Indicate by check mark
whether the registrant files or will file annual reports under cover Form 20-F or 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.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
These interim financial statements present the
significant changes in the period, avoiding repetition of certain notes to the financial statements previously reported, and present the
consolidated information, considering Management’s understanding that it provides a comprehensive view of the Company’s financial
position and operational performance, complemented by certain information of the Parent Company. Hence, this interim financial information
should be read together with the Company’s audited annual financial statements for the year ended December 31, 2020, which include
the full set of notes.
The interim consolidated and separate financial
statements (Parent Company) have been prepared and are presented in accordance with IAS 34 – “Interim Financial Reporting”
as issued by the International Accounting Standards Board (IASB), and with the pronouncement CPC 21 (R1) – Demonstrações
Intermediárias as issued by the Brazilian Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis
- CPC) and released by the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM). All
financial statements relevant information is being evidenced and corresponds to the ones used by the Company’s Management.
These interim financial statements were approved and authorized
for issue by the Company’s Board of Directors in a meeting held on May 13, 2021.
|
2.
|
Summary of significant accounting policies
|
The same accounting policies and methods of computation
were followed in these consolidated interim financial statements as those followed in the preparation of the annual financial statements
of the Company for the year ended December 31, 2020.
|
3.
|
Cash and cash equivalents and Marketable securities
|
|
3.1.
|
Cash and cash equivalents
|
Cash and cash equivalents comprise cash in hand,
term deposits with banks and short-term highly liquid financial investments that are readily convertible to known amounts of cash, are
subject to insignificant risk of changes in value and have a maturity of three months or less from the date of acquisition.
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Cash at bank and in hand
|
3,770
|
2,868
|
Short-term financial investments
|
|
|
- In Brazil
|
|
|
Brazilian interbank deposit rate investment funds and other short-term deposits
|
17,830
|
13,469
|
Other investment funds
|
627
|
143
|
|
18,457
|
13,612
|
- Abroad
|
|
|
Time deposits
|
11,947
|
13,376
|
Automatic investing accounts and interest checking accounts
|
32,095
|
29,274
|
Other financial investments
|
1,886
|
1,726
|
|
45,928
|
44,376
|
Total short-term financial investments
|
64,385
|
57,988
|
Total cash and cash equivalents
|
68,155
|
60,856
|
Short-term financial investments in Brazil primarily
consist of investments in funds holding Brazilian Federal Government Bonds that can be redeemed immediately, as well as reverse repurchase
agreements that mature within three months as of the date of their acquisition. Short-term financial investments abroad comprise time
deposits that mature in three months or less from the date of their acquisition, highly-liquid automatic investment accounts, interest
checking accounts and other short-term fixed income instruments.
The main funds generated were substantially provided by
operating cash generation of R$ 40,070, proceeds from divestments of R$ 1,054 and by the exchange rate effect on the balances of
cash and cash equivalents from financial investments abroad of R$ 5,408.
The main uses of funds in the period ended March 31, 2021
were for debt service obligations, including pre-payments of debt in the international banking market, repurchase of securities in the
international capital market, and amortization of leases, in the total of R$ 31,018 and investments in the amount of R$ 8,981.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
3.2.
|
Marketable securities
|
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Fair value through profit or loss
|
3,279
|
3,388
|
Amortized cost
|
251
|
263
|
Total
|
3,530
|
3,651
|
Current
|
3,299
|
3,424
|
Non-current
|
231
|
227
|
|
Marketable securities classified as fair value through
profit or loss refer mainly to investments in Brazilian Federal Government Bonds. These financial investments have maturities of more
than three months and are generally classified as current assets due to their maturity or the expectation of their realization in the
short term.
|
Consolidated
|
|
2021
Jan-Mar
|
2020
Jan-Mar
|
Gross sales
|
108,137
|
94,944
|
Sales taxes (*)
|
(21,963)
|
(19,475)
|
Sales revenues
|
86,174
|
75,469
|
Diesel
|
25,161
|
18,023
|
Automotive gasoline
|
11,068
|
8,327
|
Liquefied petroleum gas
|
5,018
|
4,010
|
Jet fuel
|
2,328
|
3,721
|
Naphtha
|
1,812
|
2,976
|
Fuel oil (including bunker fuel)
|
1,829
|
1,165
|
Other oil products
|
4,815
|
3,069
|
Subtotal oil products
|
52,031
|
41,291
|
Natural gas
|
5,678
|
5,372
|
Nitrogen products and renewables
|
74
|
117
|
Breakage
|
365
|
407
|
Electricity
|
2,970
|
1,250
|
Services, agency and others
|
1,166
|
703
|
Domestic market
|
62,284
|
49,140
|
Exports
|
22,800
|
24,711
|
Crude oil
|
15,462
|
19,006
|
Fuel oil (including bunker fuel)
|
6,598
|
4,652
|
Other oil products and other products
|
740
|
1,053
|
Sales abroad (**)
|
1,090
|
1,618
|
Foreign Market
|
23,890
|
26,329
|
Sales revenues
|
86,174
|
75,469
|
(*) Includes, mainly, CIDE, PIS, COFINS and ICMS (VAT).
|
(**) Sales revenues from operations outside of Brazil, including trading and excluding exports.
|
In the three-month periods ended March 31, 2021 and 2020,
sales to BR Distribuidora represent more than 10% of the Company sales revenues, mainly associated with the refining, transportation and
marketing segment.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
5.
|
Costs and expenses by nature
|
|
Consolidated
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Raw material, products for resale, materials and third-party services (*)
|
(14,593)
|
(19,912)
|
Depreciation, depletion and amortization
|
(12,242)
|
(12,793)
|
Production taxes
|
(12,911)
|
(8,031)
|
Employee compensation
|
(2,395)
|
(3,118)
|
Total
|
(42,141)
|
(43,854)
|
(*) It Includes short-term leases and inventory turnover.
|
|
Consolidated
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Materials, third-party services, freight, rent and other related costs
|
(4,299)
|
(5,105)
|
Depreciation, depletion and amortization
|
(814)
|
(549)
|
Allowance for expected credit losses
|
31
|
(46)
|
Employee compensation
|
(116)
|
(214)
|
Total
|
(5,198)
|
(5,914)
|
|
5.3.
|
General and administrative expenses
|
|
Consolidated
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Employee compensation
|
(1,013)
|
(1,277)
|
Materials, third-party services, rent and other related costs
|
(351)
|
(416)
|
Depreciation, depletion and amortization
|
(132)
|
(127)
|
Total
|
(1,496)
|
(1,820)
|
|
6.
|
Other income and expenses
|
|
Consolidated
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Unscheduled stoppages and pre-operating expenses
|
(1,641)
|
(1,584)
|
Pension and medical benefits – retirees
|
(1,189)
|
(1,327)
|
Variable compensation program
|
(528)
|
171
|
Equalization of expenses - Production Individualization Agreements
|
(244)
|
111
|
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments
|
(183)
|
−
|
Profit Sharing
|
(157)
|
(25)
|
Gains/(losses) with Commodities Derivatives
|
(126)
|
1,037
|
Gains / (losses) on decommissioning of returned/abandoned areas
|
(35)
|
(6)
|
Voluntary Separation Incentive Plan – PDV
|
21
|
(187)
|
Fines imposed on suppliers
|
160
|
225
|
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control
|
257
|
(446)
|
Gains / (losses) related to legal, administrative and arbitration proceedings
|
294
|
(281)
|
Early termination and cash outflows revision of lease agreements
|
395
|
457
|
Expenses/Reimbursements from E&P partnership operations
|
552
|
856
|
Amounts recovered from Lava Jato investigation
|
790
|
96
|
Others
|
104
|
(271)
|
Total
|
(1,530)
|
(1,174)
|
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
7.
|
Net finance income (expense)
|
|
Consolidated
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Finance income
|
676
|
798
|
Income from investments and marketable securities (Government Bonds)
|
160
|
298
|
Others
|
516
|
500
|
Finance expenses
|
(6,613)
|
(7,416)
|
Interest on finance debt
|
(4,119)
|
(4,545)
|
Unwinding of discount on lease liabilities
|
(1,607)
|
(1,517)
|
Discount and premium on repurchase of debt securities
|
(1,013)
|
(1,245)
|
Capitalized borrowing costs
|
1,154
|
1,234
|
Unwinding of discount on the provision for decommissioning costs
|
(1,027)
|
(853)
|
Other finance expenses and income, net
|
(1)
|
(490)
|
Foreign exchange gains (losses) and indexation charges
|
(24,811)
|
(14,560)
|
Foreign Exchange (*)
|
(18,727)
|
(8,382)
|
Reclassification of hedge accounting to the Statement of Income (*)
|
(6,094)
|
(6,449)
|
Others
|
10
|
271
|
Total
|
(30,748)
|
(21,178)
|
(*) For more information, see notes 29.3.c and 29.3.a.
|
|
|
8.
|
Net income by operating segment
|
Consolidated Statement of Income by operating segment
– Jan-Mar/2021
|
Exploration and Production
|
Refining, Transportation & Marketing
|
Gas
&
Power
|
Corporate and other business
|
Eliminations
|
Total
|
Sales revenues
|
63,952
|
76,741
|
12,087
|
836
|
(67,442)
|
86,174
|
Intersegments
|
62,783
|
1,282
|
3,026
|
351
|
(67,442)
|
−
|
Third parties
|
1,169
|
75,459
|
9,061
|
485
|
−
|
86,174
|
Cost of sales
|
(28,636)
|
(64,975)
|
(7,271)
|
(823)
|
59,564
|
(42,141)
|
Gross profit
|
35,316
|
11,766
|
4,816
|
13
|
(7,878)
|
44,033
|
Expenses
|
(2,888)
|
(2,186)
|
(4,103)
|
(1,943)
|
(28)
|
(11,148)
|
Selling
|
(1)
|
(1,839)
|
(3,301)
|
(29)
|
(28)
|
(5,198)
|
General and administrative
|
(178)
|
(180)
|
(94)
|
(1,044)
|
−
|
(1,496)
|
Exploration costs
|
(1,196)
|
−
|
−
|
−
|
−
|
(1,196)
|
Research and development
|
(467)
|
(11)
|
(27)
|
(134)
|
−
|
(639)
|
Other taxes
|
(91)
|
(220)
|
(127)
|
(143)
|
−
|
(581)
|
Impairment
|
(538)
|
−
|
−
|
30
|
−
|
(508)
|
Other income and expenses
|
(417)
|
64
|
(554)
|
(623)
|
−
|
(1,530)
|
Net income (loss) before financial results and income taxes
|
32,428
|
9,580
|
713
|
(1,930)
|
(7,906)
|
32,885
|
Net finance income (expenses)
|
−
|
−
|
−
|
(30,748)
|
−
|
(30,748)
|
Results in equity-accounted investments
|
126
|
616
|
215
|
62
|
−
|
1,019
|
Net Income (loss) before income taxes
|
32,554
|
10,196
|
928
|
(32,616)
|
(7,906)
|
3,156
|
Income taxes
|
(11,025)
|
(3,257)
|
(242)
|
9,956
|
2,688
|
(1,880)
|
Net income (loss) of the period
|
21,529
|
6,939
|
686
|
(22,660)
|
(5,218)
|
1,276
|
Attributable to:
|
|
|
|
|
|
|
Shareholders of Petrobras
|
21,533
|
6,939
|
558
|
(22,645)
|
(5,218)
|
1,167
|
Non-controlling interests
|
(4)
|
−
|
128
|
(15)
|
−
|
109
|
|
21,529
|
6,939
|
686
|
(22,660)
|
(5,218)
|
1,276
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
Consolidated Statement of Income by operating segment – Jan-Mar/2020
|
|
Exploration and Production
|
Refining, Transportation & Marketing
|
Gas
&
Power
|
Corporate and other business
|
Eliminations
|
Total
|
Sales revenues
|
47,575
|
68,160
|
10,467
|
857
|
(51,590)
|
75,469
|
Intersegments
|
46,658
|
1,328
|
3,336
|
268
|
(51,590)
|
−
|
Third parties
|
917
|
66,832
|
7,131
|
589
|
−
|
75,469
|
Cost of sales
|
(26,224)
|
(68,162)
|
(5,905)
|
(830)
|
57,267
|
(43,854)
|
Gross profit
|
21,351
|
(2)
|
4,562
|
27
|
5,677
|
31,615
|
Expenses
|
(65,967)
|
(4,080)
|
(3,016)
|
(2,521)
|
(32)
|
(75,616)
|
Selling
|
(1)
|
(2,860)
|
(3,006)
|
(18)
|
(29)
|
(5,914)
|
General and administrative
|
(206)
|
(272)
|
(117)
|
(1,225)
|
−
|
(1,820)
|
Exploration costs
|
(468)
|
−
|
−
|
−
|
−
|
(468)
|
Research and development
|
(274)
|
(12)
|
(13)
|
(123)
|
−
|
(422)
|
Other taxes
|
(71)
|
(193)
|
(37)
|
(216)
|
−
|
(517)
|
Impairment
|
(64,304)
|
(208)
|
−
|
(789)
|
−
|
(65,301)
|
Other income and expenses
|
(643)
|
(535)
|
157
|
(150)
|
(3)
|
(1,174)
|
Net income (loss) before financial results and income taxes
|
(44,616)
|
(4,082)
|
1,546
|
(2,494)
|
5,645
|
(44,001)
|
Net finance income (expenses)
|
−
|
−
|
−
|
(21,178)
|
−
|
(21,178)
|
Results in equity-accounted investments
|
(758)
|
(848)
|
(12)
|
179
|
−
|
(1,439)
|
Net Income (loss) before income taxes
|
(45,374)
|
(4,930)
|
1,534
|
(23,493)
|
5,645
|
(66,618)
|
Income taxes
|
15,169
|
1,388
|
(526)
|
2,782
|
(1,919)
|
16,894
|
Net income (loss) of the period
|
(30,205)
|
(3,542)
|
1,008
|
(20,711)
|
3,726
|
(49,724)
|
Attributable to:
|
|
|
|
|
|
|
Shareholders of Petrobras
|
(30,205)
|
(3,397)
|
937
|
(19,584)
|
3,726
|
(48,523)
|
Non-controlling interests
|
−
|
(145)
|
71
|
(1,127)
|
−
|
(1,201)
|
|
(30,205)
|
(3,542)
|
1,008
|
(20,711)
|
3,726
|
(49,724)
|
The balance of depreciation, depletion and amortization
by business segment is set forth as follows:
|
Exploration and Production
|
Refining, Transportation & Marketing
|
Gas
&
Power
|
Corporate and other business
|
Total
|
Jan-Mar/2021
|
11,872
|
2,950
|
582
|
226
|
15,630
|
Jan-Mar/2020
|
12,410
|
2,483
|
612
|
253
|
15,758
|
|
9.
|
Trade and other receivables
|
|
9.1.
|
Trade and other receivables, net
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Receivables from contracts with customers
|
|
|
Third parties
|
16,709
|
16,013
|
Related parties
|
|
|
Investees (note 30.5)
|
2,975
|
3,450
|
Receivables from the electricity sector
|
949
|
1,064
|
Subtotal
|
20,633
|
20,527
|
Other trade receivables
|
|
|
Third parties
|
|
|
Receivables from divestments (*)
|
8,499
|
7,916
|
Lease receivables
|
2,638
|
2,427
|
Other receivables (**)
|
2,346
|
13,179
|
Related parties
|
|
|
Petroleum and alcohol accounts - receivables from Brazilian Government (note 30.5)
|
2,566
|
2,503
|
Subtotal
|
16,049
|
26,025
|
Total trade receivables
|
36,682
|
46,552
|
Expected credit losses (ECL) - Third parties
|
(8,293)
|
(7,939)
|
Expected credit losses (ECL) - Related parties
|
(291)
|
(354)
|
Total trade receivables, net
|
28,098
|
38,259
|
Current
|
13,432
|
24,584
|
Non-current
|
14,666
|
13,675
|
(*) Refers mainly to amounts receivable
(including interest and monetary and foreign exchange restatement) from the divestment in Nova Transportadora do Sudeste (NTS) and Roncador's
contingent portion
(**) In 2020, it mainly includes amounts
related to the purchase and sale of production platforms and equipment from our partners in E&P consortia, with financial settlement
in the first quarter of 2021.
|
Trade and other receivables are generally classified
as measured at amortized cost, except for receivables with final prices linked to changes in commodity price after their transfer of control,
which are classified as measured at fair value through profit or loss. Changes in such prices as of March 31, 2021 amounted to R$ 4,425.
In the first quarter of 2021, the average term
for receiving receivables from contracts with third parties, referring to the sale of oil products on the domestic market is approximately
1.6 days. Exports of fuel oil and crude oil have an average collection period of approximately 15 days and 6.5 days, respectively.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
9.2.
|
Aging of trade and other receivables – third parties
|
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
|
Trade receivables
|
Expected credit losses (ECL)
|
Trade receivables
|
Expected credit losses (ECL)
|
Current
|
21,602
|
(697)
|
30,402
|
(677)
|
Overdue:
|
|
|
|
|
1- 3 months
|
135
|
(31)
|
1,066
|
(42)
|
3 - 6 months
|
46
|
(21)
|
77
|
(46)
|
6 - 12 months
|
116
|
(50)
|
219
|
(147)
|
More than 12 months
|
8,293
|
(7,494)
|
7,771
|
(7,027)
|
Total
|
30,192
|
(8,293)
|
39,535
|
(7,939)
|
|
9.3.
|
Changes in provision for expected credit losses
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Opening balance
|
8,293
|
9,392
|
Additions
|
111
|
1,024
|
Reversals
|
(187)
|
(166)
|
Write-offs
|
(2)
|
(3,596)
|
Transfer of assets held for sale
|
−
|
(15)
|
Cumulative translation adjustment
|
369
|
1,654
|
Closing balance
|
8,584
|
8,293
|
Current
|
1,014
|
1,135
|
Non-current
|
7,570
|
7,158
|
In 2020, write-offs of R$ 3,596 basically reflect receivables
from suppliers, related to the construction and renovation of platforms, which were already fully provisioned.
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Crude oil
|
17,483
|
11,653
|
Oil products
|
12,988
|
10,001
|
Intermediate products
|
2,671
|
2,060
|
Natural gas and LNG (*)
|
1,503
|
631
|
Biofuels
|
64
|
157
|
Fertilizers
|
86
|
43
|
Total products
|
34,795
|
24,545
|
Materials, supplies and others
|
4,935
|
4,955
|
Total
|
39,730
|
29,500
|
(*) Liquefied Natural Gas
|
Consolidated inventories are presented less a provision
for adjustment to their net realizable value. These adjustments are mainly due to fluctuations in the international quotations of crude
oil and oil products and, when constituted, are recognized in the income statement for the period as costs of sales. In the period from
January to March 2021, reversal of provision was recorded in the amount of R$ 6 (provision of R$ 1,389, in the period from January to
March 2020).
As of March 31, 2021, the Company had a volume of
oil and / or oil products given as a guarantee of the Terms of Financial Commitment - TCF, signed in 2008 with Petros, in the amount of
R$ 9,788, after deducting the equivalent volumes of early partial liquidation of the Pre-70 TCF carried out in January 2021, the procedures
for which to update the public records are in progress.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
11.1
|
Income taxes and other taxes
|
Income tax and social contribution
|
|
|
|
|
|
Consolidated
|
|
Current assets
|
Current liabilities
|
Non-current liabilities
|
|
03.31.2021
|
12.31.2020
|
03.31.2021
|
12.31.2020
|
03.31.2021
|
12.31.2020
|
Taxes in Brazil
|
|
|
|
|
|
|
Income taxes
|
2,065
|
2,032
|
95
|
576
|
−
|
−
|
Income taxes - Tax settlement programs
|
−
|
−
|
235
|
234
|
1,802
|
1,853
|
|
2,065
|
2,032
|
330
|
810
|
1,802
|
1,853
|
Taxes abroad
|
172
|
138
|
502
|
219
|
-
|
−
|
Total
|
2,237
|
2,170
|
832
|
1,029
|
1,802
|
1,853
|
|
Other taxes
|
Current assets
|
Non-current assets
|
Current liabilities
|
Non-current liabilities (*)
|
|
03.31.2021
|
12.31.2020
|
03.31.2021
|
12.31.2020
|
03.31.2021
|
12.31.2020
|
03.31.2021
|
12.31.2020
|
Taxes in Brazil:
|
|
|
|
|
|
Current / Deferred VAT Rate (VAT)
|
3,582
|
2,635
|
1,531
|
1,522
|
2,869
|
3,334
|
−
|
−
|
Current / Deferred PIS and COFINS
|
2,083
|
1,768
|
10,862
|
10,680
|
1,161
|
2,829
|
195
|
191
|
PIS and COFINS – Exclusion of VAT tax rate from PIS and COFINS tax bases
|
369
|
6,392
|
−
|
−
|
−
|
−
|
−
|
−
|
PIS and COFINS - Law 9,718/98
|
|
|
3,542
|
3,537
|
|
|
|
|
CIDE
|
12
|
19
|
−
|
−
|
154
|
214
|
−
|
−
|
Production taxes/Royalties
|
−
|
−
|
−
|
−
|
9,429
|
6,094
|
341
|
487
|
Withholding income taxes
|
−
|
−
|
−
|
−
|
272
|
551
|
−
|
−
|
Others
|
222
|
453
|
643
|
621
|
584
|
608
|
1,261
|
1,430
|
Total in Brazil
|
6,268
|
11,267
|
16,578
|
16,360
|
14,469
|
13,630
|
1,797
|
2,108
|
Taxes abroad
|
47
|
46
|
52
|
51
|
80
|
66
|
−
|
−
|
Total
|
6,315
|
11,313
|
16,630
|
16,411
|
14,549
|
13,696
|
1,797
|
2,108
|
(*) Other non-current taxes
are classified as other liabilities.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
Exclusion of VAT tax from PIS
and COFINS tax basis
In 2020, Petrobras and subsidiaries obtained a
favorable and definitive court decision regarding the exclusion of VAT Tax from the calculation basis of PIS and COFINS contributions
and recognized the amount of R$ 16,764, recorded in current assets as taxes and contributions. The credits recognized in the assets refer
to the exclusion of the VAT Tax effectively collected from the calculation base of the PIS and COFINS contributions, the amounts of which
were paid improperly in competencies between the months of October 2001 and August 2020.
The company enabled these credits, of which it
offset in 2020 with the payment of other federal taxes, totaling R$ 16,395 (R$ 10,372 in 2020).
As of March 31, 2021, the amount monetarily restated
by the Brazilian basic interest rate (Selic) is R$ 369.
11.2
Tax amnesty programs – State Tax (Programas de Anistias Estaduais)
Petrobras, based on the management of risks associated
with litigation and in line with the value generation strategy, adhered to the state amnesty programs in Rio de Janeiro and Bahia, generating
a positive effect on the result of the 1st quarter of 2021 in the amount of R$ 867, due to the reversal of part of the related provisions,
against tax expenses and other operating income and expenses of R$ 659 and financial result of R$ 208.
State of Rio de Janeiro
The State of Rio de Janeiro instituted a special
installment program called PEP-ICMS VAT Tax, authorized by CONFAZ Agreement No. 87/2020, created by State Supplementary Law No. 189/2020
and regulated by Decree 47,488 of February 12, 2021, which allowed the reduction of 90% of the late payment charges due as a fine and
interest.
The adhesion to the program creates conditions
for the settlement of ICMS disputes involving tax credits provisioned in the total amount of R$ 1,513, through estimated disbursement
of R$ 533 which includes spontaneous termination due to the cancellation of part of the scope of Comperj (current Gaslub). As a result,
on March 31, 2021, the Company reassessed expected disbursements as probable and reversed R$ 980 in the respective provisions for lawsuits
and taxes.
In April 2021, the company joined the program and
the full payment of the remaining obligations will occur by the end of June 2021.
State of Bahia
The adhesion to the remission and amnesty
program with the State of Bahia was celebrated under the terms of VAT Tax Agreements 48/2020 and 49/2020, ratified by Law 14.286 / 2020,
which allowed the remission of 50% of the tax and 90% of the fine and interest due. Tax debts resulting from disallowance of tax credits
were closed in January 2021 with the payment of R$ 113, providing a definitive solution for this type of contingency.
|
|
11.3
|
Reconciliation between statutory tax rate and effective tax expense rate
|
The following table provides the reconciliation
of Brazilian statutory tax rate to the Company’s effective rate on income before income taxes:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
Consolidated
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Net income (loss) before income taxes
|
3,156
|
(66,618)
|
Nominal income taxes computed based on Brazilian statutory corporate tax rates (34%)
|
(1,073)
|
22,650
|
Adjustments to arrive at the effective tax rate:
|
|
|
Different jurisdictional tax rates for companies abroad
|
115
|
(3,669)
|
Brazilian income taxes on income of companies incorporated outside Brazil (*)
|
(1,156)
|
(1,124)
|
Tax incentives
|
−
|
3
|
Tax loss carryforwards (unrecognized tax losses)
|
(166)
|
173
|
Non-taxable income (non-deductible expenses), net (**)
|
229
|
438
|
Expenses with post-employment medical benefits
|
(242)
|
(391)
|
Results of equity-accounted investments in Brazil and abroad
|
413
|
(499)
|
Others
|
1
|
(687)
|
Income taxes expense
|
(1,880)
|
16,894
|
Deferred income taxes
|
(1,231)
|
17,491
|
Current income taxes
|
(649)
|
(597)
|
Total
|
(1,880)
|
16,894
|
Effective tax rate of income taxes
|
59.6%
|
25.4%
|
(*) It relates to Brazilian income taxes on earnings of offshore investees, as established by Law No. 12,973/2014.
|
(**) It includes provisions for legal proceedings.
|
|
11.4
|
Deferred income taxes - non-current
|
Changes of deferred income tax
and social contribution
|
|
Consolidated
|
|
|
|
2021
|
2020
|
Balance at January 1st
|
|
|
32,509
|
(1,502)
|
Recognized in the statement of income for the year
|
|
|
(1,231)
|
8,940
|
Recognized in shareholders’ equity
|
|
|
8,305
|
24,858
|
Cumulative translation adjustment
|
|
|
5
|
559
|
Use of tax credits
|
|
|
−
|
(332)
|
Others
|
|
|
14
|
(14)
|
Total
|
|
|
39,602
|
32,509
|
Deferred tax assets
|
|
|
40,807
|
33,524
|
Deferred tax liabilities
|
|
|
(1,205)
|
(1,015)
|
Total
|
|
|
39,602
|
32,509
|
|
|
|
|
|
The table below shows the composition and the basis
for realization of deferred tax assets and liabilities:
Nature
|
Foundation for realization
|
|
|
|
|
03.31.2021
|
12.31.2020
|
Property, plant and equipment - Cost of prospecting and dismantling areas
|
Depreciation, Amortization and Write-off
of Assets
|
(15,074)
|
(16,655)
|
Property, plant and equipment - Impairment
|
Amortization, Write-off of Assets and Impairment Reversal
|
34,703
|
34,435
|
Property, plant and equipment – Others (*)
|
Depreciation, Amortization and Write-off of Assets
|
(56,241)
|
(45,157)
|
Loans, accounts receivable / payable and financing
|
Payments, Receipts and Consideration
|
31,418
|
20,335
|
Leases
|
Appropriation of leases
|
9,088
|
6,186
|
Provision for lawsuits
|
Payment and reversal of the provision
|
3,371
|
3,453
|
Tax losses
|
Compensation of 30% of taxable income
|
15,347
|
12,995
|
Inventories
|
Sale, Write-Off and Loss
|
1,813
|
822
|
Employee benefits, mainly pension plan
|
Payment and reversal of the provision
|
14,907
|
14,972
|
Others
|
|
|
|
270
|
1,123
|
Total
|
|
|
|
|
|
39,602
|
32,509
|
(*) includes accelerated incentive depreciation, difference in depreciation per unit produced x straight-line method, as well as capitalized financial charges
|
|
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
12
|
Short-term and other benefits
|
The balance of the main benefits for employees,
current and non-current, is presented as follows:
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Voluntary Severance Program (PDV)
|
4,094
|
4,678
|
Employees variable compensation program
|
2,592
|
2,715
|
Accrued vacation pay and Christmas Bonus
|
2,596
|
2,443
|
Salaries and related charges
|
1,007
|
1,059
|
Profit sharing
|
172
|
20
|
Total
|
10,461
|
10,915
|
Current
|
9,655
|
10,150
|
Non-current (*)
|
806
|
765
|
(*) Amount
classified in other liabilities
12.1
|
Voluntary Severance Programs
|
As of March 31, 2021, changes in the provision
for expenses relating to separation plans implemented by the Company are set out as follows:
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Opening Balance
|
4,678
|
565
|
Enrollments
|
122
|
5,723
|
Revision of provisions
|
(143)
|
(315)
|
Separations in the period
|
(563)
|
(1,295)
|
Closing Balance
|
4,094
|
4,678
|
Current
|
3,296
|
3,921
|
Non-current
|
798
|
757
|
|
The recognition of the provision for expenditures
on retirement programs occurred as employees joined.
The company opted to defer the payment of indemnities
in two installments, the first at the time of termination, together with the legal severance payments and the second, when applicable,
12 months after the payment of the first installment, with an estimated disbursement of R$ 4,094, being R$ 3,296 in 2021, R$ 569 in 2022
and R$ 229 in 2023.
The voluntary termination program (PDV 2019), for
retired employees under the Brazilian Social Security Institute (INSS), until the enactment of the Pension Reform, had enrollments reopened
during January 2021 for employees not yet enrolled or who have given up membership for any reason until December 29, 2020. During the
reopening period, 195 employees signed up for the program.
On March 29, 2021, the Company opened the sixth
opportunity for the separation of corporate employees, with application deadline on April 19, 2021 and had the adhesion of 35 employees.
|
12.2
|
Variable compensation program
|
Performance award program (PPP)
On January 26, 2021, the Board of Directors approved
an adjustment in the criteria for granting PPP 2020 to employees (previously approved on April 28, 2020), changing the PPP regulation,
in which, for the activation of the Program, it is necessary to have net income for the year, disregarding the impact of impairment values
and exchange variation recorded in Petrobras' net financial result, associated
with compliance with company performance metrics and the individual performance of employees and results of the areas in their calculation.
In February 2021, the Company advanced part of
the amount of the PPP 2020 to employees, with discharge on April 14, 2021, in the amount of R$ 651.
On March 31, 2021, the company provisioned R$ 528
(R$ 489 in the parent company) related to the variable remuneration for the 2021 fiscal year of employees, recorded in other operating
expenses.
|
12.3
|
Profit sharing (PLR)
|
At December 29, 2020, the 17 unions representing
onshore employees had signed the agreement for the PLR for the next two years (2021/2022) before the deadline determined by the Collective
Labor Agreement (ACT). Among the offshore employees, only Sindmestre (Sindicato Nacional dos Mestres de Cabotagem e dos Contra Mestres
em Transportes Marítimos) had signed the agreement within the period defined by the ACT.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
The PLR regulation
2021/2022 covers employees without managerial functions and provides for the establishment of a minimum floor / ceiling of up to two remunerations,
limited to R$ 10 thousand, for employees who earn up to R$ 5 thousand and will be cumulative to the payment of the Performance Award Program
- PPP .
In order for PLR to be triggered in the years 2021
and 2022, in addition to the PLR agreement being signed, the following triggers / requirements must be met: i) approval
of dividend distribution by the Annual General Meeting (AGO); ii) calculation of net income in the reference year; and iii) reaching the
average percentage, weighted by weight, of the set of indicator targets of at least 80%.
The maximum amount of PLR to be distributed is
limited to 6.25% of net income and 25% of dividends distributed to shareholders, in each year.
On March 31, 2021, the company provisioned R$
157 (R$ 139 at the parent company) related to the employees' participation in the company's income, recorded in other operating expenses.
|
13
|
Employee benefits (Post-Employment)
|
The balances related to post-employment benefits
granted to employees are shown below:
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Liabilities
|
|
|
AMS Health Care Plan
|
28,237
|
27,836
|
Petros Pension Plan - Renegotiated (PPSP-R) (*)
|
31,497
|
31,265
|
Petros Pension Plan - Non-renegotiated (PPSP-NR) (*)
|
8,477
|
8,424
|
Petros Pension Plan - Renegotiated Pre-70 (PPSP-R Pre-70)
|
5,503
|
7,837
|
Petros Pension Plan - Non-renegotiated Pre-70 (PPSP-NR Pre-70)
|
3,608
|
5,588
|
Petros 2 Pension Plan (PP2)
|
2,576
|
2,477
|
Other plans
|
87
|
76
|
Total
|
79,985
|
83,503
|
Current
|
3,679
|
8,049
|
Non-current
|
76,306
|
75,454
|
Total
|
79,985
|
83,503
|
(*) Includes obligation with contribution
related to the revision of the lump sum death benefit.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
The movement of obligations with pension and health
plans with defined benefit characteristics is shown below:
|
Pension plans
|
Health Care
|
Other
plans
|
|
|
PPSP-R (*)
|
PPSP-NR (*)
|
PP2
|
AMS
|
|
Total
|
Changes in the net actuarial liability
|
|
|
|
|
|
|
Balance as of January 1,
|
39,102
|
14,012
|
2,477
|
27,836
|
76
|
83,503
|
Recognized in the Statement of Income
|
675
|
239
|
99
|
712
|
1
|
1,726
|
Costs incurred in the period
|
12
|
−
|
53
|
224
|
−
|
289
|
Service cost
|
611
|
223
|
46
|
488
|
1
|
1,369
|
Interest on the obligations with contribution for the revision of the lump sum death benefit
|
52
|
16
|
−
|
−
|
−
|
68
|
Recognized in Equity - other comprehensive income
|
−
|
−
|
−
|
−
|
−
|
−
|
Cash effects
|
(2,777)
|
(2,166)
|
−
|
(310)
|
−
|
(5,253)
|
Contributions paid
|
(282)
|
(86)
|
−
|
(310)
|
−
|
(678)
|
Payments of obligations with contribution for the revision of the lump sum death benefit
|
(63)
|
(19)
|
−
|
−
|
−
|
(82)
|
Payments related to Term of financial commitment (TFC)
|
(2,432)
|
(2,061)
|
−
|
−
|
−
|
(4,493)
|
Other changes
|
−
|
−
|
−
|
(1)
|
10
|
9
|
Others
|
−
|
−
|
−
|
(1)
|
10
|
9
|
Balance of actuarial liability as of March 31, 2021
|
37,000
|
12,085
|
2,576
|
28,237
|
87
|
79,985
|
Balance of actuarial liability
|
35,312
|
11,581
|
2,576
|
28,237
|
87
|
77,793
|
Obligations with contribution for the revision of the lump sum death benefit
|
1,688
|
504
|
−
|
−
|
−
|
2,192
|
Total obligation with pension and medical benefits as of March 31,2021
|
37,000
|
12,085
|
2,576
|
28,237
|
87
|
79,985
|
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.
|
|
Pension plans
|
Health Care
|
Other
plans
|
|
|
PPSP-R (*)
|
PPSP-NR (*)
|
PP2
|
AMS
|
|
Total
|
Changes in the net actuarial liability
|
|
|
|
|
|
|
Balance as of January 1,
|
41,239
|
13,154
|
3,987
|
48,312
|
98
|
106,790
|
Recognized in the Statement of Income
|
454
|
206
|
571
|
(8,461)
|
14
|
(7,216)
|
Costs incurred in the period
|
(1,606)
|
(477)
|
280
|
(11,882)
|
1
|
(13,684)
|
Service cost
|
2,060
|
683
|
291
|
3,421
|
13
|
6,468
|
Recognized in Equity - other comprehensive income
|
(1,833)
|
1,519
|
(2,081)
|
(10,417)
|
(41)
|
(12,853)
|
Remeasurement effects recognized in other comprehensive income
|
(1,833)
|
1,519
|
(2,081)
|
(10,417)
|
(41)
|
(12,853)
|
Cash effects
|
(2,457)
|
(1,374)
|
−
|
(1,598)
|
(4)
|
(5,433)
|
Contributions paid
|
(1,324)
|
(416)
|
−
|
(1,598)
|
(4)
|
(3,342)
|
Payments related to Term of financial commitment (TFC)
|
(1,133)
|
(958)
|
−
|
−
|
−
|
(2,091)
|
Other changes
|
−
|
−
|
−
|
−
|
9
|
9
|
Others
|
−
|
−
|
−
|
−
|
9
|
9
|
Total obligation with pension and medical benefits as of December 31 2020
|
37,403
|
13,505
|
2,477
|
27,836
|
76
|
81,297
|
Obligations with contribution for the revision of the lump sum death benefit
|
1,699
|
507
|
−
|
−
|
−
|
2,206
|
Total obligation with pension and medical benefits as of December 31 2020
|
39,102
|
14,012
|
2,477
|
27,836
|
76
|
83,503
|
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.
|
The net expense for pension and health plans is
as follows:
|
Pension plans
|
|
|
Health care Plans
|
|
|
|
|
PPSP-R (*)
|
PPSP-NR (*)
|
PP2
|
AMS
|
Other plans
|
Jan-Mar/2021
|
Jan-Mar/2020
|
Present value of obligations (VPO)
|
623
|
223
|
99
|
712
|
1
|
1,658
|
2,159
|
Obligations with contribution for the revision of the lump sum death benefit
|
52
|
16
|
−
|
−
|
−
|
68
|
−
|
Net costs for Jan-Mar/2021
|
675
|
239
|
99
|
712
|
1
|
1,726
|
2,159
|
Related to active employees
|
72
|
13
|
80
|
371
|
1
|
537
|
832
|
Related to retired employees
|
603
|
226
|
19
|
341
|
−
|
1,189
|
1,327
|
Net costs for Jan-Mar/2021
|
675
|
239
|
99
|
712
|
1
|
1,726
|
2,159
|
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.
|
|
Net liabilities with Pension Plans have been calculated
annually by an independent actuary and are already recognized in Petrobras' financial statements for 2020, in accordance with the technical
pronouncements issued by the Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis - CPC), approved
by the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM), whose scope has its
own recognition methodology different from those applicable to pension funds.
On March 29, 2021, the Deliberative Council of
Petros approved the financial statements of the PPSP-R and PPSP-NR plans, ending the fiscal year 2020 with a surplus, reversing the scenario
of successive deficits in the two largest defined benefit plans managed by the Foundation.
The main differences in accounting practices adopted
in Brazil (CNPC and CVM), between the Pension Fund and the Sponsor to calculate the actuarial commitment, are shown below:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
|
|
|
2020
|
|
PPSP-R
|
PPSP-NR
|
Accumulated surplus registered by Petros
|
(968)
|
(536)
|
Financial assumptions
|
19,090
|
5,830
|
Ordinary and extraordinary sponsor contributions
|
13,798
|
3,981
|
Changes in fair value of plan assets (*)
|
10,744
|
4,778
|
Others (including Actuarial valuation method)
|
(5,261)
|
(548)
|
Net actuarial liability registered by the Company
|
37,403
|
13,505
|
(*) Includes balance of accounts receivable resulting from the Financial Commitment Term - TCF signed with Petrobras, and which Petros recognizes as equity.
|
|
13.1.1
|
Petros Plan 2 (PP2)
|
The Petros 2 Plan has a defined contribution portion
whose payments are recognized in the income statement. In the period from January to March 2021, the Company's contribution to the defined
contribution portion of the Petros 2 Plan was R$ 217 (R$ 224, for the period from January to March 2020).
13.1.2
|
Petros Plan 3 (PP3)
|
On October 1, 2020, the Board of Directors approved
the submission of the PP3 for analysis by the Secretaria de Coordenação e Governança das Empresas Estatais
(SEST) and to the Superintendência Nacional de Previdência Complementar (PREVIC), after adjustments to the Plan's regulations.
PP3 will be a social security option, in the defined
contribution modality (CD), for voluntary and exclusive migration to participants and beneficiaries of the PPSP-R and PPSP-NR plans, both
post-70.
On January 27, 2021, PREVIC and SEST approved the
creation of PP3. The deadline for enrolling in the plan ended on April 30, 2021 and after the registration validation process and success
in completing the technical and administrative feasibility study, the company will carry out an actuarial review of the original plans.
PP3 is expected to start operating in the second half of 2021.
|
13.2
|
Health Care Plan (AMS)
|
In 2020, Petrobras' Board of Directors approved
a new management model for Multidisciplinary Health Care (AMS). As from April 1st, 2021, the health care plan management started
to be carried out by a non-profit civil association, named as Petrobras Health Association (APS), maintaining the self-management modality.
The new model is in accordance with the requirements of the Agência Nacional de Saúde Suplementar (ANS).
With the transfer to the new management model,
there was no change in benefit, coverage or scope, as well as accounting effects.
|
14
|
Provisions for legal proceedings
|
14.1
|
Provisions for legal proceedings, judicial deposits and contingent liabilities
|
The Company recognizes provisions based on the
best estimate of the costs of proceedings for which it is probable that an outflow of resources embodying economic benefits will be required
and that can be reliably estimated. These proceedings mainly include:
|
·
|
Labor claims, in particular: (i) opt-out claims related to a review of the methodology by which the minimum
compensation based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime
- RMNR) is calculated; and (ii) actions of outsourced employees;
|
|
·
|
Tax claims including: (i) claims relating to Brazilian federal tax credits applied that were disallowed;
(ii) alleged misappropriation of VAT (ICMS) tax credits; and (iii) fines for non-compliance with accessory tax obligations;
|
|
·
|
Civil claims, in particular: (i) lawsuits related to contracts; (ii) royalties and special participation
charges, including royalties over shale extraction; and (iii) penalties applied by ANP relating to measurement systems.
|
|
·
|
Environmental claims, specially: (i) compensation and fines relating to an environmental accident in the
State of Paraná in 2000; and (ii) fines relating to the Company’s offshore operation.
|
Provisions for legal proceedings
are set out as follows:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
Consolidated
|
Current and Non-current liabilities
|
03.31.2021
|
12.31.2020
|
Labor claims
|
3,670
|
3,667
|
Tax claims
|
1,768
|
2,538
|
Civil claims
|
3,413
|
3,706
|
Environmental claims
|
1,483
|
1,516
|
Total
|
10,334
|
11,427
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Opening Balance
|
11,427
|
12,546
|
Additions, net of reversals
|
(454)
|
2,494
|
Use of provision
|
(636)
|
(3,814)
|
Accruals and charges
|
(67)
|
104
|
Others
|
64
|
97
|
Closing balance
|
10,334
|
11,427
|
|
In preparing its consolidated financial statements
for the three-month period ended March 31, 2021, the Company considered all available information concerning legal proceedings in which
the Company is a defendant, in order to estimate the amounts of obligations and probability that outflows of resources will be required.
In the period from
January to March 2021, the reduction in liabilities is mainly due to changes in the following cases: (i) a reduction of R$ 729 due to
the revision of tax contingencies in the scope of the amnesty program in the state of Rio de Janeiro (see note 11.2); and (ii) a reduction
of R$ 371 due to an agreement made in engineering contract arbitration on platforms resulting from subsidiaries abroad.
Judicial deposits made in connection with legal
proceedings are set out in the table below according to the nature of the corresponding lawsuits:
|
Consolidated
|
Non-current assets
|
03.31.2021
|
12.31.2020
|
Tax
|
28,153
|
26,785
|
Labor
|
4,391
|
4,317
|
Civil
|
5,254
|
5,688
|
Environmental
|
584
|
588
|
Others
|
499
|
460
|
Total
|
38,881
|
37,838
|
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Opening Balance
|
37,838
|
33,198
|
Additions
|
904
|
4,672
|
Use
|
(66)
|
(441)
|
Accruals and charges
|
166
|
431
|
Others
|
39
|
(22)
|
Closing balance
|
38,881
|
37,838
|
In the period from January to March 2021, the company
made judicial deposits in the amount of R$ 904, including: (i) R$ 474 referring to corporate income taxes for not adding the income of
subsidiaries and affiliates domiciled abroad to the tax calculation base of the Parent Company; (ii) R$ 290 referring to the unification
of fields (Cernambi, Tupi, Tartaruga Verde and Tartaruga Mestiça); (iii) R$ 280 referring to the chartering of platforms due to
the legal dispute related to the incidence of withholding income tax; (iv) R$ 263 referring to corporate income taxes in the deduction
of Petros' expenses; and (v) R$ 172 referring to several tax deposits in court, mainly offset by: (vi) R$ 722 referring to the redemption
of the deposit of IPI credits used to offset debts with the Federal Revenue of Brazil.
|
14.3
|
Contingent liabilities
|
The estimates of contingent liabilities for legal
proceedings are indexed to inflation and updated by applicable interest rates. As of March 31, 2021, estimated contingent liabilities
for which the possibility of loss is not considered remote are set out in the following table:
|
Consolidated
|
Nature
|
03.31.2021
|
12.31.2020
|
Tax
|
128,637
|
127,375
|
Labor
|
37,859
|
42,505
|
Civil – General
|
26,850
|
24,012
|
Civil – Environmental
|
7,900
|
7,613
|
Total
|
201,246
|
201,505
|
|
The main contingent liabilities are:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
·
|
Tax matters comprising: i) withholding income tax (IRRF), Contribution of Intervention in the Economic
Domain (CIDE), Social Integration Program (PIS) and Contribution to Social Security Financing (COFINS) on remittances for payments of
vessel charters; (ii) income from foreign subsidiaries and associates located outside Brazil not included in the computation of taxable
income (IRPJ and CSLL); (iii) tax on services provided offshore (ISS); (iv) requests to compensate federal taxes disallowed by the Brazilian
Federal Tax Authority; (v) collection and crediting of ICMS VAT tax by several states; and (vi) collection of social security contributions
over payments of bonuses.
|
|
·
|
Labor matters comprising mainly actions requiring a review of the methodology by which the minimum compensation
based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime - RMNR) is calculated;
|
|
·
|
Civil matters comprising mainly: (i) litigations regarding Sete Brasil Participações S.A.;
(ii) administrative proceedings challenging an ANP order requiring Petrobras to pay additional special participation fees and royalties
(production taxes) with respect to several fields; (iii) a public civil action that discusses the alleged illegality of the gas supply
made by the Company to its Nitrogen Fertilizer Production Unit; (iv) regulation agencies fines; and (v) lawsuits related to contracts.
|
|
·
|
Environmental matters comprising indemnities for material and collective moral damages to the environment
and environmental fines related to the Company operation.
|
In the period from January to March 2021, the reduction
in liabilities arises mainly from the following events: (i) a R$ 4,644 reduction in collective labor lawsuits in which unions question
the formula for calculating the RMNR Complement, based on the published minutes on the decision of the Supreme Federal Court in relation
to the financial update indexes applied to labor debts. These effects were partially offset by: (ii) R$ 2,248 related to civil matters
involving contractual issues; (iii) R$ 781 referring to actions involving collection of ICMS VAT Tax on inventory differences and on added
value; (iv) R$ 476 of requests for offsetting federal taxes not approved by the Brazilian Tax Federal Revenue; and (v) R$ 290 referring
to the collection of Service Municipal Tax (ISS) on services in maritime waters.
|
14.4
|
Class action and related proceedings
|
Regarding the class action in the Netherlands,
on January 29, 2020, the Rotterdam District Court (“Court”) determined that shareholders who understand Portuguese and / or
who bought shares through intermediaries or other agents who understand that language, among other shareholders, are subject to the arbitration
clause provided for in the Company's Bylaws, remaining out of the collective action proposed by the Stichting Petrobras Compensation Foundation
(“Foundation”). The Court also considered the binding effect of the agreement signed to close the United States' Class action.
In this way, the Foundation needs to demonstrate that it represents a sufficient number of investors to justify pursuing collective action
in the Netherlands. The Foundation and the Company presented the oral arguments at a hearing held on January 26, 2021, which is pending
judgment. For more information, see note 20.4.1 to the financial statements for the year ended December 31, 2020.
In relation to the arbitration in Argentina, described
in item 20.4.3 of the financial statements for the year ended December 31, 2020, the Argentine Supreme Court has not yet judged the appeal
filed by the Association.
As for the criminal actions in Argentina, described
in item 20.5 of the financial statements for the year ended December 31, 2020, it should be noted that, in the context of the action related
to the alleged fraudulent offer of securities, on September 14, 2020, the judge responsible accepted the company's defense of immunity
from jurisdiction and decided that Petrobras cannot be sued in a criminal action before the Argentine Justice. The Association appealed
against this decision, and the appeal is pending judgment. Regarding the action related to the alleged breach of the obligation to disclose
“material fact”, on March 4, 2021, the Court decided that the competence to judge this criminal action should be transferred
from the Criminal Economic Court No. 3 in the city of Buenos Aires for the Criminal Economic Court No. 2 in the same city.
14.5
|
Arbitrations in Brazil
|
In the period from January to March 2021, there
were no events that changed the assessment and judgment of arbitration in Brazil.
For more information, see note 20.4.2 to the financial
statements for the year ended December 31, 2020.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
14.6
|
Tax recoveries under dispute
|
|
14.6.1
|
Deduction of VAT tax (ICMS) from the basis of calculation of PIS and COFINS
|
The Company filed complaints against Brazilian
Federal Government challenging the constitutionality of the inclusion, from 2001 to 2020, of ICMS within the calculation basis of PIS
and COFINS. The Company obtained a favorable and definitive court decision on this claim, recognizing that Petrobras had the right to
offset the amounts unduly paid under PIS and COFINS, with this decision being final and the respective asset recognized in the year 2020,
according to note 17 of Taxes of December 31, 2020.
The tax credit relates to the exclusion of the
ICMS VAT Tax effectively collected when included in the basis of calculation of PIS and COFINS, as deliberated by the Federal Revenue
of Brazil (COSIT Consultation Solution 13), as set out in note 11.1. In relation to the amounts corresponding to the difference between
the criterion established in the regulation and the ICMS VAT Tax amount reported in the invoices, these were not recognized as tax credit,
since it is still pending final decision of the STF.
|
15
|
Provision for decommissioning costs
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Opening balance
|
97,595
|
70,377
|
Adjustment to provision
|
26
|
29,309
|
Transfers related to liabilities held for sale (*)
|
(1,125)
|
(2,793)
|
Payments made
|
(887)
|
(2,293)
|
Interest accrued
|
989
|
2,925
|
Others
|
39
|
70
|
Total
|
96,637
|
97,595
|
(*) In the period from January to
March 2021, it refers to transfers of R$ 595 related to Polo Peroá, in Espírito Santo, and R$ 530 related to Polo Miranga,
in Bahia. In 2020, it mainly includes transfers of R$ 1,550 related to concessions in Bahia and R$ 1,054 related to concessions in Rio
Grande do Norte, according to note 24 of December 31, 2020.
|
16
|
The “Lava Jato (Car Wash) Operation” and its effects on the Company
|
The Company has monitored the progress of investigations
under the “Lava Jato” Operation and, in the preparation of these unaudited interim consolidated financial statements for the
period ended March 31, 2021, did not identify any additional information that would affect the adopted calculation methodology to write
off, in the third quarter of 2014, amounts overpaid for the acquisition of property, plant and equipment. The Company will continue to
monitor these investigations for additional information in order to assess their potential impact on the adjustment made.
In addition, the Company has fully cooperated with
the Brazilian Federal Police (Polícia Federal), the Brazilian Public Prosecutor’s Office (Ministério Público
Federal), the Federal Auditor’s Office (Tribunal de Contas da União – TCU) and the General Federal Inspector’s
Office (Controladoria Geral da União) in the investigation of all crimes and irregularities.
In the period from January to March 2021, as a
result of leniency agreements and collaboration and repatriation agreements, the reimbursement of R$ 790 was recognized. Considering the
amount recognized in previous years, Petrobras has already recovered R$ 5,738 as a result of Lava Jato Operation. These funds were presented
as other operating income.
|
16.1
|
U.S. Commodity Futures Trading Commission - CFTC
|
On May 30, 2019, the U.S. Commodity Futures Trading
Commission (“CFTC”) contacted Petrobras with an inquiry regarding trading activities related to the Lava Jato Operation. Petrobras
reiterates that it continues to cooperate with the regulatory authorities, including the CFTC, regarding any inquiry.
16.2
|
Order of civil inquiry - Brazilian Public Prosecutor’s Office
|
On December 15, 2015, the State of São
Paulo Public Prosecutor’s Office issued the Order of Civil Inquiry 01/2015, establishing a civil proceeding to investigate the
existence of potential damages caused by Petrobras to investors in the Brazilian stock market. The Brazilian Attorney General’s
Office (Procuradoria Geral da República) assessed this civil proceeding and determined that the São Paulo Public
Prosecutor’s Office has no authority over this matter, which must be presided over by the Brazilian Public Prosecutor’s Office.
The Company has provided all relevant information requested by the authorities.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
17
|
Property, plant and equipment
|
|
Consolidated
|
Parent
|
|
Land, buildings
and
improvement
|
Equipment and other assets (*)
|
Assets under
construction (**)
|
Exploration and development costs (oil and gas producing properties) (***)
|
Right-of-use assets
|
Total
|
Total
|
Balance at January 1,2020
|
17,938
|
283,673
|
88,480
|
164,845
|
87,013
|
641,949
|
662,816
|
Additions
|
1
|
23,819
|
14,825
|
1,883
|
22,671
|
63,199
|
174,429
|
Additions to / review of estimates of decommissioning costs
|
−
|
−
|
−
|
27,899
|
−
|
27,899
|
27,829
|
Capitalized borrowing costs
|
−
|
−
|
4,797
|
−
|
−
|
4,797
|
4,745
|
Write-offs
|
(26)
|
(2,269)
|
(2,266)
|
(1,055)
|
(6,588)
|
(12,204)
|
(81,011)
|
Transfers
|
(1,485)
|
13,724
|
(15,342)
|
6,079
|
(119)
|
2,857
|
1,955
|
Transfers to assets held for sale
|
(47)
|
(1,055)
|
14
|
(3,956)
|
(73)
|
(5,117)
|
(4,995)
|
Depreciation, amortization and depletion
|
(719)
|
(21,882)
|
−
|
(19,650)
|
(20,627)
|
(62,878)
|
(71,925)
|
Impairment recognition
|
(68)
|
(35,813)
|
(13,997)
|
(22,691)
|
(1,645)
|
(74,214)
|
(66,603)
|
Impairment reversal
|
−
|
28,522
|
2,479
|
8,296
|
638
|
39,935
|
22,848
|
Cumulative translation adjustment
|
218
|
16,221
|
1,265
|
308
|
1,199
|
19,211
|
−
|
Balance at December 31, 2020
|
15,812
|
304,940
|
80,255
|
161,958
|
82,469
|
645,434
|
670,088
|
Accumulated cost
|
28,322
|
557,080
|
143,142
|
316,486
|
123,578
|
1,168,608
|
1,120,987
|
Accumulated depreciation, amortization, depletion and impairment
|
(12,510)
|
(252,140)
|
(62,887)
|
(154,528)
|
(41,109)
|
(523,174)
|
(450,899)
|
Balance at December 31, 2020
|
15,812
|
304,940
|
80,255
|
161,958
|
82,469
|
645,434
|
670,088
|
Additions
|
1
|
1,949
|
8,005
|
1
|
2,152
|
12,108
|
10,014
|
Additions to / review of estimates of decommissioning costs
|
−
|
−
|
−
|
(7)
|
−
|
(7)
|
−
|
Capitalized borrowing costs
|
−
|
−
|
1,151
|
−
|
−
|
1,151
|
1,141
|
Write-offs
|
−
|
(17)
|
(511)
|
(78)
|
(21)
|
(627)
|
(623)
|
Transfers
|
1,498
|
(1,345)
|
(6,397)
|
6,524
|
(5)
|
275
|
236
|
Transfers to assets held for sale
|
−
|
(6,050)
|
(606)
|
(556)
|
14
|
(7,198)
|
(7,216)
|
Depreciation, amortization and depletion
|
(183)
|
(5,405)
|
−
|
(5,681)
|
(5,410)
|
(16,679)
|
(18,009)
|
Impairment recognition (note 19)
|
−
|
(643)
|
−
|
(46)
|
−
|
(689)
|
(689)
|
Impairment reversal (note 19)
|
−
|
−
|
151
|
−
|
−
|
151
|
−
|
Cumulative translation adjustment
|
(3)
|
96
|
585
|
114
|
1
|
793
|
−
|
Balance at March 31, 2021
|
17,125
|
293,525
|
82,633
|
162,229
|
79,200
|
634,712
|
654,942
|
Accumulated cost
|
28,352
|
546,519
|
143,370
|
315,375
|
124,626
|
1,158,242
|
1,105,800
|
Accumulated depreciation, amortization, depletion and impairment (***)
|
(11,227)
|
(252,994)
|
(60,737)
|
(153,146)
|
(45,426)
|
(523,530)
|
(450,858)
|
Balance at March 31, 2021
|
17,125
|
293,525
|
82,633
|
162,229
|
79,200
|
634,712
|
654,942
|
Weighted average useful life in years
|
40
(25 to 50)
(except land)
|
20
(3 to 31)
|
|
Units of production method
|
8
(2 to 47)
|
|
|
(*) Composed of production platforms,
refineries, thermoelectric plants, gas treatment units, pipelines and other operating, storage and production facilities, including subsea
production equipment and flow of oil and gas depreciated by the method of the units produced.
(**) Balances by business segment are
presented in note 24.
(***) Composed of exploration and production
assets related to wells, abandonment of areas, signature bonuses associated with proven reserves and other expenses directly linked to
exploration and production, except production platforms.
(****) In the case of assets under construction,
it refers only to impairment losses.
|
|
The rights-of-use comprise the following underlying
assets:
|
Consolidated
|
Parent Company
|
|
Platforms
|
Vessels
|
Buildings and others
|
Total
|
Total
|
2020
|
|
|
|
|
|
Accumulated cost
|
57,913
|
58,498
|
7,167
|
123,578
|
139,784
|
Accumulated depreciation, amortization, depletion and impairment
|
(16,447)
|
(21,251)
|
(3,411)
|
(41,109)
|
(45,198)
|
Balance at December 31, 2020
|
41,466
|
37,247
|
3,756
|
82,469
|
94,586
|
2021
|
|
|
|
|
|
Accumulated cost
|
59,315
|
57,734
|
7,577
|
124,626
|
140,840
|
Accumulated depreciation, amortization, depletion and impairment
|
(17,920)
|
(24,020)
|
(3,486)
|
(45,426)
|
(49,989)
|
Balance at March 31, 2021
|
41,395
|
33,714
|
4,091
|
79,200
|
90,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
17.2
|
Capitalization rate used to determine the amount of borrowing costs eligible for capitalization
|
The capitalization rate used to determine the amount
of borrowing costs eligible for capitalization was the weighted average of the borrowing costs applicable to the borrowings that were
outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. For the three-month
period ended March 31, 2021, the capitalization rate was 5.55% p.a. (6.36% p.a. for the same period of 2020).
|
Consolidated
|
Parent Company
|
|
Rights and Concessions
|
Software
|
Goodwill
|
Total
|
Total
|
Balance at December 31, 2019
|
77,261
|
976
|
252
|
78,489
|
77,904
|
Addition
|
157
|
448
|
−
|
605
|
562
|
Capitalized borrowing costs
|
−
|
9
|
−
|
9
|
9
|
Write-offs
|
(922)
|
(16)
|
−
|
(938)
|
(902)
|
Transfers
|
(13)
|
(5)
|
(148)
|
(166)
|
(17)
|
Amortization
|
(37)
|
(295)
|
−
|
(332)
|
(298)
|
Impairment recognition
|
−
|
(30)
|
(31)
|
(61)
|
−
|
Cumulative translation adjustment
|
18
|
2
|
52
|
72
|
−
|
Balance at December 31, 2020
|
76,464
|
1,089
|
125
|
77,678
|
77,258
|
Accumulated Cost
|
76,925
|
6,467
|
125
|
83,517
|
82,110
|
Accumulated amortization and impairment
|
(461)
|
(5,378)
|
−
|
(5,839)
|
(4,852)
|
Balance at December 31, 2020
|
76,464
|
1,089
|
125
|
77,678
|
77,258
|
Addition
|
59
|
142
|
−
|
201
|
188
|
Capitalized borrowing costs
|
−
|
3
|
−
|
3
|
3
|
Write-offs
|
(3)
|
(2)
|
−
|
(5)
|
(2)
|
Transfers
|
(227)
|
12
|
−
|
(215)
|
(193)
|
Amortization
|
(9)
|
(73)
|
−
|
(82)
|
(73)
|
Cumulative translation adjustment
|
6
|
−
|
−
|
6
|
−
|
Balance at March 31, 2021
|
76,290
|
1,171
|
125
|
77,586
|
77,181
|
Accumulated Cost
|
76,749
|
6,660
|
125
|
83,534
|
82,083
|
Accumulated amortization and impairment
|
(459)
|
(5,489)
|
−
|
(5,948)
|
(4,902)
|
Balance at March 31, 2021
|
76,290
|
1,171
|
125
|
77,586
|
77,181
|
Estimated useful life in years
|
(*)
|
5
|
Indefinite
|
|
|
(*) Mainly composed of assets
with indefinite useful lives, which are reviewed annually to determine whether events and circumstances continue to support an indefinite
useful life assessment.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
19.1
|
Property, plant and equipment and intangible
|
The Company annually tests its assets for impairment
or when there is an indication that their carrying amount may not be recoverable. During the first quarter of 2021, impairment losses
were recognized, in the amount of R$ 508, mainly due to:
|
·
|
Equipment and facilities linked to the production activity - Brazil: the company decided to permanently
stop the P-33 platform in the Marlim field, which resulted in its exclusion from CGU North Pole and being classified as an isolated asset,
with the recognition of losses for devaluation in the amount of R$ 689; and
|
|
·
|
Equipment and facilities linked to the production activity - Abroad: the company decided to relocate equipment
from the P-72 and P-73 platforms to producing fields in the Santos Basin. Thus, considering the expectation of future cash generation,
it recognized a reversal of losses due to devaluation in the amount of R$ 151.
|
In the first quarter of 2020,
impairment losses were recognized due to the significant and adverse effects on the oil and oil products market arising from: (i) the
outbreak of the COVID-19 pandemic and its effects on the economic activity, and (ii) failure in negotiations between members of Organization
of the Petroleum Exporting Countries (OPEC) and its allies to define production levels, which contributed to an increase in the global
oil supply with a significant reduction in price in early March 2020.
These events led the company to adopt a series
of measures aimed at preserving cash generation and to revise some of its key assumptions, such as the Brent price, exchange rate, spreads
of oil products, among others, with repercussions on the tests of recoverability in the period from January to March 2020, leading to
the recognition of impairment losses in the amount of R$ 65,301, with emphasis on:
|
·
|
R$ 57,619 relating to the effect of updated assumptions in the estimation of the recoverable amount of
several E&P fields, notably in the following Cash Generating Units (CGU): Roncador, Marlim Sul, North group, Albacora Leste, Berbigão-Sururu
group, CVIT group and Mexilhão; and
|
|
·
|
R$ 6,625 relating to the hibernation of fields and platforms in shallow waters, affecting CGUs North group,
Ceará-Mar group and Ubarana group, as well as Caioba, Guaricema and Camorim fields.
|
On November 25, 2020, Management concluded and
approved its Strategic Plan 2021-2025, contemplating the complete updating of economic assumptions, as well as its project portfolio and
estimates of reserve volumes, which were the basis for the recoverability tests of the assets of the fourth quarter of 2020 and the partial
reversal of losses for devaluation recorded in the first quarter of 2020, related to several fields of oil and gas production in Brazil,
according to note 27 of the financial statements of December 31, 2020.
|
19.2
|
Investment in affiliate with shares traded on stock exchanges (Petrobras Distribuidora S.A. - BR)
|
On August 26, 2020, the Board of Directors of Petrobras
(CA) approved the process of divesting all of its interest in Petrobras Distribuidora. The company evaluates the recoverability of the
investment based on the value in use, but considering the scenario that contemplates the intention to sell the shares. The recoverability
assessments in the first quarter of 2021 led to the additional recognition of impairment losses in the amount of R$ 148.
The post-tax discount rate applied was 11% p.a.,
in nominal terms, taking into account the cost of equity, given the methodology adopted in the value in use.
|
20
|
Exploration and evaluation of oil and gas reserves
|
The exploration and evaluation activities include
the search for oil and gas reserves from obtaining the legal rights to explore a specific area to the declaration of the technical and
commercial viability of the reserves.
Changes in the balances of capitalized costs directly
associated with exploratory wells pending determination of proved reserves and the balance of amounts paid for obtaining rights and concessions
for exploration of oil and natural gas (capitalized acquisition costs) are set out in the following table:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
Consolidated
|
Capitalized Exploratory Well Costs / Capitalized Acquisition Costs (*)
|
03.31.2021
|
12.31.2020
|
Property plant and equipment
|
|
|
Opening Balance
|
15,716
|
17,175
|
Additions
|
485
|
2,168
|
Write-offs
|
(652)
|
(1,066)
|
Transfers
|
(396)
|
(2,667)
|
Cumulative translation adjustment
|
57
|
106
|
Closing Balance
|
15,210
|
15,716
|
Intangible Assets
|
75,325
|
75,489
|
Capitalized Exploratory Well Costs / Capitalized Acquisition Costs
|
90,535
|
91,205
|
(*) Amounts capitalized and subsequently expensed in the same period have been excluded from this table.
|
|
Exploration costs recognized in the statement of
income and cash used in oil and gas exploration and evaluation activities are set out in the following table:
|
Consolidated
|
|
2021
|
2020
|
Exploration costs recognized in the statement of income
|
Jan-Mar
|
Jan-Mar
|
Geological and geophysical expenses
|
369
|
320
|
Exploration expenditures written off (includes dry wells and signature bonuses)
|
740
|
117
|
Contractual penalties
|
84
|
28
|
Other exploration expenses
|
3
|
3
|
|
1,196
|
468
|
|
|
|
Cash used in:
|
|
|
Operating activities
|
372
|
323
|
Investment activities
|
628
|
662
|
Total cash used
|
1,000
|
985
|
|
|
21
|
Collateral for crude oil exploration concession agreements
|
The Company has granted collateral to ANP in connection
with the performance of the Minimum Exploration Programs established in the concession agreements for petroleum exploration areas in the
total amount of R$ 8,796 of which R$ 8,338 were still in force, net of commitments undertaken. The collateral comprises crude oil
from previously identified producing fields, pledged as collateral, amounting to R$ 6,529 and bank guarantees of R$ 1,809.
|
22.1
|
Investments in associates and joint ventures (Parent Company)
|
|
Balance at 12.31.2020
|
Investments
|
Transfers to held for sale
|
Restructuring, capital decrease and others
|
Results in equity-accounted investments
|
Cumulative translation adjustments (CTA)
|
Other comprehensive income
|
Dividends
|
Balance at 03.31.2021
|
Subsidiaries
|
228,777
|
−
|
−
|
405
|
2,098
|
23,608
|
111
|
(8)
|
254,991
|
Joint operations
|
164
|
−
|
−
|
−
|
9
|
−
|
−
|
(2)
|
171
|
Joint ventures
|
237
|
8
|
(11)
|
−
|
12
|
−
|
3
|
(4)
|
245
|
Associates (*)
|
12,678
|
−
|
−
|
−
|
776
|
677
|
(617)
|
(271)
|
13,243
|
Total
|
241,856
|
8
|
(11)
|
405
|
2,895
|
24,285
|
(503)
|
(285)
|
268,650
|
Other investments
|
19
|
−
|
|
−
|
−
|
−
|
−
|
−
|
19
|
Total
|
241,875
|
8
|
(11)
|
405
|
2,895
|
24,285
|
(503)
|
(285)
|
268,669
|
(*) Includes Petrobras Distribuidora and Braskem S / A.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
22.2
|
Changes in investment (Consolidated)
|
|
Balance at 12.31.2020
|
Investments
|
Transfers to held for sale
|
Restructuring, capital decrease and others
|
Results in equity-accounted investments
|
Cumulative translation adjustments (CTA)
|
Other comprehensive income
|
Dividends
|
Balance at 03.31.2021
|
Joint ventures
|
4,232
|
8
|
(11)
|
−
|
255
|
240
|
3
|
(27)
|
4,700
|
Associates (*)
|
12,758
|
4
|
−
|
5
|
764
|
684
|
(617)
|
(274)
|
13,324
|
Other investments
|
20
|
−
|
−
|
−
|
−
|
−
|
−
|
−
|
20
|
Total
|
17,010
|
12
|
(11)
|
5
|
1,019
|
924
|
(614)
|
(301)
|
18,044
|
(*) Includes Petrobras Distribuidora and Braskem S / A.
|
|
23
|
Disposal of assets and other changes in organizational structure
|
The Company has an active partnership and divestment
portfolio, which takes into account opportunities for disposal of non-strategic assets in several areas in which it operates, whose development
of transactions also depends on conditions beyond the control of the Company.
The divestment projects and strategic partnerships
follow the procedures aligned with the guidelines of the Brazilian Federal Auditor’s Office (Tribunal de Contas da União
– TCU) and the current legislation.
The major classes of assets and related liabilities
classified as held for sale are shown in the following table:
|
|
Consolidated
|
|
|
|
|
|
|
03.31.2021
|
12.31.2020
|
|
E&P
|
RT&M
|
|
Gas & Power
|
Corporate
|
Total
|
Total
|
Assets classified as held for sale
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
4
|
−
|
|
−
|
−
|
4
|
74
|
Trade receivables
|
−
|
−
|
|
−
|
−
|
−
|
126
|
Inventories
|
−
|
1,696
|
|
−
|
−
|
1,696
|
23
|
Investments
|
1
|
−
|
|
109
|
−
|
110
|
355
|
Property, plant and equipment
|
3,627
|
6,212
|
|
−
|
−
|
9,839
|
3,318
|
Others
|
1
|
−
|
|
−
|
−
|
1
|
185
|
Total
|
3,633
|
7,908
|
|
109
|
−
|
11,650
|
4,081
|
Liabilities on assets classified as held for sale
|
|
|
|
|
|
|
|
Trade Payables
|
2
|
−
|
|
−
|
−
|
2
|
110
|
Finance debt
|
−
|
−
|
|
−
|
6
|
6
|
70
|
Provision for decommissioning costs
|
3,958
|
−
|
|
−
|
−
|
3,958
|
3,326
|
Others
|
−
|
−
|
|
−
|
−
|
−
|
53
|
Total
|
3,960
|
−
|
|
−
|
6
|
3,966
|
3,559
|
23.1
|
Transactions pending closing at March 31, 2021
|
As of March 31, 2021, the main assets and liabilities
classified as held for sale include: (i) assignment of remaining rights in the concession area called Lapa (referring to the exercise
of the put option of the remaining 10% of its interest); (ii) the sale of its entire interest in Polo Peroá; (iii) onshore fields
in Ceará, Bahia and Espírito Santo; (iv) Mangue Seco wind farms 1, 2, 3 and 4; and (v) RLAM refinery.
The description of these operations was presented
in note 32 of the financial statements of December 31, 2020, except for the assets described below:
Transaction
|
Acquirer
|
Signature date
|
Transaction amount (*)
|
Further information
|
Sale of E&P assets in the state of Espírito Santo (Polo
Peroá)
|
OP Energy e DBO Energy
|
January
2021
|
US$ 12.5 million
|
a
|
Sale of the Company’s entire interest in nine onshore fields, called Miranda group, in the in the state of Bahia
|
Miranga S.A. (structured entity), subsidiary
of
PetroRecôncavo S.A.
|
February
2021
|
US$ 135.1 million
|
b
|
Sale of the Company’s 51% interest in the company Eólica Mangue Seco 2 - Geradora e Comercializadora de Energia Elétrica S.A. (“Eólica Mangue Seco 2), wind power generation plant.
|
Fundo de Investimento em Participações Multiestratégia Pirineus (FIP Pirineus)
|
February
2021
|
33
|
c
|
Sale of the Company's shares that will hold the Landulpho Alves Refinery (RLAM) and its associated logistics assets, in the state of Bahia
|
MC Brazil Downstream Participações, a company of the Mubadala Capital group
|
March
2021
|
US$ 1.65 billion
|
d
|
(*) Only amounts considered at the signing of the transaction.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
a) Sale of E&P assets in
Espírito Santo (Polo Peroá)
Amounts due to Petrobras are composed of: (i) US$
5 million was paid at the contract signing; (ii) US$ 7.5 million to be paid at the transaction closing; (iii) US$ 42.5
million as contingent payments provided for in the contract, related to factors such as Malombe's declaration of commerciality, future
oil prices and extension of the concession terms. The amounts do not consider the adjustments due until the closing of the transaction,
which is subject to the fulfillment of precedent conditions, such as approval by the ANP.
b) Sale of onshore fields
in Bahia
Amounts due to Petrobras are composed of: (i) US$ 11
million paid upon the contract signing; (ii) US$ 44 million to be paid at the transaction closing; and (iii) US$ 80.1 million
deferred in three installments over three years from the transaction closing.
The contract provides for the payment of conditional
amounts of up to US$ 85 million, classified as contingent assets, which will only be recognized when the agreed conditions are met.
The amounts do not consider the adjustments due
until the closing of the transaction, which is subject to the fulfillment of precedent conditions, such as approval by the ANP.
c) Sale of Eólica
Mangue Seco 2
Amount to be paid to Petrobras in a single installment
at the transaction closing, subject to price adjustments provided for in the contract. The transaction results from the exercise of the
preemptive right by FIP Pirineus, in accordance with the shareholders' agreement of Eólica Mangue Seco 2.
The closing of the transaction is subject to the
fulfillment of conditions precedent, such as approval by Banco do Nordeste do Brasil, resource provider of the wind farm development,
and by the Administrative Council for Economic Defense (CADE).
d) Sale of the RLAM
refinery
The agreement provides for price adjustment due
to changes in working capital, net debt and investments until the transaction closing, and is subject to the fulfillment of conditions
precedent, such as approval by the Administrative Council for Economic Defense (CADE).
23.2
|
Closed transactions at March 31, 2021
|
Transaction
|
Acquirer
|
Signature date (S)
Closing date (C)
|
Sale amount
|
Contractual amount (*) (**)
|
Gain/(loss)
(***)
|
Further information
|
Sale of 30% of the Frade field concession. The transaction also includes the sale of the entire stake held by the subsidiary Petrobras Frade Inversiones S.A. (PFISA), in the company Frade BV.
|
PetroRio
|
November 2019 (S)
February 2021 (C)
|
206
|
US$ 43.5 million
|
474
|
a
|
|
|
|
|
|
|
|
Petrobras Uruguay Sociedad Anónima de Inversiones (PUSAI)
signed a contract for the sale of its entire stake in Petrobras Uruguay Distribución S.A. (PUDSA).
|
DISA Corporación Petrolífera S.A.
|
August 2020 (S)
February 2021 (C)
|
369
|
US$ 68.17 million
|
(14)
|
b
|
|
|
|
|
|
|
|
Petrobras Biocombustível S.A. (PBio) has signed contract for the sale of all of its shares (50% of the company's capital) issued by BSBios Indústria e Comércio de Biodiesel Sul Brasil S / A (BSBios).
|
RP Participações em Biocombustíveis S.A
|
December 2020 (S)
February 2021 (C)
|
322
|
322
|
2
|
c
|
|
|
|
|
|
|
|
|
|
|
897
|
|
462
|
|
(*) Considering amounts agreed upon signing the transaction and converted into reais, when traded in another currency.
|
(**) The amount of “Receipts for the sale of assets (Divestments) in the Cash Flow Statement” is mainly composed of amounts from the Divestment Program: partial receipt of operations for this year, installments for operations from previous years and advances referring to unfinished operations.
|
(***) Recognized in "Income from disposals, write-off of assets and result from remeasurement of equity interests" - Note 6 - Other net operating income (expenses).
|
(****) Deadlines, precedent conditions and other information
|
These conclusions
came after the fulfillment of possible precedent conditions.
a) Sale of the Frade
field
The transaction was concluded with the receipt
of US$ 36 million, which includes the revenue from the sale of Petrobras' residual oil inventory, on the closing date of the transaction,
after the fulfillment of all precedent conditions and adjustments provided for in contracts. In signing the contract, an additional US$
7.5 million was received.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
The total transaction amount of US$ 100 million
was adjusted based on the income earned by Petrobras in the period from July 1, 2019, base date of the transaction, to February 5, 2021,
the closing date of the transaction. In addition, there is an amount of US$ 20 million contingent on a potential new commercial discovery
in the field.
b) Sale of Petrobras
Uruguay Distribución S.A. (PUDSA)
The transaction was concluded with the payment
of US$ 62 million. The amount received at closing is added to the amount of US$ 6.17 million paid to PUSAI on the date of the sales agreement
signature. As a result of this operation, the amount of R$ 183 was reclassified to income statement as other operating expenses, resulting
from the foreign exchange variation against the U.S. dollar, previously recognized in PUDSA's shareholders' equity as cumulative translation
adjustment.
c) Sale of BSBios
The operation was concluded with the receipt of R$ 253,
already with the adjustments provided for in the contract. In addition to this amount, R$ 67 are held in an escrow account for indemnification
of eventual contingencies and will be released according to terms and conditions set forth in the contract and R$ 2 were received in advance
in the form of interest on capital in December 2020.
On January 5, 2021, Petrobras acquired 100% of
the shares of the structured entity Company for the Development and Modernization of Industrial Plants (CDMPI) for R$ 50 thousand. The
difference between the amount paid and CDMPI's negative shareholders' equity, in the amount of R$ 3,716, was classified as a capital transaction
and reduced the shareholders' equity attributable to shareholders of Petrobras, in return for the increase in the shareholders' equity
of non-controlling interests, since Petrobras already controlled its operations before the acquisition. On April 14, 2021, Petrobras'
Extraordinary General Meeting resolved and approved the merger of CDMPI.
23.4
|
Cash flows from sales of interest with loss of control
|
The sales of equity interest that resulted in loss
of control and the cash flows arising from these transactions are shown below::
|
Cash received
|
Cash in subsidiary before losing control
|
Net Proceeds
|
Jan-Mar/2021
|
|
PUDSA
|
334
|
81
|
253
|
Total
|
334
|
81
|
253
|
Jan-Mar/2020
|
|
Petrobras Oil & Gas B.V.(PO&GBV) (*)
|
1,144
|
−
|
1,144
|
Total
|
1,144
|
−
|
1,144
|
(*) Amount of US $ 276 received on the closing date of the transaction.
|
|
24
|
Assets by operating segment
|
The segmented information reflects the evaluation
structure of senior management in relation to performance and the allocation of resources to the business.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
Consolidated assets by operating segment - 03.31.2021
|
|
|
Exploration and Production
|
Refining, Transportation & Marketing
|
Gas
&
Power
|
Corporate
|
Eliminations
|
Total
|
Current assets
|
19,705
|
73,782
|
12,283
|
78,948
|
(30,746)
|
153,972
|
Non-current assets
|
594,410
|
114,198
|
42,239
|
93,464
|
−
|
844,311
|
Long-term receivables
|
25,241
|
10,117
|
4,250
|
74,361
|
−
|
113,969
|
Investments
|
2,308
|
2,783
|
3,310
|
9,643
|
−
|
18,044
|
Property, plant and equipment
|
491,180
|
100,790
|
34,037
|
8,705
|
−
|
634,712
|
Operating assets
|
435,760
|
87,478
|
21,632
|
7,209
|
−
|
552,079
|
Under construction
|
55,420
|
13,312
|
12,405
|
1,496
|
−
|
82,633
|
Intangible assets
|
75,681
|
508
|
642
|
755
|
−
|
77,586
|
Total Assets
|
614,115
|
187,980
|
54,522
|
172,412
|
(30,746)
|
998,283
|
|
|
|
|
|
|
|
Consolidated assets by operating segment - 12.31.2020
|
|
|
Exploration and Production
|
Refining, Transportation & Marketing
|
Gas
&
Power
|
Corporate
|
Eliminations
|
Total
|
Current assets
|
27,713
|
42,455
|
10,264
|
79,700
|
(17,809)
|
142,323
|
Non-current assets
|
597,341
|
124,092
|
43,241
|
80,413
|
9
|
845,096
|
Long-term receivables
|
24,657
|
13,196
|
5,070
|
62,042
|
9
|
104,974
|
Investments
|
2,026
|
2,081
|
3,152
|
9,751
|
−
|
17,010
|
Property, plant and equipment
|
494,838
|
108,308
|
34,373
|
7,915
|
−
|
645,434
|
Operating assets
|
441,285
|
95,122
|
22,345
|
6,427
|
−
|
565,179
|
Under construction
|
53,553
|
13,186
|
12,028
|
1,488
|
−
|
80,255
|
Intangible assets
|
75,820
|
507
|
646
|
705
|
−
|
77,678
|
Total Assets
|
625,054
|
166,547
|
53,505
|
160,113
|
(17,800)
|
987,419
|
|
25.1
|
Balance by type of finance debt
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Banking Market
|
21,364
|
26,069
|
Capital Market
|
13,233
|
13,053
|
Development banks
|
6,549
|
6,836
|
Others
|
51
|
51
|
Total
|
41,197
|
46,009
|
Banking Market
|
77,536
|
70,576
|
Capital Market
|
148,528
|
143,557
|
Development banks
|
−
|
1,047
|
Export Credit Agency
|
18,286
|
17,793
|
Others
|
1,125
|
1,056
|
Total
|
245,475
|
234,029
|
Total finance debt
|
286,672
|
280,038
|
Current
|
18,755
|
21,751
|
Noncurrent
|
267,917
|
258,287
|
Current finance debt is composed of:
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
Short-term debt
|
1,924
|
5,926
|
Current portion of long-term debt
|
13,723
|
12,382
|
Accrued interest on short and long-term debt
|
3,108
|
3,443
|
Total
|
18,755
|
21,751
|
At March 31, 2021, there was no default, breach
of covenants or change in collateral provided or clauses that would result in change in payment terms compared December 31, 2020.
|
25.2
|
Changes in finance debt and reconciliation with cash flows from financing activities
|
|
Balance at 12.31.2019
|
Additions
|
Principal amorti zation (*)
|
Interest amorti zation (*)
|
Accrued interest (**)
|
Foreign exchange/ inflation indexation charges
|
CTA
|
Modification of contractual cash flows
|
Transfer to liabilities classified as held for sale
|
Balance at 12.31.2020
|
In Brazil
|
43,251
|
7,294
|
(5,543)
|
(1,720)
|
2,034
|
693
|
−
|
−
|
−
|
46,009
|
Abroad
|
211,731
|
78,229
|
(122,397)
|
(14,958)
|
16,427
|
7,830
|
57,593
|
(398)
|
(28)
|
234,029
|
Total
|
254,982
|
85,523
|
(127,940)
|
(16,678)
|
18,461
|
8,523
|
57,593
|
(398)
|
(28)
|
280,038
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
Balance
at
12.31.2020
|
Additions
|
Principal amortization (*)
|
Interest amorti zation (*)
|
Accrued interest (**)
|
Foreign exchange/ inflation indexation charges
|
Cumulative translation adjustment (CTA)
|
Modification of contractual cash flows
|
Transfer to liabilities classified as held for sale
|
Balance at 03.31.2021
|
In Brazil
|
46,009
|
−
|
(5,284)
|
(456)
|
443
|
485
|
−
|
−
|
−
|
41,197
|
Abroad
|
234,029
|
299
|
(10,783)
|
(3,456)
|
3,431
|
2,303
|
19,661
|
(9)
|
−
|
245,475
|
Total
|
280,038
|
299
|
(16,067)
|
(3,912)
|
3,874
|
2,788
|
19,661
|
(9)
|
−
|
286,672
|
Debt restructuring
|
|
−
|
(1,013)
|
−
|
|
|
|
|
|
|
Deposits linked to financing
|
|
−
|
−
|
(1,986)
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
299
|
(17,080)
|
(5,898)
|
|
|
|
|
|
|
(*)It includes pre-payments.
|
(**)It includes premium and discount over notional amounts, as well as gains and losses by modifications in contractual cash flows.
|
From January to March 2021, the Company used its
cash to settle older debts and manage liabilities, aiming at improving the debt repayment profile taking into account its alignment with
investments returns over the long run, and also to have cash reserve to maintain the Company’s liquidity.
The Company repaid several finance debts, in the
amount of R$ 22,978, notably: (i) prepayment of banking loans in the international market totaling R$ 536; (ii) R$ 7,950 to repurchase
of global bonds previously issued by the Company in the capital market, with net premium paid to bond holders amounting to R$ 1,013; and
(iii) total prepayment of R$ 1,265 for loans with development agencies.
|
25.3
|
Summarized information on current and non-current finance debt
|
|
|
Consolidated
|
|
Maturity in
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026 onwards
|
Total (**)
|
Fair value
|
|
|
|
|
|
|
|
|
|
|
|
Financing in U.S. Dollars (US$)(*):
|
12,985
|
12,493
|
20,846
|
24,809
|
29,971
|
124,598
|
225,702
|
243,525
|
|
Floating rate debt
|
10,827
|
12,493
|
15,632
|
20,373
|
24,421
|
11,627
|
95,373
|
|
|
Fixed rate debt
|
2,158
|
−
|
5,214
|
4,436
|
5,550
|
112,971
|
130,329
|
|
|
Average interest rate
|
4.8%
|
4.8%
|
4.8%
|
5.2%
|
5.3%
|
6.6%
|
6.1%
|
|
|
Financing in Brazilian Reais (R$):
|
2,815
|
6,178
|
9,037
|
8,064
|
2,097
|
13,004
|
41,195
|
42,527
|
|
Floating rate debt
|
2,017
|
4,840
|
8,267
|
6,214
|
1,673
|
4,509
|
27,520
|
|
|
Fixed rate debt
|
798
|
1,338
|
770
|
1,850
|
424
|
8,495
|
13,675
|
|
|
Average interest rate
|
3.4%
|
4.7%
|
6.0%
|
5.2%
|
4.4%
|
4.3%
|
4.5%
|
|
|
Financing in Euro (€):
|
190
|
−
|
1,919
|
80
|
2,903
|
4,013
|
9,105
|
10,289
|
|
Fixed rate debt
|
190
|
−
|
1,919
|
80
|
2,903
|
4,013
|
9,105
|
|
|
Average interest rate
|
4.6%
|
-
|
4.6%
|
4.7%
|
4.7%
|
4.7%
|
4.7%
|
|
|
Financing in Pound Sterling (£):
|
201
|
−
|
−
|
−
|
−
|
10,469
|
10,670
|
11,975
|
|
Fixed rate debt
|
201
|
−
|
−
|
−
|
−
|
10,469
|
10,670
|
|
|
Average interest rate
|
6.2%
|
-
|
-
|
−
|
−
|
6.4%
|
6.3%
|
|
|
Total on March 31, 2021
|
16,191
|
18,671
|
31,802
|
32,953
|
34,971
|
152,084
|
286,672
|
308,316
|
|
Average interest rate
|
4.6%
|
4.9%
|
5.0%
|
5.2%
|
5.3%
|
6.5%
|
6.0%
|
|
|
Total on December 31, 2020
|
21,751
|
17,055
|
30,620
|
30,977
|
32,373
|
147,262
|
280,038
|
319,689
|
|
Average interest rate
|
4.6%
|
4.8%
|
4.8%
|
5.1%
|
5.2%
|
6.4%
|
5.9%
|
|
|
|
(*) Includes debt raised in Brazil (in Brazilian reais) indexed to the U.S. dollar.
|
|
(**)The average maturity of outstanding debt as of March 31, 2021 is 11.84 years (11.71 years as of December 31, 2020).
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2021, the fair values of
financing are mainly determined by using:
Level 1 - prices quoted in active markets, when
applicable, in the amount of R$ 163,316 (R$ 172,717, on December 31, 2020); and
Level 2 - cash flow method discounted by the spot
rates interpolated from the indexes (or proxies) of the respective financing, observed to the pegged currencies, and by the credit risk
of Petrobras, in the amount of R$ 145,000 (R$ 146,972, on December 31, 2020).
The sensitivity analysis for financial instruments
subject to foreign exchange variation is set out in note 29.3.
The nominal (undiscounted) flow of principal and
interest on financing, by maturity, is shown below:
|
Consolidated
|
Maturity
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026 onwards
|
03.31.2021
|
12.31.2020
|
Principal
|
13,453
|
18,593
|
31,305
|
34,484
|
35620
|
160,170
|
293,625
|
286,503
|
Interest
|
9,459
|
12,801
|
11,943
|
11,040
|
9842
|
154,844
|
209,929
|
202,425
|
Total (*)
|
22,912
|
31,394
|
43,248
|
45,524
|
45,462
|
315,014
|
503,554
|
488,928
|
(*)The nominal flow of leases is found in note 26.
.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
|
Amount
|
Company
|
Financial institution
|
Date
|
Maturity
|
Available
(Lines of Credit)
|
Used
|
Balance
|
Abroad (in US$ million)
|
|
|
|
|
|
|
|
PGT BV
|
Syndicate of banks
|
3/7/2018
|
2/7/2023
|
4,350
|
−
|
4,350
|
PGT BV
|
Syndicate of banks
|
3/27/2019
|
2/27/2024
|
3,250
|
−
|
3,250
|
PGT BV
|
The Export - Import Bank of China
|
12/23/2019
|
12/27/2021
|
750
|
714
|
36
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
8,350
|
714
|
7,636
|
In Brazil
|
|
|
|
|
|
|
|
Petrobras
|
Banco do Brasil
|
3/23/2018
|
1/26/2023
|
2,000
|
−
|
2,000
|
Petrobras
|
Bradesco
|
6/1/2018
|
5/31/2023
|
2,000
|
2,000
|
−
|
Petrobras
|
Banco do Brasil
|
10/4/2018
|
9/5/2025
|
2,000
|
−
|
2,000
|
Transpetro
|
Caixa Econômica Federal
|
11/23/2010
|
Not defined
|
329
|
−
|
329
|
Total
|
|
|
|
|
6,329
|
2,000
|
4,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The leases mainly include oil and natural gas production
units, drilling rigs and other exploration and production equipment, ships, support vessels, helicopters, land and buildings. The movement
of lease contracts recognized as liabilities is shown below:
|
Consolidated
|
|
Balance at 12.31.2020
|
|
Remeasurement / new contracts
|
Payment of principal and interest
|
Interest expenses
|
Foreign exchange gains and losses
|
Cumulative translation adjustment
|
Transfers
|
Balance at 03.31.2021
|
Brazil
|
22,556
|
|
341
|
(2,046)
|
244
|
1,292
|
−
|
(5)
|
22,382
|
Abroad
|
89,954
|
|
1,450
|
(5,994)
|
1,387
|
8,239
|
284
|
(58)
|
95,262
|
Total
|
112,510
|
|
1,791
|
(8,040)
|
1,631
|
9,531
|
284
|
(63)
|
117,644
|
As of March 31, 2021, the value of the lease liability
of Petrobras Parent Company is R$ 126,563 (R$ 121,288 on December 31, 2020), including leases and sub-leases with investees, mainly
vessels with PNBV and Transpetro.
The nominal flow (not discounted) without considering
future inflation projected in the lease contract flows, by maturity, is shown below:
|
Consolidated
|
Nominal Future Payments
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026 onwards
|
Total
|
Balance at March 31, 2021
|
23,906
|
25,734
|
16,925
|
12,810
|
10,359
|
68,015
|
157,749
|
Balance at December 31, 2020
|
29,915
|
22,400
|
15,054
|
11,697
|
9,481
|
62,276
|
150,823
|
Payments in certain lease agreements vary due to
changes in facts or circumstances occurring after their inception other than the passage of time. Such payments are not included in the
measurement of the lease obligations. Variable lease payments in the first quarter of 2021 amounted to R$ 1,013, representing 13% in relation
to fixed payments (R$ 933 and 14% in relation to fixed payments, in the period from January to March 2020).
In the period from January to March 2021, the company
recognized lease expenses in the amount of R$ 124 (R$ 262 in the period from January to March 2020), related to contracts with a term
of less than one year.
As of March 31, 2021, the nominal value of lease
agreements that had not yet been initiated, due to the related assets being under construction or not being made available for use, represents
the amount of R$ 457,456 (R$ 350,299 on December 31, 2020). The increase in the quarter basically corresponds to the devaluation of the
real against the U.S. dollars in the period, as well as the inclusion of a new contractual commitment to lease a floating production unit.
The sensitivity analysis of financial instruments
subject to exchange rate variation is presented in note 29.3.
|
27.1
|
Share capital (net of share issuance costs)
|
As of March 31, 2021, subscribed and fully paid
share capital, net of issuance costs, was R$ 205,432, represented by 7,442,454,142 common shares and 5,602,042,788 preferred shares, all
of which are registered, book-entry shares with no par value.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
Preferred shares have priority on returns of capital,
do not grant any voting rights and are non-convertible into common shares.
There are treasury shares, constituted since 2018,
with 222,760 common shares and 72,909 preferred shares.
|
27.2
|
Distributions to shareholders
|
As of March 31, 2021, the balance includes the
mandatory dividend for 2020 equivalent to the priority of preferred shareholders, updated by SELIC, in the amount of R$ 4,433 (R$ 4,411
on December 31, 2020), the criterion that prevailed was 5% on the share of capital represented by this type of shares.
On April 14, 2021, the Annual General Shareholders
Meeting approved the dividends for the year 2020, in the amount of R$ 10,272, corresponding to R$ 0.787446 per common and preferred share
in circulation. Therefore, the additional dividends proposed to ordinary shareholders in the amount of R$ 5,861 were reclassified from
Shareholders’ Equity to liabilities on the date of approval.
On April 29, 2021, dividends were paid in the amount
of R$ 10,342 (R$ 0.792834 per common and preferred share outstanding) with the restatement by the variation of the Selic rate from December
31, 2020 until the payment date.
|
Consolidated and Parent Company
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Basic and diluted numerator - Net income (loss) attributable to shareholders of Petrobras attributed equally between share classes
|
|
|
Net income (loss) from discontinued operations
|
|
|
Net income (loss) of the period
|
|
|
Common
|
666
|
(27,684)
|
Preferred
|
501
|
(20,839)
|
|
1,167
|
(48,523)
|
|
|
|
Basic and diluted denominator - Weighted average number of shares outstanding
|
|
|
Common
|
7,442,231,382
|
7,442,231,382
|
Preferred
|
5,601,969,879
|
5,601,969,879
|
|
13,044,201,261
|
13,044,201,261
|
|
|
|
Basic and diluted net income (loss) per share (R$ per share)
|
|
|
Common
|
0.09
|
(3.72)
|
Preferred
|
0.09
|
(3.72)
|
|
|
Basic earnings per share are calculated by dividing
the net income (loss) attributable to shareholders of Petrobras by the weighted average number of outstanding shares during the period.
Diluted earnings (losses) per share are calculated
by adjusting the net income (loss) and the weighted average number of outstanding shares during the period taking into account the effects
of all dilutive potential shares (equity instrument or contractual arrangements that are convertible into shares).
Basic and diluted earnings (losses) are identical
as the Company has no potential shares in issue.
|
28
|
Fair value of financial assets and liabilities
|
|
Fair value measured based on
|
|
Level I
|
Level II
|
Level III
|
Total fair
value
recorded
|
Assets
|
|
|
|
|
Marketable securities
|
3,279
|
−
|
−
|
3,279
|
Foreign currency derivatives
|
−
|
393
|
−
|
393
|
Interest rate derivatives
|
−
|
60
|
−
|
60
|
Balance at March 31, 2021
|
3,279
|
453
|
−
|
3,732
|
Balance at December 31, 2020
|
3,388
|
591
|
−
|
3,979
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Foreign currency derivatives
|
−
|
(1,471)
|
−
|
(1,471)
|
Commodity derivatives
|
(3)
|
−
|
−
|
(3)
|
Balance at March 31, 2021
|
(3)
|
(1,471)
|
−
|
(1,474)
|
Balance at December 31, 2020
|
(51)
|
(1,402)
|
−
|
(1,453)
|
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
The estimated fair value for the company's financing,
calculated at current market rates, is set out in note 25.
Certain receivables are classified as fair value
through profit or loss, as presented in note 9.
The fair values of
cash and cash equivalents, short-term debt and other financial assets and liabilities are equivalent or do not differ significantly from
their carrying amounts.
|
29.1
|
Derivative financial instruments
|
A summary of the positions of the derivative financial
instruments held by the Company and recognized in other current assets and liabilities as of March 31, 2021 , as well as the amounts
recognized in the statement of income and other comprehensive income and the guarantees given is set out as follows:
|
Statement of Financial Position
|
|
Notional value
|
Fair value
Asset Position (Liability)
|
Maturity
|
|
03.31.2021
|
12.31.2020
|
03.31.2021
|
12.31.2020
|
|
Derivatives not designated for hedge accounting
|
|
|
|
|
|
Future contracts - total (*)
|
(122)
|
(240)
|
(3)
|
(51)
|
|
Long position/Crude oil and oil products
|
2,435
|
3,927
|
−
|
−
|
2021
|
Short position/Crude oil and oil products
|
(2,557)
|
(4,167)
|
−
|
−
|
2021
|
Forward contracts
|
|
|
|
|
|
Long position/Foreign currency forwards (BRL/USD) (**)
|
20
|
-
|
(2)
|
−
|
2021
|
Long position/Foreign currency forwards (GPB/USD) (**)
|
GPB 354
|
GPB 354
|
155
|
121
|
2021
|
Swap
|
|
|
|
|
|
Foreign currency / Cross-currency Swap (**)
|
GPB 615
|
GPB 615
|
238
|
227
|
2026
|
Foreign currency / Cross-currency Swap (**)
|
GPB 600
|
GPB 600
|
(86)
|
(134)
|
2034
|
Swap – IPCA
|
3,008
|
3,008
|
60
|
243
|
2029/2034
|
Foreign currency / Cross-currency Swap (**)
|
US$ 729
|
US$ 729
|
(1,383)
|
(1,268)
|
2024/2029
|
Total recognized in the Statement of Financial Position
|
|
|
(1,021)
|
(862)
|
|
(*)Notional value in thousands of bbl.
|
(**) Amounts in US$, GBP and EUR are presented in million.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
Gains/ (losses) recognized in the statement of income
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Commodity derivatives
|
|
|
Other operations - 29.2 (a)
|
(126)
|
1,037
|
Recognized in Other Income and Expenses
|
(126)
|
1,037
|
Currency derivatives
|
|
|
Swap Pounds Sterling x Dollar - 29.3 (b)
|
157
|
(1,494)
|
NDF – Euro x Dollar - 29.3 (b)
|
−
|
(328)
|
NDF – Pounds Sterling x Dollar - 29.3 (b)
|
20
|
(103)
|
Swap CDI x Dollar - 29.3 (b)
|
(154)
|
(1,100)
|
Others
|
4
|
(8)
|
|
27
|
(3,033)
|
Interest rate derivatives
|
|
|
Swap - CDI X IPCA
|
(154)
|
(247)
|
|
(154)
|
(247)
|
Cash flow hedge on exports (*)
|
(6,094)
|
(6,449)
|
Recognized in Net finance income (expense)
|
(6,221)
|
(9,729)
|
Total
|
(6,347)
|
(8,692)
|
(*)As presented in note 29.3.
|
|
Gains/ (losses) recognized in other comprehensive income
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Cash flow hedge on exports (*)
|
(24,426)
|
(93,596)
|
|
|
|
(*)As presented in note 29.3.
|
|
|
Guarantees given as collateral
|
|
03.31.2021
|
12.31.2020
|
Commodity derivatives
|
178
|
69
|
Currency derivatives
|
127
|
403
|
|
305
|
472
|
A sensitivity analysis of the derivative financial
instruments for the different types of market risks as of March 31, 2021 is set out as follows:
|
|
Consolidated
|
Financial Instruments
|
Risk
|
Probable Scenario (*)
|
Reasonably possible
scenario
|
Remote
Scenario
|
Derivatives not designated for hedge accounting
|
|
|
|
|
|
|
|
Future and forward contracts
|
Crude oil and oil products - price changes
|
−
|
(57)
|
(113)
|
Forward contracts
|
Foreign currency - depreciation BRL x USD
|
4
|
(28)
|
(57)
|
|
|
|
|
|
4
|
(85)
|
(170)
|
⁽*⁾
The probable scenarios were calculated considering the following variations for risks:
Oil and Derivatives Prices: fair value as of March 31, 2021 / Real x Dollar – 3.5% appreciation of the real. Source: Focus. Reasonably
possible and remote scenarios consider 25% and 50% deterioration in the associated risk variables, respectively.
|
29.2
|
Risk management of crude oil and oil products prices
|
The Company is usually exposed to commodity price
cycles, although it may use derivative instruments to hedge exposures related to prices of products purchased and sold to fulfill operational
needs and in specific circumstances depending on business environment analysis and assessment of whether the targets of the Strategic
Plan are being met.
a) Other commodity
derivative transactions
Petrobras, by use of its assets, positions and
market knowledge from its operations in Brazil and abroad, occasionally seeks to optimize some of its commercial operations in the international
market, with the use of commodity derivatives to manage price risk.
|
29.3
|
Foreign exchange risk management
|
a) Cash Flow Hedge
involving the Company’s future exports
The carrying amounts, the fair value as of March
31, 2021, and a schedule of expected reclassifications to the statement of income of cumulative losses recognized in other comprehensive
income (shareholders’ equity) based on a US$ 1.00 / R$ 5.6973 exchange rate are set out below:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
|
|
|
Present value of hedging instrument at
03.31.2021
|
Hedging Instrument
|
|
Hedged Transactions
|
|
Nature
of the Risk
|
|
Maturity
Date
|
|
US$
million
|
R$
|
Foreign exchange gains and losses on proportion of non-derivative financial instruments cash flows
|
|
Foreign exchange gains and losses of highly probable future monthly exports revenues
|
|
Foreign Currency
– Real vs U.S. Dollar
Spot Rate
|
|
From apr/2021 to mar/2031
|
|
63,644
|
362,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in the present value of hedging instrument
|
US$ million
|
R$
|
Amounts designated as of December 31, 2020
|
61,502
|
319,608
|
Additional hedging relationships designated, designations revoked and hedging instruments re-designated
|
8,281
|
46,155
|
Exports affecting the statement of income
|
(3,285)
|
(17,775)
|
Principal repayments / amortization
|
(2,854)
|
(15,913)
|
Foreign exchange variation
|
−
|
30,521
|
Amount on March 31, 2021
|
63,644
|
362,596
|
Nominal value of hedging instrument (finance debt and lease liability) on March 31, 2021
|
68,981
|
393,005
|
.
According to the 2021-2025 Strategic Plan, there
was an increase in expected exports and consequently in highly probable future exports, but not in an amount equal to or greater than
the finance debt and lease liabilities subject to designation as hedge instruments. As a result, the relevant increase in Dollar/Real
exposure observed during 2020 remains at March 31, 2021, ending the period as a passive foreign exchange
exposure, as shown in table 29.3 c - Sensitivity analysis of financial instruments subject to exchange variation.
In the first quarter of 2021, the Company recognized
a R$ 2 loss within foreign exchange gains (losses) due to ineffectiveness (a R$ 5 loss in the same period of 2020).
The average ratio of future exports for which cash
flow hedge accounting was designated to the highly probable future exports is 100%.
A roll-forward schedule of cumulative foreign exchange
losses recognized in other comprehensive income as of March 31, 2021 is set out below:
|
Exchange rate
|
Tax effect
|
Total
|
Balance at January 1,2020
|
(51,486)
|
17,506
|
(33,980)
|
Recognized in shareholders' equity
|
(99,467)
|
33,819
|
(65,648)
|
Reclassified to the statement of income - occurred exports
|
21,754
|
(7,395)
|
14,359
|
Reclassified to the statement of income - exports no longer expected or not occurred
|
2,554
|
(868)
|
1,686
|
Balance at December 31, 2020
|
(126,645)
|
43,062
|
(83,583)
|
Recognized in shareholders' equity
|
(30,521)
|
10,377
|
(20,144)
|
Reclassified to the statement of income - occurred exports
|
6,094
|
(2,072)
|
4,022
|
Balance at March 31, 2021
|
(151,072)
|
51,367
|
(99,705)
|
Changes in expectations regarding the realization
of export prices and volumes in future revisions of the business plans may determine the need for additional reclassifications of the
exchange variation accumulated in shareholders' equity to results. A sensitivity analysis with an average Brent oil price of US$ 10/barrel
lower, when compared to the Brent price projections in our Strategic Plan 2021-2025, would not indicate a reclassification adjustment
from equity to the statement of income.
A schedule of expected reclassification of cumulative
foreign exchange losses recognized in other comprehensive income to the statement of income as of March 31, 2021 is set out below:
|
Consolidated
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028 to 2030
|
Total
|
Expected realization
|
(22,129)
|
(28,898)
|
(24,113)
|
(18,945)
|
(13,555)
|
(12,176)
|
(12,502)
|
(18,754)
|
(151,072)
|
|
b) Information on ongoing
contracts
As of March 31, 2021, the company has outstanding
swap contracts - IPCA x CDI and CDI x Dollar, swap - Pound sterling x Dollar and Non Deliverable Forward (NDF) - Pound x Dollar.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
Swap contracts – IPCA
x CDI and CDI x Dollar
Changes in future interest rate curves (CDI) may
have an impact on the Company's results, due to the market value of these swap contracts. A sensitivity analysis on CDI with a constant
increase (parallel shock) of 100 basis points, all other variables remaining constant, would result in a R$ 32 gain, while a constant
reduction (parallel shock) of 100 basis points, would result in a R$ 63 gain.
For more information about such agreements, please
see the note Para 38.3 of Petrobras financial statements of December 31, 2020.
c) Sensitivity analysis
for foreign exchange risk on financial instruments
A sensitivity analysis is set out below, showing
the probable scenario for foreign exchange risk on financial instruments, computed based on external data along with stressed scenarios
(a 25% and a 50% change in the foreign exchange rates), except for assets and liabilities of foreign subsidiaries, when transacted in
a currency equivalent to their respective functional currencies.
|
|
|
|
Financial Instruments
|
Exposure at 03.31.2021
|
Risk
|
Probable Scenario (*)
|
Reasonably possible
scenario
|
Remote
Scenario
|
Assets
|
33,062
|
Dollar / Real
|
(1,145)
|
8,266
|
16,531
|
Liabilities
|
(583,666)
|
|
20,213
|
(145,917)
|
(291,833)
|
Exchange rate - Cross currency swap
|
(3,008)
|
|
104
|
(752)
|
(1,504)
|
Cash flow hedge on exports
|
362,596
|
|
(12,557)
|
90,649
|
181,298
|
|
(191,016)
|
|
6,615
|
(47,754)
|
(95,508)
|
Assets
|
19
|
Euro / Real
|
−
|
5
|
10
|
Liabilities
|
(155)
|
|
3
|
(39)
|
(78)
|
|
(136)
|
|
3
|
(34)
|
(68)
|
Assets
|
9,212
|
Euro / Dollar
|
119
|
2,303
|
4,606
|
Liabilities
|
(18,392)
|
|
(237)
|
(4,598)
|
(9,196)
|
|
(9,180)
|
|
(118)
|
(2,295)
|
(4,590)
|
Assets
|
20
|
Pound Sterling / Real
|
−
|
5
|
10
|
Liabilities
|
(133)
|
|
3
|
(33)
|
(67)
|
|
(113)
|
|
3
|
(28)
|
(57)
|
Assets
|
10,916
|
Pound Sterling / Dollar
|
157
|
2,729
|
5,458
|
Liabilities
|
(21,441)
|
|
(309)
|
(5,360)
|
(10,721)
|
Exchange rate - Cross currency swap
|
9,551
|
|
138
|
2,388
|
4,776
|
Non Deliverable Forward (NDF)
|
2,779
|
|
40
|
695
|
1,390
|
|
1,805
|
|
26
|
452
|
903
|
Total
|
(198,640)
|
|
6,529
|
(49,659)
|
(99,320)
|
(*)
At March 31, 2021, the probable scenario was computed based on the following risks: R$ x U.S. Dollar - a 3.5% appreciation of the Real;
Yen x Dollar - a 2.4% appreciation of the Yen; Euro x U.S. Dollar: a 1.3% appreciation of the Euro; Pound Sterling x U.S. Dollar: a 1.49%
appreciation of the Pound Sterling; Real x Euro: a 2.2% appreciation of the Real; and Real x Pound Sterling - a 2% appreciation of the
Real. Source: Focus and Thomson Reuters.
|
29.4
|
Interest rate risk management
|
The company preferably does not use derivative
financial instruments to manage exposure to fluctuations in interest rates, as they do not have significant impacts, except in specific
situations presented by Petrobras subsidiaries. The table below informs, in the probable scenario, the amount to be disbursed by Petrobras
with the payment of interest related to the floating interest rate debts on March 31, 2021. The interest rate risk sensitivity analysis
is performed for a 12-month horizon. The values referring to the possible
and remote scenarios mean the total floating interest expense if there is a variation of 25% and 50%, respectively, in the interest rates
of these debts (Libor, TJLP, CDI, TR and IPCA).
|
Consolidated
|
Risk
|
Probable Scenario (*)
|
Reasonably possible
scenario (∆ of 25%)
|
Remote
Scenario (∆ of 50%)
|
LIBOR 1M
|
56
|
69
|
82
|
LIBOR 3M
|
60
|
69
|
78
|
LIBOR 6M
|
2,285
|
2,560
|
2,835
|
CDI
|
702
|
878
|
1,054
|
TJLP
|
432
|
540
|
648
|
IPCA
|
417
|
521
|
625
|
|
3,952
|
4,637
|
5,322
|
(*) The probable scenario was calculated considering the quotations of currencies and floating rates to which the debts are indexed.
|
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
The Company regularly evaluates market conditions
and may enter into transactions to repurchase its own securities or those of its affiliates, through a variety of means, including tender
offers, make whole exercises and open market repurchases, in order to improve its debt repayment profile and cost of debt.
|
30
|
Related-party transactions
|
The Company has a related-party transactions policy,
which is annually revised and approved by the Board of Directors, and is applicable to all the Petrobras Group, in accordance with the
Company’s by-laws.
|
30.1
|
Transactions with entities of Petrobras group (Parent)
|
|
03.31.2021
|
12.31.2020
|
|
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
Assets
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
|
|
Trade and other receivables, mainly from sales
|
19,476
|
−
|
19,476
|
14,992
|
−
|
14,992
|
Dividends receivable
|
430
|
−
|
430
|
1,134
|
−
|
1,134
|
Amounts related to construction of natural gas pipeline
|
−
|
686
|
686
|
−
|
564
|
564
|
Other operations
|
889
|
672
|
1,561
|
430
|
632
|
1,062
|
Advances to suppliers
|
12
|
1,221
|
1,233
|
12
|
1,275
|
1,287
|
Total
|
20,807
|
2,579
|
23,386
|
16,568
|
2,471
|
19,039
|
Liabilities
|
|
|
|
|
|
|
Lease liabilities (*)
|
(2,184)
|
(3,111)
|
(5,295)
|
(2,517)
|
(3,097)
|
(5,614)
|
Prepayment of exports
|
(95,309)
|
(325,706)
|
(421,015)
|
(54,871)
|
(302,601)
|
(357,472)
|
Accounts payable to suppliers
|
(14,160)
|
−
|
(14,160)
|
(55,931)
|
−
|
(55,931)
|
Purchases of crude oil, oil products and others
|
(11,954)
|
−
|
(11,954)
|
(53,526)
|
−
|
(53,526)
|
Affreightment of platforms
|
(458)
|
−
|
(458)
|
(624)
|
−
|
(624)
|
Advances from clients
|
(1,718)
|
−
|
(1,718)
|
(1,745)
|
−
|
(1,745)
|
Other operations
|
(30)
|
−
|
(30)
|
(36)
|
−
|
(36)
|
Total
|
(111,653)
|
(328,817)
|
(440,470)
|
(113,319)
|
(305,698)
|
(419,017)
|
(*) Includes amounts referring to lease and sub-lease transactions
between investees required by IFRS 16.
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Profit or Loss
|
|
|
Gross revenues, mainly sales revenues
|
51,396
|
41,133
|
Foreign exchange and inflation indexation charges, net (**)
|
(18,065)
|
(34,712)
|
Financial income (expenses), net (**)
|
(5,749)
|
(7,036)
|
Total
|
27,582
|
(615)
|
(**) Includes the amount of R$ 294 of passive exchange variation
and R$ 93 of financial expense related to leasing and sub-lease operations required by IFRS 16.
|
30.2
|
Non-standardized credit rights investment fund (FIDC-NP)
|
The parent company maintains funds invested in
the FIDC-NP that are mainly used for the acquisition of performing and / or non-performing credit rights for operations carried out by
affiliates. The amounts invested are recorded in accounts receivable.
Assignments of credit rights, performed and not
performed, are recorded as financing in current liabilities.
|
Parent Company
|
|
03.31.2021
|
12.31.2020
|
Accounts receivable, net
|
25,537
|
10,121
|
Credit rights assignments
|
(21,237)
|
(10,580)
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Financial Income FIDC-NP
|
100
|
699
|
Financial Expenses FIDC-NP
|
(98)
|
(764)
|
Net finance income (expense)
|
2
|
(65)
|
Petrobras has the procedure of granting guarantees
to subsidiaries and controlled companies for some financial operations carried out in Brazil and abroad, with no significant variations
in guarantees compared to December 31, 2020.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
The guarantees offered by Petrobras, mainly personal,
are made based on contractual clauses that support the financial transactions between the subsidiaries / controlled companies and third
parties, ensuring assumption of compliance with the third party's obligation, in case the original debtor does not do so.
The financial transactions carried out by the subsidiaries
and guaranteed by Petrobras are presented in note 39.6 to Petrobras' financial statements as of December 31, 2020.
|
30.4
|
Investments in debt securities of subsidiaries
|
As of March 31, 2021, a subsidiary of PIB BV maintained
resources invested directly or through an investment fund abroad that held, among others, debt securities of PGF and CDMPI, equivalent
to R$ 5,964 (R$ 5,368, as of December 31, 2020).
|
30.5
|
Transactions with joint ventures, associates, government entities and pension plans
|
The company does, and expects to continue to do,
business in the normal course of various transactions with its joint ventures, affiliates, pension funds, as well as with its controlling
shareholder, the Brazilian federal government, which includes transactions with banks and other entities under its control, such as financing
and banking services, asset management and others.
Significant transactions resulted in the following
balances:
|
|
Consolidated
|
|
03.31.2021
|
12.31.2020
|
|
Asset
|
Liability
|
Asset
|
Liability
|
Joint ventures and associates
|
|
|
|
|
Petrobras Distribuidora (BR)
|
878
|
278
|
1,020
|
205
|
Natural Gas Transportation Companies
|
325
|
1,134
|
383
|
994
|
State-controlled gas distributors (joint ventures)
|
1,077
|
281
|
1,170
|
355
|
Petrochemical companies (associates)
|
54
|
70
|
88
|
46
|
Other associates and joint ventures
|
641
|
175
|
789
|
624
|
Subtotal
|
2,975
|
1,938
|
3,450
|
2,224
|
Brazilian government
|
|
|
|
|
Government bonds
|
7,707
|
−
|
8,483
|
−
|
Banks controlled by the Brazilian Government
|
40,559
|
18,098
|
39,892
|
19,266
|
Receivables from the Electricity sector
|
949
|
−
|
1,064
|
−
|
Petroleum and alcohol account - receivables from the Brazilian Government (note 9.1)
|
2,566
|
−
|
2,503
|
−
|
Brazilian Federal Government – dividends
|
9
|
−
|
9
|
−
|
Empresa Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S.A. – PPSA
|
−
|
111
|
−
|
−
|
Others
|
122
|
172
|
201
|
238
|
Subtotal
|
51,912
|
18,381
|
52,152
|
19,504
|
Pension plans
|
271
|
169
|
268
|
339
|
Total
|
55,158
|
20,488
|
55,870
|
22,067
|
Current assets
|
12,124
|
4,948
|
13,841
|
6,366
|
Non-current assets
|
43,034
|
15,540
|
42,029
|
15,701
|
The income/expenses of significant transactions
are set out in the following table:
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
Consolidated
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Joint ventures and associates
|
|
|
Petrobras Distribuidora (BR)
|
18,152
|
14,205
|
Natural Gas Transportation Companies
|
(1,345)
|
(2,328)
|
State-controlled gas distributors (joint ventures)
|
2,461
|
2,501
|
Petrochemical companies (associates)
|
4,210
|
4,374
|
Other associates and joint ventures
|
234
|
417
|
Subtotal
|
23,712
|
19,169
|
Brazilian government
|
|
|
Government bonds
|
37
|
56
|
Banks controlled by the Brazilian Government
|
(347)
|
(410)
|
Receivables from the Electricity sector
|
83
|
60
|
Petroleum and alcohol account - receivables from the Brazilian Government
|
63
|
6
|
Brazilian Federal Government – dividends
|
−
|
(11)
|
Empresa Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S.A. – PPSA
|
(169)
|
(177)
|
Others
|
54
|
1
|
Subtotal
|
(279)
|
(475)
|
Pension funds
|
−
|
−
|
Total
|
23,433
|
18,694
|
|
|
|
Revenues, mainly sales revenues
|
25,960
|
22,216
|
Purchases and services
|
(2,083)
|
(3,191)
|
Operating income and expense
|
(235)
|
−
|
Foreign exchange and inflation indexation charges, net
|
(219)
|
(265)
|
Finance income (expenses), net
|
10
|
(66)
|
Total
|
23,433
|
18,694
|
The liability with
pension plans of the company's employees and managed by the Petros Foundation, which includes debt instruments, is presented in note 13.
|
30.6
|
Compensation of key management personnel
|
The total compensations of Executive Officers and
Board Members of Petrobras parent company are governed by the Secretariat of Management and Governance for the State-owned Companies (Secretaria
de Coordenação e Governança das Empresas Estatais – SEST), Ministry of Economy and Ministry of Mines and
Energy of Brazil, and are set out as follows:
Parent Company
|
Jan-Mar/2021
|
Jan-Mar/2020
|
|
Officers
|
Board Members
|
Total
|
Officers
|
Board Members
|
Total
|
Wages and short-term benefits
|
3.8
|
0.2
|
4.0
|
3.5
|
0.1
|
3.6
|
Social security and other employee-related taxes
|
1.1
|
−
|
1.1
|
0.9
|
−
|
0.9
|
Post-employment benefits (pension plan)
|
0.3
|
−
|
0.3
|
0.3
|
−
|
0.3
|
Benefits due to termination of tenure
|
0.2
|
−
|
0.2
|
0.0
|
−
|
0.0
|
Total compensation recognized in the statement of income
|
5.4
|
0.2
|
5.6
|
4.7
|
0.1
|
4.8
|
Total compensation paid
|
5.6
|
0.2
|
5.8
|
4.7
|
0.1
|
4.8
|
Average number of members in the period (*)
|
9.00
|
10.00
|
19.00
|
9.00
|
9.33
|
18.33
|
Average number of paid members in the period (**)
|
9.00
|
5.00
|
14.00
|
9.00
|
4.00
|
13.00
|
|
(*) Monthly average number of members.
|
(**) Monthly average number of paid members.
|
In the first quarter of 2021, the consolidated
expense (Petrobras and affiliates) with the total compensation of the company's officers and directors totaled R$ 19.15 (R$ 16.14 in the
first quarter of 2020).
On July 22, 2020, the Company’s Annual Shareholders’
Meeting set the threshold for the overall compensation for executive officers and board members at R$ 43.3 from April 2020 to March
2021. On April 14, 2021, the Company’s Annual Shareholders’ Meeting set the threshold at R$ 47 from April 2021 to March
2022.
The compensation of the Advisory Committees to
the Board of Directors is separate from the fixed compensation set for the Board Members and, therefore, has not been classified under
compensation of Petrobras’ key management personnel.
The members of the Board of Directors who participate
in the Statutory Audit Committee waive the remuneration of the Board Member, as established in art. 38, § 8 of Decree No. 8,945,
of December 27, 2016. These members were entitled to a total compensation of R$ 618 thousand in the period from January to March 2021
(R$ 741.3 thousand, considering social charges) . As of March 31, 2020, the accumulated remuneration in the period was R$ 549 thousand
(R$ 659 thousand, considering social charges).
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
31
|
Supplemental information on statement of cash flows
|
|
Consolidated
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Amounts paid/received during the period:
|
|
|
Withholding income tax paid on behalf of third-parties
|
1,029
|
1,965
|
Capital expenditures and financing activities not involving cash
|
|
|
Lease
|
2,106
|
1,964
|
Provision/(reversals) for decommissioning costs
|
(7)
|
−
|
|
Sale of Mangue Seco Wind Farms
1, 3 and 4
In April 2021, Petrobras finalized the sale of
its entire 49% interest in the companies Eólica Mangue Seco 1, 3 and 4 - Geradora e Comercializadora de Energia Elétrica
S.A. to V2I Energia S.A., invested by Vinci Energia Fundo de Investimento em Participações em Infraestrutura, which is managed
by Vinci Infraestrutura Gestora de Recursos Ltda.
After the fulfillment of all the precedent conditions,
the operations were concluded with the payment of R$ 44 to Petrobras (Wind Farm 1) and R$ 78.2 (Wind Farms 3 and 4), already with the
adjustments foreseen in the purchase contract and sale of shares. In relation to Wind Farms 3 and 4, it is added to the amount of R$ 22.5
paid to Petrobras at the signing of the contract, totaling R$ 100.7.
Petrobras on agreement with
Amazonas Energia
On April 7, 2021, Petrobras and its subsidiaries
Breitener Tambaqui S.A. and Breitener Jaraqui S.A. signed a legal agreement with Amazonas Energia S.A. (debtor) and Centrais Elétricas
Brasileiras S.A. - Eletrobras (jointly responsible) , in the amount of R$ 436, for the collection of amounts relating to seven lawsuits,
which will be suspended until the full settlement of the negotiated credits. The amount will be settled by the debtor in 60 installments,
calculated by the constant amortization system - SAC, updated based on 124.75% of the CDI, until its full settlement.
The agreement also included the recovery of Petrobras'
credit, in the amount of approximately R$ 3.2 related to an invoice issued in September 2019, settled by Amazonas Energia S/A in April
2021.
The signing of the agreement will generate a positive
effect on the Company’s statement of income in the second quarter of 2021 of R$ 328, net of tax effects.
Surplus of Transfer of Rights
in the Production Sharing Agreement in Atapu and Sépia
On April 9, 2020, the Company’s Board of
Directors approved the signing of an agreement with the Brazilian Federal Government that establishes the participation in each contract
and the compensation value to Petrobras in case of bidding for the Surplus Oil of Transfer of Rights Agreement in Sepia and Atapu fields.
On April 16, 2021, this agreement was approved by the Ministry of Mines and Energy.
With the publication of MME Ordinance No. 23/2020,
complemented by MME Ordinance No. 493/2021, Petrobras and PPSA previously reviewed and defined the amounts of compensation to be paid
by the new contractor prior to the bidding process for the Surplus Oil of Transfer of Rights Agreement to Petrobras for the deferral of
cash flow in the two areas, as well as the participation of the Transfer of Rights and production sharing contracts.
The agreement provides for the following terms:
compensation of US$ 3,254 million for the 60.5% stake of the new contractor in Atapu field and US$ 3,200 million for the 68.7% stake in
Sepia field. In addition, there is contingent payment (earn out), due between 2022 and 2032, which will be payable as of the last business
day of January of the subsequent year since the Brent oil price reaches an annual average higher than US$ 40 per barrel, limited to US$
70 per barrel. Such payments have a one-year grace period for the payment of the first installment of the earn out, from 2023 to 2024,
adjusted at 8.99% p.a.
These conditions will be established in a Co-Participation
Agreement that will bind Petrobras to the new contractor in the area(s). The Co-Participation Agreement will only be effective with the
signing of the Production Sharing Contract and the payment of compensation to Petrobras, when the contractors will have access to their
participation in the production from Sépia and Atapu fields.
On April 28, 2021, Petrobras expressed to the National
Energy Policy Council (Conselho Nacional de Política Energética -CNPE) the interest in the preemptive right in the
Second Bidding Round of the Excessive Volumes of the Transfer of Rights in the Production Sharing regime, with the expression of interest
in the right preferably in the areas of Atapu and Sépia, with a percentage of 30%, considering the parameters disclosed in the
Resolution of CNPE nº 05, of April 22, 2021, and in the Ordinance of the Ministry of Mines and Energy (MME) nº 08, of April
19, 2021.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
The amounts corresponding to the subscription bonuses
to be paid, if there is confirmation of the participation percentages under the terms above by CNPE, will be R$ 1,201 for Atapu and R$
2,141 for Sépia.
Settlement of cash tender offer
On April 12, 2021, Petrobras concluded the tender
offer to buy back global notes maturing between 2024 and 2050, made by its wholly-owned subsidiary PGF BV. The principal amount delivered
by investors, excluding unpaid accrued interest, was US$ 2,496 million. The total amount paid was US$ 2,720 million, considering the prices
offered and excluding accrued interest until the closing date.
Petrobras on approval of the
sale of a 10% interest in NTS
On April 30, 2021, Petrobras concluded the sale
of its remaining 10% interest in Nova Transportadora do Sudeste S.A. (NTS) to Nova Infraestrutura Gasodutos Participações
S.A., a company formed by the Nova Infraestrutura Fundo de Investimentos em Participações Multiestratégia (FIP),
an investment fund managed by Brookfield Brasil Asset Management Investimentos Ltda, and by Itaúsa SA, current controlling shareholders
of NTS, for the amount of R$ 1.8 billion.
Considering the dividend discount, interest on
shareholders’ equity and restitution through capital reduction, received by Petrobras throughout the year 2020 and 2021, and the
other adjustments provided for in the contract according to the base date of the operation, the entry cash flow was R$ 1.5 billion, an
amount totally received on the date of signature and conclusion of the transaction.
Petrobras extends the term of
the committed credit line
On April 30, 2021, Petrobras extended part of the
Revolving Credit Facility with maturity in March 2024, in the amount of US$ 3,250 million, for another two years. Thus, of the total credit
line, US$ 2,050 million can be withdrawn until 2026. The other amount remains due in the original term.
Petrobras signs contract for
the sale of thermoelectric plants
On May 3, 2021, Petrobras signed with São
Francisco Energia SA, a subsidiary of Global Participações em Energia SA, a contract for the sale of the three thermoelectric
plants powered by fuel oil, located in Camaçari, in the state of Bahia (UTEs Polo Camaçari). The value of the contract is
R$ 95, of which R$ 27 is a contingent installment to be deposited in an escrow account, depending on the favorable solution of the administrative
process, being also subject to adjustments provided for in the contract until the closing of the transaction, and the fulfillment of precedent
conditions, such as the approvals of the Administrative Council for Economic Defense (Conselho Administrativo de Defesa Econômica
- CADE) and of the National Electricity Agency (Agência Nacional de Energia Elétrica - ANEEL).
The Company will recognize a loss in the amount
of R$ 294, net of tax effects, due to the difference between the sale value and the book value of the assets.
Agreement with Companhia de
Eletricidade do Amapá
On May 11, 2021, Petrobras signed a judicial agreement
with Companhia de Eletricidade do Amapá (CEA) to close the dispute and recover credit, in the amount of R$ 314. The agreement establishes
the payment to Petrobras of R$ 132,6 unconditionally, to be settled in 24 successive monthly installments (sub-credit A). Negative goodwill
will be granted in the remaining amount of R$ 181.4, which was also divided into 24 monthly and successive installments (subcredit B),
provided that payments occur on time. For each installment paid in sub-credit A, CEA will receive a bonus corresponding to a portion of
sub-credit B of the debt. In the event of default, as provided for in the agreement, Petrobras may require all installments to be due
on both debt sub-credits.
The agreement is subject to the following suspensive
conditions: (i) the successful bid for the privatization of CEA scheduled to take place by June 30, 2021; and (ii) transfer of controlling
interest in CEA until December 31, 2021.
Given these conditions, the agreement will have
a positive effect on Petrobras' consolidated result of R$ 132.6, without considering the tax effects. The credit was already provisioned
on December 31, 2020.
NOTES TO THE FINANCIAL STATEMENTS
PETROBRAS
This interim financial information should be read together with the Company’s audited annual financial statements
(Expressed in millions of reais, unless otherwise indicated)
|
33.
|
Correlation between the explanatory notes of December 31, 2020 and the ones of March 31, 2021
|
|
Number of notes
|
Notes to the Financial Statements
|
Annual
for 2020
|
Quarterly information for 1Q-21
|
Basis of preparation and presentation of financial statements
|
2
|
1
|
Summary of significant accounting policies
|
3
|
2
|
Cash and cash equivalents and Marketable securities
|
8
|
3
|
Sales revenues
|
9
|
4
|
Costs and Expenses by nature
|
10
|
5
|
Other income and expenses
|
11
|
6
|
Net finance income (expense)
|
12
|
7
|
Segment information – Statement of Income
|
13
|
8
|
Trade and other receivables
|
14
|
9
|
Inventories
|
15
|
10
|
Taxes
|
17
|
11
|
Short-term benefits
|
18
|
12
|
Employee benefits (Post-Employment)
|
19
|
13
|
Provisions for legal proceedings
|
20
|
14
|
Provision for decommissioning costs
|
21
|
15
|
The “Lava Jato (Car Wash) investigation” and its effects on the Company
|
23
|
16
|
Property, plant and equipment
|
25
|
17
|
Intangible assets
|
26
|
18
|
Impairment
|
27
|
19
|
Exploration and evaluation of oil and gas reserves
|
28
|
20
|
Collateral for crude oil exploration concession agreements
|
29
|
21
|
Investments
|
31
|
22
|
Disposal of Assets and other changes in organizational structure
|
32
|
23
|
Segment information – Asset
|
33
|
24
|
Finance debt
|
34
|
25
|
Leases
|
35
|
26
|
Equity
|
36
|
27
|
Fair value of financial assets and liabilities
|
37
|
28
|
Risk management
|
38
|
29
|
Related-party transactions
|
39
|
30
|
Supplemental information on statement of cash flows
|
40
|
31
|
Subsequent events
|
41
|
32
|
The notes to the annual report 2020 that were suppressed
in the interim financial statements of March 31, 2021 because they do not have significant changes and / or may not be applicable to interim
financial information are:
Notes to the Financial Statements
|
Number of notes
|
The Company and its operations
|
1
|
Accounting estimates
|
4
|
New standards and interpretations
|
5
|
Context, resilience measures and impacts caused by COVID-19
|
6
|
Capital management
|
7
|
Trade payables
|
16
|
Other assets and liabilities
|
22
|
Commitment to purchase natural gas
|
24
|
Partnerships in exploration and production activities
|
30
|
STATEMENT OF DIRECTORS ON INTERIM ACCOUNTING INFORMATION
AND REPORT ON THE REVIEW OF QUARTERLY INFORMATION
PETROBRAS
In compliance with the provisions of items V and
VI of article 25 of CVM Instruction 480, of December 7, 2009, the chief executive officer and directors of Petróleo Brasileiro
S.A. - Petrobras, a publicly-held corporation, headquartered at Avenida República do Chile, 65, Rio de Janeiro, RJ, registered
with the CNPJ under nº 33.000.167 / 0001-01, declare that the financial statements were prepared in accordance with the law or the
bylaws and that:
(i)reviewed, discussed and agreed with the Interim
Financial Statements of Petrobras for the three-month period ended March 31, 2021;
(ii) reviewed, discussed and agreed with the opinions
expressed in the report of KPMG Auditores Independentes regarding the Interim Financial Statements of Petrobras for the three-month period
ended March 31, 2021.
Rio de Janeiro, May 13, 2021.
Joaquim Silva e Luna
|
|
Rodrigo Araujo Alves
|
|
|
|
Chief Executive Officer
|
Chief Financial and Investor Relations Officer
|
|
|
|
|
|
|
Rodrigo Costa Lima e Silva
|
|
Fernando Assumpção Borges
|
|
|
|
Chief Refining and Natural Gas Executive Officer
|
|
Chief Exploration and Production Executive Officer
|
|
|
|
|
|
|
Cláudio Rogério Linassi Mastella
|
|
Roberto Furian Ardenghy
|
|
|
|
Chief Logistics and Trade Executive Officer
|
Chief Institutional Relations and Sustainability Executive Officer
|
|
|
|
|
|
|
João Henrique Rittershaussen
|
|
Marcelo Barbosa de Castro Zenkner
|
|
|
|
Chief Production Development Executive Officer
|
|
Chief Governance and Compliance Executive Officer
|
|
|
|
|
|
|
Nicolás Simone
|
|
|
|
|
|
Chief Digital Transformation and Innovation Officer
|
|
|
KPMG Auditores Independentes
Rua do Passeio, 38 - Setor 2 - 17º andar - Centro
20021-290 - Rio de Janeiro/RJ - Brasil
Caixa Postal 2888 - CEP 20001-970 - Rio de Janeiro/RJ - Brasil
Telefone +55 (21) 2207-9400, Fax +55 (21) 2207-9000
www.kpmg.com.br
Report on the review of quarterly information - ITR
(A free translation of the original report in Portuguese, as filed with the Brazilian
Securities and Exchange Commission (CVM), prepared in accordance with the accounting practices adopted in Brazil, rules of the CVM and
of the International Financial Reporting Standards - IFRS)
To the Board of Directors and Shareholders of
Petróleo Brasileiro S.A. - Petrobras
Rio de Janeiro - RJ
Introduction
We have reviewed the interim accounting information, individual
and consolidated, of Petróleo Brasileiro S.A. - Petrobras (“the Company”), identified as Parent Company and Consolidated,
respectively, included in the quarterly information form - ITR for the quarter ended March 31, 2021, which comprises the balance sheet
as of March 31, 2021 and the respective statements of income and comprehensive income and statements of changes in shareholders' equity
and of cash flows for the three-months period then ended, including the explanatory notes.
The Company`s Management is responsible for the preparation of these interim accounting
information in accordance with the CPC 21(R1) and the IAS 34 - Interim Financial Reporting, issued by the International Accounting
Standards Board - IASB, as well as the presentation of these information in accordance with the standards issued by the Brazilian
Securities and Exchange Commission, applicable to the preparation of quarterly information - ITR. Our responsibility is to express our
conclusion on this interim accounting information based on our review.
KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça.
|
KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
|
Scope of the review
We conducted our review in accordance with Brazilian and International
Interim Information Review Standards (NBC TR 2410 - Revisão de Informações Intermediárias Executada pelo
Auditor da Entidade and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively).
A review of interim information consists of making inquiries primarily of the management responsible for financial and accounting matters
and applying analytical procedures and other review procedures. The scope of a review is significantly less than an audit conducted in
accordance with auditing standards and, accordingly, it did not enable us to obtain assurance that we were aware of all the material matters
that would have been identified in an audit. Therefore, we do not express an audit opinion.
Conclusion on the individual and consolidated interim accounting information
Based on our review, we are not aware of any fact that might
lead us to believe that the individual and consolidated interim accounting information included in the aforementioned quarterly information
was not prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34, issued by the IASB, applicable to the preparation
of the quarterly review - ITR, and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.
Other matters - Statements of added value
The individual and consolidated statements of value added for
the three-months period ended March 31, 2021, prepared under the responsibility of the Company's management, and presented as supplementary
information for the purposes of IAS 34, were submitted to the same review procedures followed together with the review of the Company's
interim financial information. In order to form our conclusion, we evaluated whether these statements were reconciliated to the interim
financial information and to the accounting records, as applicable, and whether their form and content are in accordance with the criteria
set on Technical Pronouncement CPC 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us
to believe that the accompanying statements of value added were not prepared, in all material respects, in accordance with the individual
and consolidated interim financial information taken as a whole.
Rio de Janeiro, May 13, 2021
KPMG Auditores Independentes
CRC SP-014428/O-6 F-RJ
Original report in Portuguese signed by
Marcelo Gavioli
Accountant CRC 1SP201409/O-1
KPMG Auditores Independentes, uma sociedade simples brasileira e firma-membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG International Cooperative (“KPMG International”), uma entidade suíça.
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KPMG Auditores Independentes, a Brazilian entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
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