UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities
Exchange Act of 1934
For
the month of July, 2020
Commission
File Number 1-15106
PETRÓLEO
BRASILEIRO S.A. – PETROBRAS
(Exact
name of registrant as specified in its charter)
Brazilian
Petroleum Corporation – PETROBRAS
(Translation
of Registrant's name into English)
Avenida
República do Chile, 65
20031-912 – Rio de Janeiro, RJ
Federative Republic of Brazil
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form
20-F ___X___ Form 40-F _______
Indicate
by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
_______ No___X____
TABLE OF CONTENTS
|
Consolidated Results
|
7
|
|
Net Revenues
|
7
|
|
Cost of Goods Sold
|
8
|
|
Operating Expenses
|
9
|
|
Adjusted EBITDA
|
10
|
|
Financial Results
|
11
|
|
Net Income
|
11
|
|
Special Items
|
12
|
|
CAPEX
|
13
|
|
Portfolio Management
|
15
|
|
Liquidity and Capital Resources
|
16
|
|
Debt
|
18
|
|
Results per Segment
|
19
|
|
Exploration and Production
|
19
|
|
Refining
|
21
|
|
Gas and Power
|
22
|
|
Reconciliation of Adjusted EBITDA
|
23
|
|
Financial Statements
|
24
|
|
Financial Information by Business Area
|
28
|
|
Glossary
|
37
|
|
|
|
Disclaimer
This report may contain forward-looking statements.
Such forward-looking statements only reflect expectations of the Company's managers regarding future economic conditions, as well
as the Company's performance, financial performance and results, among others. The terms "anticipates", "believes",
"expects", "predicts", "intends", "plans", "projects", "objective",
"should", and similar terms, which evidently involve risks and uncertainties that may or may not be anticipated by the
Company and therefore are not guarantees of future results of the Company's operations that may differ from current expectations.
The readers should not rely exclusively on any forward-looking statement contained herein. The Company does not undertake any responsibility
to update the presentations and forecasts in the light of new information or its future developments, and the figures reported
for 1Q20 onwards are estimates or targets. These indicators do not have standardized meanings and may not be comparable to indicators
with a similar description used by others. We provide these indicators because we use them as measures of company performance;
they should not be considered in isolation or as a substitute for other financial metrics that have been disclosed in accordance
with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA and Net Indebtedness in the Glossary and their reconciliations
in the Liquidity and Capital Resources sections, Reconciliation of Adjusted EBITDA and Net Indebtedness. Consolidated accounting
information audited by independent auditors in accordance with international accounting standards (IFRS).
MESSAGE FROM THE
CEO
Dear Shareholders,
I am glad to be able to tell you that
we are running the ship safely through uncharted waters. We are very proud of our team whose talent and professional dedication
allowed us to overcome, so far, the enormous challenges faced by our company.
The outbreak of a major global health
crisis caused a deep and synchronized global recession that hit severely the global oil and gas industry.
Prices of Brent oil of US$ 65 per barrel
in February collapsed to US$ 19 in April 2020 due to a global demand contraction of 25%, threatening to generate a sudden stop
of cashflow. A liquidity shock has an effect similar to a heart stroke, as it has the potential to stop the continuity of companies’
operations. Amidst deep uncertainty, the prospect for continuous cash burn was very real.
As in a war, the unprecedented scale
and speed of the global pandemic compelled us to move swiftly, as we know that serious crises produce winners and losers and the
winners tend to be those who respond faster. And we do aim at being a winner. We are working hard, fast and efficiently to engineer
a J-shaped recovery, ending up better than we were in the pre-COVID era. Of course, the safety of our operations and our employees
as well as respect for the environment continue to be one of the pillars of our strategy.
The world was moving fast but now is
moving even faster inspiring creativity and innovation and requiring stronger resiliency.
We see the crisis as an inflection point,
from which we must accelerate the execution of our transformational agenda – including digital transformation –
to allow Petrobras to make a turnaround in its long history
of value destruction, becoming an effective value creator to you and to the Brazilian economy.
In the short-term, our number one priority
was to protect health - the physical health of our employees and the financial health of our company.
We have created a crisis committee, composed
by the company´s executive committee with daily meetings. We have established two teams reporting directly to the crisis
committee, one to deal with the health crisis (EOR) and the other in charge of liquidity and cost cutting (liquidity team).
To minimize the impact of COVID-19 on
our workforce we decided to put in place a combination of social distancing with a strategy of screening, testing, tracing and
quarantining, which is performing very well. Until this week we have applied more than 120,000 tests on our employees and the service
supplier’s employees, within a universe of 135,000 people.
Working at home has been successful,
even contributing to increase productivity. For the future we plan to keep around 50% of the personnel working at corporate activities
in home office. However, it will be limited to three days per week in order to leave room for more effective culture preservation,
team building and mentoring of younger professionals.
The operational personnel will be gradually
returning to their normal work shifts, with the exception of those older than 60 and/or with co-morbidities. This will be implemented
very carefully at metered pace to minimize the risk of new infections.
Our capex budget for 2020 was reduced
to US$ 8.5 billion from US$ 12 billion and we have already launched initiatives to cut costs by more than US$ 2 billion, in addition
to the postponement of cash disbursements, including executive salaries and annual bonuses, the last tranche of the 2019 dividend
and part of the payments due to large suppliers.
In addition to the withdrawal of US$
8 billion in revolving credit lines, we issued 10 and 30-year bonds amounting to US$ 3.25 billion and took almost US$ 2.0 billion
in bank loans, in order to build a liquidity buffer to survive a worst case scenario of average oil prices of US$ 25 per barrel
from April 2020 until year-end.
Integrated actions of the logistics and
sales teams were able to maximize exports of crude oil and low-sulphur fuel oil, which reached all-time high volumes. This move
was instrumental to offset the effect of the strong contraction of the Brazilian demand for fuels, especially in April - a month
to remember in the history of the oil business – and to preserve liquidity.
More than 10,000 employees enlisted for
the voluntary dismissal program (PDV), about 22% of our labor force, and will be leaving the company mostly this year and the remainder
in 2021. This will imply cost savings of almost US$ 800 million per year.
The rationalization of the executive
structure is estimated to lower costs by more than US$ 200 million per year.
Each of the 45 departments was required
by the crisis committee to submit plans involving cost cutting. The company is carrying out several other initiatives to diminish
costs and to realize efficiency gains.
As a consequence of the decrease in headcount
and adoption of home office, we plan to reduce the current occupation of 17 administrative buildings – 23 in 2018 - to only
8 by 1Q21, implying cost savings of almost US$ 30 million in 2021.
Jointly with the elimination of several
inefficiencies and logistics cost, we are working to minimize inventories and to rationalize storage space, reducing the number
of warehouses to 25 from the current 45.
Like its parent company, our wholly owned
subsidiary Transpetro is engaged in a program to strengthen resiliency and service quality.
In spite of the strong global recession
the divestment program is well and alive. In 2020 we have already launched 20 processes of asset divestitures and sales concluded
up to now generated almost US$ 1 billion in cash receipts for Petrobras. At the moment, we are discussing with the winning bidder
for RLAM the final details to formalize a sales and purchase agreement.
We expect the approval for the conclusion
of sale of Liquigás – a LPG distribution company - to be given by CADE, the Brazilian anti-trust agency, in the following
months.
Oil and gas production is running smoothly
and the E&P business obtained several achievements.
Búzios is beating new records:
on July 13th production reached 844,000 boed. The FPSO P-70 started operations at the Atapu field and the first oil
came on June 25th. Atapu’s first well has the potential to run at 50,000 boed.
The TOTUS (True one trip ultra slender)
technology was successfully utilized for the construction of a well in the Golfinho field in the post salt. Drilling and completion
took only 44 days, contributing to reduce costs by 50%.
Our main innovation projects dedicated
to E&P, such as EXP-100, PROD-1000, PEP-70 and HISEP, are showing progress. If successful they have the potential to create
significant value through a dramatic decrease of breakeven prices.
The company is ordering the construction
of 3 FPSOs to operate in the second phase of Búzios, the first order in 8 years. Two of them will have a capacity of 180,000
bpd and the third one of 225,000 bpd. This will be the biggest FPSO operating in Brazilian seas and one of the biggest in the world.
Average lifting costs, on a cash basis,
decreased to U$ 4.9/boe in 2Q20 from US$ 8.4/boe in 2Q19, a 41% year-on-year fall. At the pre-salt fields it reached US$ 2.4/boe
in 2Q20.
After a sharp fall to levels lower than
60%, driven by demand weakness for fuels, the average utilization factor of our refineries is hovering around a range of 75-80%.
The Digital Twin project is already being
implemented at the refineries with excellent results. We expect it to generate an additional revenue of US$ 154 million in a yearly
basis through efficiency gains.
Our ESG agenda continues to move ahead
steadily.
Total emissions and their intensity are
in a downward trend since 2015. Petrobras became a supporter of the Task Force for Climate-related Financial Disclosure (TCFD)
and is strongly committed to the goals of the Oil and Gas Climate Initiative (OGCI).
Renewable diesel was successfully tested
and is waiting for ANP’s approval, the Brazilian oil and gas regulatory agency, to begin production. The product proved to
reduce GHG emissions by 70%, when compared to regular diesel oil and adds 15% more motor efficiency than the traditional biodiesel.
Our low-sulphur oil, compliant to IMO
2020 rule, gave us an edge as a supplier of marine oil.
Some global investors recognized the
tremendous efforts of Petrobras to eliminate corruption as well as to strengthen corporate governance. The company was invited
to return to be a member of PACI (Partnering Against Corruption Initiative). Petrobras had left in the wake of the Lava Jato scandal.
TRI, the rate of recordable injuries,
at 0.67, continue its downward trend, setting a new global benchmark for the oil and gas industry.
As a good corporate citizen, we have
been acting to mitigate the effects of the global pandemic on the Brazilian population, donating clinical tests, medical and hygiene
materials, diesel and gasoline to fuel vehicles of public hospitals and using scientific capacity – scientists and high performance
computing – to help innovations in the health field. In addition, food and LPG bottles are being donated to low-income communities.
Digital transformation is key to the
future of Petrobras as an agile and successful company. It has been accelerated and deployed on a company wide basis. Projects
are addressing costs, efficiency, GHG emissions and safety.
Among other initiatives, we are implementing
94 RPAs (robotic process automation) to replace workers allocated to perform manual and repetitive processes.
To support digital transformation and
artificial intelligence high performance computing capacity was multiplied almost 7 times relatively to 2018.
As mentioned before, the global shock
forced us to interrupt the deleveraging, and total debt ended the first half of 2020 at US$ 91.2 billion, US$ 4.0 billion higher
than at December 31st, 2019
However, net debt decreased by US$8.0
billion in the first half of year, evidencing that there was no cash burn. Operational cash flow was strong enough to increase
our cash holdings.
Given the recessionary scenario and drop
in Brent oil prices of approximately 40% against 1H19 average, this was a major achievement.
Operational cash flow totaled US$ 13.2
billion in 1H20 – US$5.5 billion in 2Q20 – against US$ 9.9 billion in 1H19. Free cash flow reached US$ 8.9 billion
in 1H20 against US$ 6.3 billion a year ago.
Therefore, we were able to make this
week a US$ 3.5 billion partial pre-payment of the US$ 8.0 billion revolving credit lines. This reduces debt, improves risk perception
while preserving liquidity as the revolving lines remain available.
The global economy is showing signals
of recovery boosted by the US$ 15 trillion injection – about 12% of global GDP - derived from monetary and fiscal policy
actions. Although on a more moderated level, uncertainty remains.
Petrobras still faces many challenges
in its journey to sustainable value creation. Therefore, we must continue to develop initiatives to cut costs and to promote efficiency
gains at fast pace.
As Sir Winston Churchill once said: “A
pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty”.
At Petrobras there is no room for pessimism.
And we strongly believe that with courage, optimism and hard work we will win.
Last but not least, I would like to thank
for the strong support of our Board of Directors.
Roberto Castello Branco
Chief Executive Officer
Main items
Table 1 - Main items*
|
|
|
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Sales revenues
|
50,898
|
75,469
|
72,567
|
126,367
|
143,423
|
(32.6)
|
(29.9)
|
(11.9)
|
|
Gross profit
|
18,218
|
31,615
|
30,210
|
49,833
|
55,043
|
(42.4)
|
(39.7)
|
(9.5)
|
|
Operating expenses
|
(8,109)
|
(75,616)
|
8,558
|
(83,725)
|
(2,745)
|
(89.3)
|
−
|
2950.1
|
|
Consolidated net income (loss) attributable to the shareholders of Petrobras - Petrobras Shareholders
|
(2,713)
|
(48,523)
|
18,866
|
(51,236)
|
22,897
|
(94.4)
|
−
|
−
|
|
Recurring consolidated net income (loss) attributable to the shareholders of Petrobras
|
(13,732)
|
(4,637)
|
8,942
|
(18,369)
|
14,055
|
196.1
|
−
|
−
|
|
Net cash provided by operating activities
|
29,310
|
34,991
|
20,626
|
64,301
|
37,291
|
(16.2)
|
42.1
|
72.4
|
|
Free Cash Flow
|
15,775
|
26,664
|
12,439
|
42,439
|
24,244
|
(40.8)
|
26.8
|
75.0
|
|
Adjusted EBITDA
|
24,986
|
37,504
|
32,651
|
62,490
|
60,138
|
(33.4)
|
(23.5)
|
3.9
|
|
Recurring Adjusted EBITDA *
|
17,703
|
36,925
|
33,405
|
54,628
|
62,322
|
(52.1)
|
(47.0)
|
(12.3)
|
|
Gross debt (US$ million)
|
91,227
|
89,237
|
101,029
|
91,227
|
101,029
|
2.2
|
(9.7)
|
(9.7)
|
|
Net Debt (US$ million)
|
71,222
|
73,131
|
83,674
|
71,222
|
83,674
|
(2.6)
|
(14.9)
|
(14.9)
|
|
Net Debt/LTM Adjusted EBITDA ratio **
|
2.34
|
2.15
|
2.71
|
2.34
|
2.71
|
8.8
|
(13.7)
|
(13.7)
|
|
Average commercial selling rate for U.S. dollar
|
5.39
|
4.47
|
3.92
|
4.92
|
3.85
|
20.6
|
37.5
|
27.8
|
|
Brent crude (US$/bbl)
|
29.20
|
50.26
|
68.82
|
39.73
|
66.01
|
(41.9)
|
(57.6)
|
(39.8)
|
|
Domestic basic oil by-products price (R$/bbl)
|
197.73
|
286.63
|
307.87
|
243.87
|
292.97
|
(31.0)
|
(35.8)
|
(16.8)
|
|
TRI (total recordable injuries per million men-hour frequency rate)
|
-
|
-
|
-
|
0.67
|
0.88
|
-
|
-
|
(23.9)
|
_____________________
|
*
|
See reconciliation of Recurring net income and Adjusted EBITDA
in the Special Items section
|
|
**
|
Ratio calculated in USD
|
Consolidated Result
Net revenues
Table 2 - Net revenues by product
|
|
|
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Diesel
|
13,516
|
18,023
|
23,334
|
31,539
|
43,754
|
(25.0)
|
(42.1)
|
(27.9)
|
|
Gasoline
|
4,915
|
8,327
|
10,191
|
13,242
|
19,035
|
(41.0)
|
(51.8)
|
(30.4)
|
|
Liquefied petroleum gas (LPG)
|
3,782
|
4,010
|
4,276
|
7,792
|
8,082
|
(5.7)
|
(11.6)
|
(3.6)
|
|
Jet fuel
|
409
|
3,721
|
3,711
|
4,130
|
7,396
|
(89.0)
|
(89.0)
|
(44.2)
|
|
Naphtha
|
1,372
|
2,976
|
1,862
|
4,348
|
3,446
|
(53.9)
|
(26.3)
|
26.2
|
|
Fuel oil (including bunker fuel)
|
659
|
1,165
|
1,014
|
1,824
|
2,091
|
(43.4)
|
(35.0)
|
(12.8)
|
|
Other oil by-products
|
2,694
|
3,069
|
3,265
|
5,763
|
6,413
|
(12.2)
|
(17.5)
|
(10.1)
|
|
Subtotal Oil By-Products
|
27,347
|
41,291
|
47,653
|
68,638
|
90,217
|
(33.8)
|
(42.6)
|
(23.9)
|
|
Natural gas
|
3,926
|
5,372
|
5,558
|
9,298
|
11,271
|
(26.9)
|
(29.4)
|
(17.5)
|
|
Renewables and nitrogen products
|
34
|
117
|
243
|
151
|
542
|
(70.9)
|
(86.0)
|
(72.1)
|
|
Revenues from non-exercised rights
|
769
|
407
|
664
|
1,176
|
1,284
|
88.9
|
15.8
|
(8.4)
|
|
Electricity
|
428
|
1,250
|
635
|
1,678
|
2,509
|
(65.8)
|
(32.6)
|
(33.1)
|
|
Services, agency and others
|
1,238
|
703
|
699
|
1,941
|
1,939
|
76.1
|
77.1
|
0.1
|
|
Total domestic market
|
33,742
|
49,140
|
55,452
|
82,882
|
107,762
|
(31.3)
|
(39.2)
|
(23.1)
|
|
Exports
|
14,973
|
24,711
|
15,439
|
39,684
|
29,973
|
(39.4)
|
(3.0)
|
32.4
|
|
Sales from foreign subsidiaries
|
2,183
|
1,618
|
1,676
|
3,801
|
5,688
|
34.9
|
30.3
|
(33.2)
|
|
Total foreign market
|
17,156
|
26,329
|
17,115
|
43,485
|
35,661
|
(34.8)
|
0.2
|
21.9
|
|
Total
|
50,898
|
75,469
|
72,567
|
126,367
|
143,423
|
(32.6)
|
(29.9)
|
(11.9)
|
2Q20 was affected by the impacts brought by the
Covid-19 pandemic and the collapse in oil prices resulting from the OPEC+ negotiations. Brent prices in reais were down 29% QoQ
intensifying the trend started in March. The social distancing measures were reflected in an 8% contraction in domestic demand
for oil by-products. Revenues for all products sold were hit hard, leading net revenues to drop 33% in 2Q20, especially exports
of crude oil and oil by-products, diesel, gasoline and jet fuel, partially offset by the devaluation of the Real against dollar.
It is worth mentioning that thanks to our quick
reaction to the crisis and the successful implementation of our strategy, we managed to export large amounts in 2Q20, which were
not totally translated into revenues. Those ongoing crude oil exports totaled 38MMbbl at the quarter’s end.
In terms of revenue breakdown in the
domestic market, diesel and gasoline increased their relevance in the mix in 2Q20 due to the steep drop in jet fuel consumption.
Regarding sales to the foreign market,
crude oil exports to China increased significantly as China was heavily affected by the COVID-19 crisis in 1Q20, and started to
recover in 2Q20, consequently increasing its oil demand. It also evidences our strong commercial relationship with the country.
In 2Q20, we had the following distribution of export destinations:
Table 3 – Crude oil exports
|
Country
|
2Q20
|
1Q20
|
6M20
|
|
China
|
87%
|
48%
|
69%
|
|
Chile
|
4%
|
8%
|
6%
|
|
Spain
|
3%
|
6%
|
4%
|
|
Singapore
|
1%
|
6%
|
4%
|
|
Netherlands
|
1%
|
5%
|
3%
|
|
India
|
0%
|
8%
|
4%
|
|
South Korea
|
0%
|
5%
|
2%
|
|
Caribbean
|
0%
|
5%
|
2%
|
|
Others
|
4%
|
9%
|
6%
|
Table 4 –
Oil by-products exports
|
Country
|
2Q20
|
1Q20
|
6M20
|
|
Singapore
|
49%
|
53%
|
52%
|
|
USA
|
35%
|
31%
|
32%
|
|
Netherlands
|
7%
|
5%
|
6%
|
|
Spain
|
0%
|
6%
|
3%
|
|
Others
|
9%
|
5%
|
7%
|
Cost of goods sold
Table 5 - Cost of goods sold
|
|
|
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Brazilian operations
|
(31,039)
|
(42,709)
|
(40,630)
|
(73,748)
|
(83,221)
|
(27.3)
|
(23.6)
|
(11.4)
|
|
Acquisitions
|
(6,294)
|
(9,592)
|
(12,254)
|
(15,885)
|
(24,074)
|
(34.4)
|
(48.6)
|
(34.0)
|
|
Crude oil imports
|
(3,757)
|
(5,569)
|
(5,506)
|
(9,326)
|
(10,368)
|
(32.5)
|
(31.8)
|
(10.0)
|
|
Oil by-products imports
|
(1,754)
|
(2,289)
|
(4,321)
|
(4,042)
|
(7,764)
|
(23.4)
|
(59.4)
|
(47.9)
|
|
Natural gas imports
|
(783)
|
(1,734)
|
(2,428)
|
(2,517)
|
(5,942)
|
(54.9)
|
(67.8)
|
(57.6)
|
|
Production
|
(24,161)
|
(32,294)
|
(27,313)
|
(56,455)
|
(55,115)
|
(25.2)
|
(11.5)
|
2.4
|
|
Crude oil
|
(18,675)
|
(26,063)
|
(20,895)
|
(44,738)
|
(43,082)
|
(28.3)
|
(10.6)
|
3.8
|
|
Production taxes
|
(3,678)
|
(9,275)
|
(9,067)
|
(12,953)
|
(16,725)
|
(60.3)
|
(59.4)
|
(22.5)
|
|
Others costs
|
(14,997)
|
(16,787)
|
(11,828)
|
(31,784)
|
(26,357)
|
(10.7)
|
26.8
|
20.6
|
|
Oil by-products
|
(2,347)
|
(3,105)
|
(3,296)
|
(5,452)
|
(6,202)
|
(24.4)
|
(28.8)
|
(12.1)
|
|
Natural gas
|
(3,139)
|
(3,126)
|
(3,121)
|
(6,266)
|
(5,832)
|
0.4
|
0.6
|
7.4
|
|
Production taxes
|
(468)
|
(490)
|
(884)
|
(958)
|
(1,476)
|
(4.4)
|
(47.1)
|
(35.1)
|
|
Others costs
|
(2,671)
|
(2,637)
|
(2,237)
|
(5,308)
|
(4,356)
|
1.3
|
19.4
|
21.9
|
|
Services rendered, electricity, renewables, nitrogen products and others
|
(584)
|
(823)
|
(1,063)
|
(1,407)
|
(4,032)
|
(29.0)
|
(45.0)
|
(65.1)
|
|
Operations from foreign subsidiaries
|
(1,641)
|
(1,145)
|
(1,727)
|
(2,786)
|
(5,159)
|
43.3
|
(5.0)
|
(46.0)
|
|
Total
|
(32,680)
|
(43,854)
|
(42,357)
|
(76,534)
|
(88,380)
|
(25.5)
|
(22.8)
|
(13.4)
|
Cost of goods sold dropped 26% in 2Q20, mainly due
to the decrease in production costs as we had lower production taxes, which are directly linked to Brent prices. The increase of
Buzios production in the mix also contributed to this result. Imports of crude oil, oil by-products and natural gas also decreased
(both volumes and prices), following the demand contraction in Brazil, leading to cost reductions.
Inventories built in 1Q20 at higher prices were
sold in 2Q20, with an estimated impact of approximately R$ 1.1 billion.
Operating expenses
Table 6 - Operating expenses
|
|
|
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Selling, General and Administrative Expenses
|
(8,320)
|
(7,734)
|
(5,862)
|
(16,054)
|
(11,390)
|
7.6
|
41.9
|
40.9
|
|
Selling expenses
|
(6,752)
|
(5,914)
|
(3,668)
|
(12,666)
|
(7,069)
|
14.2
|
84.1
|
79.2
|
|
Materials, third-party services, freight, rental and other related costs
|
(5,741)
|
(5,105)
|
(2,901)
|
(10,846)
|
(5,488)
|
12.5
|
97.9
|
97.6
|
|
Depreciation, depletion and amortization
|
(688)
|
(549)
|
(557)
|
(1,237)
|
(1,068)
|
25.3
|
23.5
|
15.8
|
|
Allowance for expected credit losses
|
(108)
|
(46)
|
8
|
(154)
|
(103)
|
134.8
|
−
|
49.5
|
|
Employee compensation
|
(215)
|
(214)
|
(218)
|
(429)
|
(410)
|
0.5
|
(1.4)
|
4.6
|
|
General and administrative
|
(1,568)
|
(1,820)
|
(2,194)
|
(3,388)
|
(4,321)
|
(13.8)
|
(28.5)
|
(21.6)
|
|
Employee compensation
|
(1,218)
|
(1,277)
|
(1,457)
|
(2,495)
|
(2,900)
|
(4.6)
|
(16.4)
|
(14.0)
|
|
Materials, third-party services, freight, rental and other related costs
|
(226)
|
(416)
|
(549)
|
(642)
|
(1,071)
|
(45.7)
|
(58.8)
|
(40.1)
|
|
Depreciation, depletion and amortization
|
(124)
|
(127)
|
(188)
|
(251)
|
(350)
|
(2.4)
|
(34.0)
|
(28.3)
|
|
Exploration costs
|
(350)
|
(468)
|
(394)
|
(818)
|
(1,048)
|
(25.2)
|
(11.2)
|
(21.9)
|
|
Research and Development Expenses
|
(366)
|
(422)
|
(572)
|
(788)
|
(1,091)
|
(13.3)
|
(36.0)
|
(27.8)
|
|
Other taxes
|
(1,305)
|
(517)
|
(259)
|
(1,822)
|
(612)
|
152.4
|
403.9
|
197.7
|
|
Impairment of assets
|
−
|
(65,301)
|
(107)
|
(65,301)
|
(81)
|
−
|
−
|
80518.5
|
|
Other (income and expenses), net
|
2,232
|
(1,174)
|
15,752
|
1,058
|
11,477
|
−
|
(85.8)
|
(90.8)
|
|
Total
|
(8,109)
|
(75,616)
|
8,558
|
(83,725)
|
(2,745)
|
(89.3)
|
−
|
2950.1
|
In 2Q20, operating expenses decreased substantially
compared to 1Q20 as the previous quarter was heavily impacted by impairment charges totaling R$ 65.3 billion and due to the exclusion
of VAT tax (ICMS) from the calculation basis of the PIS/COFINS, following a favorable judicial decision, with a positive effect
of R$ 7.2 billion.
Selling expenses increased 14% due to the devaluation
of real against dollar, and higher logistic expenses due to changes in the sales mix, as we shifted a portion of our sales from
the domestic to the foreign market, partially compensated by lower volumes.
G&A expenses dropped 14% due to decrease in
headcount (more than 500 employees left the company in 2Q20), as a result of the implementation of the latest voluntary dismissal
plans, and lower expenses with third-party services.
Exploration costs continued to drop, reflecting
lower exploratory activity in line with the resilience initiatives.
Other taxes rose due to the PIS/COFINS tax incidence
over: (i) the gain in the equalization related to the individualization agreements of the Tupi area and Sepia and Atapu fields
and (ii) the monetary adjustment over the exclusion of VAT from the calculation basis.
In 2Q20, there were other operating revenues mainly
due to the exclusion of VAT tax and the gain in the equalization, both explained above. On the other hand, there were expenses
related to the provisioning of the voluntary dismissal plans (6,882 employees enlisted in 2Q20), which, in turn, will result in
lower personnel expenses, and to expenses with commodities and crude oil export hedges. The latter were essential to guarantee
positive margins to the company when the oil market was extremely volatile. Presently, we are no longer hedging our exports as
markets have stabilized. Nonetheless, we can resume this practice if we deem necessary.
Adjusted EBITDA
In 2Q20, adjusted EBITDA decreased 33% when compared
to 1Q20, reaching R$ 25 billion. Besides the 29% drop in Brent prices in reais, the high volatility of the oil market and the global
demand contraction led to reduction in the margins of our crude oil and oil by-products. Sales volumes were also negatively impacted.
Also contributed to this result the provisioning
of the voluntary dismissal plans (R$ 4.8 billion) and the hedging expenses (R$ 2.7 billion). On the other hand, there were gains
with: (i) the exclusion of VAT tax (ICMS) from the calculation basis of the PIS/COFINS (R$ 7.2 billion), after a favorable judicial
decision and (ii) equalization related to the individualization agreements of the Tupi area and Sepia and Atapu fields (R$ 4.4
billion).
The 46% reduction in E&P Adjusted EBITDA/boe
in 2Q20 in relation to 1Q20 is mainly due to the drop in Brent prices.
Although the average Brent price was lower in 2Q20 than
1Q20, adjusted EBITDA/bbl for refining business in 2Q20 improved, reflecting the reduction on the negative inventory turnover effect
in relation to 1Q20, due the recovery of Brent prices throughout 2Q20.
Financial results
Table 7 - Financial results
|
|
|
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Finance income
|
579
|
798
|
1,303
|
1,377
|
2,272
|
(27.4)
|
(55.6)
|
(39.4)
|
|
Income from investments and marketable securities (Government Bonds)
|
276
|
298
|
449
|
574
|
921
|
(7.4)
|
(38.5)
|
(37.7)
|
|
Discount and premium on repurchase of debt securities
|
−
|
6
|
5
|
6
|
12
|
−
|
−
|
(50.0)
|
|
Gains from signed agreements (electric sector)
|
−
|
−
|
314
|
−
|
314
|
-
|
−
|
−
|
|
Other income, net
|
303
|
494
|
535
|
797
|
1,025
|
(38.7)
|
(43.4)
|
(22.2)
|
|
Finance expenses
|
(6,098)
|
(7,416)
|
(6,240)
|
(13,514)
|
(12,935)
|
(17.8)
|
(2.3)
|
4.5
|
|
Interest on finance debt
|
(4,554)
|
(4,545)
|
(4,836)
|
(9,099)
|
(9,786)
|
0.2
|
(5.8)
|
(7.0)
|
|
Unwinding of discount on lease liabilities
|
(1,677)
|
(1,517)
|
(1,773)
|
(3,194)
|
(3,026)
|
10.5
|
(5.4)
|
5.6
|
|
Discount and premium on repurchase of debt securities
|
(12)
|
(1,245)
|
(2)
|
(1,257)
|
(694)
|
(99.0)
|
500.0
|
81.1
|
|
Capitalized borrowing costs
|
1,156
|
1,234
|
1,362
|
2,390
|
2,664
|
(6.3)
|
(15.1)
|
(10.3)
|
|
Unwinding of discount on the provision for decommissioning costs
|
(859)
|
(853)
|
(791)
|
(1,712)
|
(1,577)
|
0.7
|
8.6
|
8.6
|
|
Other finance expenses and income, net
|
(152)
|
(490)
|
(200)
|
(642)
|
(516)
|
(69.0)
|
(24.0)
|
24.4
|
|
Foreign exchange gains (losses) and indexation charges
|
(6,789)
|
(14,560)
|
(3,639)
|
(21,349)
|
(6,332)
|
(53.4)
|
86.6
|
237.2
|
|
Foreign exchange
|
(10,683)
|
(8,382)
|
(791)
|
(19,065)
|
(863)
|
27.5
|
1250.6
|
2109.2
|
|
Reclassification of hedge accounting from Shareholders’ Equity to the Statement of Income
|
(5,578)
|
(6,449)
|
(2,900)
|
(12,027)
|
(5,747)
|
(13.5)
|
92.3
|
109.3
|
|
PIS and COFINS monetary restatement - exclusion from VAT tax basis
|
9,250
|
−
|
−
|
9,250
|
−
|
−
|
−
|
−
|
|
Other foreign exchange gains (losses) and indexation charges, net
|
222
|
271
|
52
|
493
|
278
|
(18.1)
|
326.9
|
77.3
|
|
Total
|
(12,308)
|
(21,178)
|
(8,576)
|
(33,486)
|
(16,995)
|
(41.9)
|
43.5
|
97.0
|
Financial results were better in 2Q20 mainly due to
effect of the monetary adjustment of R$ 9.3 billion, as a reflect of the exclusion of the VAT tax from the calculation basis of
the PIS/COFINS, after a favorable judicial decision, and reduction of the volume of the repurchase of debt securities and of interest
expenses.
Hedge accounting reclassifications were also lower
due to the extra volume of reclassifications made in 1Q20 following new assumptions for Brent prices. This effect was partially
offset by higher expenses with the variation of the BRL against the USD associated with the passive foreign exchange exposure in
USD.
Net income attributable to Petrobras’ shareholders
We recorded a net loss of R$ 2.7 billion in 2Q20,
an improvement when compared to R$ 48.5 billion in 1Q20, mainly due to absence of impairments in 2Q20 and to the effect of the
VAT tax exclusion from the calculation basis of the PIS/COFINS, after a favorable judicial decision. Excluding this factor, the
result would have been worse due to the impacts of the COVID-19 crisis in our operations, with reflections in prices, margins and
volumes.
We also had higher operating expenses related to
hedging and to the implementation of voluntary dismissal plans. These factors were partially offset by a gain in the equalization
related to the individualization agreements of the Tupi area and Sepia and Atapu fields and lower G&A.
Recurring net income attributable to Petrobras’
shareholders and recurring adjusted EBITDA
In 2Q20 the main non-recurring item that stand out
was the exclusion of VAT tax from the calculation basis of the PIS/COFINS, after a favorable judicial decision, with a positive
impact of R$ 7.2 billion in Adjusted EBITDA and of R$ 10.9 billion in net loss.
Special Items
Table 8 - Special itens
|
|
|
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Net income
|
(2,813)
|
(49,724)
|
19,352
|
(52,537)
|
23,592
|
(94.3)
|
−
|
−
|
|
Nonrecurring items
|
16,624
|
(66,665)
|
16,988
|
(50,041)
|
15,413
|
−
|
(2.1)
|
−
|
|
Nonrecurring items that do not affect Adjusted EBITDA
|
9,341
|
(67,244)
|
17,742
|
(57,903)
|
17,597
|
−
|
(47.4)
|
−
|
|
Impairment of assets and investments
|
4
|
(65,559)
|
(131)
|
(65,555)
|
(95)
|
−
|
−
|
68905.3
|
|
Realization of cumulative translation adjustments - CTA
|
−
|
−
|
−
|
−
|
(127)
|
−
|
−
|
−
|
|
Gains and losses on disposal / write-offs of assets
|
99
|
(446)
|
21,200
|
(347)
|
21,889
|
−
|
(99.5)
|
−
|
|
Foreign exchange gains or losses on provisions for legal proceedings
|
−
|
−
|
143
|
−
|
85
|
−
|
−
|
−
|
|
Agreements signed for the electricity sector
|
−
|
−
|
314
|
−
|
314
|
−
|
−
|
−
|
|
Write-off of deferred tax assets
|
−
|
−
|
(3,787)
|
−
|
(3,787)
|
−
|
−
|
−
|
|
Gains with monetary restatement arising of VAT tax exclusion from PIS/COFINS tax bases
|
9,250
|
−
|
−
|
9,250
|
−
|
−
|
−
|
−
|
|
Discount and premium on repurchase of debt securities
|
(12)
|
(1,239)
|
3
|
(1,251)
|
(682)
|
(99.0)
|
−
|
83.4
|
|
Other nonrecurring items
|
7,283
|
579
|
(754)
|
7,862
|
(2,184)
|
1157.9
|
−
|
−
|
|
PDV
|
(4,834)
|
(188)
|
(336)
|
(5,022)
|
(335)
|
2471.3
|
1338.7
|
1399.1
|
|
Careers and remuneration plan
|
−
|
−
|
(3)
|
−
|
(5)
|
−
|
−
|
−
|
|
Amounts recovered from Lava Jato investigation
|
335
|
97
|
309
|
432
|
309
|
245.4
|
8.4
|
39.8
|
|
Gains / (losses) on decommissioning of returned/abandoned areas
|
(6)
|
(6)
|
−
|
(12)
|
−
|
−
|
−
|
−
|
|
Expected credit losses related to the electricity sector
|
−
|
−
|
(10)
|
−
|
(65)
|
−
|
−
|
−
|
|
Gains (Losses) related to legal proceedings
|
180
|
565
|
(680)
|
745
|
(2,054)
|
(68.1)
|
−
|
−
|
|
Equalization of expenses - Production Individualization Agreements
|
4,363
|
111
|
(34)
|
4,474
|
(34)
|
3830.6
|
−
|
−
|
|
PIS/COFINS expenses on gains with monetary restatement arising of VAT tax exclusion from PIS/COFINS tax bases
|
(430)
|
−
|
−
|
(430)
|
−
|
−
|
−
|
−
|
|
Gain with PIS/COFINS recovered arising of VAT tax exclusion from PIS/COFINS tax bases
|
7,675
|
−
|
−
|
7,675
|
−
|
−
|
−
|
−
|
|
Net effect of nonrecurring items on IR / CSLL
|
(5,605)
|
22,780
|
(7,064)
|
17,175
|
(6,572)
|
−
|
(20.7)
|
−
|
|
Recurring net income
|
(13,832)
|
(5,839)
|
9,428
|
(19,671)
|
14,750
|
136.9
|
−
|
−
|
|
Petrobras Shareholders - continuing operations
|
(13,732)
|
(4,637)
|
8,942
|
(18,369)
|
14,055
|
196.1
|
−
|
−
|
|
Non-controlling interests- continuing operations
|
(100)
|
(1,202)
|
486
|
(1,302)
|
695
|
(91.7)
|
−
|
−
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
24,986
|
37,504
|
32,651
|
62,490
|
60,138
|
(33.4)
|
(23.5)
|
3.9
|
|
Non-recurring Items
|
7,283
|
579
|
(754)
|
7,862
|
(2,184)
|
1157.9
|
−
|
−
|
|
Recurring Adjusted EBITDA
|
17,703
|
36,925
|
33,405
|
54,628
|
62,322
|
(52.1)
|
(47.0)
|
(12.3)
|
In Management's opinion, the special items
presented above, although related to the Company's business, were highlighted as complementary information for a better understanding
and evaluation of the result. Such items do not necessarily occur in all periods and are disclosed when relevant. In 3Q19, the
write-off of deferred tax assets and goodwill / negative goodwill on debt securities repurchases were classified as non-recurring
items, resulting in reclassifications in the comparative period results.
Capex
Investment amounts (Capex) encompass acquisition
of property, plant and equipment, including costs with leasing, intangible assets, investments in subsidiaries and affiliates,
costs with geology and geophysics, costs with research and development and pre-operating costs.
Table 9- Capex
|
|
|
|
|
|
|
Variation (%)
|
|
US$ millions
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Exploration and Production
|
1,609
|
2,139
|
2,112
|
3,749
|
4,088
|
(24.8)
|
(23.8)
|
(8.3)
|
|
Refining
|
239
|
171
|
316
|
411
|
552
|
39.8
|
(24.2)
|
(25.6)
|
|
Gas and Power
|
53
|
86
|
86
|
138
|
155
|
(38.6)
|
(39.1)
|
(11.2)
|
|
Others
|
35
|
37
|
39
|
72
|
78
|
(3.1)
|
(9.1)
|
(7.6)
|
|
Total
|
1,937
|
2,433
|
2,553
|
4,370
|
4,873
|
(20.4)
|
(24.1)
|
(10.3)
|
In 2Q20, investments totaled US$ 1.9
billion, 20% below 1Q20, due to the devaluation of the real and adjustments made for the year because of the pandemic. More than
70% correspond to growth investments.
Growth investments are those with the
main objective is increasing the capacity of existing assets, implementing new production, disposal and storage assets, increasing
efficiency or profitability of the asset and implementing essential infrastructure to enable other growth projects. It includes
acquisitions of assets / companies and remaining investments in systems that started in 2018, exploratory investments, and investments
in R&D.
Investments in maintenance (sustaining),
on the other hand, have the main objective of maintaining the operation of existing assets, they do not aim at increasing the capacity
of the facilities. Includes investments in safety and reliability of installations, substitute well projects, complementary development,
remaining investments in systems that entered before 2018, scheduled shutdowns and revitalizations (without new systems), 4D seismic,
SMS projects, line changes, infrastructure operational and ICT.
In 2Q20, investments in the Exploration
and Production segment totaled US$ 1.6 billion, with approximately 75% related to growth. The investments were mainly concentrated:
(i) in the development of production in ultra-deep waters of the Santos Basin pre-salt (US$ 0.8 billion); (ii) exploratory investments
(US$ 0.2 billion) and (iii) development of new projects in deep waters (US$ 0.2 billion).
In the Refining segment, investments
totaled US$ 0.2 billion in 2Q20, approximately 60% of which were investments in growth. Investments in the Gas and Power segment
totaled US$ 0.1 billion in 2Q20, of which approximately 85% are investments in growth.
The following table presents the main
information on the new oil and gas production systems.
Table 10 – Main Projects1*
|
Unit
|
Start-up
|
FPSO capacity (bbl/day)
|
CAPEX Petrobras spent
US$ bi
|
Total CAPEX Petrobras US$ bi²
|
Petrobras Share
|
Status
|
|
FPSO Carioca (Owned unit)
Sépia 1
|
2021
|
180,000
|
0.5
|
3.1
|
97.6%
|
Project in phase of execution with production system with more than 88% of physical progress. 7 wells drilled and 4 completed
|
|
FPSO Guanabara (Chartered unit)
Mero 1
|
2021
|
180,000
|
0.2
|
1.1
|
40.0%
|
Project in phase of execution with production system with more than 86% of physical progress. 7 wells drilled and 1 completed
|
|
FPSO Alm. Barroso (Chartered unit)
Búzios 5
|
2022
|
150,000
|
0.2
|
3.0
|
100%¹
|
Project in phase of execution with production system with more than 36% of physical progress and 1 well drilled and completed.
|
|
FPSO Anita Garibaldi (Chartered unit)
Marlim 1
|
2022
|
80,000
|
0.08
|
2.3
|
100%
|
Project in phase of execution with production system with more than 31% of physical progress. 1 well drilled.
|
|
FPSO Anna Nery (Chartered unit)
Marlim 2
|
2023
|
70,000
|
0.02
|
1.8
|
100%
|
Project in phase of execution with production system with more than 19% of physical progress.
|
|
FPSO Sepetiba (Chartered unit)
Mero 2
|
2023
|
180,000
|
0.02
|
1.1
|
40%
|
Project in phase of execution with production system with more than 41% of physical progress. 4 wells drilled and 2 completed
|
|
¹ Will change after the co-participation agreement.
²Total Capex and schedule under revision due to the COVID-19 and
Resilience Plan impacts
|
Portfolio Management
Improvements in capital allocation are
being implemented through portfolio management, with divestments of assets with lower returns on capital employed.
In 2Q20, we concluded the sale of Macau
cluster (onshore fields in Rio Grande do Norte). In 3Q20, until 07/22/2020, we have already concluded the sale of the remaining
10% stake in TAG and the Pampo Enchova cluster (shallow water fields in Rio de Janeiro) and we also signed the contract for the
sale of the Pescada cluster (shallow water fields in Rio Grande do Norte). These transactions resulted in a cash inflow of US$
997 million in 2020, as shown in the table below.
Table 11 – Signed transactions
|
Asset
|
Transaction Amount
(US$ million)
|
Amounts received in 2020
(US$ million)
|
|
PO&G BV (Signed in 2018)
|
1,530
|
301
|
|
Polo Tucano Sul
|
3.01
|
0.6
|
|
Polo Macau
|
191.1
|
124.8
|
|
Polo Pescada Arabaiana
|
1.5
|
0.3
|
|
Polo Pampo Enchova
|
418,6
|
365.4
|
|
TAG
|
205.1
|
205.1
|
|
Ponta do Mel e Redonda
|
7.2
|
0.2
|
|
Total amount
|
2,356.5
|
997.4
|
In addition, we have the following divestments
in our portfolio, as well as several other projects, approved in the Strategic Plan 2020-2024, undergoing structuring phase and
some with teasers to be launched soon.
Table 12 - Assets in divestment process
|
Teaser / Non-binding phase
|
Binding phase
|
|
UFN-III
|
Gaspetro
|
|
Oil and Gas Thermoelectric Plants
|
Refineries
(RNEST, RLAM, REPAR, REFAP, REGAP, REMAN, LUBNOR e SIX)
|
|
PBIO
|
Uruguay assets
(PUDSA)
|
Shallow water fields
(BA)
|
Deep-water fields
(ES and SE-AL Basin)
|
Onshore fields
(AM)
|
Onshore fields
(CE, SE, BA and ES)
|
Onshore and shallow water fields
(AL)
|
Shallow water fields
(SP, ES and RJ)
|
Shallow water fields
(CE)
|
Papa Terra field
|
|
Deep water fields
(SE)
|
NTS (10%)
|
|
Exploration block (Tayrona)
Colombia
|
Colombia assets
|
|
|
Mangue Seco Wind Farms 1, 2, 3 and 4
|
Petrobras is monitoring the possible
impacts of the COVID-19 pandemic on its divestment projects and taking appropriate actions to achieve the divestment goal set out
in its 2020-2024 Strategic Plan. Regarding the divestment in refining, we started negotiating the contracts with the potential
buyer who submitted the best binding offer for the acquisition of Refinaria Landulpho Alves (RLAM) and its associated logistics.
Although we have extended the deadline for binding offers for other refineries, we expect to resume this phase in the coming months,
with the signing of the refineries happening until 1Q21 and completion of the processes by the end of 2021.
Petrobras reinforces the importance of
portfolio management focusing on core assets, in order to improve our capital allocation, enable debt and capital cost reduction,
and the consequent increase in value generation to the company and to our shareholders.
Liquidity and Capital Resources
Table 13 - Liquidity and Capital Resources
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
|
Adjusted cash and cash equivalents at the beginning of period
|
83,757
|
33,309
|
33,831
|
33,309
|
58,052
|
|
Government bonds and time deposits with maturities of more than 3 months at the beginning of period
|
(3,346)
|
(3,580)
|
(4,370)
|
(3,580)
|
(4,198)
|
|
Cash and cash equivalents at the beginning of period
|
80,411
|
29,729
|
29,461
|
29,729
|
53,854
|
|
Net cash provided by (used in) operating activities
|
29,310
|
34,991
|
20,500
|
64,301
|
38,249
|
|
Net cash provided by operating activities from continuing operations
|
29,310
|
34,991
|
20,626
|
64,301
|
37,291
|
|
Discontinued operations – net cash provided by operating activities
|
−
|
−
|
(126)
|
−
|
958
|
|
Net cash provided by (used in) investing activities
|
(11,905)
|
(6,664)
|
31,029
|
(18,569)
|
26,536
|
|
Net cash provided by (used in) investing activities from continuing operations
|
(11,905)
|
(6,664)
|
31,173
|
(18,569)
|
26,734
|
|
Acquisition of PP&E and intangibles assets and investments in investees
|
(13,535)
|
(8,327)
|
(8,061)
|
(21,862)
|
(14,005)
|
|
Proceeds from disposal of assets – Divestment
|
866
|
1,168
|
34,512
|
2,034
|
35,688
|
|
Dividends received
|
319
|
200
|
2,756
|
519
|
3,183
|
|
Divestment (Investment) in marketable securities
|
445
|
295
|
1,966
|
740
|
1,868
|
|
Discontinued operations – net cash provided by investing activities
|
−
|
−
|
(144)
|
−
|
(198)
|
|
(=) Net cash provided by operating and investing activities
|
17,405
|
28,327
|
51,529
|
45,732
|
64,785
|
|
Net cash provided by (used) in financing activities from continuing operations
|
3,616
|
12,799
|
(19,735)
|
16,415
|
(49,769)
|
|
Net financings
|
11,571
|
24,269
|
(9,971)
|
35,840
|
(36,489)
|
|
Proceeds from financing
|
29,893
|
48,777
|
1,914
|
78,670
|
17,882
|
|
Repayments
|
(18,322)
|
(24,508)
|
(11,885)
|
(42,830)
|
(54,371)
|
|
Repayment of lease liability
|
(7,807)
|
(6,822)
|
(5,366)
|
(14,629)
|
(8,643)
|
|
Dividends paid to shareholders of Petrobras
|
1
|
(4,427)
|
(3,944)
|
(4,426)
|
(3,944)
|
|
Dividends paid to non-controlling interest
|
(117)
|
(35)
|
(336)
|
(152)
|
(337)
|
|
Investments by non-controlling interest
|
(32)
|
(186)
|
(118)
|
(218)
|
(356)
|
|
Discontinued operations – net cash used in financing activities
|
−
|
−
|
(1,694)
|
−
|
(1,932)
|
|
Net cash provided by (used) in financing activities
|
3,616
|
12,799
|
(21,429)
|
16,415
|
(51,701)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
5,187
|
9,556
|
(639)
|
14,743
|
(1,001)
|
|
Cash and cash equivalents at the end of period
|
106,619
|
80,411
|
65,937
|
106,619
|
65,937
|
|
Government bonds and time deposits with maturities of more than 3 months at the end of period
|
2,952
|
3,346
|
2,456
|
2,952
|
2,456
|
|
Adjusted cash and cash equivalents at the end of period
|
109,571
|
83,757
|
68,393
|
109,571
|
68,393
|
|
Reconciliation of Free Cash Flow
|
|
|
|
|
|
|
Net cash provided by operating activities
|
29,310
|
34,991
|
20,500
|
64,301
|
38,249
|
|
Acquisition of PP&E and intangibles assets (except for the Bidding for oil surplus of Transfer of rights agreement and signature bonus) and investments in investees
|
(13,535)
|
(8,327)
|
(8,061)
|
(21,862)
|
(14,005)
|
|
Free cash flow
|
15,775
|
26,664
|
12,439
|
42,439
|
24,244
|
As of June 30, 2020, cash and cash equivalents totaled
R$ 106.6 billion and adjusted cash and cash equivalents totaled R$ 109.6 billion. Our goal is to continue to adopt measures to
preserve cash during this crisis.
In 2Q20, the inflow of funds from net cash provided
by operating activities totaled R$ 29.3 billion, which, alongside cash inflows from financing of R$ 29.9 billion and divestments
of R$ 866 million, and cash and cash equivalents, were used: (i) to prepay debt and amortize principal and interest in the period
(R$ 18.3 billion); (ii) to spend in capex in the business areas (R$ 13.5 billion), including R$ 7.0 billion related to the equalization
of the individualization agreements of Tupi area and Sépia and Atapu fields; and (iii) amortization of lease liabilities
of R$ 7.8 billion.
Net cash provided by operating activities in 2Q20
was 16% lower than 1Q20, mainly due to lower Brent, lower production and sales as a consequence of the pandemic.
In 2Q20, loans and financing were mainly used to
pay down debt and manage liabilities, improving the debt profile and better adapting to the maturity terms of long-term investments
and the cash position, aiming at maintaining the company's liquidity.
In the period from April to June 2020, the company
raised R$ 29.9 billion, notably: (i) funding in the national and international banking market, in the amount of R$ 5.4 billion,
and (ii) global notes issued in the capital market in the amount of R$ 17.2 billion, of which R$ 8.1 billion relates to the issue
of new bonds maturing in 2031 and R$ 9.1 billion maturing in 2050.
The company settled several loans and financing,
in the amount of R$ 18.3 billion in the 2Q20.
Debt
The unprecedented event of the COVID-19 pandemic,
with its steep effect on oil prices and economic activity forced us to take several conservative measures to preserve our cash
position.
Gross debt increased 2.2% due to the increase in
financing of US$ 5.6 billion, mainly due to the global notes issued in the capital market (US$ 3.2 billion). Therefore, the gross
debt/LTM adjusted EBITDA ratio increased to 3.00x on June 30th, 2020 from 2.63x on March 31st 2020. The average
cost of debt remained stable at 5.6% on June 30th 2020.
Regarding the net debt/LTM adjusted EBITDA ratio,
it also increased to 2.34x on June 30th, 2020 from 2.15x on March 31st , 2020.
On July 27th 2020, the company made a
partial prepayment of your Revolving Credit Facilities, in the amount of US $ 3.5 billion. Those resources will be available for
new withdrawals, if necessary.
Despite the crisis, deleveraging still is a priority
for Petrobras. In April, the Board of Directors approved the revision of the top metrics included in the 2020-2024 Strategic Plan
and the net debt/EBITDA indicator was replaced by the gross debt indicator. The target for 2020 is sustained at US$ 87 billion,
the same level of the end of 2019. It is important to highlight that the company continues to pursue the reduction of gross debt
to US$ 60 billion, in line with our dividend policy.
Table 14 – Debt indicators
|
US$ millions
|
06.30.2020
|
12.31.2019
|
Δ %
|
06.30.2019
|
|
Financial Debt
|
69,312
|
66,702
|
3.9
|
75,527
|
|
Capital Markets
|
36,563
|
33,329
|
9.7
|
40,584
|
|
Banking Market
|
27,287
|
27,956
|
(2.4)
|
28,479
|
|
Development banks
|
1,552
|
1,497
|
3.7
|
2,163
|
|
Export Credit Agencies
|
3,686
|
3,683
|
0.1
|
4,049
|
|
Others
|
224
|
237
|
(5.5)
|
252
|
|
Finance leases
|
21,915
|
22,535
|
(2.8)
|
25,502
|
|
Gross debt
|
91,227
|
89,237
|
2.2
|
101,029
|
|
Adjusted cash and cash equivalents
|
20,005
|
16,106
|
24.2
|
17,355
|
|
Net debt
|
71,222
|
73,131
|
(2.6)
|
83,674
|
|
Net Debt/(Net Debt + Market Cap) - Leverage
|
57%
|
67%
|
(14.9)
|
46%
|
|
Average interest rate (% p.a.)
|
5.6
|
5.6
|
−
|
6.0
|
|
Weighted average maturity of outstanding debt (years)
|
10.12
|
9.74
|
3.9
|
10.25
|
|
Net debt / LTM Adjusted EBITDA ratio
|
2.34
|
2.15
|
8.8
|
2.71
|
|
Gross debt / LTM Adjusted EBITDA ratio
|
3.00
|
2.63
|
14.4
|
3.28
|
|
R$ million
|
|
|
|
|
|
Gross Debt
|
379,553
|
346,764
|
9.5
|
289,435
|
|
Finance Lease
|
120,007
|
117,153
|
2.4
|
97,729
|
|
Adjusted cash and cash equivalents
|
109,547
|
83,730
|
30.8
|
66,508
|
|
Net Debt
|
390,012
|
380,186
|
2.6
|
320,656
|
RESULTS BY SEGMENT
EXPLORATION and PRODUCTION*
Table 15 - Exploration and Production results
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Sales revenues
|
27,691
|
47,575
|
49,649
|
75,266
|
92,547
|
(41.8)
|
(44.2)
|
(18.7)
|
|
Gross profit
|
8,801
|
21,351
|
22,878
|
30,152
|
40,136
|
(58.8)
|
(61.5)
|
(24.9)
|
|
Operating expenses
|
789
|
(65,967)
|
(2,213)
|
(65,178)
|
(4,321)
|
−
|
−
|
1408.4
|
|
Operating income (loss)
|
9,590
|
(44,616)
|
20,665
|
(35,026)
|
35,815
|
−
|
(53.6)
|
−
|
|
Net income (loss) attributable to the shareholders of Petrobras
|
6,294
|
(30,205)
|
13,789
|
(23,911)
|
23,927
|
−
|
(54.4)
|
−
|
|
Adjusted EBITDA of the segment
|
20,876
|
32,420
|
31,523
|
53,296
|
56,998
|
(35.6)
|
(33.8)
|
(6.5)
|
|
EBITDA margin of the segment (%)
|
75
|
68
|
63
|
71
|
62
|
10.6
|
18.7
|
15.0
|
|
Average Brent crude (US$/bbl)
|
29.20
|
50.26
|
68.82
|
39.73
|
66.01
|
(41.9)
|
(57.6)
|
(39.8)
|
|
Sales price - Brazil
|
|
|
|
|
|
|
|
|
|
Crude oil (US$/bbl)
|
23.98
|
49.96
|
64.79
|
37.09
|
62.01
|
(52.0)
|
(63.0)
|
(40.2)
|
|
Lifting cost - Brazil (US$/boe)*
|
|
|
|
|
|
|
|
|
|
excluding production taxes and leases
|
4.94
|
5.88
|
8.43
|
5.42
|
8.43
|
(16.1)
|
(41.4)
|
(35.7)
|
|
excluding production taxes
|
6.59
|
7.51
|
10.43
|
7.06
|
10.44
|
(12.3)
|
(36.9)
|
(32.4)
|
|
Onshore
|
|
|
|
|
|
|
|
|
|
with leases
|
13.41
|
16.69
|
19.50
|
15.06
|
19.96
|
(19.6)
|
(31.2)
|
(24.5)
|
|
excluding lease
|
13.41
|
16.69
|
19.50
|
15.06
|
19.96
|
(19.6)
|
(31.2)
|
(24.5)
|
|
Shallow waters
|
|
|
|
|
|
|
|
|
|
with leases
|
20.28
|
29.77
|
31.64
|
25.78
|
31.19
|
(31.9)
|
(35.9)
|
(17.3)
|
|
excluding leases
|
15.86
|
26.83
|
29.48
|
22.22
|
29.21
|
(40.9)
|
(46.2)
|
(23.9)
|
|
Deep and ultra-deep post-salt
|
|
|
|
|
|
|
|
|
|
with leases
|
10.23
|
10.72
|
13.63
|
10.48
|
12.34
|
(4.6)
|
(24.9)
|
(15.0)
|
|
excluding leases
|
8.74
|
9.12
|
11.42
|
8.94
|
10.48
|
(4.2)
|
(23.4)
|
(14.6)
|
|
Pre-salt
|
|
|
|
|
|
|
|
|
|
with leases
|
4.17
|
4.52
|
6.03
|
4.35
|
6.39
|
(7.7)
|
(30.8)
|
(32.0)
|
|
excluding leases
|
2.39
|
2.79
|
3.82
|
2.59
|
4.02
|
(14.3)
|
(37.5)
|
(35.6)
|
|
including production taxes and excluding leases
|
8.91
|
12.85
|
21.11
|
10.91
|
20.95
|
(30.7)
|
(57.8)
|
(47.9)
|
|
including production taxes and leases
|
10.56
|
14.47
|
23.17
|
12.55
|
22.96
|
(27.1)
|
(54.4)
|
(45.4)
|
|
Production taxes - Brazil
|
5,005
|
8,200
|
13,705
|
13,205
|
22,758
|
(39.0)
|
(63.5)
|
(42.0)
|
|
Royalties
|
3,054
|
4,254
|
4,722
|
7,308
|
8,817
|
(28.2)
|
(35.3)
|
(17.1)
|
|
Special participation
|
1,903
|
3,899
|
8,934
|
5,802
|
13,845
|
(51.2)
|
(78.7)
|
(58.1)
|
|
Retention of areas
|
48
|
47
|
49
|
95
|
96
|
2.1
|
(2.0)
|
(1.0)
|
In 2Q20 gross
profit in E&P was R$ 8.8 billion, a reduction of 59% when compared to 1Q20. The reduction in gross profit was due to lower
Brent prices, higher spread of our oil and lower natural gas prices, partially offset by a lower lifting cost and, lower payment
of production taxes.
In 2Q20 operating
profit was R$ 9.6 billion, mainly impacted by the equalization of expenses resulting from the individualization agreements of Tupi
area and Sepia and Atapu fields. This result reflects an increase of R$ 54.1 billion compared to 1Q20, when impairment losses were
recognized due to the reduction in Brent's average price projections.
In 2Q20, the lifting
cost without government participation and without leasing decreased by 16%, reaching US$ 4.94/bbl, compared to US$ 5.88/bbl in
1Q20. The decline is mainly due to the impact of the devaluation of the real against the dollar and the mothballing of the shallow
waters fields.
In the pre-salt
layer, we observed a consistent path of falling unit costs, anchored by the stabilization of the new production systems, where
we highlight the production platforms in Búzios, which have high productivity at competitive costs. In 2Q20 compared to
1Q20, we highlight the reduction in operating and maintenance expenses, in addition to the devaluation of the real against the
dollar.
______________
|
*
|
Leases refers to platforms.
|
In 2Q20, the post-salt lifting cost decreased 4.2%
when compared to 1Q20, motivated by the devaluation of the real against the dollar, which offset higher expenses with interventions.
In shallow water, we observed a drop in the lifting
cost of 41% between the quarters of 2020, motivated by the mothballing of fields and the devaluation of the exchange rate.
Onhsore, the devaluation of the real and lower operating
and maintenance expenses, explain the drop in the lifting cost compared to 1Q20.
In 2Q20, the lower production taxes was mainly caused
by the lower Brent prices.
Refining
Table 16 - Refining results
|
|
|
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Sales revenues
|
44,326
|
68,160
|
65,399
|
112,486
|
126,202
|
(35.0)
|
(32.2)
|
(10.9)
|
|
Gross profit (Loss)
|
4,491
|
(2)
|
6,078
|
4,489
|
10,714
|
−
|
(26.1)
|
(58.1)
|
|
Operating expenses
|
(7,066)
|
(4,080)
|
(4,640)
|
(11,146)
|
(6,973)
|
73.2
|
52.3
|
59.8
|
|
Operating Income (Loss)
|
(2,575)
|
(4,082)
|
1,438
|
(6,657)
|
3,741
|
(36.9)
|
−
|
−
|
|
Net income (loss) attributable to the shareholders of Petrobras
|
(3,016)
|
(3,397)
|
1,122
|
(6,413)
|
3,027
|
(11.2)
|
−
|
−
|
|
Adjusted EBITDA of the segment
|
114
|
(1,292)
|
4,760
|
(1,178)
|
9,512
|
−
|
(97.6)
|
−
|
|
EBITDA margin of the segment (%)
|
0%
|
(2)%
|
7%
|
(1)%
|
8%
|
−
|
(96.5)
|
−
|
|
Refining cost (US$/barrel) - Brazil
|
1.67
|
2.26
|
2.58
|
1.98
|
2.59
|
(26.1)
|
(35.3)
|
(23.6)
|
|
Refining cost (R$/barrel) - Brazil
|
9.68
|
9.87
|
10.14
|
9.78
|
9.94
|
(1.9)
|
(4.5)
|
(1.6)
|
|
Domestic basic oil by-products price (R$/bbl)
|
197.73
|
286.63
|
307.87
|
243.87
|
292.97
|
(31.0)
|
(35.8)
|
(16.8)
|
In 2Q20, refining's gross profit was R$ 4.5 billion
higher compared to 1Q20, as a result of the steep reduction in Brent prices in March, causing a positive inventory turnover effect
in the comparison between periods of R$ 4.2 billion (negative inventory turnover effect of R$ 6.7 billion in 1Q20 vs. a negative
effect of R$ 2.5 billion in 2Q20).
Excluding the inventory turnover effect, gross profit
would have been R$ 7 billion in the 2T20 and R$ 6.7 billion in the 1T20.
In 2Q20, there were lower margins of oil by-products
in the domestic market, specially of diesel and jet fuel, as result of the restrictions imposed by the pandemic. These were partially
offset by higher LPG margins. Sales volumes of Jet Fuel e Gasoline were also negatively impacted. As for exports, fuel oil, crude
oil and diesel had lower margins between quarters and were partially offset by the increase in the gasoline export margins. On
the other hand, we had lower operational expenses, lower expenses with the consumption of natural gas used in refineries and higher
trading margins.
The lower operating loss in 2Q20 reflects the higher
gross profit, partially offset by higher freight prices and higher operating expenses due to the incentives granted for the voluntary
dismissal plan, unscheduled maintenance stoppages in refineries and legal proceedings.
Gas and Power
Table 17 - Gas and Power results
|
|
|
|
|
|
|
Variation (%)
|
|
R$ million
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Sales revenues
|
8,157
|
10,467
|
10,099
|
18,624
|
22,188
|
(22.1)
|
(19.2)
|
(16.1)
|
|
Gross profit
|
4,845
|
4,562
|
3,815
|
9,407
|
7,234
|
6.2
|
27.0
|
30.0
|
|
Operating expenses
|
(3,521)
|
(3,016)
|
19,251
|
(6,537)
|
17,369
|
16.7
|
−
|
−
|
|
Operating income (loss)
|
1,324
|
1,546
|
23,066
|
2,870
|
24,603
|
(14.4)
|
(94.3)
|
(88.3)
|
|
Net income (loss) attributable to the shareholders of Petrobras
|
886
|
937
|
15,255
|
1,823
|
16,190
|
(5.4)
|
(94.2)
|
(88.7)
|
|
Adjusted EBITDA of the segment
|
1,943
|
2,200
|
2,279
|
4,143
|
4,512
|
(11.7)
|
(14.7)
|
(8.2)
|
|
EBITDA margin of the segment (%)
|
24
|
21
|
23
|
22
|
20
|
3.0
|
1.0
|
2.0
|
|
Natural gas sales price - Brazil (US$/bbl)
|
33.70
|
41.44
|
47.97
|
38.13
|
48.80
|
(18.7)
|
(29.7)
|
(21.9)
|
In 2Q20, the gross profit of the Gas
and Power segment was R$ 4.8 billion, an increase of 6.2% when compared to 1Q20, mainly due to a positive effect in the exchange
rate on the remuneration for processing rich gas by the natural gas treatment plants. There were also better margins in energy
sales contracts, due to the active management of the commercial energy portfolio and the reduction in the spot prices. In 2Q20,
there was a reduction in the volume of natural gas sold, due to the pandemic, and a lower volume of electricity generation due
to the lower load on the Electric System and better hydrological conditions.
Despite the higher gross profit in 2Q20,
operating profit was R$ 222 million lower than 1Q20 due to higher operating expenses, as a result of a partial reversal of the
provision for losses in 1Q20 (R$ 331 million). The provision for loss related to FAFEN-SE, had been previously constituted and
was reversed after a judicial agreement with SERGAS and the government of Sergipe for the termination of the process related to
the distribution tariff.
Reconciliation of Adjusted EBITDA
EBITDA is an indicator calculated as the net income for
the period plus taxes on profit, net financial result, depreciation and amortization. Petrobras announces EBITDA, as authorized
by CVM Instruction 527 of October 2012.
In order to reflect the management view regarding the
formation of the company's current business results, EBITDA is also presented adjusted (Adjusted EBITDA) as a result of: investments,
impairment, results with divestments and write-off of assets, and cumulative exchange effects of (CTA) reclassified to income.
Adjusted EBITDA, reflecting the sum of the last twelve
months (Last Twelve Months), also represents an alternative to the company's operating cash generation. This measure is used to
calculate the Gross Debt to Adjusted EBITDA metric, helping to evaluate the company's leverage and liquidity.
EBITDA and Adjusted EBITDA are not provided for in International
Financial Reporting Standards (IFRS) and should not serve as a basis for comparison with those disclosed by other companies and
should not be considered as a substitute for any other measure calculated in accordance with IFRS. These measures should be considered
in conjunction with other measures and indicators for a better understanding of the company's performance and financial condition.
Table 18 - Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
Variation (%)
|
|
R$ millions
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
2Q20 / 1Q20
|
2Q20 / 2Q19
|
6M20 / 6M19
|
|
Net income (loss)
|
(2,813)
|
(49,724)
|
19,050
|
(52,537)
|
22,813
|
(94.3)
|
−
|
−
|
|
Net finance income (expense)
|
12,308
|
21,178
|
8,576
|
33,486
|
16,995
|
(41.9)
|
43.5
|
97.0
|
|
Income taxes
|
(475)
|
(16,894)
|
11,611
|
(17,369)
|
13,455
|
(97.2)
|
−
|
−
|
|
Depreciation, depletion and amortization
|
14,975
|
15,758
|
14,696
|
30,733
|
28,572
|
(5.0)
|
1.9
|
7.6
|
|
EBITDA
|
23,995
|
(29,682)
|
53,933
|
(5,687)
|
81,835
|
−
|
(55.5)
|
−
|
|
Share of earnings in equity-accounted investments
|
1,089
|
1,439
|
(470)
|
2,528
|
(965)
|
(24.3)
|
−
|
−
|
|
Impairment losses / (reversals)
|
−
|
65,301
|
107
|
65,301
|
81
|
−
|
−
|
80518.5
|
|
Realization of cumulative translation adjustment
|
−
|
−
|
−
|
−
|
127
|
−
|
−
|
−
|
|
Gains/ losses on disposal/ write-offs of non-current assets
|
(98)
|
446
|
(21,200)
|
348
|
(21,889)
|
−
|
(99.5)
|
−
|
|
Foreign exchange gains or losses on material provisions for legal proceedings
|
−
|
−
|
(143)
|
−
|
(85)
|
−
|
−
|
−
|
|
Adjusted EBITDA from continued operations
|
24,986
|
37,504
|
32,227
|
62,490
|
59,104
|
(33.4)
|
(22.5)
|
5.7
|
|
Adjusted EBITDA from discontinued operations
|
−
|
−
|
424
|
−
|
1,034
|
−
|
−
|
−
|
|
Total Adjusted EBITDA
|
24,986
|
37,504
|
32,651
|
62,490
|
60,138
|
(33.4)
|
(23.5)
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin (%)
|
49
|
50
|
44
|
49
|
41
|
(1.0)
|
4.6
|
8.0
|
FINANCIAL STATEMENTS
Table 19 - Income Statement - Consolidated
|
R$ millions
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
|
Sales revenues
|
50,898
|
75,469
|
72,567
|
126,367
|
143,423
|
|
Cost of sales
|
(32,680)
|
(43,854)
|
(42,357)
|
(76,534)
|
(88,380)
|
|
Gross profit
|
18,218
|
31,615
|
30,210
|
49,833
|
55,043
|
|
Selling expenses
|
(6,752)
|
(5,914)
|
(3,668)
|
(12,666)
|
(7,069)
|
|
General and administrative expenses
|
(1,568)
|
(1,820)
|
(2,194)
|
(3,388)
|
(4,321)
|
|
Exploration costs
|
(350)
|
(468)
|
(394)
|
(818)
|
(1,048)
|
|
Research and development expenses
|
(366)
|
(422)
|
(572)
|
(788)
|
(1,091)
|
|
Other taxes
|
(1,305)
|
(517)
|
(259)
|
(1,822)
|
(612)
|
|
Impairment of assets
|
−
|
(65,301)
|
(107)
|
(65,301)
|
(81)
|
|
Other income and expenses
|
2,232
|
(1,174)
|
15,752
|
1,058
|
11,477
|
|
|
(8,109)
|
(75,616)
|
8,558
|
(83,725)
|
(2,745)
|
|
Operating income (loss)
|
10,109
|
(44,001)
|
38,768
|
(33,892)
|
52,298
|
|
Finance income
|
579
|
798
|
1,303
|
1,377
|
2,272
|
|
Finance expenses
|
(6,098)
|
(7,416)
|
(6,240)
|
(13,514)
|
(12,935)
|
|
Foreign exchange gains (losses) and inflation indexation charges
|
(6,789)
|
(14,560)
|
(3,639)
|
(21,349)
|
(6,332)
|
|
Net finance income (expense)
|
(12,308)
|
(21,178)
|
(8,576)
|
(33,486)
|
(16,995)
|
|
Results in equity-accounted investments
|
(1,089)
|
(1,439)
|
469
|
(2,528)
|
965
|
|
Income (loss) before income taxes
|
(3,288)
|
(66,618)
|
30,661
|
(69,906)
|
36,268
|
|
Income taxes
|
475
|
16,894
|
(11,611)
|
17,369
|
(13,455)
|
|
Net income (loss) from continuing operations
|
(2,813)
|
(49,724)
|
19,050
|
(52,537)
|
22,813
|
|
Net income (loss) from descontinued operations
|
−
|
−
|
302
|
−
|
779
|
|
Net Income (Loss)
|
(2,813)
|
(49,724)
|
19,352
|
(52,537)
|
23,592
|
|
Net income (loss) attributable to:
|
|
|
|
|
|
|
Shareholders of Petrobras
|
(2,713)
|
(48,523)
|
18,866
|
(51,236)
|
22,897
|
|
Net income (loss) from continuing operations
|
(2,713)
|
(48,523)
|
18,651
|
(51,236)
|
22,342
|
|
Net income (loss) from descontinued operations
|
−
|
−
|
215
|
−
|
555
|
|
Non-controlling interests
|
(100)
|
(1,201)
|
486
|
(1,301)
|
695
|
|
Net income (loss) from continuing operations
|
(100)
|
(1,201)
|
399
|
(1,301)
|
471
|
|
Net income (loss) from descontinued operations
|
−
|
−
|
87
|
−
|
224
|
|
|
(2,813)
|
(49,724)
|
19,352
|
(52,537)
|
23,592
|
Table 20 - Statement of Financial Position –
Consolidated
|
ASSETS - R$ millions
|
06.30.2020
|
12.31.2019
|
|
Current assets
|
201,926
|
112,101
|
|
Cash and cash equivalents
|
106,598
|
29,714
|
|
Marketable securities
|
2,952
|
3,580
|
|
Trade and other receivables, net
|
14,316
|
15,164
|
|
Inventories
|
27,594
|
33,009
|
|
Recoverable taxes
|
29,788
|
14,287
|
|
Assets classified as held for sale
|
11,137
|
10,333
|
|
Other current assets
|
9,541
|
6,014
|
|
Non-current assets
|
813,216
|
813,910
|
|
Long-term receivables
|
124,449
|
71,306
|
|
Trade and other receivables, net
|
12,559
|
10,345
|
|
Marketable securities
|
207
|
232
|
|
Judicial deposits
|
36,683
|
33,198
|
|
Deferred taxes
|
52,454
|
5,593
|
|
Other tax assets
|
16,722
|
15,877
|
|
Advances to suppliers
|
1,110
|
1,313
|
|
Other non-current assets
|
4,714
|
4,748
|
|
Investments
|
19,007
|
22,166
|
|
Property, plant and equipment
|
591,299
|
641,949
|
|
Intangible assets
|
78,461
|
78,489
|
|
Total assets
|
1,015,142
|
926,011
|
|
|
|
|
|
|
|
|
|
LIABILITIES - R$ millions
|
06.30.2020
|
12.31.2019
|
|
Current liabilities
|
144,169
|
116,147
|
|
Trade payables
|
21,419
|
22,576
|
|
Finance debt
|
36,646
|
18,013
|
|
Lease liability
|
29,636
|
23,126
|
|
Taxes payable
|
16,599
|
14,914
|
|
Dividends payable
|
1,973
|
6,278
|
|
Short-term benefits
|
9,284
|
6,632
|
|
Pension and medical benefits
|
3,659
|
3,577
|
|
Liabilities related to assets classified as held for sale
|
13,307
|
13,084
|
|
Other current liabilities
|
11,646
|
7,947
|
|
Non-current liabilities
|
625,252
|
510,727
|
|
Finance debt
|
342,905
|
236,969
|
|
Lease liability
|
90,368
|
73,053
|
|
Income Tax payable
|
1,951
|
2,031
|
|
Deferred taxes
|
822
|
7,095
|
|
Long-term benefits
|
3,431
|
153
|
|
Pension and medical benefits
|
94,891
|
103,213
|
|
Provision for legal and administrative proceedings
|
11,439
|
12,546
|
|
Provision for decommisioning costs
|
71,205
|
70,377
|
|
Other non-current liabilities
|
8,240
|
5,290
|
|
Shareholders´ equity
|
245,721
|
299,137
|
|
Share capital (net of share issuance costs)
|
205,432
|
205,432
|
|
Profit reserves and others
|
37,334
|
90,109
|
|
Non-controlling interests
|
2,955
|
3,596
|
|
Total liabilities and shareholders´ equity
|
1,015,142
|
926,011
|
Table 21 - Statement of Cash Flows – Consolidated
|
R$ milhões
|
2Q20
|
1Q20
|
2Q19
|
6M20
|
6M19
|
|
Net income for the period
|
(2,813)
|
(49,724)
|
19,352
|
(52,537)
|
23,592
|
|
Adjustments for:
|
|
|
|
|
|
|
Net income from discontinued operations
|
−
|
−
|
(302)
|
−
|
(779)
|
|
Pension and medical benefits (actuarial expense)
|
2,015
|
2,157
|
2,057
|
4,172
|
4,114
|
|
Results of equity-accounted investments
|
1,089
|
1,439
|
(469)
|
2,528
|
(965)
|
|
Depreciation, depletion and amortization
|
14,975
|
15,758
|
14,696
|
30,733
|
28,572
|
|
Impairment of assets (reversal)
|
−
|
65,301
|
107
|
65,301
|
81
|
|
Inventory write-down (write-back) to net realizable value
|
113
|
1,389
|
122
|
1,502
|
(32)
|
|
Allowance (reversals) for impairment of trade and other receivables
|
183
|
474
|
49
|
657
|
146
|
|
Exploratory expenditures write-offs
|
65
|
117
|
54
|
182
|
243
|
|
Disposal/write-offs of assets and remeasurement of investment retained with loss of control
|
(98)
|
446
|
(21,200)
|
348
|
(21,762)
|
|
Foreign exchange, indexation and finance charges
|
22,563
|
18,440
|
7,770
|
41,003
|
16,357
|
|
Deferred income taxes, net
|
(1,085)
|
(17,491)
|
7,123
|
(18,576)
|
6,625
|
|
Revision and unwinding of discount on the provision for decommissioning costs
|
866
|
858
|
791
|
1,724
|
1,577
|
|
PIS and COFINS monetary restatement - exclusion from VAT tax basis
|
(16,925)
|
−
|
−
|
(16,925)
|
−
|
|
Decrease (Increase) in assets
|
|
|
|
|
|
|
Trade and other receivables, net
|
(7,535)
|
4,090
|
103
|
(3,445)
|
3,982
|
|
Inventories
|
3,750
|
2,558
|
(3,829)
|
6,308
|
(2,478)
|
|
Judicial deposits
|
(1,518)
|
(1,961)
|
(1,640)
|
(3,479)
|
(4,155)
|
|
Escrow account - Class action agreement
|
−
|
−
|
143
|
−
|
(3,693)
|
|
Other assets
|
(619)
|
(1,523)
|
(1,633)
|
(2,142)
|
(3,523)
|
|
Increase (Decrease) in liabilities
|
|
|
|
|
|
|
Trade payables
|
2,684
|
(3,242)
|
(906)
|
(558)
|
(3,211)
|
|
Other taxes payable
|
5,645
|
(2,143)
|
4,681
|
3,502
|
4,025
|
|
Income taxes paid
|
(186)
|
(1,120)
|
(1,678)
|
(1,306)
|
(2,360)
|
|
Pension and medical benefits
|
(1,744)
|
(1,614)
|
(1,219)
|
(3,358)
|
(1,911)
|
|
Provision for legal proceedings
|
(585)
|
(645)
|
(5,115)
|
(1,230)
|
(4,685)
|
|
Short-term benefits
|
6,429
|
(493)
|
(141)
|
5,936
|
475
|
|
Provision for decommissioning costs
|
(243)
|
(546)
|
(496)
|
(789)
|
(985)
|
|
Other liabilities
|
2,284
|
2,466
|
2,206
|
4,750
|
(1,959)
|
|
Net cash from operating activities of continuing activities
|
29,310
|
34,991
|
20,626
|
64,301
|
37,291
|
|
Operating discontinued activities
|
−
|
−
|
(126)
|
−
|
958
|
|
Net cash from operating activities
|
29,310
|
34,991
|
20,500
|
64,301
|
38,249
|
|
Cash flows from Investing activities
|
|
|
|
|
|
|
Acquisition of PP&E and intangibles assets
|
(8,215)
|
(8,342)
|
(8,024)
|
(16,557)
|
(13,964)
|
|
Investments in investees
|
(5,320)
|
15
|
(37)
|
(5,305)
|
(41)
|
|
Proceeds from disposal of assets - Divestment
|
866
|
1,168
|
34,512
|
2,034
|
35,688
|
|
Divestment (Investment) in marketable securities
|
445
|
295
|
1,966
|
740
|
1,868
|
|
Dividends received
|
319
|
200
|
2,756
|
519
|
3,183
|
|
Net cash (provided) used in investing activities of continuing activities
|
(11,905)
|
(6,664)
|
31,173
|
(18,569)
|
26,734
|
|
Investing discontinued operations
|
−
|
−
|
(144)
|
−
|
(198)
|
|
Net cash (provided) used in investing activities
|
(11,905)
|
(6,664)
|
31,029
|
(18,569)
|
26,536
|
|
Cash flows from Financing activities
|
|
|
|
|
|
|
Investments by non-controlling interest
|
(32)
|
(186)
|
(118)
|
(218)
|
(356)
|
|
Financing and loans, net:
|
|
|
|
|
|
|
Proceeds from financing
|
29,893
|
48,777
|
1,914
|
78,670
|
17,882
|
|
Repayment of finance debt - principal
|
(15,237)
|
(19,570)
|
(8,702)
|
(34,807)
|
(45,397)
|
|
Repayment of finance debt - interest
|
(3,085)
|
(4,938)
|
(3,183)
|
(8,023)
|
(8,974)
|
|
Repayment of lease liability
|
(7,807)
|
(6,822)
|
(5,366)
|
(14,629)
|
(8,643)
|
|
Dividends paid to shareholders of Petrobras
|
1
|
(4,427)
|
(3,944)
|
(4,426)
|
(3,944)
|
|
Dividends paid to non-controlling interests
|
(117)
|
(35)
|
(336)
|
(152)
|
(337)
|
|
Net cash provided (used) in financing activities from continuing operations
|
3,616
|
12,799
|
(19,735)
|
16,415
|
(49,769)
|
|
Financing discontinued activities
|
−
|
−
|
(1,694)
|
−
|
(1,932)
|
|
Net cash provided (used) in financing activities
|
3,616
|
12,799
|
(21,429)
|
16,415
|
(51,701)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
5,187
|
9,556
|
(639)
|
14,743
|
(1,001)
|
|
Net increase / (decrease) in cash and cash equivalents
|
26,208
|
50,682
|
29,461
|
76,890
|
12,083
|
|
Cash and cash equivalents at the beginning of the period
|
80,411
|
29,729
|
36,476
|
29,729
|
53,854
|
|
Cash and cash equivalents at the end of the period
|
106,619
|
80,411
|
65,937
|
106,619
|
65,937
|
SEGMENT INFORMATION
Table 22 - Consolidated Income Statement by
Segment – 6M20
|
R$ million
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Sales revenues
|
75,266
|
112,486
|
18,624
|
1,949
|
(81,958)
|
126,367
|
|
Intersegments
|
73,144
|
2,140
|
6,210
|
464
|
(81,958)
|
−
|
|
Third parties
|
2,122
|
110,346
|
12,414
|
1,485
|
−
|
126,367
|
|
Cost of sales
|
(45,114)
|
(107,997)
|
(9,217)
|
(1,928)
|
87,722
|
(76,534)
|
|
Gross profit
|
30,152
|
4,489
|
9,407
|
21
|
5,764
|
49,833
|
|
Expenses
|
(65,178)
|
(11,146)
|
(6,537)
|
(802)
|
(62)
|
(83,725)
|
|
Selling expenses
|
(2)
|
(6,650)
|
(5,906)
|
(52)
|
(56)
|
(12,666)
|
|
General and administrative expenses
|
(506)
|
(542)
|
(221)
|
(2,119)
|
−
|
(3,388)
|
|
Exploration costs
|
(818)
|
−
|
−
|
−
|
−
|
(818)
|
|
Research and development expenses
|
(498)
|
(21)
|
(19)
|
(250)
|
−
|
(788)
|
|
Other taxes
|
(485)
|
(455)
|
(52)
|
(830)
|
−
|
(1,822)
|
|
Impairment of assets
|
(64,304)
|
(208)
|
−
|
(789)
|
−
|
(65,301)
|
|
Other income and expenses
|
1,435
|
(3,270)
|
(339)
|
3,238
|
(6)
|
1,058
|
|
Operating income (loss)
|
(35,026)
|
(6,657)
|
2,870
|
(781)
|
5,702
|
(33,892)
|
|
Net finance income (expense)
|
−
|
−
|
−
|
(33,486)
|
−
|
(33,486)
|
|
Results in equity-accounted investments
|
(806)
|
(2,189)
|
122
|
345
|
−
|
(2,528)
|
|
Income (loss) before income taxes
|
(35,832)
|
(8,846)
|
2,992
|
(33,922)
|
5,702
|
(69,906)
|
|
Income taxes
|
11,909
|
2,263
|
(976)
|
6,111
|
(1,938)
|
17,369
|
|
Net income (loss) from continuing operations
|
(23,923)
|
(6,583)
|
2,016
|
(27,811)
|
3,764
|
(52,537)
|
|
Result with discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Net income (loss)
|
(23,923)
|
(6,583)
|
2,016
|
(27,811)
|
3,764
|
(52,537)
|
|
Net income (loss) attributable to:
|
|
|
|
−
|
|
|
|
Shareholders of Petrobras
|
(23,911)
|
(6,413)
|
1,823
|
(26,499)
|
3,764
|
(51,236)
|
|
Net income (loss) from continuing operations
|
(23,911)
|
(6,413)
|
1,823
|
(26,499)
|
3,764
|
(51,236)
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Non-controlling interests
|
(12)
|
(170)
|
193
|
(1,312)
|
−
|
(1,301)
|
|
Net income (loss) from continuing operations
|
(12)
|
(170)
|
193
|
(1,312)
|
−
|
(1,301)
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
|
(23,923)
|
(6,583)
|
2,016
|
(27,811)
|
3,764
|
(52,537)
|
Table 23 - Consolidated Income Statement by
Segment – 6M19
|
R$ million
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Sales revenues
|
92,547
|
126,202
|
22,188
|
2,453
|
(99,967)
|
143,423
|
|
Intersegments
|
90,765
|
29,334
|
6,736
|
424
|
(99,967)
|
27,292
|
|
Third parties
|
1,782
|
96,868
|
15,452
|
2,029
|
−
|
116,131
|
|
Cost of sales
|
(52,411)
|
(115,488)
|
(14,954)
|
(2,361)
|
96,834
|
(88,380)
|
|
Gross profit
|
40,136
|
10,714
|
7,234
|
92
|
(3,133)
|
55,043
|
|
Expenses
|
(4,321)
|
(6,973)
|
17,369
|
(8,742)
|
(78)
|
(2,745)
|
|
Selling expenses
|
(4)
|
(3,668)
|
(3,251)
|
(80)
|
(66)
|
(7,069)
|
|
General and administrative expenses
|
(591)
|
(689)
|
(288)
|
(2,753)
|
−
|
(4,321)
|
|
Exploration costs
|
(1,048)
|
−
|
−
|
−
|
−
|
(1,048)
|
|
Research and development expenses
|
(759)
|
(27)
|
(27)
|
(278)
|
−
|
(1,091)
|
|
Other taxes
|
(109)
|
(137)
|
(93)
|
(273)
|
−
|
(612)
|
|
Impairment of assets
|
1,101
|
(1,181)
|
(1)
|
−
|
−
|
(81)
|
|
Other income and expenses
|
(2,911)
|
(1,271)
|
21,029
|
(5,358)
|
(12)
|
11,477
|
|
Operating income (loss)
|
35,815
|
3,741
|
24,603
|
(8,650)
|
(3,211)
|
52,298
|
|
Net finance income (expense)
|
−
|
−
|
−
|
(16,995)
|
−
|
(16,995)
|
|
Results in equity-accounted investments
|
280
|
535
|
169
|
(19)
|
−
|
965
|
|
Income (loss) before income taxes
|
36,095
|
4,276
|
24,772
|
(25,664)
|
(3,211)
|
36,268
|
|
Income taxes
|
(12,177)
|
(1,272)
|
(8,365)
|
7,268
|
1,091
|
(13,455)
|
|
Net income (loss) from continuing operations
|
23,918
|
3,004
|
16,407
|
(18,396)
|
(2,120)
|
22,813
|
|
Result with discontinued operations
|
−
|
−
|
30
|
749
|
−
|
779
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
30
|
749
|
−
|
779
|
|
Net income (loss)
|
23,918
|
3,004
|
16,437
|
(17,647)
|
(2,120)
|
23,592
|
|
Net income (loss) attributable to:
|
|
|
|
−
|
|
|
|
Shareholders of Petrobras
|
23,927
|
3,027
|
16,190
|
(18,127)
|
(2,120)
|
22,897
|
|
Net income (loss) from continuing operations
|
23,927
|
3,027
|
16,169
|
(18,661)
|
(2,120)
|
22,342
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
21
|
534
|
−
|
555
|
|
Non-controlling interests
|
(9)
|
(23)
|
247
|
480
|
−
|
695
|
|
Net income (loss) from continuing operations
|
(9)
|
(23)
|
238
|
265
|
−
|
471
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
9
|
215
|
−
|
224
|
|
|
23,918
|
3,004
|
16,437
|
(17,647)
|
(2,120)
|
23,592
|
Table 24 - Consolidated Income Statement by
Segment – 2Q20
|
R$ million
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Sales revenues
|
27,691
|
44,326
|
8,157
|
1,092
|
(30,368)
|
50,898
|
|
Intersegments
|
26,486
|
812
|
2,874
|
196
|
(30,368)
|
−
|
|
Third parties
|
1,205
|
43,514
|
5,283
|
896
|
−
|
50,898
|
|
Cost of sales
|
(18,890)
|
(39,835)
|
(3,312)
|
(1,098)
|
30,455
|
(32,680)
|
|
Gross profit
|
8,801
|
4,491
|
4,845
|
(6)
|
87
|
18,218
|
|
Expenses
|
789
|
(7,066)
|
(3,521)
|
1,719
|
(30)
|
(8,109)
|
|
Selling expenses
|
(1)
|
(3,790)
|
(2,900)
|
(34)
|
(27)
|
(6,752)
|
|
General and administrative expenses
|
(300)
|
(270)
|
(104)
|
(894)
|
−
|
(1,568)
|
|
Exploration costs
|
(350)
|
−
|
−
|
−
|
−
|
(350)
|
|
Research and development expenses
|
(224)
|
(9)
|
(6)
|
(127)
|
−
|
(366)
|
|
Other taxes
|
(414)
|
(262)
|
(15)
|
(614)
|
−
|
(1,305)
|
|
Impairment of assets
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Other income and expenses
|
2,078
|
(2,735)
|
(496)
|
3,388
|
(3)
|
2,232
|
|
Operating income (loss)
|
9,590
|
(2,575)
|
1,324
|
1,713
|
57
|
10,109
|
|
Net finance income (expense)
|
−
|
−
|
−
|
(12,308)
|
−
|
(12,308)
|
|
Results in equity-accounted investments
|
(48)
|
(1,341)
|
134
|
166
|
−
|
(1,089)
|
|
Income (loss) before income taxes
|
9,542
|
(3,916)
|
1,458
|
(10,429)
|
57
|
(3,288)
|
|
Income taxes
|
(3,260)
|
875
|
(450)
|
3,329
|
(19)
|
475
|
|
Net income (loss) from continuing operations
|
6,282
|
(3,041)
|
1,008
|
(7,100)
|
38
|
(2,813)
|
|
Result with discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Net income (loss)
|
6,282
|
(3,041)
|
1,008
|
(7,100)
|
38
|
(2,813)
|
|
Net income (loss) attributable to:
|
|
|
|
|
|
|
|
Shareholders of Petrobras
|
6,294
|
(3,016)
|
886
|
(6,915)
|
38
|
(2,713)
|
|
Net income (loss) from continuing operations
|
6,294
|
(3,016)
|
886
|
(6,915)
|
38
|
(2,713)
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Non-controlling interests
|
(12)
|
(25)
|
122
|
(185)
|
−
|
(100)
|
|
Net income (loss) from continuing operations
|
(12)
|
(25)
|
122
|
(185)
|
−
|
(100)
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
|
6,282
|
(3,041)
|
1,008
|
(7,100)
|
38
|
(2,813)
|
Table 25 - Consolidated Income Statement by
Segment – 1Q20
|
R$ million
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
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 expenses
|
(1)
|
(2,860)
|
(3,006)
|
(18)
|
(29)
|
(5,914)
|
|
General and administrative expenses
|
(206)
|
(272)
|
(117)
|
(1,225)
|
−
|
(1,820)
|
|
Exploration costs
|
(468)
|
−
|
−
|
−
|
−
|
(468)
|
|
Research and development expenses
|
(274)
|
(12)
|
(13)
|
(123)
|
−
|
(422)
|
|
Other taxes
|
(71)
|
(193)
|
(37)
|
(216)
|
−
|
(517)
|
|
Impairment of assets
|
(64,304)
|
(208)
|
−
|
(789)
|
−
|
(65,301)
|
|
Other income and expenses
|
(643)
|
(535)
|
157
|
(150)
|
(3)
|
(1,174)
|
|
Operating income (loss)
|
(44,616)
|
(4,082)
|
1,546
|
(2,494)
|
5,645
|
(44,001)
|
|
Net finance income (expense)
|
−
|
−
|
−
|
(21,178)
|
−
|
(21,178)
|
|
Results in equity-accounted investments
|
(758)
|
(848)
|
(12)
|
179
|
−
|
(1,439)
|
|
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) from continuing operations
|
(30,205)
|
(3,542)
|
1,008
|
(20,711)
|
3,726
|
(49,724)
|
|
Result with discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Net income (loss)
|
(30,205)
|
(3,542)
|
1,008
|
(20,711)
|
3,726
|
(49,724)
|
|
Net income (loss) attributable to:
|
|
|
|
|
|
|
|
Shareholders of Petrobras
|
(30,205)
|
(3,397)
|
937
|
(19,584)
|
3,726
|
(48,523)
|
|
Net income (loss) from continuing operations
|
(30,205)
|
(3,397)
|
937
|
(19,584)
|
3,726
|
(48,523)
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Non-controlling interests
|
−
|
(145)
|
71
|
(1,127)
|
−
|
(1,201)
|
|
Net income (loss) from continuing operations
|
−
|
(145)
|
71
|
(1,127)
|
−
|
(1,201)
|
|
Net income (loss) from discontinued operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
|
(30,205)
|
(3,542)
|
1,008
|
(20,711)
|
3,726
|
(49,724)
|
Table 26 - Other Income (Expenses) by Segment – 6M20
|
R$ millions
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Voluntary Separation Incentive Plan - PDV
|
(1,992)
|
(1,503)
|
(161)
|
(1,366)
|
−
|
(5,022)
|
|
Unscheduled stoppages and pre-operating expenses
|
(3,253)
|
(501)
|
(297)
|
(14)
|
−
|
(4,065)
|
|
Pension and medical benefits - retirees
|
−
|
−
|
−
|
(2,354)
|
−
|
(2,354)
|
|
Gains/(losses) with Commodities Derivatives
|
−
|
−
|
−
|
(1,683)
|
−
|
(1,683)
|
|
Gains / (losses) related to legal, administrative and arbitration proceedings
|
(461)
|
(1,004)
|
263
|
320
|
−
|
(882)
|
|
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control
|
(177)
|
(124)
|
(51)
|
4
|
−
|
(348)
|
|
Variable compensation program
|
76
|
32
|
−
|
60
|
−
|
168
|
|
Amounts recovered from Lava Jato investigation
|
39
|
−
|
−
|
392
|
−
|
431
|
|
Early Contract Terminations
|
471
|
9
|
47
|
207
|
−
|
734
|
|
Expenses/Reimbursements from E&P partnership operations
|
1,280
|
−
|
−
|
−
|
−
|
1,280
|
|
Equalization of expenses - Production Individualization Agreements
|
4,477
|
−
|
−
|
(3)
|
−
|
4,474
|
|
PIS and Cofins recovered - VAT tax exclusion from PIS and Cofins tax basis
|
−
|
−
|
−
|
7,675
|
−
|
7,675
|
|
Others
|
975
|
(179)
|
(140)
|
−
|
(6)
|
650
|
|
|
1,435
|
(3,270)
|
(339)
|
3,238
|
(6)
|
1,058
|
Table 27 - Other Income (Expenses) by Segment –
6M19
|
R$ millions
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Voluntary Separation Incentive Plan - PDV
|
(133)
|
(124)
|
(6)
|
(72)
|
−
|
(335)
|
|
Unscheduled stoppages and pre-operating expenses
|
(2,404)
|
(44)
|
(279)
|
(3)
|
−
|
(2,730)
|
|
Pension and medical benefits - retirees
|
−
|
−
|
−
|
(2,695)
|
−
|
(2,695)
|
|
Gains/(losses) with Commodities Derivatives
|
−
|
−
|
−
|
(1,449)
|
−
|
(1,449)
|
|
Gains / (losses) related to legal, administrative and arbitration proceedings
|
146
|
(903)
|
55
|
(1,464)
|
−
|
(2,166)
|
|
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control
|
(187)
|
113
|
21,435
|
528
|
−
|
21,889
|
|
Variable compensation program
|
(323)
|
(170)
|
(29)
|
(269)
|
−
|
(791)
|
|
Amounts recovered from Lava Jato investigation
|
29
|
−
|
−
|
280
|
−
|
309
|
|
Early Contract Terminations
|
−
|
−
|
(5)
|
−
|
−
|
(5)
|
|
Expenses/Reimbursements from E&P partnership operations
|
370
|
−
|
−
|
−
|
−
|
370
|
|
Equalization of expenses - Production Individualization Agreements
|
(33)
|
−
|
−
|
(1)
|
−
|
(34)
|
|
PIS and Cofins recovered - VAT tax exclusion from PIS and Cofins tax basis
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Others
|
(376)
|
(143)
|
(142)
|
(213)
|
(12)
|
(886)
|
|
|
(2,911)
|
(1,271)
|
21,029
|
(5,358)
|
(12)
|
11,477
|
Table 28 - Other Income (Expenses) by Segment –
2Q20
|
R$ millions
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Voluntary Separation Incentive Plan - PDV
|
(1,905)
|
(1,440)
|
(158)
|
(1,332)
|
−
|
(4,835)
|
|
Unscheduled stoppages and pre-operating expenses
|
(1,882)
|
(490)
|
(103)
|
(6)
|
−
|
(2,481)
|
|
Pension and medical benefits - retirees
|
−
|
−
|
−
|
(1,027)
|
−
|
(1,027)
|
|
Gains/(losses) with Commodities Derivatives
|
−
|
−
|
−
|
(2,720)
|
−
|
(2,720)
|
|
Gains / (losses) related to legal, administrative and arbitration proceedings
|
175
|
(747)
|
(71)
|
42
|
−
|
(601)
|
|
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control
|
145
|
(25)
|
(9)
|
(13)
|
−
|
98
|
|
Variable compensation program
|
−
|
−
|
(3)
|
−
|
−
|
(3)
|
|
Amounts recovered from Lava Jato investigation
|
39
|
−
|
−
|
296
|
−
|
335
|
|
Early Contract Terminations
|
101
|
9
|
(17)
|
184
|
−
|
277
|
|
Expenses/Reimbursements from E&P partnership operations
|
624
|
−
|
−
|
−
|
−
|
624
|
|
Equalization of expenses - Production Individualization Agreements
|
4,366
|
−
|
−
|
(3)
|
−
|
4,363
|
|
PIS and Cofins recovered - VAT tax exclusion from PIS and Cofins tax basis
|
−
|
−
|
−
|
7,675
|
−
|
7,675
|
|
Others
|
415
|
(42)
|
(135)
|
292
|
(3)
|
527
|
|
|
2,078
|
(2,735)
|
(496)
|
3,388
|
(3)
|
2,232
|
Table 29 - Other Income (Expenses) by Segment –
1Q20
|
R$ millions
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Voluntary Separation Incentive Plan - PDV
|
(87)
|
(63)
|
(3)
|
(34)
|
−
|
(187)
|
|
Unscheduled stoppages and pre-operating expenses
|
(1,371)
|
(11)
|
(194)
|
(8)
|
−
|
(1,584)
|
|
Pension and medical benefits - retirees
|
−
|
−
|
−
|
(1,327)
|
−
|
(1,327)
|
|
Gains/(losses) with Commodities Derivatives
|
−
|
−
|
−
|
1,037
|
−
|
1,037
|
|
Gains / (losses) related to legal, administrative and arbitration proceedings
|
(636)
|
(257)
|
334
|
278
|
−
|
(281)
|
|
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control
|
(322)
|
(99)
|
(42)
|
17
|
−
|
(446)
|
|
Variable compensation program
|
76
|
32
|
3
|
60
|
−
|
171
|
|
Amounts recovered from Lava Jato investigation
|
−
|
−
|
−
|
96
|
−
|
96
|
|
Early Contract Terminations
|
370
|
−
|
64
|
23
|
−
|
457
|
|
Expenses/Reimbursements from E&P partnership operations
|
656
|
−
|
−
|
−
|
−
|
656
|
|
Equalization of expenses - Production Individualization Agreements
|
111
|
−
|
−
|
−
|
−
|
111
|
|
PIS and Cofins recovered - VAT tax exclusion from PIS and Cofins tax basis
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Others
|
560
|
(137)
|
(5)
|
(292)
|
(3)
|
123
|
|
|
(643)
|
(535)
|
157
|
(150)
|
(3)
|
(1,174)
|
Table 30 - Consolidated Assets by Segment –
06.30.2020
|
R$ millions
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Total assets
|
573,990
|
166,431
|
50,191
|
243,028
|
(18,498)
|
1,015,142
|
|
|
|
|
|
|
|
|
|
Current assets
|
23,981
|
43,946
|
7,691
|
144,704
|
(18,396)
|
201,926
|
|
Non-current assets
|
550,009
|
122,485
|
42,500
|
98,324
|
(102)
|
813,216
|
|
Long-term receivables
|
26,519
|
14,124
|
5,295
|
78,509
|
2
|
124,449
|
|
Investments
|
2,237
|
1,308
|
3,961
|
11,501
|
−
|
19,007
|
|
Property, plant and equipment
|
444,727
|
106,541
|
32,600
|
7,535
|
(104)
|
591,299
|
|
Operating assets
|
385,703
|
93,080
|
21,587
|
7,450
|
(104)
|
507,716
|
|
Assets under construction
|
59,024
|
13,461
|
11,013
|
85
|
−
|
83,583
|
|
Intangible assets
|
76,526
|
512
|
644
|
779
|
−
|
78,461
|
Table 31 - Consolidated Assets by Segment –
12.31.2018
|
R$ millions
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Total assets
|
621,860
|
175,418
|
51,240
|
97,097
|
(19,604)
|
926,011
|
|
|
|
|
|
|
|
|
|
Current assets
|
23,114
|
49,467
|
7,789
|
51,186
|
(19,455)
|
112,101
|
|
Non-current assets
|
598,746
|
125,951
|
43,451
|
45,911
|
(149)
|
813,910
|
|
Long-term receivables
|
26,022
|
13,296
|
5,517
|
26,471
|
−
|
71,306
|
|
Investments
|
2,387
|
4,472
|
4,299
|
11,008
|
−
|
22,166
|
|
Property, plant and equipment
|
493,746
|
107,659
|
32,975
|
7,718
|
(149)
|
641,949
|
|
Operating assets
|
428,589
|
95,245
|
22,593
|
7,191
|
(149)
|
553,469
|
|
Assets under construction
|
65,157
|
12,414
|
10,382
|
527
|
−
|
88,480
|
|
Intangible assets
|
76,591
|
524
|
660
|
714
|
−
|
78,489
|
Table 32 - Reconciliation of Consolidated Adjusted
EBITDA Statement by Segment – 6M20
|
R$ millions
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Net income (loss) from continuing operations
|
(23,923)
|
(6,583)
|
2,016
|
(27,811)
|
3,764
|
(52,537)
|
|
Net finance income (expense)
|
−
|
−
|
−
|
33,486
|
−
|
33,486
|
|
Income taxes
|
(11,909)
|
(2,263)
|
976
|
(6,111)
|
1,938
|
(17,369)
|
|
Depreciation, depletion and amortization
|
23,841
|
5,147
|
1,222
|
523
|
−
|
30,733
|
|
EBITDA
|
(11,991)
|
(3,699)
|
4,214
|
87
|
5,702
|
(5,687)
|
|
Results in equity-accounted investments
|
806
|
2,189
|
(122)
|
(345)
|
−
|
2,528
|
|
Impairment
|
64,304
|
208
|
−
|
789
|
−
|
65,301
|
|
Reclassification of cumulative translation adjustment - CTA
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Foreign Exchange gains or losses on provisions for legal procedings
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Results on disposal / write-offs of assets and on remeasurement of investment retained with loss of control
|
177
|
124
|
51
|
(4)
|
−
|
348
|
|
Adjusted EBITDA from Continuing Operations
|
53,296
|
(1,178)
|
4,143
|
527
|
5,702
|
62,490
|
|
Adjusted EBITDA from Discontinued Operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Adjusted EBITDA
|
53,296
|
(1,178)
|
4,143
|
527
|
5,702
|
62,490
|
Table 33 - Reconciliation of Consolidated Adjusted
EBITDA Statement by Segment – 6M19
|
R$ millions
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Net income (loss) from continuing operations
|
23,918
|
3,004
|
16,407
|
(18,396)
|
(2,120)
|
22,813
|
|
Net finance income (expense)
|
−
|
−
|
−
|
16,995
|
−
|
16,995
|
|
Income taxes
|
12,177
|
1,272
|
8,365
|
(7,268)
|
(1,091)
|
13,455
|
|
Depreciation, depletion and amortization
|
22,097
|
4,703
|
1,313
|
459
|
−
|
28,572
|
|
EBITDA
|
58,192
|
8,979
|
26,085
|
(8,210)
|
(3,211)
|
81,835
|
|
Results in equity-accounted investments
|
(280)
|
(535)
|
(169)
|
19
|
−
|
(965)
|
|
Impairment losses / (reversals)
|
(1,101)
|
1,181
|
1
|
−
|
−
|
81
|
|
Reclassification of cumulative translation adjustment - CTA
|
−
|
−
|
−
|
127
|
−
|
127
|
|
Foreign Exchange gains or losses on provisions for legal procedings
|
−
|
−
|
−
|
(85)
|
−
|
(85)
|
|
Results on disposal / write-offs of assets and on remeasurement of investment retained with loss of control
|
187
|
(113)
|
(21,435)
|
(528)
|
−
|
(21,889)
|
|
Adjusted EBITDA from Continuing Operations
|
56,998
|
9,512
|
4,482
|
(8,677)
|
(3,211)
|
59,104
|
|
Adjusted EBITDA from Discontinued Operations
|
−
|
−
|
30
|
1,004
|
−
|
1,034
|
|
Adjusted EBITDA
|
56,998
|
9,512
|
4,512
|
(7,673)
|
(3,211)
|
60,138
|
Table 34 - Reconciliation of Consolidated Adjusted
EBITDA Statement by Segment – 2Q20
|
R$ million
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Net income (loss) from continuing operations
|
6,282
|
(3,041)
|
1,008
|
(7,100)
|
38
|
(2,813)
|
|
Net finance income (expense)
|
−
|
−
|
−
|
12,308
|
−
|
12,308
|
|
Income taxes
|
3,260
|
(875)
|
450
|
(3,329)
|
19
|
(475)
|
|
Depreciation, depletion and amortization
|
11,431
|
2,664
|
610
|
270
|
−
|
14,975
|
|
EBITDA
|
20,973
|
(1,252)
|
2,068
|
2,149
|
57
|
23,995
|
|
Results in equity-accounted investments
|
48
|
1,341
|
(134)
|
(166)
|
−
|
1,089
|
|
Impairment
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Reclassification of cumulative translation adjustment - CTA
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Foreign Exchange gains or losses on material provisions for legal procedings
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Gains / (losses) on disposal / write-offs of assets and in remeasurement of equity interests
|
(145)
|
25
|
9
|
13
|
−
|
(98)
|
|
Adjusted EBITDA from Continuing Operations
|
20,876
|
114
|
1,943
|
1,996
|
57
|
24,986
|
|
Adjusted EBITDA from Discontinued Operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Adjusted EBITDA
|
20,876
|
114
|
1,943
|
1,996
|
57
|
24,986
|
Table 35 - Reconciliation of Consolidated Adjusted
EBITDA Statement by Segment – 1Q20
|
R$ million
|
E&P
|
REFINING
|
GAS & POWER
|
CORP.
|
ELIMIN.
|
TOTAL
|
|
Net income (loss) from continuing operations
|
(30,205)
|
(3,542)
|
1,008
|
(20,711)
|
3,726
|
(49,724)
|
|
Net finance income (expense)
|
−
|
−
|
−
|
21,178
|
−
|
21,178
|
|
Income taxes
|
(15,169)
|
(1,388)
|
526
|
(2,782)
|
1,919
|
(16,894)
|
|
Depreciation, depletion and amortization
|
12,410
|
2,483
|
612
|
253
|
−
|
15,758
|
|
EBITDA
|
(32,964)
|
(2,447)
|
2,146
|
(2,062)
|
5,645
|
(29,682)
|
|
Results in equity-accounted investments
|
758
|
848
|
12
|
(179)
|
−
|
1,439
|
|
Impairment
|
64,304
|
208
|
−
|
789
|
−
|
65,301
|
|
Reclassification of cumulative translation adjustment - CTA
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Foreign Exchange gains or losses on material provisions for legal procedings
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Gains / (losses) on disposal / write-offs of assets and in remeasurement of equity interests
|
322
|
99
|
42
|
(17)
|
−
|
446
|
|
Adjusted EBITDA from Continuing Operations
|
32,420
|
(1,292)
|
2,200
|
(1,469)
|
5,645
|
37,504
|
|
Adjusted EBITDA from Discontinued Operations
|
−
|
−
|
−
|
−
|
−
|
−
|
|
Adjusted EBITDA
|
32,420
|
(1,292)
|
2,200
|
(1,469)
|
5,645
|
37,504
|
|
Glossary
ACL - Ambiente de Contratação
Livre (Free contracting market) in the electricity system.
ACR - Ambiente de Contratação
Regulada (Regulated contracting market) in the electricity system.
Adjusted cash and cash equivalents - Sum of cash
and cash equivalents, government bonds and time deposits from highly rated financial institutions abroad with maturities of more
than 3 months from the date of acquisition, considering the expected realization of those financial investments in the short-term.
This measure is not defined under the International Financial Reporting Standards – IFRS and should not be considered in
isolation or as a substitute for cash and cash equivalents computed in accordance with IFRS. It may not be comparable to adjusted
cash and cash equivalents of other companies, however management believes that it is an appropriate supplemental measure to assess
our liquidity and supports leverage management.
Adjusted EBITDA – Net income
plus net finance income (expense); income taxes; depreciation, depletion and amortization; results in equity-accounted investments;
impairment, cumulative translation adjustment and gains/losses on disposal/write-offs of assets. Adjusted EBITDA is not a measure
defined by IFRS and it is possible that it may not be comparable to similar measures reported by other companies, however management
believes that it is an appropriate supplemental measure to assess our profitability. Adjusted EBITDA shall be considered in conjunction
with other metrics for a better understanding on our performance.
Adjusted EBITDA margin - Adjusted EBITDA divided
by sales revenues.
Basic and diluted earnings (losses) per share - Calculated
based on the weighted average number of shares.
Consolidated Structured Entities
– Entities that have been designated so that voting rights or the like are not the determining factor in deciding who controls
the entity. Petrobras has no equity interest in certain structured entities that are consolidated in the Company's financial statements,
but control is determined by the power it has over its relevant operating activities. As there is no equity interest, the income
from certain consolidated structured entities is attributable to non-controlling shareholders in the income statement, and disregarding
the profit or loss attributable to Petrobras shareholders.
CTA – Cumulative translation adjustment
– The cumulative amount of exchange variation arising on translation of foreign operations that is recognized in Shareholders’
Equity and will be transferred to profit or loss on the disposal of the investment.
Effect of average cost in the Cost of Sales
– In view of the average inventory term of 60 days, the crude oil and oil products international prices movement, as well
as foreign exchange effect over imports, production taxes and other factors that impact costs, do not entirely influence the cost
of sales in the current period, having their total effects only in the following period.
Free cash flow - Net cash provided by operating
activities less acquisition of PP&E and intangibles assets, investments in investees and dividends received.. Free cash flow
is not defined under the IFRS and should not be considered in isolation or as a substitute for cash and cash equivalents calculated
in accordance with IFRS. It may not be comparable to free cash flow of other companies, however management believes that it is
an appropriate supplemental measure to assess our liquidity and supports leverage management.
Investments – Capital expenditures based on the
cost assumptions and financial methodology adopted in our Business and Management Plan, which include acquisition of PP&E,
including expenses with leasing, intangibles assets, investment in investees and other items that do not necessarily qualify as
cash flows used in investing activities, primarily geological and geophysical expenses, research and development expenses, pre-operating
charges, purchase of property, plant and equipment on credit and borrowing costs directly attributable to works in progress.
|
Leverage – Ratio between the Net Debt and
the sum of Net Debt and Shareholders’ Equity. Leverage is not a measure defined in the IFRS and it is possible that it may
not be comparable to similar measures reported by other companies, however management believes that it is an appropriate supplemental
measure to assess our liquidity.
Lifting Cost - Crude oil and natural gas lifting
cost indicator, which considers expenditures occurred in the period.
LTM Adjusted EBITDA - Sum of the last 12 months
(Last Twelve Months) of Adjusted EBITDA. This metric is not foreseen in the international accounting standards - IFRS and it is
possible that it is not comparable with similar indexes reported by other companies, however Management believes that it is supplementary
information to assess liquidity and helps manage leverage. Adjusted EBITDA should be considered in conjunction with other metrics
to better understand the Company's liquidity.
OCF - Net Cash provided by (used in) operating
activities (operating cash flow)
Net Debt – Gross debt less adjusted cash
and cash equivalents. Net debt is not a measure defined in the IFRS and should not be considered in isolation or as a substitute
for total long-term debt calculated in accordance with IFRS. Our calculation of net debt may not be comparable to the calculation
of net debt by other companies, however our management believes that net debt is an appropriate supplemental measure that helps
investors assess our liquidity and supports leverage management.
Net Income by Business Segment - The information
by the company's business segment is prepared based on available financial information that is directly attributable to the segment
or that can be allocated on a reasonable basis, being presented by business activities used by the Executive Board to make resource
allocation decisions. and performance evaluation.When calculating segmented results, transactions with third parties, including
jointly controlled and associated companies, and transfers between business segments are considered. Transactions between business
segments are valued at internal transfer prices calculated based on methodologies that take into account market parameters, and
these transactions are eliminated, outside the business segments, for the purpose of reconciling the segmented information with
the consolidated financial statements of the company. company.As a result of the divestments in 2019, the strategy of repositioning
its portfolio foreseen in the Strategic Plan 2020-2024, approved on November 27, 2019, as well as the materiality of the remaining
businesses, the company reassessed the presentation of the Distribution and Biofuels, which are now included in the Corporate and
other businesses.
PLD (differences settlement price) - Electricity
price in the spot market. Weekly weighed prices per output level (light, medium and heavy), number of hours and related market
capacity.
Refining - includes crude oil refining, logistics,
transportation, acquisition and export activities, as well as the purchase and sale of petroleum and ethanol products in Brazil
and abroad. Additionally, this segment includes the petrochemical area, which includes investments in companies in the petrochemical
sector, shale exploration and processing.
Sales Price of Petroleum in Brazil - Average internal
transfer prices from the E&P segment to the Refining segment.
Total net liabilities - Total liability less adjusted
cash and cash equivalents.
|
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Date: July 31, 2020
PETRÓLEO BRASILEIRO
S.A–PETROBRAS
By: /s/ Andrea Marques de Almeida
______________________________
Andrea
Marques de Almeida
Chief Financial Officer and
Investor Relations Officer
Petroleo Brasileiro ADR (NYSE:PBR)
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