |
(14) |
298 |
140 |
(1,471) |
− |
4,658 |
Net finance income
(expense) |
− |
− |
− |
− |
− |
− |
(1,963) |
− |
(1,963) |
Share of earnings
in equity-accounted investments |
− |
24 |
27 |
(7) |
1 |
15 |
− |
− |
60 |
Profit-sharing |
(44) |
(30) |
(5) |
− |
(5) |
(2) |
(31) |
− |
(117) |
Net income (loss)
before income taxes |
1,662 |
3,259 |
756 |
(21) |
294 |
153 |
(3,465) |
− |
2,638 |
Income
taxes |
(566) |
(1,099) |
(248) |
6 |
(100) |
(83) |
1,034 |
− |
(1,056) |
Net income
(loss) |
1,096 |
2,160 |
508 |
(15) |
194 |
70 |
(2,431) |
− |
1,582 |
Net income (loss)
attributable to: |
|
|
|
|
|
|
|
|
|
Shareholders of
Petrobras |
1,097 |
2,159 |
481 |
(15) |
194 |
35 |
(2,089) |
− |
1,862 |
Non-controlling
interests |
(1) |
1 |
27 |
− |
− |
35 |
(342) |
− |
(280) |
|
1,096 |
2,160 |
508 |
(15) |
194 |
70 |
(2,431) |
− |
1,582 |
|
|
|
|
|
|
|
|
|
|
Consolidated Income Statement by Segment
– Jan/Mar-2014 24
|
U.S.$
million |
|
|
|
E&P |
RTM |
GAS
& POWER |
BIOFUEL |
DISTRIB. |
INTER. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Sales
revenues |
16,739 |
27,134 |
4,041 |
49 |
9,940 |
3,520 |
− |
(26,929) |
34,494 |
Intersegments |
16,659 |
9,376 |
354 |
47 |
283 |
210 |
− |
(26,929) |
− |
Third
parties |
80 |
17,758 |
3,687 |
2 |
9,657 |
3,310 |
− |
− |
34,494 |
Cost of
sales |
(8,325) |
(29,234) |
(3,612) |
(58) |
(9,088) |
(3,098) |
− |
27,027 |
(26,388) |
Gross
profit |
8,414 |
(2,100) |
429 |
(9) |
852 |
422 |
− |
98 |
8,106 |
Expenses |
(1,543) |
(1,040) |
(161) |
(19) |
(532) |
(230) |
(1,430) |
52 |
(4,903) |
Selling, general
and administrative expenses |
(89) |
(734) |
(291) |
(13) |
(462) |
(180) |
(518) |
50 |
(2,237) |
Exploration
costs |
(625) |
− |
− |
− |
− |
(21) |
− |
− |
(646) |
Research and
development expenses |
(133) |
(41) |
(17) |
(3) |
− |
− |
(56) |
− |
(250) |
Other
taxes |
(13) |
(16) |
(29) |
− |
(5) |
(23) |
(52) |
− |
(138) |
Other income and
expenses, net |
(683) |
(249) |
176 |
(3) |
(65) |
(6) |
(804) |
2 |
(1,632) |
Net income (loss)
before finance income (expense), share of earnings in equity-accounted
investments, profit sharing and income taxes |
6,871 |
(3,140) |
268 |
(28) |
320 |
192 |
(1,430) |
150 |
3,203 |
Net finance income
(expense) |
− |
− |
− |
− |
− |
− |
(73) |
− |
(73) |
Share of earnings
in equity-accounted investments |
2 |
62 |
54 |
(13) |
− |
114 |
2 |
− |
221 |
Profit-sharing |
(49) |
(39) |
(5) |
− |
(10) |
(3) |
(36) |
− |
(142) |
Net income (loss)
before income taxes |
6,824 |
(3,117) |
317 |
(41) |
310 |
303 |
(1,537) |
150 |
3,209 |
Income
taxes |
(2,320) |
1,081 |
(89) |
10 |
(106) |
44 |
669 |
(52) |
(763) |
Net income
(loss) |
4,504 |
(2,036) |
228 |
(31) |
204 |
347 |
(868) |
98 |
2,446 |
Net income (loss)
attributable to: |
|
|
|
|
|
|
|
|
|
Shareholders of
Petrobras |
4,505 |
(2,035) |
220 |
(31) |
204 |
319 |
(1,000) |
98 |
2,280 |
Non-controlling
interests |
(1) |
(1) |
8 |
− |
− |
28 |
132 |
− |
166 |
|
4,504 |
(2,036) |
228 |
(31) |
204 |
347 |
(868) |
98 |
2,446 |
|
|
|
|
|
|
|
|
|
|
24
Beginning in 2014, the amount of inventory write-downs to net realizable value
(market value) was reclassified from Other Income and Expenses to Cost of
Sales.
20
|
FINANCIAL AND OPERATING HIGHLIGHTS
Other Income (Expenses) by Segment – Jan/Mar-2015
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
BIOFUEL |
DISTRIB. |
INTER. |
CORP. |
ELIMIN. |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
Pension and medical benefits |
− |
− |
− |
− |
− |
− |
(331) |
− |
(331) |
Unscheduled stoppages and pre-operating expenses |
(215) |
(88) |
(20) |
− |
− |
(4) |
(2) |
− |
(329) |
Legal, administrative and arbitration proceedings |
(16) |
(31) |
7 |
− |
(3) |
(1) |
(247) |
− |
(291) |
Institutional relations and cultural projects |
(6) |
(6) |
− |
− |
(7) |
(2) |
(112) |
− |
(133) |
Health, safety and environment |
(6) |
(4) |
(2) |
− |
− |
− |
(13) |
− |
(25) |
Voluntary Separation Incentive Plan - PIDV |
(1) |
(2) |
(5) |
(1) |
− |
− |
− |
− |
(9) |
Gains / (losses) on decommissioning of returned/abandoned areas |
(2) |
− |
− |
− |
− |
− |
− |
− |
(2) |
Impairment |
(1) |
− |
− |
− |
− |
− |
− |
− |
(1) |
E&P areas returned and cancelled projects |
− |
− |
− |
− |
− |
− |
− |
− |
− |
Government grants |
2 |
− |
− |
− |
− |
− |
− |
− |
2 |
Reimbursements from E&P partnership operations |
49 |
− |
− |
− |
− |
− |
− |
− |
49 |
Gains / (losses) on disposal/write-offs of assets |
(14) |
66 |
5 |
− |
1 |
84 |
(1) |
− |
141 |
Others |
116 |
49 |
20 |
− |
29 |
4 |
(106) |
(1) |
111 |
|
(94) |
(16) |
5 |
(1) |
20 |
81 |
(812) |
(1) |
(818) |
|
|
|
|
|
|
|
|
|
|
Other Income (Expenses) by Segment – Jan/Mar-2014 25
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
BIOFUEL |
DISTRIB. |
INTER. |
CORP. |
ELIMIN. |
TOTAL |
|
|
|
|
|
|
|
|
|
|
|
|
Pension and medical benefits |
− |
− |
− |
− |
− |
− |
(234) |
− |
(234) |
Unscheduled stoppages and pre-operating expenses |
(203) |
(4) |
(10) |
− |
− |
(3) |
(5) |
− |
(225) |
Legal, administrative and arbitration proceedings |
(16) |
(24) |
(5) |
− |
(10) |
(8) |
(98) |
− |
(161) |
Institutional relations and cultural projects |
(16) |
(8) |
(1) |
− |
(8) |
(1) |
(160) |
− |
(194) |
Health, safety and environment |
(5) |
(7) |
(2) |
− |
− |
(2) |
(19) |
− |
(35) |
Voluntary Separation Incentive Plan - PIDV |
(402) |
(201) |
(48) |
(4) |
(70) |
(16) |
(273) |
− |
(1,014) |
Gains / (losses) on decommissioning of returned/abandoned areas |
− |
− |
− |
− |
− |
− |
− |
− |
− |
Impairment |
− |
− |
− |
− |
− |
6 |
− |
− |
6 |
E&P areas returned and cancelled projects |
(25) |
− |
− |
− |
− |
− |
− |
− |
(25) |
Government grants |
3 |
9 |
16 |
− |
− |
− |
2 |
− |
30 |
Reimbursements from E&P partnership operations |
72 |
− |
− |
− |
− |
− |
− |
− |
72 |
Gains / (losses) on disposal/write-offs of assets |
(38) |
(9) |
270 |
− |
1 |
34 |
(11) |
− |
247 |
Others |
(53) |
(5) |
(44) |
1 |
22 |
(16) |
(6) |
2 |
(99) |
|
(683) |
(249) |
176 |
(3) |
(65) |
(6) |
(804) |
2 |
(1,632) |
Consolidated Assets by Segment – 03.31.2015
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
BIOFUEL |
DISTRIB. |
INTER. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Total assets |
135,129 |
58,095 |
24,377 |
880 |
6,233 |
12,478 |
26,587 |
(4,444) |
259,335 |
|
|
Current assets |
5,995 |
12,414 |
3,414 |
57 |
2,744 |
2,024 |
19,701 |
(3,468) |
42,881 |
Non-current assets |
129,134 |
45,681 |
20,963 |
823 |
3,489 |
10,454 |
6,886 |
(976) |
216,454 |
Long-term receivables |
6,150 |
2,950 |
1,765 |
3 |
1,381 |
1,604 |
4,187 |
(923) |
17,117 |
Investments |
205 |
1,241 |
452 |
651 |
17 |
2,234 |
143 |
− |
4,943 |
Property, plant and equipment |
120,362 |
41,294 |
18,477 |
169 |
1,900 |
6,090 |
2,340 |
(53) |
190,579 |
Operating assets |
87,518 |
34,635 |
15,070 |
156 |
1,471 |
4,519 |
1,937 |
(53) |
145,253 |
Assets under construction |
32,844 |
6,659 |
3,407 |
13 |
429 |
1,571 |
403 |
− |
45,326 |
Intangible assets |
2,417 |
196 |
269 |
− |
191 |
526 |
216 |
− |
3,815 |
|
|
|
|
|
|
|
|
|
|
Consolidated Assets by Segment – 12.31.2014
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
BIOFUEL |
DISTRIB. |
INTER. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Total assets |
151,524 |
70,038 |
28,367 |
1,109 |
7,221 |
13,009 |
32,385 |
(4,966) |
298,687 |
|
|
Current assets |
6,008 |
14,724 |
3,979 |
65 |
3,481 |
2,345 |
24,160 |
(3,930) |
50,832 |
Non-current assets |
145,516 |
55,314 |
24,388 |
1,044 |
3,740 |
10,664 |
8,225 |
(1,036) |
247,855 |
Long-term receivables |
6,729 |
3,605 |
1,411 |
3 |
1,211 |
1,848 |
5,029 |
(973) |
18,863 |
Investments |
200 |
1,807 |
524 |
836 |
15 |
2,226 |
145 |
− |
5,753 |
Property, plant and equipment |
135,671 |
49,662 |
22,126 |
205 |
2,284 |
6,058 |
2,787 |
(63) |
218,730 |
Operating assets |
99,313 |
40,940 |
17,868 |
189 |
1,730 |
3,716 |
2,094 |
(63) |
165,787 |
Assets under construction |
36,358 |
8,722 |
4,258 |
16 |
554 |
2,342 |
693 |
− |
52,943 |
Intangible assets |
2,916 |
240 |
327 |
− |
230 |
532 |
264 |
− |
4,509 |
|
|
|
|
|
|
|
|
|
|
25 Beginning in 2014, the amount of inventory write-downs to net realizable value (market value) was reclassified from Other Income and Expenses to Cost of Sales.
21
|
FINANCIAL AND OPERATING
HIGHLIGHTS
Consolidated Adjusted EBITDA Statement by
Segment – Jan-Mar/2015
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
BIOFUEL |
DISTRIB. |
INTER. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Net
income (loss) |
1,096 |
2,160 |
508 |
(15) |
194 |
70 |
(2,431) |
− |
1,582 |
Net
finance income (expense) |
− |
− |
− |
− |
− |
− |
1,963 |
− |
1,963 |
Income
taxes |
566 |
1,099 |
248 |
(6) |
100 |
83 |
(1,034) |
− |
1,056 |
Depreciation, depletion and
amortization |
1,859 |
637 |
220 |
2 |
38 |
149 |
69 |
− |
2,974 |
EBITDA |
3,521 |
3,896 |
976 |
(19) |
332 |
302 |
(1,433) |
− |
7,575 |
Share of earnings
in equity-accounted investments |
− |
(24) |
(27) |
7 |
(1) |
(15) |
− |
− |
(60) |
Impairment losses /
(reversals) |
1 |
− |
− |
− |
− |
− |
− |
− |
1 |
Adjusted EBITDA |
3,522 |
3,872 |
949 |
(12) |
331 |
287 |
(1,433) |
− |
7,516 |
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted EBITDA Statement by
Segment – Jan-Mar/2014
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
BIOFUEL |
DISTRIB. |
INTER. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Net
income (loss) |
4,504 |
(2,036) |
228 |
(31) |
204 |
347 |
(868) |
98 |
2,446 |
Net
finance income (expense) |
− |
− |
− |
− |
− |
− |
73 |
− |
73 |
Income
taxes |
2,320 |
(1,081) |
89 |
(10) |
106 |
(44) |
(669) |
52 |
763 |
Depreciation, depletion and
amortization |
1,778 |
660 |
207 |
2 |
41 |
239 |
86 |
− |
3,013 |
EBITDA |
8,602 |
(2,457) |
524 |
(39) |
351 |
542 |
(1,378) |
150 |
6,295 |
Share of earnings
in equity-accounted investments |
(2) |
(62) |
(54) |
13 |
− |
(114) |
(2) |
− |
(221) |
Impairment losses /
(reversals) |
− |
− |
− |
− |
− |
(6) |
− |
− |
(6) |
Adjusted EBITDA |
8,600 |
(2,519) |
470 |
(26) |
351 |
422 |
(1,380) |
150 |
6,068 |
|
|
|
|
|
|
|
|
|
|
Reconciliation between Adjusted EBITDA
and Net Income
U.S.$ million |
|
|
|
Jan-Mar |
|
4Q-2014 |
1Q15 X 4Q14 (%) |
|
2015 |
2014 |
2015 x 2014 (%) |
|
|
|
|
|
|
(9,864) |
(116) |
Net
income (loss) |
1,582 |
2,446 |
(35) |
713 |
175 |
Net
finance income (expense) |
1,963 |
73 |
(2,589) |
(3,335) |
(132) |
Income
taxes |
1,056 |
763 |
38 |
3,460 |
(14) |
Depreciation, depletion and
amortization |
2,974 |
3,013 |
(1) |
(9,026) |
(184) |
EBITDA |
7,575 |
6,295 |
20 |
212 |
(128) |
Share of earnings
in equity-accounted investments |
(60) |
(221) |
73 |
16,695 |
(100) |
Impairment losses /
(reversals) |
1 |
(6) |
117 |
7,881 |
(5) |
Adjusted EBITDA |
7,516 |
6,068 |
24 |
24 |
5 |
Adjusted EBITDA margin (%)
26 |
29 |
18 |
11 |
|
|
|
|
|
|
Adjusted EBITDA is
not a measure defined in the International Financial Reporting Standards – IFRS.
Our calculation may not be comparable to the calculation of Adjusted EBITDA by
other companies. Adjusted EBITDA should not be considered as a substitute for
operational profit or as a better measure of liquidity than cash flow provided
by operations, both of which are calculated in accordance with IFRS.
26
Adjusted EBITDA margin equals Adjusted EBITDA divided by
sales revenues.
22
|
FINANCIAL AND OPERATING HIGHLIGHTS
Consolidated Income Statement for International Segment
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
DISTRIB. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Income Statement - Jan-Mar 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenues |
461 |
1,150 |
124 |
1,084 |
2 |
(519) |
2,302 |
Intersegments |
256 |
291 |
8 |
1 |
2 |
(519) |
39 |
Third parties |
205 |
859 |
116 |
1,083 |
− |
− |
2,263 |
|
|
Net income (loss) before finance income (expense), share of earnings in equity-accounted investments, profit sharing and income taxes |
136 |
6 |
14 |
26 |
(51) |
9 |
140 |
|
|
Net income (loss) attributable to the shareholders of Petrobras |
122 |
1 |
24 |
22 |
(144) |
10 |
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
DISTRIB. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Income Statement - Jan-Mar 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenues |
790 |
1,899 |
121 |
1,217 |
7 |
(514) |
3,520 |
Intersegments |
361 |
350 |
8 |
− |
5 |
(514) |
210 |
Third parties |
429 |
1,549 |
113 |
1,217 |
2 |
− |
3,310 |
|
|
Net income (loss) before finance income (expense), share of earnings in equity-accounted investments, profit sharing and income taxes |
181 |
22 |
26 |
41 |
(67) |
(11) |
192 |
|
|
Net income (loss) attributable to the shareholders of Petrobras |
264 |
27 |
32 |
38 |
(31) |
(11) |
319 |
|
|
|
|
|
|
|
|
Consolidated Assets for International Segment
|
U.S.$ million |
|
|
|
E&P |
RTM |
GAS & POWER |
DISTRIB. |
CORP. |
ELIMIN. |
TOTAL |
|
|
Total assets on March 31, 2015 |
9,639 |
1,598 |
465 |
890 |
990 |
(1,104) |
12,478 |
|
|
Total assets on December 31, 2014 |
9,623 |
1,861 |
472 |
940 |
1,230 |
(1,117) |
13,009 |
|
|
|
|
|
|
|
|
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PETRÓLEO BRASILEIRO S.A--PETROBRAS |
|
|
|
By: |
/S/ Ivan de Souza Monteiro
|
|
|
Ivan de Souza Monteiro
Chief Financial Officer and Investor Relations Officer |
|
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that are not based on historical facts and are not assurances of future results. These forward-looking statements are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results o f operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
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 press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.
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