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 August, 2016
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____
SECOND QUARTER OF 2016 RESULTS
Derived from consolidated interim financial information reviewed by independent auditors, prepared in accordance with International Financial Reporting Standards - IFRS.
Rio de Janeiro – August 11, 2016
Main financial highlights 2Q-2016 x 1Q-2016
·
Net income attributable to the shareholders of Petrobras of R$ 370 million, compared to net loss of R$ 1.246 million in the 1Q-2016, as a result of:
·
A decrease of 30% in net finance expenses;
·
An increase of 7% in crude oil and natural gas total production;
·
Higher revenues with an increase of 14% in crude oil and oil products exports and lower costs related to natural gas imports;
·
Expenses related to the new Voluntary Separation Incentive Plan (PIDV); and
·
Impairment losses related to Comperj assets.
·
The higher cash provided by operating activities and the decrease of capital expenditures and investments resulted in a positive free cash flow* for the fifth consecutive quarter of R$ 10,790 million in the 2Q-2016, 3.5 times higher when compared to R$ 2,381 million in the 1Q-2016.
·
Adjusted EBITDA* of R$ 20,317 million in the 2Q-2016, 4% lower compared to the 1Q-2016.
·
Gross indebtedness decreased 19%, from R$ 493,023 million in December 31, 2015 to R$ 397,760 million, a reduction of R$ 95,263 million. Net debt* decreased 15%, from R$ 392,136 million to R$ 332,390 million.
·
The ratio between net debt and the Last Twelve Months (LTM) Adjusted EBITDA
*
decreased from 5.31 as of December 31, 2015 to 4.49 as of June 30, 2016 and the leverage decreased from 60% to 55%.
·
The issuing of global notes totaling US$ 6.75 billion and the tender offer of US$ 6.3 billion generated the increase of average maturity of outstanding debt from 7.14 years as of December 31, 2015 to 7.30 years as of June 30, 2016.
Main operating highlights 2Q-2016 x 1Q-2016
·
Total crude oil and natural gas production was 2,804 thousand barrels of oil equivalent per day (boed), an increase of 7% compared to the 1Q-2016.
·
Domestic oil products output decreased 2% to 1,919 thousand barrels per day (bpd) and the domestic sales increased 3% to 2,109 thousand bpd.
·
Crude oil and oil products exports increased 14% to 515 thousand bpd and average Brent price increased 34% to US$/bbl 45.57.
·
Reduction of 55% in LNG imports due to higher domestic gas supply and lower thermoelectric demand.
*
See definitions of Free cash flow, Adjusted EBITDA, LTM Adjusted EBITDA and Net Debt in glossary and the respective reconciliations in Liquidity and Capital Resources, Reconciliation of Adjusted EBITDA, Debt and LTM Adjusted EBITDA.
1
www.petrobras.com.br/ir
Contacts:
PETRÓLEO
BRASILEIRO S.A. – PETROBRAS
Investor
Relations Department
e-mail:
petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República
do Chile, 65 – 1002 – 20031-912 – Rio de Janeiro, RJ
Phone: 55
(21) 3324- 1510 / 9947 I 0800-282-1540
This release includes forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
that are subject to risks and uncertainties. The forward-looking statements,
which address the Company’s expected business and financial performance, among
other matters, contain words such as “believe,” “expect,” “estimate,”
“anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,”
“could,” “would,” “likely,” and similar expressions. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as
of the date on which they are made. There is no assurance that the expected
events, trends or results will actually occur. 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.
The Company’s actual results could differ
materially from those expressed or forecast in any forward-looking statements as
a result of a variety of assumptions and factors. These factors include, but are
not limited to, the following: (i) failure to comply with laws or regulations,
including fraudulent activity, corruption, and bribery; (ii) the outcome of
ongoing corruption investigations and any new facts or information that may
arise in relation to the “Lava Jato Operation”; (iii) the effectiveness of the
Company’s risk management policies and procedures, including operational risk;
and (iv) litigation, such as class actions or proceedings brought by
governmental and regulatory agencies. A description of other factors can be
found in the Company’s Annual Report on Form 20-F for the year ended December
31, 2015, and the Company’s other filings with the U.S. Securities and Exchange
Commission.
2
Main Items and Consolidated Economic
Indicators
*
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
|
2016
|
2015
|
2016 x 2015 (%)
|
2Q-2016
|
1Q-2016
|
2Q16 X 1Q16 (%)
|
2Q-2015
|
|
Sales
revenues
|
141,657
|
154,296
|
(8)
|
71,320
|
70,337
|
1
|
79,943
|
|
Gross
profit
|
43,829
|
47,972
|
(9)
|
22,821
|
21,008
|
9
|
25,562
|
|
Operating income (loss)
|
15,332
|
22,459
|
(32)
|
7,184
|
8,148
|
(12)
|
9,460
|
|
Net
finance income (expense)
|
(14,754)
|
(11,669)
|
(26)
|
(6,061)
|
(8,693)
|
30
|
(6,048)
|
|
Consolidated net income (loss)
attributable to the shareholders of Petrobras
|
(876)
|
5,861
|
(115)
|
370
|
(1,246)
|
130
|
531
|
|
Basic
and diluted earnings (losses) per share
|
(0.07)
|
0.45
|
(115)
|
0.03
|
(0.10)
|
130
|
0.04
|
|
Market
capitalization (Parent Company)
|
138,434
|
175,620
|
(21)
|
138,434
|
125,890
|
10
|
175,620
|
|
Adjusted EBITDA*
|
41,408
|
41,289
|
−
|
20,317
|
21,091
|
(4)
|
19,771
|
|
|
|
|
|
|
|
|
|
|
Gross
margin (%)
|
31
|
31
|
−
|
32
|
30
|
2
|
32
|
|
Operating margin (%)
|
11
|
15
|
(4)
|
10
|
12
|
(2)
|
12
|
|
Net
margin (%)
|
(1)
|
4
|
(5)
|
1
|
(2)
|
3
|
1
|
|
|
|
|
|
|
|
|
|
|
Total
capital expenditures and investments
|
29,028
|
36,174
|
(20)
|
13,435
|
15,593
|
(14)
|
18,331
|
|
Exploration &
Production
|
25,705
|
29,898
|
(14)
|
11,935
|
13,770
|
(13)
|
15,052
|
|
Refining, Transportation and
Marketing
|
1,777
|
4,030
|
(56)
|
825
|
952
|
(13)
|
2,104
|
|
Gas
& Power
|
651
|
1,435
|
(55)
|
359
|
292
|
23
|
780
|
|
Distribution
|
220
|
376
|
(42)
|
121
|
99
|
23
|
188
|
|
Biofuel
|
325
|
39
|
735
|
54
|
271
|
(80)
|
34
|
|
Corporate
|
350
|
396
|
(12)
|
141
|
209
|
(32)
|
173
|
|
Average
commercial selling rate for U.S. dollar
|
3.70
|
2.97
|
25
|
3.51
|
3.90
|
(10)
|
3.07
|
|
Period-end commercial selling rate for
U.S. dollar
|
3.21
|
3.10
|
3
|
3.21
|
3.56
|
(10)
|
3.10
|
|
Variation of the period-end commercial
selling rate for U.S. dollar (%)
|
(17.8)
|
16.8
|
(35)
|
(9.8)
|
(8.9)
|
(1)
|
(3.3)
|
|
Selic
interest rate - average (%)
|
14.15
|
12.67
|
1
|
14.15
|
14.15
|
−
|
13.14
|
|
|
|
|
|
|
|
|
|
|
Domestic basic oil products price
(R$/bbl)
|
230.30
|
222.68
|
3
|
228.95
|
231.68
|
(1)
|
224.09
|
|
Brent
crude (R$/bbl)
|
145.90
|
172.11
|
(15)
|
159.79
|
132.00
|
21
|
190.09
|
|
Brent
crude (US$/bbl)
|
39.73
|
57.95
|
(31)
|
45.57
|
33.89
|
34
|
61.92
|
|
|
|
|
|
|
|
|
|
|
Domestic Sales Price
|
|
|
|
|
|
|
|
|
Crude
oil (U.S. dollars/bbl)
|
34.54
|
47.78
|
(28)
|
39.86
|
28.88
|
38
|
52.14
|
|
Natural
gas (U.S. dollars/bbl)
|
30.07
|
40.05
|
(25)
|
29.90
|
30.22
|
(1)
|
39.29
|
|
|
|
|
|
|
|
|
|
|
International Sales
price
|
|
|
|
|
|
|
|
|
Crude
oil (U.S. dollars/bbl)
|
44.37
|
59.51
|
(25)
|
47.24
|
41.59
|
14
|
60.52
|
|
Natural
gas (U.S. dollars/bbl)
|
22.45
|
22.53
|
−
|
21.74
|
23.27
|
(7)
|
22.66
|
|
|
|
|
|
|
|
|
|
|
Total
sales volume (Mbbl/d)
|
|
|
|
|
|
|
|
|
Diesel
|
804
|
915
|
(12)
|
811
|
798
|
2
|
923
|
|
Gasoline
|
553
|
555
|
−
|
541
|
564
|
(4)
|
537
|
|
Fuel
oil
|
72
|
111
|
(35)
|
64
|
80
|
(20)
|
103
|
|
Naphtha
|
142
|
146
|
(3)
|
172
|
111
|
55
|
168
|
|
LPG
|
227
|
229
|
(1)
|
236
|
218
|
8
|
236
|
|
Jet
fuel
|
102
|
110
|
(7)
|
97
|
107
|
(9)
|
107
|
|
Others
|
183
|
173
|
6
|
188
|
178
|
6
|
176
|
|
Total
oil products
|
2,083
|
2,239
|
(7)
|
2,109
|
2,056
|
3
|
2,250
|
|
Ethanol, nitrogen fertilizers, renewables
and other products
|
111
|
117
|
(5)
|
111
|
111
|
−
|
119
|
|
Natural
gas
|
338
|
448
|
(25)
|
316
|
360
|
(12)
|
448
|
|
Total
domestic market
|
2,532
|
2,804
|
(10)
|
2,536
|
2,527
|
−
|
2,817
|
|
Crude
oil, oil products and others exports
|
494
|
497
|
(1)
|
532
|
455
|
17
|
594
|
|
International sales
|
473
|
505
|
(6)
|
488
|
457
|
7
|
493
|
|
Total
international market
|
967
|
1,002
|
(3)
|
1,020
|
912
|
12
|
1,087
|
|
Total
|
3,499
|
3,806
|
(8)
|
3,556
|
3,439
|
3
|
3,904
|
*
See definition of Adjusted EBITDA in
glossary and the respective reconciliation in Reconciliation of Adjusted EBITDA.
3
2Q-2016 x 1Q-2016 Results
*
:
Gross Profit
Gross profit
increased by 9% when compared to the 1Q-2016, reaching R$ 22,821 million, due to
higher sales revenues, mainly as a result of crude oil and oil products export
volumes. This increase was partially offset by lower gasoline sales in Brazilian
market and decreased power generation.
Lower import
costs of crude oil and natural gas were registered in the 2Q-2016 due to higher
domestic production and lower thermoelectric generation, partially offset by
higher expenses with production taxes and oil products imports.
Operating Income
Operating
income reached R$ 7,184 million in the 2Q-2016, compared to a R$ 8,148 million
operating income in the 1Q-2016, mainly due to e
xpenses with the new Voluntary Separation
Incentive Plan (PIDV), to impairment of Comperj assets (due to the project
reassessment) and to the return of exploratory blocks. In addition, there were
higher general and administrative expenses, as a result of increased consulting
expenses.
Net Finance Expense
Net finance
expense was R$ 6,061 million in the 2Q-2016, a 30% decrease compared to the
1Q-2016, mainly due to the
appreciation
of the U.S. dollar against the Euro.
Net Income (Loss) attributable to the
shareholders of Petrobras
The net income in the 2Q-2016 was R$ 370
million, reverting the loss occurred in 1Q-1016, mainly due to higher gross
profit and lower net finance expenses.
Adjusted EBITDA and Free Cash
Flow
**
The Adjusted
EBITDA was 4% lower compared to the 1Q-2016, totaling R$ 20,317 million. The
Adjusted EBITDA Margin was 28% in the 2Q-2016. The increased net cash provided
by operating activities and the lower capital expenditures and investments
resulted, for the fifth consecutive quarter, in higher positive free cash flow*
of R$ 10,790 million, 3.5 times higher when compared to the 1Q-2016. This result
represents an important effort to deleverage the Company.
*
Additional information about operating
results of 2Q-2016 x 1Q-2016, see item 5.
**
See definitions of Free cash
flow and Adjusted EBITDA in glossary and the respective reconciliations in
Liquidity and Capital Resources and Reconciliation of Adjusted
EBITDA.
4
1H-2016 x 1H-2015 Results
*
:
Gross Profit
Gross profit
decreased by 9% when compared to 1H-2015, reaching R$ 43,829 million due to
lower sales revenues, as a result of an 7% reduction of domestic sales for oil
products, partially offset by higher diesel and gasoline margins. The decrease
in sales revenues was also a result of a decrease of crude oil and oil products
export prices, lower power generation, decreased electricity prices, and lower
domestic natural gas sales volume.
The Company
experienced lower import costs and decreased production taxes in Brazil due to
lower crude oil prices and decreased sales. However, higher depreciation
expenses occurred as a result of a decrease in reserves estimates (mainly due to
lower crude oil prices), which were partially offset by a lower carrying amount
of assets that were impacted by impairment losses in 2015.
Operating Income
Operating
income was R$ 15,332 million in 1H-2016, a 32% decrease when compared to the
1H-2015, resulting from decreased gross profit, higher idleness expenses related
to drilling rigs, higher expenses with legal proceedings, expenses associated
with the new Voluntary Separation Incentive Plan and with the return of
exploratory blocks. In addition, the 1H-2015 was impacted by the reversal of
losses related to trade receivables from companies in the electricity sector.
These effects were partially offset by lower tax expenses.
Net Finance Expense
Net finance
expense was R$ 14,754 million in the 1H-2016, an additional net expense of R$
3,085 million when compared to the 1H-2015, resulting from higher interest
expenses due to higher debt and to the effect of the depreciation of Brazilian
Real against the U.S. dollar.
Net Income (loss) attributable to the
shareholders of Petrobras
Net loss
attributable to the shareholders of Petrobras of R$ 876 million in the 1H-2016,
mainly due to lower operating income, higher net finance expenses and to the
effect of foreign exchange translation over the debt of structured companies in
U.S. dollars that impacted net income attributable to non-controlling
interests.
Adjusted EBITDA and Free Cash
Flow
**
Adjusted
EBITDA of R$ 41,408 million in the 1H-2016, remaining relatively flat compared
to the 1H-2015. The Adjusted EBITDA Margin was 29% in the 1H-2016. The lower
capital expenditures and investments resulted in positive free cash flow of R$
13,171 million. This result represents an important effort to deleverage the
Company.
*
Additional information
about operating results of 1H-2016 x 1H-2015, see item 6.
**
See definitions of Free cash
flow and Adjusted EBITDA in glossary and the respective reconciliations in
Liquidity and Capital Resources and Reconciliation of Adjusted
EBITDA.
5
RESULT BY BUSINESS SEGMENT
EXPLORATION & PRODUCTION
Gross Profit
|
(1H-2016 x 1H-2015):
The decrease in gross profit in the
1H-2016 was generated by decreased Brent prices and by lower crude oil and
NGL production in Brazil and abroad, partially offset by the depreciation
of the Real against the U.S. dollar. In addition, gross profit was
impacted by higher depreciation costs, partially offset by lower
production taxes.
|
(2Q-2016 x 1Q-2016):
The increase of the gross profit in the
2Q-2016 was generated by increased Brent prices and by higher crude oil
and natural gas production, partially offset by the appreciation of the
Real against the U.S. dollar and by increased production taxes.
|
Operating Income
|
(1H-2016 x 1H-2015):
The decrease in operating income was due
to lower gross profit, to increased idleness expenses related to drilling
rigs, to expenses related to legal proceedings, to the new Voluntary
Separation Incentive Plan and to higher expenses mainly due to the return
of exploratory blocks.
|
(2Q-2016 x 1Q-2016):
The operating income was due to higher
gross profit and lower impairment, partially offset by expenses related to
legal proceedings, to the new Voluntary Separation Incentive Plan and to
higher expenses mainly due to the return of exploratory
blocks.
|
Operating Performance
Production
|
(1H-2016 x 1H-2015):
Domestic crude oil and NGL production
decreased by 3% mainly due to higher realization of scheduled stoppages,
mainly in P-48, P-53, FPSO Cid. Paraty and P-18 platforms. However, there
were start-up and ramp-up of new systems, mainly FPSO Cid.
Itaguaí (Lula –
Iracema Norte area), FPSO Cid. Maricá (Lula Alto) and P-58 (Parque das
Baleias).
Natural
gas production in Brazil remained relatively flat because the scheduled
stoppages mentioned above were mainly offset by increased gas production
of P-58 (Parque das Baleias) and by the production start-up of FPSO Cid.
Maricá (Lula Alto).
Crude
oil and NGL production abroad decreased 12% mainly as a result of the
sale/return of fields in Argentina, and of the scheduled stoppage of Akpo
field in Nigeria.
Gas
production abroad increased 11% due to the production ramp-up in the
Hadrian South field in the United States.
|
(2Q-2016 x 1Q-2016):
Domestic crude oil and NGL production increased 8% mainly due to lower
realization of scheduled stoppages and to the production ramp-up of FPSO
Cid. Maricá (Lula Alto). These effects also generated a 5% increase of
domestic gas production.
Crude
oil and NGL production abroad increased 2%, mainly due to the production
return in Akpo field in Nigeria, which was under scheduled stoppage in the
1Q-2016.
Gas
production abroad increased 9% due to new wells in the Hadrian South field
in the United States.
|
Lifting Cost
|
(1H-2016 x 1H-2015):
Excluding foreign exchange variation
effects, lifting cost in U.S. dollar decreased due to lower expenses with
well intervention and with engineering and submarine maintenance, in
addition to the higher share of pre-salt production, which has a lower
unit cost.
In
addition, production taxes decreased as a result of lower crude oil
price.
Lifting
cost decreased abroad due to the sale of Austral Basin fields in
Argentina, with higher operating costs and to the higher production in the
United States, with lower costs.
|
(2Q-2016 x 1Q-2016):
Excluding foreign exchange variation
effects,
lifting cost in
US$ dollar decreased due to higher production in the period. This decrease
was partially offset by higher well intervention expenses.
In
addition, the higher crude oil price generated increased production
taxes.
The
decreased lifting cost abroad was impacted by lower costs in
Argentina.
|
6
Exploration & Production Main
Indicators
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
|
2016
|
2015
|
2016 x 2015 (%)
|
2Q-2016
|
1Q-2016
|
2Q16 X 1Q16 (%)
|
2Q-2015
|
|
Sales
revenues
|
53,297
|
60,407
|
(12)
|
29,622
|
23,675
|
25
|
33,370
|
|
Brazil
|
50,394
|
57,533
|
(12)
|
28,185
|
22,209
|
27
|
31,816
|
|
Abroad
|
2,903
|
2,874
|
1
|
1,437
|
1,466
|
(2)
|
1,554
|
|
Gross
profit
|
10,862
|
19,496
|
(44)
|
8,024
|
2,838
|
183
|
12,465
|
|
Brazil
|
9,907
|
18,492
|
(46)
|
7,549
|
2,358
|
220
|
11,878
|
|
Abroad
|
955
|
1,004
|
(5)
|
475
|
480
|
(1)
|
587
|
|
Operating expenses
|
(8,754)
|
(5,176)
|
(69)
|
(5,143)
|
(3,611)
|
(42)
|
(3,299)
|
|
Brazil
|
(7,983)
|
(5,078)
|
(57)
|
(4,585)
|
(3,398)
|
(35)
|
(3,225)
|
|
Abroad
|
(771)
|
(98)
|
(687)
|
(558)
|
(213)
|
(162)
|
(74)
|
|
Operating income (loss)
|
2,108
|
14,320
|
(85)
|
2,881
|
(773)
|
473
|
9,166
|
|
Brazil
|
1,924
|
13,414
|
(86)
|
2,965
|
(1,041)
|
385
|
8,653
|
|
Abroad
|
184
|
906
|
(80)
|
(84)
|
268
|
(131)
|
513
|
|
Net
income (loss) attributable to the shareholders of
Petrobras
|
1,557
|
9,332
|
(83)
|
2,162
|
(605)
|
457
|
5,919
|
|
Brazil
|
1,492
|
8,441
|
(82)
|
2,208
|
(716)
|
408
|
5,380
|
|
Abroad
|
65
|
891
|
(93)
|
(46)
|
111
|
(141)
|
539
|
|
Adjusted EBITDA of the segment*
|
21,040
|
26,341
|
(20)
|
11,863
|
9,177
|
29
|
15,517
|
|
Brazil
|
19,940
|
24,551
|
(19)
|
11,519
|
8,421
|
37
|
14,462
|
|
Abroad
|
1,100
|
1,790
|
(39)
|
344
|
756
|
(54)
|
1,055
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures of the segment
|
25,705
|
29,898
|
(14)
|
11,935
|
13,770
|
(13)
|
15,052
|
|
|
|
|
|
|
|
|
|
|
Average
Brent crude (R$/bbl)
|
145.90
|
172.11
|
(15)
|
159.79
|
132.00
|
21
|
190.09
|
|
Average
Brent crude (US$/bbl)
|
39.73
|
57.95
|
(31)
|
45.57
|
33.89
|
34
|
61.92
|
|
|
|
|
|
|
|
|
|
|
Sales
price - Brazil
|
|
|
|
|
|
|
|
|
Crude
oil (US$/bbl)
|
34.54
|
47.78
|
(28)
|
39.86
|
28.88
|
38
|
52.14
|
|
Sales
price - Abroad
|
|
|
|
|
|
|
|
|
Crude
oil (US$/bbl)
|
44.37
|
59.51
|
(25)
|
47.24
|
41.59
|
14
|
60.52
|
|
Natural
gas (US$/bbl)
|
22.45
|
22.53
|
−
|
21.74
|
23.27
|
(7)
|
22.66
|
|
|
|
|
|
|
|
|
|
|
Crude
oil and NGL production (Mbbl/d)
|
2,145
|
2,231
|
(4)
|
2,223
|
2,067
|
8
|
2,213
|
|
Brazil
|
2,056
|
2,130
|
(3)
|
2,133
|
1,980
|
8
|
2,111
|
|
Abroad
|
63
|
70
|
(10)
|
63
|
62
|
2
|
71
|
|
Non-consolidated production
abroad
|
26
|
31
|
(16)
|
27
|
25
|
8
|
31
|
|
Natural
gas production (Mbbl/d)
|
565
|
553
|
2
|
581
|
549
|
6
|
552
|
|
Brazil
|
467
|
465
|
−
|
479
|
455
|
5
|
463
|
|
Abroad
|
98
|
88
|
11
|
102
|
94
|
9
|
89
|
|
Total
production
|
2,710
|
2,784
|
(3)
|
2,804
|
2,616
|
7
|
2,765
|
|
|
|
|
|
|
|
|
|
|
Lifting
cost - Brazil (US$/barrel)
|
|
|
|
|
|
|
|
|
excluding production taxes
|
10.75
|
12.99
|
(17)
|
11.00
|
10.49
|
5
|
12.71
|
|
including production taxes
|
15.47
|
21.00
|
(26)
|
17.37
|
13.43
|
29
|
21.96
|
|
|
|
|
|
|
|
|
|
|
Lifting
cost - Brazil (R$/barrel)
|
|
|
|
|
|
|
|
|
excluding production taxes
|
38.68
|
38.31
|
1
|
37.64
|
39.80
|
(5)
|
38.49
|
|
including production taxes
|
55.05
|
62.32
|
(12)
|
58.93
|
50.89
|
16
|
65.95
|
|
|
|
|
|
|
|
|
|
|
Lifting
cost – Abroad without production taxes (US$/barrel)
|
5.56
|
8.00
|
(31)
|
5.49
|
5.62
|
(2)
|
7.16
|
|
|
|
|
|
|
|
|
|
|
Production taxes -
Brazil
|
6,612
|
10,067
|
(34)
|
4,453
|
2,159
|
106
|
5,731
|
|
Royalties
|
4,385
|
5,626
|
(22)
|
2,472
|
1,913
|
29
|
3,097
|
|
Special
participation charges
|
2,137
|
4,357
|
(51)
|
1,938
|
199
|
874
|
2,593
|
|
Rental
of areas
|
90
|
84
|
7
|
43
|
47
|
(9)
|
41
|
|
Production taxes -
Abroad
|
518
|
448
|
16
|
244
|
274
|
(11)
|
230
|
*
*
See reconciliation in Reconciliation
of Consolidated Adjusted EBITDA Statement by Segment.
7
REFINING, TRANSPORTATION AND
MARKETING
Gross Profit
|
(1H-2016 x 1H-2015):
Gross
profit increased due to a decrease in crude oil purchase/transfer costs,
following lower Brent prices, the lower share of crude oil imports on
feedstock processing and the decreased share of oil product imports in our
sales mix. These effects were partially offset by lower crude oil exports
and by lower economic activity in Brazil that decreased domestic oil
product sales.
|
(2Q-2016 x 1Q-2016):
Gross
profit remained relatively flat in the period. The higher domestic and
abroad sales were offset by higher purchase/transfer costs of crude oil as
a result of the increase in Brent
price.
|
Operating Income
|
(1H-2016 x 1H-2015):
Higher operating income due to higher
gross profit, partially offset by impairment of Comperj assets due to the
project reassessment.
|
(2Q-2016 x 1Q-2016):
Lower
operating income mainly due to the impairment in Comperj assets and to the
expenses of the new Voluntary Separation Incentive Plan.
|
Operating Performance
Imports and Exports of Crude Oil and Oil
Products
|
(1H-2016 x 1H-2015):
Improved balance of crude oil exports
(imports) net, due to lower imports, as a result of decreased volume
processed and a higher share of domestic crude oil on feedstock processed.
These effects were partially offset by decreased export volume available,
as a result of the lower production.
The
decreased deficit of oil products exports (imports) net was due to lower
need for diesel imports as a result of the lower economic
activity.
|
(2Q-2016 x 1Q-2016):
Higher positive balance of crude oil
exports (imports) net, due to higher domestic production that
generated
higher share of
domestic crude oil on feedstock processed, lower import need and increased
crude oil available for export.
The
decreased deficit of oil products exports (imports) net was due to lower
need of gasoline imports as a result of decreased demand, and of diesel
imports, due to the inventories generated in the 1Q-2016.
|
Refining Operations
|
(1H-2016 x 1H-2015):
Daily feedstock processed was 5% lower,
due to scheduled stoppages, mainly in distillation plants of REPLAN and
REVAP, partially offset by higher production of RNEST, as a result of
operating improvements
made.
|
(2Q-2016 x 1Q-2016):
Daily feedstock processed remained
relatively flat, because the return of REPLAN into operation, after
scheduled stoppage, was offset by scheduled stoppages of REFAP and REVAP.
|
Refining Cost
|
(1H-2016 x 1H-2015):
Refining cost in R$/barrel increased 7%
mainly due to higher personnel expenses as a result of higher employee
compensation costs attributable to the 2015/2016 Collective Bargaining
Agreement, along with a decrease in feedstock processed. Refining cost, in
US$/barrel, decreased by 14%.
|
(2Q-2016 x 1Q-2016):
In R$/barrel, refining cost decreased by
2% mainly due to lower expenses with bulk materials and technical
services. Refining cost, in US$/barrel, increased by
8%.
|
8
Refining, Transportation and Marketing Main
Indicators
|
|
R$
million
|
|
|
First half of
|
|
|
|
|
|
|
2016
|
2015
|
2016 x 2015 (%)
|
2Q-2016
|
1Q-2016
|
2Q16 X 1Q16
(%)
|
2Q-2015
|
|
Sales
revenues
|
109,032
|
117,990
|
(8)
|
55,947
|
53,085
|
5
|
61,875
|
|
Brazil
(includes trading operations abroad)
|
109,331
|
114,446
|
(4)
|
56,220
|
53,111
|
6
|
60,181
|
|
Abroad
|
6,192
|
6,897
|
(10)
|
3,306
|
2,886
|
15
|
3,602
|
|
Eliminations
|
(6,491)
|
(3,353)
|
(94)
|
(3,579)
|
(2,912)
|
(23)
|
(1,908)
|
|
Gross
profit
|
28,067
|
22,481
|
25
|
14,081
|
13,986
|
1
|
11,036
|
|
Brazil
|
27,902
|
21,976
|
27
|
13,798
|
14,104
|
(2)
|
10,680
|
|
Abroad
|
165
|
505
|
(67)
|
283
|
(118)
|
340
|
356
|
|
Operating
expenses
|
(6,227)
|
(5,104)
|
(22)
|
(3,736)
|
(2,491)
|
(50)
|
(2,932)
|
|
Brazil
|
(6,008)
|
(4,850)
|
(24)
|
(3,618)
|
(2,390)
|
(51)
|
(2,810)
|
|
Abroad
|
(219)
|
(254)
|
14
|
(118)
|
(101)
|
(17)
|
(122)
|
|
Operating income
(loss)
|
21,840
|
17,377
|
26
|
10,345
|
11,495
|
(10)
|
8,104
|
|
Brazil
|
21,894
|
17,126
|
28
|
10,180
|
11,714
|
(13)
|
7,870
|
|
Abroad
|
(54)
|
251
|
(122)
|
165
|
(219)
|
175
|
234
|
|
Net income (loss)
attributable to the shareholders of
Petrobras
|
15,184
|
11,958
|
27
|
7,208
|
7,976
|
(10)
|
5,775
|
|
Brazil
|
15,234
|
11,751
|
30
|
7,048
|
8,186
|
(14)
|
5,573
|
|
Abroad
|
(50)
|
207
|
(124)
|
160
|
(210)
|
176
|
202
|
|
Adjusted EBITDA of
the segment*
|
26,816
|
21,426
|
25
|
13,398
|
13,418
|
−
|
10,293
|
|
Brazil
|
26,753
|
21,088
|
27
|
13,183
|
13,570
|
(3)
|
10,009
|
|
Abroad
|
63
|
338
|
(81)
|
215
|
(152)
|
242
|
284
|
|
Capital
expenditures of the segment
|
1,777
|
4,030
|
(56)
|
825
|
952
|
(13)
|
2,104
|
|
|
|
|
|
|
|
|
|
|
Domestic basic oil
products price (R$/bbl)
|
230.30
|
222.68
|
3
|
228.95
|
231.68
|
(1)
|
224.09
|
|
Imports (Mbbl/d)
|
422
|
621
|
(32)
|
359
|
486
|
(26)
|
620
|
|
Crude
oil import
|
160
|
291
|
(45)
|
122
|
199
|
(39)
|
305
|
|
Diesel
import
|
23
|
119
|
(81)
|
−
|
47
|
(100)
|
106
|
|
Gasoline
import
|
46
|
38
|
21
|
41
|
51
|
(20)
|
19
|
|
Other
oil product import
|
193
|
173
|
12
|
196
|
189
|
4
|
190
|
|
Exports (Mbbl/d)
|
484
|
496
|
(2)
|
515
|
453
|
14
|
593
|
|
Crude
oil export
|
324
|
344
|
(6)
|
341
|
307
|
11
|
405
|
|
Oil
product export
|
160
|
152
|
5
|
174
|
146
|
19
|
188
|
|
Exports (imports),
net
|
62
|
(125)
|
150
|
156
|
(33)
|
573
|
(27)
|
|
Refining
Operations - Brazil (Mbbl/d)
|
|
|
|
|
|
|
|
|
Output
of oil products
|
1,939
|
2,031
|
(5)
|
1,919
|
1,958
|
(2)
|
2,098
|
|
Reference
feedstock
|
2,176
|
2,176
|
−
|
2,176
|
2,176
|
−
|
2,176
|
|
Refining plants utilization factor
(%)
|
84
|
89
|
(6)
|
84
|
84
|
−
|
92
|
|
Feedstock processed (excluding NGL)
|
1,828
|
1,936
|
(6)
|
1,820
|
1,836
|
(1)
|
1,993
|
|
Feedstock processed
|
1,869
|
1,977
|
(5)
|
1,869
|
1,870
|
−
|
2,031
|
|
Domestic crude oil as % of total
feedstock processed
|
90
|
86
|
5
|
91
|
89
|
2
|
86
|
|
Refining
Operations - Abroad (Mbbl/d)
|
|
|
|
|
|
|
|
|
Total
feedstock processed
|
138
|
131
|
5
|
136
|
140
|
(3)
|
135
|
|
Output
of oil products
|
141
|
147
|
(4)
|
138
|
144
|
(4)
|
140
|
|
Reference
feedstock
|
230
|
230
|
−
|
230
|
230
|
−
|
230
|
|
Refining plants utilization factor
(%)
|
56
|
55
|
2
|
56
|
57
|
(2)
|
56
|
|
Refining cost -
Brazil
|
|
|
|
|
|
|
|
|
Refining cost
(US$/barrel)
|
2.37
|
2.74
|
(14)
|
2.46
|
2.27
|
8
|
2.64
|
|
Refining cost
(R$/barrel)
|
8.65
|
8.07
|
7
|
8.56
|
8.73
|
(2)
|
7.98
|
|
Refining cost -
Abroad (US$/barrel)
|
4.00
|
4.00
|
−
|
4.00
|
4.01
|
−
|
4.08
|
|
Sales volume
(includes sales to BR Distribuidora and
third-parties)
|
|
|
|
|
|
|
|
|
Diesel
|
766
|
880
|
(13)
|
769
|
764
|
1
|
887
|
|
Gasoline
|
500
|
500
|
−
|
487
|
513
|
(5)
|
480
|
|
Fuel
oil
|
68
|
100
|
(32)
|
61
|
75
|
(19)
|
90
|
|
Naphtha
|
142
|
146
|
(3)
|
172
|
111
|
55
|
168
|
|
LPG
|
227
|
229
|
(1)
|
235
|
219
|
7
|
236
|
|
Jet
fuel
|
117
|
127
|
(8)
|
110
|
124
|
(11)
|
124
|
|
Others
|
200
|
206
|
(3)
|
204
|
195
|
5
|
209
|
|
Total domestic oil
products (mbbl/d)
|
2,020
|
2,188
|
(8)
|
2,038
|
2,001
|
2
|
2,194
|
*
*
See reconciliation in Reconciliation
of Consolidated Adjusted EBITDA Statement by Segment.
9
GAS & POWER
Gross Profit
|
(1H-2016 x 1H-2015):
Gross
profit in the 1H-2016 was higher due to lower acquisition costs, mainly
because of the reduction of natural gas and LNG imports. This effect was
partially offset by lower natural gas sales to the thermoelectric sector
and by decreased electricity generation due to the improvement of
hydrological conditions in Brazil.
|
(2Q-2016 x 1Q-2016):
The increased
gross
profit was due to lower acquisition cost and decreased gas and LNG
imports. These effect was partially offset by lower electricity generation
in the 2Q-2016.
|
Operating Income
|
(1H-2016 x 1H-2015):
Operating income increased due to higher
gross profit and also to lower operating expenses. The 1H-2015 was mainly
impacted by expenses related to tax contingencies and impairment,
partially offset by the reversal of impairment with trade receivables from
companies in the electricity sector.
|
(2Q-2016 x 1Q-2016):
Lower
operating income in the
2Q-2016
compared to the 1Q-2016 due to
higher
impairment with
trade receivables from companies in the electricity sector.
|
Operating Performance
Physical and Financial Indicators
|
(1H-2016 x 1H-2015):
Electricity sales to the Brazilian free
contracting market (
Ambiente de Contratação Livre –
ACL
) were 5% lower, attributable to the
termination of agreements.
Decreased electricity sales volumes to
the Brazilian regulated market (
Ambiente de
Contratação Regulada – ACR
) was due to the
termination of agreement representing 205 average MW, which occurred at
Electricity Auction of 1H-2015.
The
decrease electricity generation and lower electricity prices in the spot
market (PLD) were due to improved hydrological conditions.
LNG
imports decreased by 56% and natural gas imports from Bolivia were 10%
lower, reflecting a decrease in thermoelectric demand.
|
|
(2Q-2016 x 1Q-2016):
The
higher electricity prices in the spot market (PLD) was a result of
worsening in hydrological conditions.
The
lower electricity generation was due to the decision of the Electric
Sector Monitoring Committee (
Comitê de
Monitoramento do Setor Elétrico
- CMSE) of not
making plants dispatch for energy security with variable unit cost above
settlement limits.
LNG
imports decreased by 55% and natural gas imports from Bolivia were 10%
lower due to decreased thermoelectric demand in the period and to higher
domestic gas supply, due to 5% increase on production.
|
10
Gas & Power Main Indicators
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
|
2016
|
2015
|
2016 x 2015 (%)
|
2Q-2016
|
1Q-2016
|
2Q16 X 1Q16 (%)
|
2Q-2015
|
|
Sales
revenues
|
17,151
|
21,589
|
(21)
|
7,760
|
9,391
|
(17)
|
10,596
|
|
Brazil
|
15,996
|
20,868
|
(23)
|
7,163
|
8,833
|
(19)
|
10,230
|
|
Abroad
|
1,155
|
721
|
60
|
597
|
558
|
7
|
366
|
|
Gross
profit
|
3,974
|
3,770
|
5
|
2,146
|
1,828
|
17
|
2,026
|
|
Brazil
|
3,792
|
3,661
|
4
|
2,065
|
1,727
|
20
|
1,975
|
|
Abroad
|
182
|
109
|
67
|
81
|
101
|
(20)
|
51
|
|
Operating expenses
|
(1,980)
|
(2,026)
|
2
|
(1,246)
|
(734)
|
(70)
|
(1,895)
|
|
Brazil
|
(1,939)
|
(1,987)
|
2
|
(1,222)
|
(717)
|
(70)
|
(1,873)
|
|
Abroad
|
(41)
|
(39)
|
(5)
|
(24)
|
(17)
|
(41)
|
(22)
|
|
Operating income (loss)
|
1,994
|
1,744
|
14
|
900
|
1,094
|
(18)
|
131
|
|
Brazil
|
1,853
|
1,674
|
11
|
843
|
1,010
|
(17)
|
102
|
|
Abroad
|
141
|
70
|
101
|
57
|
84
|
(32)
|
29
|
|
Net
income (loss) attributable to the shareholders of
Petrobras
|
1,302
|
1,225
|
6
|
545
|
757
|
(28)
|
138
|
|
Brazil
|
1,078
|
1,097
|
(2)
|
433
|
645
|
(33)
|
79
|
|
Abroad
|
224
|
128
|
75
|
112
|
112
|
−
|
59
|
|
Adjusted EBITDA of the
segment*
|
3,447
|
3,784
|
(9)
|
1,639
|
1,808
|
(9)
|
1,528
|
|
Brazil
|
3,284
|
3,684
|
(11)
|
1,574
|
1,710
|
(8)
|
1,484
|
|
Abroad
|
163
|
100
|
63
|
65
|
98
|
(33)
|
44
|
|
Capital
expenditures of the segment
|
651
|
1,435
|
(55)
|
359
|
292
|
23
|
780
|
|
Physical and financial indicators -
Brazil
|
|
|
|
|
|
|
|
|
Electricity sales (Free contracting
market - ACL) - average MW
|
864
|
907
|
(5)
|
866
|
863
|
−
|
902
|
|
Electricity sales (Regulated contracting
market - ACR) - average MW
|
3,172
|
3,263
|
(3)
|
3,172
|
3,172
|
−
|
3,263
|
|
Generation of electricity - average
MW
|
2,224
|
5,048
|
(56)
|
1,616
|
2,832
|
(43)
|
4,987
|
|
Electricity price in the spot market -
Differences settlement price (PLD) - R$/MWh
|
74
|
378
|
(80)
|
79
|
69
|
14
|
369
|
|
Imports
of LNG (Mbbl/d)
|
54
|
122
|
(56)
|
33
|
74
|
(55)
|
132
|
|
Imports
of natural gas (Mbbl/d)
|
184
|
204
|
(10)
|
174
|
194
|
(10)
|
201
|
|
|
|
|
|
|
|
|
|
*
See reconciliation in
Reconciliation of Consolidated Adjusted EBITDA Statement by Segment.
11
DISTRIBUTION
Gross Profit
|
(1H-2016 x 1H-2015):
Gross
profit decreased due to lower sales volumes in Brazil, following the lower
economic activity that mainly impacted industrial customers, in which the
share of BR Distribuidora is higher than its competitors. These effects
were partially offset by improved result abroad, due to higher gross
margin as a result of increased mix of sales products in Paraguay and of
the positive impact of foreign exchange variation.
|
(2Q-2016 x 1Q-2016):
The
lower gross profit in Brazil was due to decreased ethanol and gasoline C
prices, which impacted inventory costs, and lower sales volumes, partially
offset by improved result abroad due to higher gross margin, as a result
of increased mix of sales products in Paraguay and of the positive impact
of foreign exchange variation.
|
Operating income
|
(1H-2016 x 1H-2015):
Operating income in Brazil decreased as a
result of higher losses with tax contingencies, partially offset by
improved result abroad.
|
(2Q-2016 x 1Q-2016):
The higher operating income was due to
lower impairment with trade receivables
from companies in the electricity sector in Brazil, and
to the improved result
abroad.
|
Operating Performance
Market Share - Brazil
|
(1H-2016 x 1H-2015):
Decreased market share was due to lower
sales to the thermoelectric sector and lower economic activity that mainly
impacted industrial customers, in which the share of BR Distribuidora is
higher than its competitors. In addition, the lower market share is a
result of a shift in our sales policy to prioritize higher margins instead
of sales volumes.
|
(2Q-2016 x 1Q-2016):
Market share was lower mainly due to a
decrease in fuel oil thermoelectric dispatch, to lower gasoline and jet
fuel sales. In addition, the Company policy was to maintain margins
preserved.
|
12
Distribution Main Indicators
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
|
2016
|
2015
|
2016 x 2015 (%)
|
2Q-2016
|
1Q-2016
|
2Q16 X 1Q16 (%)
|
2Q-2015
|
|
Sales
revenues
|
49,449
|
54,149
|
(9)
|
24,218
|
25,231
|
(4)
|
26,991
|
|
Brazil
|
43,083
|
47,724
|
(10)
|
21,036
|
22,047
|
(5)
|
23,670
|
|
Abroad
|
6,366
|
6,425
|
(1)
|
3,182
|
3,184
|
−
|
3,321
|
|
Gross
profit
|
3,744
|
4,211
|
(11)
|
1,804
|
1,940
|
(7)
|
1,871
|
|
Brazil
|
3,057
|
3,603
|
(15)
|
1,431
|
1,626
|
(12)
|
1,551
|
|
Abroad
|
687
|
608
|
13
|
373
|
314
|
19
|
320
|
|
Operating expenses
|
(3,524)
|
(2,944)
|
(20)
|
(1,537)
|
(1,987)
|
23
|
(1,516)
|
|
Brazil
|
(3,045)
|
(2,487)
|
(22)
|
(1,293)
|
(1,752)
|
26
|
(1,272)
|
|
Abroad
|
(479)
|
(457)
|
(5)
|
(244)
|
(235)
|
(4)
|
(244)
|
|
Operating income (loss)
|
220
|
1,267
|
(83)
|
267
|
(47)
|
668
|
355
|
|
Brazil
|
12
|
1,116
|
(99)
|
138
|
(126)
|
210
|
279
|
|
Abroad
|
208
|
151
|
38
|
129
|
79
|
63
|
76
|
|
Net
income (loss) attributable to the shareholders of
Petrobras
|
159
|
849
|
(81)
|
184
|
(25)
|
836
|
240
|
|
Brazil
|
(38)
|
719
|
(105)
|
58
|
(96)
|
160
|
173
|
|
Abroad
|
197
|
130
|
52
|
126
|
71
|
77
|
67
|
|
Adjusted EBITDA of the
segment*
|
512
|
1,549
|
(67)
|
411
|
101
|
306
|
502
|
|
Brazil
|
237
|
1,343
|
(82)
|
250
|
(13)
|
2,023
|
398
|
|
Abroad
|
275
|
206
|
33
|
161
|
114
|
41
|
104
|
|
Capital
expenditures of the segment
|
220
|
376
|
(42)
|
121
|
99
|
23
|
188
|
|
Market
share - Brazil
|
31.7%
|
35.8%
|
(4)
|
31%
|
32%
|
(1)
|
35%
|
|
Sales
Volumes - Brazil (Mbbl/d)
|
|
|
|
|
|
|
|
|
Diesel
|
314
|
382
|
(18)
|
317
|
312
|
2
|
378
|
|
Gasoline
|
191
|
205
|
(7)
|
187
|
195
|
(4)
|
199
|
|
Fuel
oil
|
57
|
98
|
(42)
|
50
|
64
|
(22)
|
89
|
|
Jet
fuel
|
50
|
57
|
(12)
|
47
|
53
|
(11)
|
55
|
|
Others
|
97
|
96
|
1
|
99
|
95
|
4
|
94
|
|
Total
domestic oil products
|
709
|
838
|
(15)
|
700
|
719
|
(3)
|
815
|
*
*
See reconciliation in
Reconciliation of Consolidated Adjusted EBITDA Statement by Segment.
13
Liquidity and Capital Resources
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
2016
|
2015
|
2Q-2016
|
1Q-2016
|
2Q-2015
|
|
|
|
|
|
|
|
|
Adjusted cash and cash equivalents* at
the beginning of period
|
100,887
|
68,946
|
80,521
|
100,887
|
68,182
|
|
Government bonds and time deposits with
maturities of more than 3 months at the beginning of period
|
(3,042)
|
(24,707)
|
(2,743)
|
(3,042)
|
(33,732)
|
|
Cash
and cash equivalents at the beginning of period
|
97,845
|
44,239
|
77,778
|
97,845
|
34,450
|
|
Net
cash provided by (used in) operating activities
|
39,250
|
39,317
|
21,943
|
17,307
|
22,890
|
|
Net
cash provided by (used in) investing activities
|
(25,277)
|
(16,078)
|
(10,759)
|
(14,518)
|
5,253
|
|
Capital
expenditures and investments in operating segments
|
(26,079)
|
(34,833)
|
(11,153)
|
(14,926)
|
(17,153)
|
|
Proceeds from disposal of assets
(divestment)
|
14
|
612
|
3
|
11
|
96
|
|
Investments in marketable
securities
|
788
|
18,143
|
391
|
397
|
22,310
|
|
(=) Net
cash flow
|
13,973
|
23,239
|
11,184
|
2,789
|
28,143
|
|
Net
financings
|
(37,099)
|
8,581
|
(19,594)
|
(17,505)
|
18,887
|
|
Proceeds from long-term
financing
|
32,679
|
37,472
|
25,464
|
7,215
|
33,737
|
|
Repayments
|
(69,778)
|
(28,891)
|
(45,058)
|
(24,720)
|
(14,850)
|
|
Acquisition of non-controlling
interest
|
189
|
505
|
43
|
146
|
109
|
|
Effect
of exchange rate changes on cash and cash equivalents
|
(11,968)
|
4,602
|
(6,471)
|
(5,497)
|
(423)
|
|
Cash
and cash equivalents at the end of period
|
62,940
|
81,166
|
62,940
|
77,778
|
81,166
|
|
Government bonds and time deposits with
maturities of more than 3 months at the end of period
|
2,430
|
10,470
|
2,430
|
2,743
|
10,470
|
|
Adjusted cash and cash equivalents* at
the end of period
|
65,370
|
91,636
|
65,370
|
80,521
|
91,636
|
|
Reconciliation of Free Cash
Flow
|
|
|
|
|
|
|
Net
cash provided by (used in) operating activities
|
39,250
|
39,317
|
21,943
|
17,307
|
22,890
|
|
Capital
expenditures and investments in operating segments
|
(26,079)
|
(34,833)
|
(11,153)
|
(14,926)
|
(17,153)
|
|
Free
cash flow*
|
13,171
|
4,484
|
10,790
|
2,381
|
5,737
|
|
|
|
|
|
|
|
As of June
30, 2016, the balance of cash and cash equivalents was R$ 62,940 million and the
balance of adjusted cash and cash equivalents for the same period was R$ 65,370
million. Our principal uses of funds in the 1H-2016 were for repayment of
long-term financing (and interest payments) and for capital expenditures. We
partially met these requirements with cash provided by operating activities of
R$ 39,250 million and with proceeds from long-term financing of R$ 32,679
million. The balance of adjusted cash and cash equivalents was negatively
impacted in the 1H-2016 by foreign exchange rate variation applied on our
foreign financial investments.
Net cash
provided by operating activities of R$ 39,250 million was mainly generated by
higher diesel and gasoline margins, lower production taxes in Brazil and crude
oil, oil products and natural gas imports costs, along with a higher share
of domestic crude oil on feedstock processing. These effects were partially
offset by lower prices of crude oil and oil products exports and decreased sales
volume in Brazil due to lower economic activity.
Capital
expenditures and investments in operating segments were R$ 26,079 million in the
1H-2016 (89% in E&P business segment), a 25% decrease when compared to the
1H-2015.
Free cash
flow* was positive, amounting R$ 13,171 million in the 1H-2016, for the fifth
consecutive quarter.
From
January to June 2016, the Company issued global notes in international capital
markets totaling US$ 6.75 billion, with maturities of 5 and 10 years, and the
proceeds of those notes offerings were used to tender for US$ 6.3 billion of
Petrobras’s existing global notes. In addition, the Company entered into a sale
and leaseback operation with the Industrial and Commercial Bank of China (ICBC)
in the amount of US$ 1 billion. The average maturity of outstanding debt was
7.30 years as of June 30, 2016 (7.14 years as of December 31, 2015). It is
important to mention the issuing of US$ 3 billion for tender offer at the same
amount in July 2016.
Repayments
of interest and principal were R$ 69,778 million in the 1H-2016 and the nominal
cash flow (cash view), including principal and interest payments, by maturity,
is set out in R$ million as follows:
|
|
Consolidated
|
|
Maturity
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
and thereafter
|
06.30.2016
|
12.31.2015
|
|
Principal
|
16,614
|
26,148
|
45,938
|
75,554
|
53,463
|
185,000
|
402,717
|
497,289
|
|
Interest
|
11,815
|
22,439
|
21,206
|
18,119
|
13,674
|
109,666
|
196,919
|
230,531
|
|
Total
|
28,429
|
48,587
|
67,144
|
93,673
|
67,137
|
294,666
|
599,636
|
727,820
|
*
*
See reconciliation of adjusted
cash and cash equivalents in net debt and definition of adjusted cash and cash
equivalents and free cash flow in glossary.
14
Consolidated debt
Consolidated
gross debt in Reais decreased by 19% and net debt decreased by 15% when compared
to December 31, 2015, mainly as a result of the 17.8% foreign exchange
appreciation.
Current debt
and non-current debt include finance lease obligations of R$ 80 million and R$
313 million on June 30, 2016, respectively (R$ 73 million and R$ 303 million on
December 31, 2015).
|
|
R$ million
|
|
|
06.30.2016
|
12.31.2015
|
Δ%
|
|
|
|
|
|
|
Current
debt
|
36,513
|
57,407
|
(36)
|
|
Non-current debt
|
361,247
|
435,616
|
(17)
|
|
Total
|
397,760
|
493,023
|
(19)
|
|
Cash
and cash equivalents
|
62,940
|
97,845
|
(36)
|
|
Government securities and time deposits
(maturity of more than 3 months)
|
2,430
|
3,042
|
(20)
|
|
Adjusted cash and cash
equivalents*
|
65,370
|
100,887
|
(35)
|
|
Net
debt*
|
332,390
|
392,136
|
(15)
|
|
Net
debt/(net debt+shareholders' equity)
|
55%
|
60%
|
(5)
|
|
Total
net liabilities*
|
752,962
|
799,248
|
(6)
|
|
(Net
third parties capital / total net liabilities)
|
63%
|
68%
|
(5)
|
|
Net
debt/LTM Adjusted EBITDA ratio*
|
4.49
|
5.31
|
(15)
|
|
|
U.S.$ million
|
|
|
06.30.2016
|
12.31.2015
|
Δ%
|
|
|
|
|
|
|
Current
debt
|
11,376
|
14,702
|
(23)
|
|
Non-current debt
|
112,546
|
111,560
|
1
|
|
Total
|
123,922
|
126,262
|
(2)
|
|
Net
debt
|
103,556
|
100,425
|
3
|
|
Average
maturity of outstanding debt (years)
|
7.30
|
7.14
|
0.16
|
|
|
R$
million
|
|
|
06.30.2016
|
12.31.2015
|
Δ%
|
|
Summarized
information on financing
|
|
|
|
|
By
rate
|
|
|
|
|
Floating rate
debt
|
198,865
|
243,293
|
(18)
|
|
Fixed
rate debt
|
198,502
|
249,354
|
(20)
|
|
Total
|
397,367
|
492,647
|
(19)
|
|
|
|
|
|
|
By
currency
|
|
|
|
|
Reais
|
79,207
|
80,269
|
(1)
|
|
US
Dollars
|
285,362
|
365,354
|
(22)
|
|
Euro
|
23,121
|
33,909
|
(32)
|
|
Other
currencies
|
9,677
|
13,115
|
(26)
|
|
Total
|
397,367
|
492,647
|
(19)
|
|
|
|
|
|
|
By
maturity
|
|
|
|
|
2016
|
21,648
|
57,333
|
(62)
|
|
2017
|
25,815
|
44,505
|
(42)
|
|
2018
|
45,349
|
62,827
|
(28)
|
|
2019
|
74,948
|
88,231
|
(15)
|
|
2020
|
52,775
|
60,670
|
(13)
|
|
2021
on
|
176,832
|
179,081
|
(1)
|
|
Total
|
397,367
|
492,647
|
(19)
|
|
|
|
|
|
*
*
*
See definition of adjusted cash
and cash equivalents, net debt, total net liabilities and LTM Adjusted EBITDA in
glossary and reconciliation in Reconciliation of Adjusted EBITDA.
15
ADDITIONAL
INFORMATION
1.
Reconciliation of Adjusted
EBITDA
Our adjusted
EBITDA (according to CVM Instruction 527 of October 4, 2012) is the net income
before 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 in the International Financial Reporting
Standards – IFRS. In addition, Adjusted EBITDA may not be comparable to the
calculation of Adjusted EBITDA by other companies and it should not be
considered as a substitute for any measure calculated in accordance with IFRS.
The Company reports its Adjusted EBITDA to give additional information about its
profitability and must be considered in connection with other measures and
performance indicators for a better understanding regarding the Company's
financial performance.
The LTM
Adjusted EBITDA is used to calculate the ratio of net debt/LTM Adjusted EBITDA,
that corresponds to a metric included in the Company’s Business and Management
Plan.
|
|
|
|
|
First half of
|
|
|
|
|
|
|
2016
|
2015
|
2016 X 2015 (%)
|
2Q-2016
|
1Q-2016
|
2Q16 X 1Q16 (%)
|
2Q-2015
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
518
|
5,436
|
(90)
|
899
|
(381)
|
336
|
908
|
|
Net
finance income (expense)
|
14,754
|
11,669
|
26
|
6,061
|
8,693
|
(30)
|
6,048
|
|
Income
taxes
|
846
|
5,696
|
(85)
|
622
|
224
|
178
|
2,673
|
|
Depreciation, depletion and
amortization
|
24,598
|
17,544
|
40
|
11,949
|
12,649
|
(6)
|
9,028
|
|
EBITDA
|
40,716
|
40,345
|
1
|
19,531
|
21,185
|
(8)
|
18,657
|
|
Share
of earnings in equity-accounted investments
|
(786)
|
(342)
|
(130)
|
(398)
|
(388)
|
(3)
|
(169)
|
|
Impairment losses /
(reversals)
|
1,478
|
1,286
|
15
|
1,184
|
294
|
303
|
1,283
|
|
Adjusted EBITDA
|
41,408
|
41,289
|
−
|
20,317
|
21,091
|
(4)
|
19,771
|
|
Adjusted EBITDA margin (%)
|
29
|
27
|
2
|
28
|
30
|
(2)
|
25
|
1.
|
|
R$ million
|
|
|
Last 12 months until
|
|
|
30.06.2016
|
31.12.2015
|
|
|
|
|
|
Net
income (loss)
|
(40,089)
|
(35,171)
|
|
Net
finance income (expense)
|
31,126
|
28,041
|
|
Income
taxes
|
(10,908)
|
(6,058)
|
|
Depreciation, depletion and
amortization
|
45,628
|
38,574
|
|
EBITDA
|
25,757
|
25,386
|
|
Share
of earnings in equity-accounted investments
|
353
|
797
|
|
Impairment losses /
(reversals)
|
47,868
|
47,676
|
|
Adjusted EBITDA
|
73,978
|
73,859
|
16
ADDITIONAL
INFORMATION
2.
Impact of our Cash Flow Hedge
policy
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
|
2016
|
2015
|
2016 x 2015 (%)
|
2Q-2016
|
1Q-2016
|
2Q16 X 1Q16 (%)
|
2Q-2015
|
|
Total
inflation indexation and foreign exchange variation
|
44,755
|
(24,393)
|
283
|
23,275
|
21,480
|
8
|
5,748
|
|
Deferred Foreign Exchange Variation
recognized in Shareholders' Equity
|
(43,478)
|
22,958
|
(289)
|
(21,465)
|
(22,013)
|
2
|
(5,343)
|
|
Reclassification from Shareholders’
Equity to the Statement of Income
|
(5,397)
|
(2,331)
|
(132)
|
(2,497)
|
(2,900)
|
14
|
(1,507)
|
|
Net
Inflation indexation and foreign exchange variation
|
(4,120)
|
(3,766)
|
(9)
|
(687)
|
(3,433)
|
80
|
(1,102)
|
The decreased reclassification of foreign
exchange variation expenses from the Shareholders’ Equity to the Statement of
Income was mainly due to the fact that the 1Q-2016 was impacted by planned
exports that were no longer expected to occur or did not occur, mainly due to
the decrease in crude oil prices. Decreased planned export volumes were no
longer expected to occur or did not occur in the 2Q-2016.
Additional hedging relationships may be revoked
or additional reclassification adjustments from equity to the Statement of
Income may occur as a result of changes in forecast export prices and export
volumes following a review in the Company’s business plan. Based on a
sensitivity analysis considering a US$ 10/barrel decrease in average Brent
prices stress scenario, when compared to the Brent price projections in our most
recent update of the 2015-2019 Business and Management Plan (
Plano de Negócios e Gestão
– PNG), a R$1,141 million reclassification adjustment from Shareholders’ Equity
to the statement of income would occur.
The expected annual realization of the foreign
exchange variation balance in shareholders’ equity, on June 30, 2016, is set out
below:
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024 to 2027
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected realization
|
(4,424)
|
(10,030)
|
(10,372)
|
(6,942)
|
(5,031)
|
(4,176)
|
(4,803)
|
(2,161)
|
8,495
|
(39,444)
|
17
ADDITIONAL
INFORMATION
3.
Assets and Liabilities subject to Exchange
Variation
The Company
has assets and liabilities subject to foreign exchange rate variation, for which
the main gross exposures are the Real relative to the U.S. dollar and the U.S.
dollar relative to the Euro. Beginning in mid-May 2013, the Company extended the
use of hedge accounting to hedge highly probable future exports.
The Company
designates hedging relationships between exports and its long-term debt
obligations (denominated in U.S. dollars) to simultaneously recognize the
effects of the existing natural foreign exchange hedge between those operations
in its financial statements. Through the extension of the hedge accounting
practice, foreign exchange gains or losses, generated by foreign exchange
variation, are recognized in our shareholders’ equity and will only affect the
statement of income at the moment of realization of future exports.
The balances
of assets and liabilities in foreign currency of our foreign subsidiaries are
not included in our foreign exchange rate variation exposure below when
transacted in a currency equivalent to their respective functional
currencies.
As of June
30, 2016, the Company had a net liability exposure to foreign exchange rates, of
which the main exposure is the relation between U.S. dollar and euro.
|
ITEMS
|
R$ million
|
|
|
|
|
|
|
06.30.2016
|
12.31.2015
|
|
Assets
|
46,171
|
67,040
|
|
Liabilities
|
(275,142)
|
(350,695)
|
|
Hedge
Accounting
|
195,957
|
240,222
|
|
Total
|
(33,014)
|
(43,433)
|
|
|
|
|
|
BY CURRENCY
|
R$ million
|
|
|
|
|
|
|
06.30.2016
|
12.31.2015
|
|
|
|
|
|
Real/
U.S. Dollars
|
(237)
|
2,881
|
|
Real/
Euro
|
(135)
|
(8,687)
|
|
Real/
Pound Sterling
|
(62)
|
(73)
|
|
U.S.
Dollars/ Yen
|
(1,936)
|
(2,180)
|
|
U.S.
Dollars/ Euro
|
(23,091)
|
(24,988)
|
|
U.S.
Dollars/ Pound Sterling
|
(7,584)
|
(10,241)
|
|
Peso/
U.S. Dollars
|
31
|
(145)
|
|
Total
|
(33,014)
|
(43,433)
|
|
|
|
|
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
Foreign
exchange and inflation indexation charges
|
2016
|
2015
|
2016 x 2015 (%)
|
2Q-2016
|
1Q-2016
|
2Q16 X 1Q16 (%)
|
2Q-2015
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange variation Dolar x Euro
|
(533)
|
1,563
|
(134)
|
910
|
(1,443)
|
163
|
(707)
|
|
Foreign
exchange variation Real x Dolar
|
590
|
(2,937)
|
120
|
(33)
|
623
|
(105)
|
874
|
|
Foreign
exchange variation Dolar x Pound Sterling
|
970
|
(80)
|
1313
|
644
|
326
|
98
|
(321)
|
|
Reclassification of hedge accounting from
Shareholders’ Equity to the Statement of Income
|
(5,397)
|
(2,331)
|
(132)
|
(2,497)
|
(2,900)
|
14
|
(1,507)
|
|
Foreign
exchange variation Real x Euro
|
(226)
|
(478)
|
53
|
32
|
(258)
|
112
|
(28)
|
|
Others
|
476
|
497
|
(4)
|
257
|
219
|
17
|
587
|
|
Net
Inflation indexation and foreign exchange variation
|
(4,120)
|
(3,766)
|
(9)
|
(687)
|
(3,433)
|
80
|
(1,102)
|
18
ADDITIONAL
INFORMATION
4.
Special Items
|
R$ million
|
|
First half of
|
|
|
|
|
|
|
2016
|
2015
|
|
Items of Income
Statement
|
2Q-2016
|
1Q-2016
|
2Q-2015
|
|
|
|
|
|
|
|
|
|
(1,050)
|
1,125
|
Impairment of trade receivables from
companies in the isolated electricity system
|
Selling expenses
|
(506)
|
(544)
|
(46)
|
|
(866)
|
259
|
(Losses)/Gains on legal
proceedings
|
Other income
(expenses)
|
(569)
|
(297)
|
259
|
|
(1,478)
|
(1,453)
|
Impairment of assets and
investments
|
Several
|
(1,184)
|
(294)
|
(1,450)
|
|
(51)
|
(520)
|
State
Tax Amnesty Program / PRORELIT
|
Several
|
−
|
(51)
|
(520)
|
|
−
|
(4,373)
|
Tax
Recoverable Program - REFIS
|
Several
|
−
|
−
|
(4,373)
|
|
(1,220)
|
−
|
Voluntary Separation Incentive Plan –
PIDV
|
Other income
(expenses)
|
(1,220)
|
−
|
−
|
|
79
|
157
|
Amounts recovered - "overpayments
incorrectly capitalized"
|
Other income
(expenses)
|
79
|
−
|
157
|
|
−
|
464
|
Gains
(losses) on Disposal of Assets
|
Other income
(expenses)
|
−
|
−
|
76
|
|
(4,586)
|
(4,341)
|
Total
|
|
(3,400)
|
(1,186)
|
(5,897)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of the
impairment of assets and investments on the Company´s Income
Statement:
|
|
|
|
|
|
|
|
|
|
(1,478)
|
(1,286)
|
Impairment
|
|
(1,184)
|
(294)
|
(1,283)
|
|
−
|
(167)
|
Share
of earnings in equity-accounted investments
|
|
−
|
−
|
(167)
|
|
(1,478)
|
(1,453)
|
Impairment of assets and
investments
|
|
(1,184)
|
(294)
|
(1,450)
|
|
|
|
|
|
|
|
|
|
Impact of the
effects of State Tax Amnesty Program and of Program of Reduction of Tax
Litigation (PRORELIT) on the Company’s Income
Statement:
|
|
|
|
|
|
|
|
|
|
(42)
|
(441)
|
Tax
expenses
|
|
−
|
(42)
|
(441)
|
|
(9)
|
(79)
|
Interest expenses
|
|
−
|
(9)
|
(79)
|
|
(51)
|
(520)
|
State
Tax Amnesty Program / PRORELIT
|
|
−
|
(51)
|
(520)
|
|
|
|
|
|
|
|
|
|
Impact of the
Company’s decision to adhere to the Tax Recoverable Program - REFIS on its
Income Statement:
|
|
|
|
|
|
|
|
|
|
−
|
(3,073)
|
Tax
expenses
|
|
−
|
−
|
(3,073)
|
|
−
|
(1,300)
|
Interest expenses
|
|
−
|
−
|
(1,300)
|
|
−
|
(4,373)
|
Tax
Recoverable Program - REFIS
|
|
−
|
−
|
(4,373)
|
These special
items are related to the Company’s businesses and based on Management’s
judgement have been highlighted and are presented as additional information to
provide a better understanding of the Company’s performance. These items are
presented when relevant and do not necessarily occur in all periods.
19
ADDITIONAL
INFORMATION
5. Results of
Operations of 2Q-2016 compared to 1Q-2016:
Sales
revenues of R$ 71,320 million in the 2Q-2016, a 1% increase when compared to the
1Q-2016 (R$ 70,337 million), due to:
·
Higher crude oil and oil product export
revenues; and
·
Higher domestic sales of naphtha (55%) and
diesel (2%).
These effects
were partially offset by lower domestic gasoline sales and decreased electricity
revenue, reflecting lower power generation.
Cost of sales
of R$ 48,499 million in the 2Q-2016, a 2% decrease compared to R$ 49,329 million
in the 1Q-2016, due to lower crude oil and natural gas import costs, partially
offset by the increase of production taxes and oil products imports.
General and
administrative expenses were R$ 2,844 million in the 2Q-2016, a 7% increase when
compared to the 1Q-2016 (R$ 2,652 million), due to higher third-party service
expenses.
Exploration
costs were R$ 1,641 million in the 2Q-2016, a 43% increase when compared to the
1Q-2016 (R$ 1,147 million), mainly generated by the return of exploratory blocks
due to their economic viability.
Other
expenses, net were R$ 6,509 million in the 2Q-2016, a 53% increase when compared
to R$ 4,265 million in the 1Q-2016, mainly as a result of:
·
Expenses with the new Voluntary Separation
Incentive Plan (R$ 1,212 million); and
·
Impairment of Comperj assets (R$ 1,124
million), due to the project reassessment that generated the review of time
schedule and completion costs of refining units of the Natural Gas Processing
Unit (UPGN).
Net finance
expense decreased by 30% to R$ 6,061 million in the 2Q-2016, from R$ 8,693
million in the 1Q-2016, mainly as a result of foreign exchange gains of R$ 910
million attributable to a 3.1% appreciation of the U.S. dollar against the Euro
and its impact on the Company’s net debt in the 2Q-2016, compared to the foreign
exchange losses of R$ 1,443 million attributable to a 4.7% foreign exchange
depreciation in the 1Q-2016 (R$ 2,353 million).
Income taxes
expenses (corporate income tax and social contribution) of R$ 622 million in the
2Q-2016, a 178% increase when compared to R$ 224 million in the 1Q-2016, mainly
due to the negative result in the 1Q-2016.
Loss
attributable to non-controlling interests of R$ 529 million in the 2Q-2016, a
39% decrease when compared to the 1Q-2016 (loss of R$ 865 million), mainly
reflecting the impact of foreign exchange variation on debt in U.S. dollar of
structured entities in the period.
20
ADDITIONAL
INFORMATION
6. Results of
Operations of 1H-2016 compared to 1H-2015:
Sales
revenues of R$ 141,657 million in the 1H-2016, a 8% decrease when compared to
the 1H-2015 (R$ 154,296 million), due to:
·
Decreased
domestic sales for oil products (7%), reflecting lower economic activity in
Brazil and decreased diesel and fuel oil consumption for thermoelectric
generation;
·
Decreased
electricity generation and prices due to improved hydrological conditions and
decreased domestic natural gas sales volumes; and
·
Lower crude
oil and oil product export prices as a result of lower international crude oil
prices.
These effects
were partially offset by higher margins of diesel and gasoline.
Cost of sales
of R$ 97,828 million in the 1H-2016, a 8% decrease compared to R$ 106,324
million in the 1H-2015, reflecting lower crude oil, oil products and natural gas
import costs, as well as lower production taxes in Brazil. These effects were
partially offset by higher depreciation expenses as a result of a decrease in
estimated reserves (based on the unit of production method), partially offset by
lower carrying amounts of assets impacted by the impairment losses recognized in
2015.
Selling
expenses were R$ 7,441 million in the 1H-2016, a 33% increase compared to R$
5,610 million in the 1H-2015, mainly due to the reversal of impairment of trade
receivables from companies in the electricity sector in the 1Q-2015 (R$ 1,295
million) and higher freight expenses in 2016, following the depreciation of the
Brazilian Real against the U.S. dollar.
Exploration
costs were R$ 2,788 million in the 1H-2016, a 16% increase compared to R$ 2,403
million in the 1H-2015, mainly generated by the return of exploratory blocks due
to their economic viability.
Other taxes
were R$ 988 million in the 1H-2016, a 79% decrease compared to R$ 4,713 million
in the 1H-2015, mainly due to the burden of tax on financial operations (Imposto
sobre Operações Financeiras - IOF) applicable to intercompany loans made by
Petrobras to foreign subsidiaries and to the VAT tax (Imposto sobre a Circulação
de Mercadorias e Serviços) on the acquisition of natural gas recognized in the
1H-2015.
Other income
and expenses, net were R$ 10,774 million in the 1H-2016, a 76% increase when
compared to R$ 6,139 million in the 1H-2015, as a result of:
·
Increased
unschedulled stoppages and pre-operating expenses, mainly with drilling rigs
idleness (R$ 2,392 million);
·
Higher
expenses related to legal proceedings, mainly in connection with labor and civil
lawsuits (R$ 1,835 million); and
·
Expenses with
the new Voluntary Separation Incentive Plan (R$ 1,213 million).
Net finance
expenses increased by 26% to R$ 14,754 million in the 1H-2016, from R$ 11,669
million in the 1H-2015, as a result of:
·
Higher
interest expenses due to higher debt and to the effect of the depreciation of
the average Brazilian Real against the U.S. dollar (R$ 3,453 million, net of
capitalized borrowing costs);
·
Foreign
exchange gains of R$ 590 million generated by the impact of a 17.8% appreciation
of the Brazilian Real against the U.S. dollar on the Company’s net debt in the
1H-2016, compared to foreign exchange losses of R$ 2,937 million generated by
the impact of a 16.8% depreciation in the 1H-2015 (R$ 3,527 million);
·
The higher
reclassification of cumulative foreign exchange variation from shareholders’
equity to net income due to occurred exports designated for cash flow hedge
accounting, and to a portion of future exports that were previously designated
but were no longer expected to occur or did not occur (R$ 3,066
million);
·
Foreign
exchange losses of R$ 533 million caused by the impact of a 1.4% depreciation of
the U.S. dollar against the Euro on the Company’s net debt in the 1H-2016,
compared to foreign exchange gains of R$ 1,563 million caused by the impact of
an 8.2% appreciation in the 1H-2015 (R$ 2,096 million); and
·
Foreign
exchange gains of R$ 970 million caused by the impact of a 10.7% appreciation of
the U.S. dollar against the Pound Sterling on the Company’s net debt in the
1H-2016, compared to foreign exchange losses of R$ 80 million caused by the
impact of a 0.9% depreciation in the 1H-2015 (R$ 1,050 million).
Share of
earnings in equity-accounted investments were R$ 786 million, a 130% increase
when compared to R$ 342 million in the 1H-2015, mainly due to impairment losses
in investee companies of Exploration and Production and Biofuels segments in the
1H-2015, as a result of decreased crude oil prices and higher discount rates,
due to an increase in Brazil’s risk premium resulting from a credit risk
downgrade (losing its investment grade status).
Income taxes
(corporate income tax and social contribution) were R$ 846 million in the
1H-2016, a 85% decrease compared to R$ 5,696 million in the 1H-2015, mainly due
to lower taxable income before income taxes and decreased corporate income tax
and social contribution tax expenses in Brazil over income earned abroad.
Loss related
to non-controlling interests were R$ 1,394 million in the 1H-2016 (a R$ 425
million gain in the 1H-2015), mainly reflecting the impact of foreign exchange
variation on debt of structured entities in U.S. dollars in the
period.
21
FINANCIAL STATEMENTS
Income Statement - Consolidated
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
2016
|
2015
|
2Q-2016
|
1Q-2016
|
2Q-2015
|
|
Sales
revenues
|
141,657
|
154,296
|
71,320
|
70,337
|
79,943
|
|
Cost of
sales
|
(97,828)
|
(106,324)
|
(48,499)
|
(49,329)
|
(54,381)
|
|
Gross
profit
|
43,829
|
47,972
|
22,821
|
21,008
|
25,562
|
|
Selling
expenses
|
(7,441)
|
(5,610)
|
(3,690)
|
(3,751)
|
(3,886)
|
|
General
and administrative expenses
|
(5,496)
|
(5,474)
|
(2,844)
|
(2,652)
|
(2,764)
|
|
Exploration costs
|
(2,788)
|
(2,403)
|
(1,641)
|
(1,147)
|
(1,420)
|
|
Research and development
expenses
|
(1,010)
|
(1,174)
|
(507)
|
(503)
|
(610)
|
|
Other
taxes
|
(988)
|
(4,713)
|
(446)
|
(542)
|
(3,960)
|
|
Other
income and expenses, net
|
(10,774)
|
(6,139)
|
(6,509)
|
(4,265)
|
(3,462)
|
|
|
(28,497)
|
(25,513)
|
(15,637)
|
(12,860)
|
(16,102)
|
|
Operating income (loss)
|
15,332
|
22,459
|
7,184
|
8,148
|
9,460
|
|
Finance
income
|
1,650
|
1,349
|
764
|
886
|
615
|
|
Finance
expenses
|
(12,284)
|
(9,252)
|
(6,138)
|
(6,146)
|
(5,561)
|
|
Foreign
exchange and inflation indexation charges
|
(4,120)
|
(3,766)
|
(687)
|
(3,433)
|
(1,102)
|
|
Net
finance income (expense)
|
(14,754)
|
(11,669)
|
(6,061)
|
(8,693)
|
(6,048)
|
|
Share
of earnings in equity-accounted investments
|
786
|
342
|
398
|
388
|
169
|
|
Income
(loss) before income taxes
|
1,364
|
11,132
|
1,521
|
(157)
|
3,581
|
|
Income
taxes
|
(846)
|
(5,696)
|
(622)
|
(224)
|
(2,673)
|
|
Net
income (loss)
|
518
|
5,436
|
899
|
(381)
|
908
|
|
Net
income (loss) attributable to:
|
|
|
|
|
|
|
Shareholders of Petrobras
|
(876)
|
5,861
|
370
|
(1,246)
|
531
|
|
Non-controlling interests
|
1,394
|
(425)
|
529
|
865
|
377
|
|
|
518
|
5,436
|
899
|
(381)
|
908
|
22
Statement of Financial Position –
Consolidated
|
ASSETS
|
R$ million
|
|
|
06.30.2016
|
12.31.2015
|
|
Current
assets
|
132,625
|
169,581
|
|
Cash
and cash equivalents
|
62,940
|
97,845
|
|
Marketable securities
|
2,430
|
3,047
|
|
Trade
and other receivables, net
|
17,047
|
22,659
|
|
Inventories
|
28,508
|
29,057
|
|
Recoverable taxes
|
9,285
|
10,732
|
|
Assets
classified as held for sale
|
6,938
|
595
|
|
Other
current assets
|
5,477
|
5,646
|
|
Non-current assets
|
685,707
|
730,554
|
|
Long-term receivables
|
59,874
|
74,879
|
|
Trade
and other receivables, net
|
12,976
|
14,327
|
|
Marketable securities
|
311
|
342
|
|
Judicial deposits
|
11,013
|
9,758
|
|
Deferred taxes
|
9,429
|
23,490
|
|
Other
tax assets
|
10,933
|
11,017
|
|
Advances to suppliers
|
5,136
|
6,395
|
|
Other
non-current assets
|
10,076
|
9,550
|
|
Investments
|
13,088
|
13,772
|
|
Property, plant and
equipment
|
601,166
|
629,831
|
|
Intangible assets
|
11,579
|
12,072
|
|
Total
assets
|
818,332
|
900,135
|
|
|
|
|
|
LIABILITIES
|
R$ million
|
|
|
06.30.2016
|
12.31.2015
|
|
Current
liabilities
|
83,681
|
111,572
|
|
Trade
payables
|
17,840
|
24,888
|
|
Current
debt
|
36,513
|
57,407
|
|
Taxes
payable
|
10,871
|
13,549
|
|
Employee compensation (payroll,
profit-sharing and related charges)
|
6,081
|
5,085
|
|
Pension
and medical benefits
|
2,563
|
2,556
|
|
Liabilities associated with assets
classified as held for sale
|
3,353
|
488
|
|
Other
current liabilities
|
6,460
|
7,599
|
|
Non-current liabilities
|
459,359
|
530,633
|
|
Non-current debt
|
361,247
|
435,616
|
|
Deferred taxes
|
782
|
906
|
|
Pension
and medical benefits
|
50,240
|
47,618
|
|
Provision for decommissioning
costs
|
35,226
|
35,728
|
|
Provisions for legal
proceedings
|
10,424
|
8,776
|
|
Other
non-current liabilities
|
1,440
|
1,989
|
|
Shareholders' equity
|
275,292
|
257,930
|
|
Share
capital
|
205,432
|
205,432
|
|
Profit
reserves and others
|
65,963
|
49,299
|
|
Non-controlling interests
|
3,897
|
3,199
|
|
Total
liabilities and shareholders' equity
|
818,332
|
900,135
|
|
|
|
|
23
Statement of Cash Flows Data –
Consolidated
|
|
R$ million
|
|
|
First half of
|
|
|
|
|
|
2016
|
2015
|
2Q-2016
|
1Q-2016
|
2Q-2015
|
|
Net
income (loss)
|
518
|
5,436
|
899
|
(381)
|
908
|
|
(+)
Adjustments for:
|
38,732
|
33,881
|
21,044
|
17,688
|
21,982
|
|
Depreciation, depletion and
amortization
|
24,598
|
17,544
|
11,949
|
12,649
|
9,028
|
|
Foreign
exchange and inflation indexation and finance charges
|
14,596
|
11,871
|
5,845
|
8,751
|
5,577
|
|
Share
of earnings in equity-accounted investments
|
(786)
|
(342)
|
(398)
|
(388)
|
(169)
|
|
Allowance for impairment of trade
receivables
|
1,237
|
24
|
734
|
503
|
887
|
|
(Gains)
/ losses on disposal / write-offs of non-current assets, returned areas
and cancelled projects
|
235
|
(189)
|
133
|
102
|
215
|
|
Deferred income taxes, net
|
(2,701)
|
3,812
|
(1,288)
|
(1,413)
|
1,768
|
|
Exploration expenditures
writen-off
|
1,810
|
1,663
|
1,231
|
579
|
1,087
|
|
Impairment
|
1,478
|
1,286
|
1,184
|
294
|
1,283
|
|
Inventory write-downs to net realizable
value (market value)
|
1,250
|
38
|
74
|
1,176
|
(249)
|
|
Pension
and medical benefits (actuarial expense)
|
4,023
|
3,368
|
2,018
|
2,005
|
1,684
|
|
Inventories
|
(2,141)
|
(2,654)
|
(468)
|
(1,673)
|
(1,630)
|
|
Trade
and other receivables, net
|
2,984
|
(343)
|
(600)
|
3,584
|
(416)
|
|
Judicial deposits
|
(1,284)
|
(1,944)
|
(901)
|
(383)
|
(1,505)
|
|
Trade
payables
|
(4,971)
|
(2,456)
|
(1,196)
|
(3,775)
|
(181)
|
|
Pension
and medical benefits
|
(1,230)
|
(1,122)
|
(792)
|
(438)
|
(707)
|
|
Taxes
payable
|
(181)
|
7,169
|
2,039
|
(2,220)
|
6,225
|
|
Income
tax and social contribution paid
|
(579)
|
(1,177)
|
(308)
|
(271)
|
(556)
|
|
Other
assets and liabilities
|
394
|
(2,667)
|
1,788
|
(1,394)
|
(359)
|
|
(=) Net
cash provided by (used in) operating activities
|
39,250
|
39,317
|
21,943
|
17,307
|
22,890
|
|
(-) Net
cash provided by (used in) investing activities
|
(25,277)
|
(16,078)
|
(10,759)
|
(14,518)
|
5,253
|
|
Capital
expenditures and investments in operating segments
|
(26,079)
|
(34,833)
|
(11,153)
|
(14,926)
|
(17,153)
|
|
Proceeds from disposal of assets
(divestment)
|
14
|
612
|
3
|
11
|
96
|
|
Investments in marketable
securities
|
788
|
18,143
|
391
|
397
|
22,310
|
|
(=) Net
cash flow
|
13,973
|
23,239
|
11,184
|
2,789
|
28,143
|
|
(-) Net
cash provided by (used in) financing activities
|
(36,910)
|
9,086
|
(19,551)
|
(17,359)
|
18,996
|
|
Proceeds from long-term financing
|
32,679
|
37,472
|
25,464
|
7,215
|
33,737
|
|
Repayment of principal
|
(56,188)
|
(19,446)
|
(39,090)
|
(17,098)
|
(11,005)
|
|
Repayment of interest
|
(13,590)
|
(9,445)
|
(5,968)
|
(7,622)
|
(3,845)
|
|
Acquisition of non-controlling
interest
|
189
|
505
|
43
|
146
|
109
|
|
Effect
of exchange rate changes on cash and cash equivalents
|
(11,968)
|
4,602
|
(6,471)
|
(5,497)
|
(423)
|
|
(=) Net
increase (decrease) in cash and cash equivalents in the
period
|
(34,905)
|
36,927
|
(14,838)
|
(20,067)
|
46,716
|
|
Cash
and cash equivalents at the beginning of period
|
97,845
|
44,239
|
77,778
|
97,845
|
34,450
|
|
Cash
and cash equivalents at the end of period
|
62,940
|
81,166
|
62,940
|
77,778
|
81,166
|
24
SEGMENT
INFORMATION
Consolidated Income Statement by Segment –
1H-2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS
& POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Sales
revenues
|
53,297
|
109,032
|
17,151
|
445
|
49,449
|
−
|
(87,717)
|
141,657
|
|
Intersegments
|
50,688
|
31,621
|
4,230
|
427
|
751
|
−
|
(87,717)
|
−
|
|
Third
parties
|
2,609
|
77,411
|
12,921
|
18
|
48,698
|
−
|
−
|
141,657
|
|
Cost of
sales
|
(42,435)
|
(80,965)
|
(13,177)
|
(493)
|
(45,705)
|
−
|
84,947
|
(97,828)
|
|
Gross
profit
|
10,862
|
28,067
|
3,974
|
(48)
|
3,744
|
−
|
(2,770)
|
43,829
|
|
Expenses
|
(8,754)
|
(6,227)
|
(1,980)
|
(137)
|
(3,524)
|
(8,071)
|
196
|
(28,497)
|
|
Selling
expenses
|
(298)
|
(3,341)
|
(1,484)
|
(3)
|
(2,478)
|
(49)
|
212
|
(7,441)
|
|
General
and administrative expenses
|
(655)
|
(721)
|
(380)
|
(43)
|
(439)
|
(3,257)
|
(1)
|
(5,496)
|
|
Exploration costs
|
(2,788)
|
−
|
−
|
−
|
−
|
−
|
−
|
(2,788)
|
|
Research and development
expenses
|
(438)
|
(103)
|
(32)
|
(2)
|
−
|
(435)
|
−
|
(1,010)
|
|
Other
taxes
|
(121)
|
(137)
|
(390)
|
(5)
|
(84)
|
(251)
|
−
|
(988)
|
|
Other
income and expenses, net
|
(4,454)
|
(1,925)
|
306
|
(84)
|
(523)
|
(4,079)
|
(15)
|
(10,774)
|
|
Operating income (loss)
|
2,108
|
21,840
|
1,994
|
(185)
|
220
|
(8,071)
|
(2,574)
|
15,332
|
|
Net
finance income (expense)
|
−
|
−
|
−
|
−
|
−
|
(14,754)
|
−
|
(14,754)
|
|
Share
of earnings in equity-accounted investments
|
8
|
561
|
204
|
(2)
|
16
|
(1)
|
−
|
786
|
|
Income
(loss) before income taxes
|
2,116
|
22,401
|
2,198
|
(187)
|
236
|
(22,826)
|
(2,574)
|
1,364
|
|
Income
taxes
|
(717)
|
(7,425)
|
(678)
|
63
|
(75)
|
7,111
|
875
|
(846)
|
|
Net
income (loss)
|
1,399
|
14,976
|
1,520
|
(124)
|
161
|
(15,715)
|
(1,699)
|
518
|
|
Net
income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
Shareholders of Petrobras
|
1,557
|
15,184
|
1,302
|
(124)
|
159
|
(17,255)
|
(1,699)
|
(876)
|
|
Non-controlling interests
|
(158)
|
(208)
|
218
|
−
|
2
|
1,540
|
−
|
1,394
|
|
|
1,399
|
14,976
|
1,520
|
(124)
|
161
|
(15,715)
|
(1,699)
|
518
|
Consolidated Income Statement by Segment –
1H-2015
|
|
R$ million
|
|
|
E&P
|
RTM
|
GAS
& POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Sales
revenues
|
60,407
|
117,990
|
21,589
|
308
|
54,149
|
−
|
(100,147)
|
154,296
|
|
Intersegments
|
58,244
|
37,353
|
3,338
|
292
|
920
|
−
|
(100,147)
|
−
|
|
Third
parties
|
2,163
|
80,637
|
18,251
|
16
|
53,229
|
−
|
−
|
154,296
|
|
Cost of
sales
|
(40,911)
|
(95,509)
|
(17,819)
|
(340)
|
(49,938)
|
−
|
98,193
|
(106,324)
|
|
Gross
profit
|
19,496
|
22,481
|
3,770
|
(32)
|
4,211
|
−
|
(1,954)
|
47,972
|
|
Expenses
|
(5,176)
|
(5,104)
|
(2,026)
|
(80)
|
(2,944)
|
(10,525)
|
342
|
(25,513)
|
|
Selling
expenses
|
(369)
|
(3,042)
|
(110)
|
(4)
|
(2,487)
|
56
|
346
|
(5,610)
|
|
General
and administrative expenses
|
(642)
|
(634)
|
(380)
|
(51)
|
(434)
|
(3,331)
|
(2)
|
(5,474)
|
|
Exploration costs
|
(2,403)
|
−
|
−
|
−
|
−
|
−
|
−
|
(2,403)
|
|
Research and development
expenses
|
(448)
|
(189)
|
(124)
|
(17)
|
(2)
|
(394)
|
−
|
(1,174)
|
|
Other
taxes
|
(143)
|
(250)
|
(822)
|
(1)
|
(59)
|
(3,438)
|
−
|
(4,713)
|
|
Other
income and expenses, net
|
(1,171)
|
(989)
|
(590)
|
(7)
|
38
|
(3,418)
|
(2)
|
(6,139)
|
|
Operating income (loss)
|
14,320
|
17,377
|
1,744
|
(112)
|
1,267
|
(10,525)
|
(1,612)
|
22,459
|
|
Net
finance income (expense)
|
−
|
−
|
−
|
−
|
−
|
(11,669)
|
−
|
(11,669)
|
|
Share
of earnings in equity-accounted investments
|
(99)
|
487
|
221
|
(279)
|
15
|
(3)
|
−
|
342
|
|
Income
(loss) before income taxes
|
14,221
|
17,864
|
1,965
|
(391)
|
1,282
|
(22,197)
|
(1,612)
|
11,132
|
|
Income
taxes
|
(4,869)
|
(5,908)
|
(593)
|
38
|
(431)
|
5,519
|
548
|
(5,696)
|
|
Net
income (loss)
|
9,352
|
11,956
|
1,372
|
(353)
|
851
|
(16,678)
|
(1,064)
|
5,436
|
|
Net
income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
Shareholders of Petrobras
|
9,332
|
11,958
|
1,225
|
(353)
|
849
|
(16,086)
|
(1,064)
|
5,861
|
|
Non-controlling interests
|
20
|
(2)
|
147
|
−
|
2
|
(592)
|
−
|
(425)
|
|
|
9,352
|
11,956
|
1,372
|
(353)
|
851
|
(16,678)
|
(1,064)
|
5,436
|
25
Consolidated Income Statement by Segment –
2Q-2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS
& POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Sales
revenues
|
29,622
|
55,947
|
7,760
|
217
|
24,218
|
−
|
(46,444)
|
71,320
|
|
Intersegments
|
27,700
|
16,064
|
2,100
|
208
|
372
|
−
|
(46,444)
|
−
|
|
Third
parties
|
1,922
|
39,883
|
5,660
|
9
|
23,846
|
−
|
−
|
71,320
|
|
Cost of
sales
|
(21,598)
|
(41,866)
|
(5,614)
|
(245)
|
(22,414)
|
−
|
43,238
|
(48,499)
|
|
Gross
profit
|
8,024
|
14,081
|
2,146
|
(28)
|
1,804
|
−
|
(3,206)
|
22,821
|
|
Expenses
|
(5,143)
|
(3,736)
|
(1,246)
|
(19)
|
(1,537)
|
(4,079)
|
123
|
(15,637)
|
|
Selling
expenses
|
(131)
|
(1,579)
|
(1,049)
|
(1)
|
(1,009)
|
(41)
|
120
|
(3,690)
|
|
General
and administrative expenses
|
(314)
|
(328)
|
(181)
|
(20)
|
(217)
|
(1,784)
|
−
|
(2,844)
|
|
Exploration costs
|
(1,641)
|
−
|
−
|
−
|
−
|
−
|
−
|
(1,641)
|
|
Research and development
expenses
|
(229)
|
(35)
|
(11)
|
−
|
−
|
(232)
|
−
|
(507)
|
|
Other
taxes
|
(59)
|
6
|
(220)
|
(3)
|
(46)
|
(124)
|
−
|
(446)
|
|
Other
income and expenses, net
|
(2,769)
|
(1,800)
|
215
|
5
|
(265)
|
(1,898)
|
3
|
(6,509)
|
|
Operating income (loss)
|
2,881
|
10,345
|
900
|
(47)
|
267
|
(4,079)
|
(3,083)
|
7,184
|
|
Net
finance income (expense)
|
−
|
−
|
−
|
−
|
−
|
(6,061)
|
−
|
(6,061)
|
|
Share
of earnings in equity-accounted investments
|
107
|
186
|
148
|
(45)
|
9
|
(7)
|
−
|
398
|
|
Income
(loss) before income taxes
|
2,988
|
10,531
|
1,048
|
(92)
|
276
|
(10,147)
|
(3,083)
|
1,521
|
|
Income
taxes
|
(980)
|
(3,517)
|
(306)
|
16
|
(91)
|
3,207
|
1,049
|
(622)
|
|
Net
income (loss)
|
2,008
|
7,014
|
742
|
(76)
|
185
|
(6,940)
|
(2,034)
|
899
|
|
Net
income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
Shareholders of Petrobras
|
2,162
|
7,208
|
545
|
(76)
|
184
|
(7,619)
|
(2,034)
|
370
|
|
Non-controlling interests
|
(154)
|
(194)
|
197
|
−
|
1
|
679
|
−
|
529
|
|
|
2,008
|
7,014
|
742
|
(76)
|
185
|
(6,940)
|
(2,034)
|
899
|
Consolidated Income Statement by Segment –
1Q-2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS &
POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Sales
revenues
|
23,675
|
53,085
|
9,391
|
228
|
25,231
|
−
|
(41,273)
|
70,337
|
|
Intersegments
|
22,988
|
15,557
|
2,130
|
219
|
379
|
−
|
(41,273)
|
−
|
|
Third
parties
|
687
|
37,528
|
7,261
|
9
|
24,852
|
−
|
−
|
70,337
|
|
Cost of
sales
|
(20,837)
|
(39,099)
|
(7,563)
|
(248)
|
(23,291)
|
−
|
41,709
|
(49,329)
|
|
Gross
profit
|
2,838
|
13,986
|
1,828
|
(20)
|
1,940
|
−
|
436
|
21,008
|
|
Expenses
|
(3,611)
|
(2,491)
|
(734)
|
(118)
|
(1,987)
|
(3,992)
|
73
|
(12,860)
|
|
Selling
expenses
|
(167)
|
(1,762)
|
(435)
|
(2)
|
(1,469)
|
(8)
|
92
|
(3,751)
|
|
General and
administrative expenses
|
(341)
|
(393)
|
(199)
|
(23)
|
(222)
|
(1,473)
|
(1)
|
(2,652)
|
|
Exploration
costs
|
(1,147)
|
−
|
−
|
−
|
−
|
−
|
−
|
(1,147)
|
|
Research and
development expenses
|
(209)
|
(68)
|
(21)
|
(2)
|
−
|
(203)
|
−
|
(503)
|
|
Other
taxes
|
(62)
|
(143)
|
(170)
|
(2)
|
(38)
|
(127)
|
−
|
(542)
|
|
Other
income and expenses, net
|
(1,685)
|
(125)
|
91
|
(89)
|
(258)
|
(2,181)
|
(18)
|
(4,265)
|
|
Operating income
(loss)
|
(773)
|
11,495
|
1,094
|
(138)
|
(47)
|
(3,992)
|
509
|
8,148
|
|
Net finance income
(expense)
|
−
|
−
|
−
|
−
|
−
|
(8,693)
|
−
|
(8,693)
|
|
Share
of earnings in equity-accounted investments
|
(99)
|
375
|
56
|
43
|
7
|
6
|
−
|
388
|
|
Income
(loss) before income taxes
|
(872)
|
11,870
|
1,150
|
(95)
|
(40)
|
(12,679)
|
509
|
(157)
|
|
Income
taxes
|
263
|
(3,908)
|
(372)
|
47
|
16
|
3,904
|
(174)
|
(224)
|
|
Net income
(loss)
|
(609)
|
7,962
|
778
|
(48)
|
(24)
|
(8,775)
|
335
|
(381)
|
|
Net
income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
Shareholders of
Petrobras
|
(605)
|
7,976
|
757
|
(48)
|
(25)
|
(9,636)
|
335
|
(1,246)
|
|
Non-controlling
interests
|
(4)
|
(14)
|
21
|
−
|
1
|
861
|
−
|
865
|
|
|
(609)
|
7,962
|
778
|
(48)
|
(24)
|
(8,775)
|
335
|
(381)
|
26
Other Income (Expenses) by Segment –
1H-2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS & POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Unscheduled stoppages and pre-operating
expenses
|
(3,943)
|
(135)
|
(89)
|
−
|
−
|
(7)
|
−
|
(4,174)
|
|
(Losses)/gains on legal, administrative
and arbitral proceedings
|
(658)
|
(153)
|
(34)
|
−
|
(692)
|
(1,037)
|
−
|
(2,574)
|
|
Pension and
medical benefits
|
−
|
−
|
−
|
−
|
−
|
(2,478)
|
−
|
(2,478)
|
|
Impairment
|
(353)
|
(1,125)
|
−
|
−
|
−
|
−
|
−
|
(1,478)
|
|
Voluntary Separation Incentive Plan -
PIDV
|
(565)
|
(267)
|
(51)
|
−
|
9
|
(339)
|
−
|
(1,213)
|
|
Institutional relations and cultural
projects
|
(11)
|
(9)
|
(1)
|
−
|
(26)
|
(385)
|
−
|
(432)
|
|
Gains /
(losses) on disposal/write-offs of assets; returned areas and cancelled
projects
|
(70)
|
(146)
|
(42)
|
−
|
7
|
16
|
−
|
(235)
|
|
Operating expenses with thermoeletric
plants
|
−
|
−
|
(208)
|
−
|
−
|
−
|
−
|
(208)
|
|
Health, safety and
environment
|
(36)
|
(33)
|
(11)
|
−
|
(2)
|
(75)
|
−
|
(157)
|
|
Losses on
fines
|
(20)
|
(54)
|
(1)
|
−
|
−
|
(67)
|
−
|
(142)
|
|
Reimbursement of unduly capitalized
expenses
|
−
|
−
|
−
|
−
|
−
|
79
|
−
|
79
|
|
Government
Grants
|
8
|
53
|
198
|
9
|
−
|
1
|
−
|
269
|
|
Ship/Take or Pay Agreements with Gas
Distributors
|
2
|
−
|
357
|
−
|
−
|
−
|
−
|
359
|
|
(Expenditures)/reimbursements from
operations in E&P partnerships
|
1,123
|
−
|
−
|
−
|
−
|
−
|
−
|
1,123
|
|
Others
|
69
|
(56)
|
188
|
(93)
|
181
|
213
|
(15)
|
487
|
|
|
(4,454)
|
(1,925)
|
306
|
(84)
|
(523)
|
(4,079)
|
(15)
|
(10,774)
|
Other Income (Expenses) by Segment –
1H-2015
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS & POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Unscheduled stoppages and pre-operating
expenses
|
(1,212)
|
(392)
|
(166)
|
−
|
−
|
(12)
|
−
|
(1,782)
|
|
(Losses)/gains on legal, administrative
and arbitral proceedings
|
(119)
|
(193)
|
12
|
−
|
(51)
|
(388)
|
−
|
(739)
|
|
Pension and
medical benefits
|
−
|
−
|
−
|
−
|
−
|
(1,895)
|
−
|
(1,895)
|
|
Impairment
|
(336)
|
(365)
|
(585)
|
−
|
−
|
−
|
−
|
(1,286)
|
|
Voluntary Separation Incentive Plan -
PIDV
|
(21)
|
(15)
|
(38)
|
(3)
|
1
|
(5)
|
−
|
(81)
|
|
Institutional relations and cultural
projects
|
(38)
|
(34)
|
(3)
|
−
|
(85)
|
(558)
|
−
|
(718)
|
|
Gains /
(losses) on disposal/write-offs of assets; returned areas and cancelled
projects
|
(84)
|
257
|
14
|
−
|
9
|
(7)
|
−
|
189
|
|
Operating expenses with thermoeletric
plants
|
−
|
−
|
(198)
|
−
|
−
|
−
|
−
|
(198)
|
|
Health, safety and
environment
|
(33)
|
(29)
|
(9)
|
−
|
(1)
|
(80)
|
−
|
(152)
|
|
Losses on
fines
|
(17)
|
(295)
|
(6)
|
−
|
−
|
(458)
|
−
|
(776)
|
|
Reimbursement of unduly capitalized
expenses
|
−
|
−
|
−
|
−
|
−
|
157
|
−
|
157
|
|
Government
Grants
|
8
|
3
|
−
|
−
|
−
|
8
|
−
|
19
|
|
Ship/Take or Pay Agreements with Gas
Distributors
|
(25)
|
−
|
311
|
−
|
−
|
−
|
−
|
286
|
|
(Expenditures)/reimbursements from
operations in E&P partnerships
|
481
|
−
|
−
|
−
|
−
|
−
|
−
|
481
|
|
Others
|
225
|
74
|
78
|
(4)
|
165
|
(180)
|
(2)
|
356
|
|
|
(1,171)
|
(989)
|
(590)
|
(7)
|
38
|
(3,418)
|
(2)
|
(6,139)
|
Other Income (Expenses) by Segment –
2Q-2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS & POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Unscheduled stoppages and pre-operating
expenses
|
(1,964)
|
(99)
|
(57)
|
-
|
-
|
(3)
|
-
|
(2,123)
|
|
(Losses)/gains on legal, administrative
and arbitral proceedings
|
(623)
|
(118)
|
(28)
|
1
|
(338)
|
(322)
|
-
|
(1,428)
|
|
Pension and
medical benefits
|
-
|
-
|
-
|
-
|
-
|
(1,239)
|
-
|
(1,239)
|
|
Impairment
|
(59)
|
(1,125)
|
−
|
−
|
−
|
−
|
-
|
(1,184)
|
|
Voluntary Separation Incentive Plan -
PIDV
|
(535)
|
(267)
|
(75)
|
−
|
4
|
(339)
|
-
|
(1,212)
|
|
Institutional relations and cultural
projects
|
(4)
|
(4)
|
(1)
|
-
|
(16)
|
(169)
|
-
|
(194)
|
|
Gains /
(losses) on disposal/write-offs of assets; returned areas and cancelled
projects
|
(30)
|
(116)
|
(3)
|
(1)
|
1
|
16
|
-
|
(133)
|
|
Operating expenses with thermoeletric
plants
|
−
|
−
|
(102)
|
−
|
−
|
−
|
−
|
(102)
|
|
Health, safety and
environment
|
(18)
|
(16)
|
(5)
|
−
|
(2)
|
(37)
|
-
|
(78)
|
|
Losses on
fines
|
(19)
|
(40)
|
(1)
|
-
|
-
|
(28)
|
-
|
(88)
|
|
Reimbursement of unduly capitalized
expenses
|
-
|
-
|
−
|
-
|
−
|
79
|
-
|
79
|
|
Government
Grants
|
4
|
31
|
190
|
9
|
-
|
−
|
-
|
234
|
|
Ship/Take or Pay Agreements with Gas
Distributors
|
2
|
−
|
46
|
−
|
−
|
−
|
−
|
48
|
|
(Expenditures)/reimbursements from
operations in E&P partnerships
|
577
|
-
|
-
|
-
|
-
|
-
|
-
|
577
|
|
Others
|
(100)
|
(46)
|
251
|
(4)
|
86
|
144
|
3
|
334
|
|
|
(2,769)
|
(1,800)
|
215
|
5
|
(265)
|
(1,898)
|
3
|
(6,509)
|
27
Other Income (Expenses) by Segment –
1Q-2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS & POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Unscheduled stoppages and pre-operating
expenses
|
(1,979)
|
(36)
|
(32)
|
-
|
-
|
(4)
|
-
|
(2,051)
|
|
(Losses)/gains on legal, administrative
and arbitral proceedings
|
(35)
|
(35)
|
(6)
|
(1)
|
(354)
|
(715)
|
-
|
(1,146)
|
|
Pension and
medical benefits
|
-
|
-
|
-
|
-
|
-
|
(1,239)
|
-
|
(1,239)
|
|
Impairment
|
(294)
|
−
|
−
|
−
|
−
|
−
|
-
|
(294)
|
|
Voluntary Separation Incentive Plan -
PIDV
|
(30)
|
−
|
24
|
−
|
5
|
−
|
-
|
(1)
|
|
Institutional relations and cultural
projects
|
(7)
|
(5)
|
−
|
-
|
(10)
|
(216)
|
-
|
(238)
|
|
Gains /
(losses) on disposal/write-offs of assets; returned areas and cancelled
projects
|
(40)
|
(30)
|
(39)
|
1
|
6
|
−
|
-
|
(102)
|
|
Operating expenses with thermoeletric
plants
|
−
|
−
|
(106)
|
−
|
−
|
−
|
−
|
(106)
|
|
Health, safety and
environment
|
(18)
|
(17)
|
(6)
|
−
|
−
|
(38)
|
-
|
(79)
|
|
Losses on
fines
|
(1)
|
(14)
|
−
|
-
|
-
|
(39)
|
-
|
(54)
|
|
Reimbursement of unduly capitalized
expenses
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Government
Grants
|
4
|
22
|
8
|
−
|
-
|
1
|
-
|
35
|
|
Ship/Take or Pay Agreements with Gas
Distributors
|
−
|
−
|
311
|
−
|
−
|
−
|
−
|
311
|
|
(Expenditures)/reimbursements from
operations in E&P partnerships
|
546
|
-
|
-
|
-
|
-
|
-
|
-
|
546
|
|
Others
|
169
|
(10)
|
(63)
|
(89)
|
95
|
69
|
(18)
|
153
|
|
|
(1,685)
|
(125)
|
91
|
(89)
|
(258)
|
(2,181)
|
(18)
|
(4,265)
|
Consolidated Assets by Segment –
06.30.2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS
& POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Total
assets
|
461,429
|
176,412
|
68,005
|
2,283
|
20,182
|
107,893
|
(17,872)
|
818,332
|
|
Current
assets
|
19,366
|
35,874
|
5,374
|
179
|
8,652
|
79,578
|
(16,398)
|
132,625
|
|
Non-current assets
|
442,063
|
140,538
|
62,631
|
2,104
|
11,530
|
28,315
|
(1,474)
|
685,707
|
|
Long-term receivables
|
24,275
|
10,091
|
3,791
|
12
|
3,592
|
19,424
|
(1,311)
|
59,874
|
|
Investments
|
4,915
|
4,753
|
1,541
|
1,737
|
120
|
22
|
−
|
13,088
|
|
Property, plant and
equipment
|
404,637
|
125,024
|
56,220
|
355
|
7,041
|
8,052
|
(163)
|
601,166
|
|
Operating assets
|
296,030
|
110,192
|
50,002
|
318
|
5,989
|
6,590
|
(163)
|
468,958
|
|
Assets
under construction
|
108,607
|
14,832
|
6,218
|
37
|
1,052
|
1,462
|
−
|
132,208
|
|
Intangible assets
|
8,236
|
670
|
1,079
|
−
|
777
|
817
|
−
|
11,579
|
Consolidated Assets by Segment –
12.31.2015
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS &
POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Total
assets
|
483,396
|
177,631
|
76,023
|
1,885
|
20,588
|
154,065
|
(13,453)
|
900,135
|
|
Current
assets
|
14,215
|
35,247
|
10,398
|
176
|
8,979
|
112,715
|
(12,149)
|
169,581
|
|
Non-current
assets
|
469,181
|
142,384
|
65,625
|
1,709
|
11,609
|
41,350
|
(1,304)
|
730,554
|
|
Long-term
receivables
|
25,250
|
9,309
|
5,303
|
12
|
3,355
|
32,792
|
(1,142)
|
74,879
|
|
Investments
|
7,054
|
3,431
|
1,781
|
1,339
|
134
|
33
|
−
|
13,772
|
|
Property, plant
and equipment
|
428,447
|
128,982
|
57,300
|
358
|
7,296
|
7,610
|
(162)
|
629,831
|
|
Operating
assets
|
310,761
|
112,470
|
47,611
|
317
|
6,175
|
5,798
|
(162)
|
482,970
|
|
Assets under
construction
|
117,686
|
16,512
|
9,689
|
41
|
1,121
|
1,812
|
−
|
146,861
|
|
Intangible
assets
|
8,430
|
662
|
1,241
|
−
|
824
|
915
|
−
|
12,072
|
|
|
|
|
|
|
|
|
|
|
28
Reconciliation of Consolidated Adjusted EBITDA
Statement by Segment – 1H-2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS
& POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Net
income (loss)
|
1,399
|
14,976
|
1,520
|
(124)
|
161
|
(15,715)
|
(1,699)
|
518
|
|
Net
finance income (expense)
|
−
|
−
|
−
|
−
|
−
|
14,754
|
−
|
14,754
|
|
Income
taxes
|
717
|
7,425
|
678
|
(63)
|
75
|
(7,111)
|
(875)
|
846
|
|
Depreciation, depletion and
amortization
|
18,579
|
3,851
|
1,453
|
13
|
292
|
410
|
−
|
24,598
|
|
EBITDA
|
20,695
|
26,252
|
3,651
|
(174)
|
528
|
(7,662)
|
(2,574)
|
40,716
|
|
Share
of earnings in equity-accounted investments
|
(8)
|
(561)
|
(204)
|
2
|
(16)
|
1
|
−
|
(786)
|
|
Impairment losses /
(reversals)
|
353
|
1,125
|
−
|
−
|
−
|
−
|
−
|
1,478
|
|
Adjusted EBITDA*
|
21,040
|
26,816
|
3,447
|
(172)
|
512
|
(7,661)
|
(2,574)
|
41,408
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated Adjusted EBITDA
Statement by Segment – 1H-2015
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS
& POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Net
income (loss)
|
9,352
|
11,956
|
1,372
|
(353)
|
851
|
(16,678)
|
(1,064)
|
5,436
|
|
Net
finance income (expense)
|
−
|
−
|
−
|
−
|
−
|
11,669
|
−
|
11,669
|
|
Income
taxes
|
4,869
|
5,908
|
593
|
(38)
|
431
|
(5,519)
|
(548)
|
5,696
|
|
Depreciation, depletion and
amortization
|
11,685
|
3,684
|
1,455
|
15
|
282
|
423
|
−
|
17,544
|
|
EBITDA
|
25,906
|
21,548
|
3,420
|
(376)
|
1,564
|
(10,105)
|
(1,612)
|
40,345
|
|
Share
of earnings in equity-accounted investments
|
99
|
(487)
|
(221)
|
279
|
(15)
|
3
|
−
|
(342)
|
|
Impairment losses /
(reversals)
|
336
|
365
|
585
|
−
|
−
|
−
|
−
|
1,286
|
|
Adjusted EBITDA*
|
26,341
|
21,426
|
3,784
|
(97)
|
1,549
|
(10,102)
|
(1,612)
|
41,289
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated Adjusted EBITDA
Statement by Segment – 2Q-2016
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS
& POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Net
income (loss)
|
2,008
|
7,014
|
742
|
(76)
|
185
|
(6,940)
|
(2,034)
|
899
|
|
Net
finance income (expense)
|
−
|
−
|
−
|
−
|
−
|
6,061
|
−
|
6,061
|
|
Income
taxes
|
980
|
3,517
|
306
|
(16)
|
91
|
(3,207)
|
(1,049)
|
622
|
|
Depreciation, depletion and
amortization
|
8,923
|
1,928
|
739
|
2
|
144
|
213
|
−
|
11,949
|
|
EBITDA
|
11,911
|
12,459
|
1,787
|
(90)
|
420
|
(3,873)
|
(3,083)
|
19,531
|
|
Share
of earnings in equity-accounted investments
|
(107)
|
(186)
|
(148)
|
45
|
(9)
|
7
|
−
|
(398)
|
|
Impairment losses /
(reversals)
|
59
|
1,125
|
−
|
−
|
−
|
−
|
−
|
1,184
|
|
Adjusted EBITDA*
|
11,863
|
13,398
|
1,639
|
(45)
|
411
|
(3,866)
|
(3,083)
|
20,317
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated Adjusted EBITDA
Statement by Segment – 1Q-2016
*
|
|
R$ million
|
|
|
|
|
|
|
|
|
|
|
|
|
E&P
|
RTM
|
GAS
& POWER
|
BIOFUEL
|
DISTRIB.
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Net
income (loss)
|
(609)
|
7,962
|
778
|
(48)
|
(24)
|
(8,775)
|
335
|
(381)
|
|
Net
finance income (expense)
|
−
|
−
|
−
|
−
|
−
|
8,693
|
−
|
8,693
|
|
Income
taxes
|
(263)
|
3,908
|
372
|
(47)
|
(16)
|
(3,904)
|
174
|
224
|
|
Depreciation, depletion and
amortization
|
9,656
|
1,923
|
714
|
11
|
148
|
197
|
−
|
12,649
|
|
EBITDA
|
8,784
|
13,793
|
1,864
|
(84)
|
108
|
(3,789)
|
509
|
21,185
|
|
Share
of earnings in equity-accounted investments
|
99
|
(375)
|
(56)
|
(43)
|
(7)
|
(6)
|
−
|
(388)
|
|
Impairment losses /
(reversals)
|
294
|
−
|
−
|
−
|
−
|
−
|
−
|
294
|
|
Adjusted EBITDA*
|
9,177
|
13,418
|
1,808
|
(127)
|
101
|
(3,795)
|
509
|
21,091
|
|
|
|
|
|
|
|
|
|
|
*
See definitions of Adjusted EBITDA in
glossary.
29
|
Glossary
ACL –
Ambiente de Contratação Livre
(Free contracting market) in the electricity system.
ACR -
Ambiente de Contratação Regulada
(Regulated contracting market) in the electricity system.
ANP
- Brazilian National Petroleum, Natural Gas and Biofuels Agency.
Reference feedstock or installed capacity of primary processing
- 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.
Feedstock processed (excluding NGL) -
Daily volume of crude oil processed in the Company´s refineries in Brazil and is factored into the calculation of the Refining Plants Utilization Factor.
Feedstock processed – Brazil –
Daily volume of crude oil and NGL processed.
Adjusted cash and cash equivalents -
Sum of cash and cash equivalents, 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.
Adjusted EBITDA –
Sum of EBITDA, share of earnings in equity-accounted investments and
impairment
.
Net debt –
Gross debt less adjusted cash and cash equivalents. 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.
Consolidated Structured Entities
- Entities that have been designated so that voting or similar rights are not the determining factor that decides who controls the entity. Petrobras has no share of earnings in investments in certain structured entities that are consolidated in the financial statements, but the control is determined by the power it has over its relevant operating activities. As there are no interests, the result came from certain consolidated structured entities is attributable to non-controlling interests in the income statement, and it is not considered on net income attributable to shareholders of Petrobras.
Refining plants utilization factor (%) -
Feedstock processed (excluding NGL) divided by the reference feedstock.
Free cash flow -
Net cash provided by operating activities less capital expenditures and investments in operating segments. Free cash flow 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 calculated in accordance with IFRS. It may not be comparable to free cash flow of other companies, however management believes that it is an appropriate supplemental measure that helps investors assess our liquidity and supports leverage management.
|
LPG –
Liquified crude oil gas.
LNG
– Liquified natural gas.
Operating indicators –
indicators used for businesses management and
are not reviewed by independent auditor.
NGL –
Natural gas liquids.
Lifting Cost -
Crude oil and natural gas lifting cost indicator.
LTM Adjusted EBITDA
– sum of the last 12 months (Last Twelve Months) of Adjusted EBITDA.
Basic and diluted earnings (losses) per share -
calculated based on the weighted average number of shares.
Operating margin
- calculated based on operating income (loss) excluding write-offs of overpayments incorrectly capitalized.
Adjusted EBITDA margin -
equals Adjusted EBITDA divided by sales revenues.
Market share -
Relation between Distribution sales and total market.
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.
Total liabilities net
– Total liability less
adjusted cash and cash equivalents.
PLD (differences settlement price)
- Electricity price in the spot market. Weekly weighed prices per output level (light, medium and heavy), number of hours and related market capacity.
Domestic crude oil sales price -
Average between the prices of exports and the internal transfer prices from Exploration & Production to Refining, Transportation and Marketing.
Domestic natural gas production
- Natural gas production in Brazil less LNG plus gas reinjection.
Jet fuel –
Aviation fuel.
Net Income by Business Segment-
Company’s segment results. 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 prices defined through methodologies based on market parameters. On April 28, 2016, the Extraordinary General Meeting approved the statutory adjustments according to the new organizational structure of the company and its new management and governance model, to align the organization to the new reality of the oil and gas sector and prioritize profitability and capital discipline. The new management model does not provide for the discontinuance of the Company's business, but involves unification activities.
On June 30, 2016, the presentation related to the business segment information reflects the top management assessment related to the performance and the business resources allocation. Due to the adjustments occurred in corporate structure and governance and management model, this presentation may be reevaluated in order to enhance the business management analysis.
|
30
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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