|
Land, buildings
and
improvement |
Equipment and other assets (*) |
Assets under
construction (**) |
Exploration and development costs (***) |
Right-of-use assets |
Total |
Balance at December 31, 2021 |
2,383 |
53,126 |
16,922 |
35,847 |
17,052 |
125,330 |
Cost |
4,080 |
98,085 |
25,954 |
61,906 |
26,382 |
216,407 |
Accumulated depreciation and impairment (****) |
(1,697) |
(44,959) |
(9,032) |
(26,059) |
(9,330) |
(91,077) |
Additions |
- |
442 |
3,209 |
9 |
3,255 |
6,915 |
Decommissioning costs - Additions to / review of estimates |
- |
- |
- |
11 |
- |
11 |
Capitalized borrowing costs |
- |
- |
530 |
- |
- |
530 |
Signature Bonuses Transfers (note 16.1) |
- |
- |
- |
840 |
- |
840 |
Write-offs |
- |
(723) |
(963) |
(614) |
(1,389) |
(3,689) |
Transfers |
65 |
1,706 |
(4,095) |
2,411 |
- |
87 |
Transfers to assets held for sale |
(13) |
(1,857) |
(343) |
(1,248) |
(8) |
(3,469) |
Depreciation, amortization and depletion |
(44) |
(2,369) |
- |
(2,680) |
(2,268) |
(7,361) |
Impairment recognition (note 17) |
- |
(48) |
(18) |
(42) |
- |
(108) |
Impairment reversal (note 17) |
- |
12 |
2 |
11 |
- |
25 |
Cumulative translation adjustment |
152 |
3,661 |
1,062 |
2,369 |
1,064 |
8,308 |
Balance at June 30, 2022 |
2,543 |
53,950 |
16,306 |
36,914 |
17,706 |
127,419 |
Cost |
4,308 |
102,174 |
25,582 |
64,420 |
27,971 |
224,455 |
Accumulated depreciation and impairment (****) |
(1,765) |
(48,224) |
(9,276) |
(27,506) |
(10,265) |
(97,036) |
Weighted average useful life in years |
40
(25 to 50)
(except land) |
20
(3 to 31)
|
|
Units of production method |
8
(2 to 47) |
|
|
Land, buildings
and
improvement |
Equipment and other assets (*) |
Assets under
construction (**) |
Exploration and development costs (***) |
Right-of-use assets |
Total |
Balance at December 31, 2020 |
3,043 |
58,680 |
15,443 |
31,166 |
15,869 |
124,201 |
Additions |
- |
728 |
2,842 |
1 |
1,089 |
4,660 |
Decommissioning costs - Additions to / review of estimates |
- |
- |
- |
(1) |
- |
(1) |
Capitalized borrowing costs |
- |
- |
478 |
- |
- |
478 |
Write-offs |
- |
(47) |
(167) |
(14) |
(71) |
(299) |
Transfers |
(23) |
779 |
(2,705) |
2,026 |
(1) |
76 |
Transfers to assets held for sale |
- |
(1,037) |
(159) |
(257) |
3 |
(1,450) |
Depreciation, amortization and depletion |
(56) |
(2,009) |
- |
(2,002) |
(2,067) |
(6,134) |
Impairment recognition |
- |
(186) |
- |
(8) |
- |
(194) |
Impairment reversal |
- |
42 |
27 |
19 |
- |
88 |
Cumulative translation adjustment |
145 |
2,007 |
587 |
1,212 |
538 |
4,489 |
Balance at June 30, 2021 |
3,109 |
58,957 |
16,346 |
32,142 |
15,360 |
125,914 |
Cost |
4,744 |
110,783 |
28,422 |
63,540 |
25,020 |
232,509 |
Accumulated depreciation and impairment (****) |
(1,635) |
(51,826) |
(12,076) |
(31,398) |
(9,660) |
(106,595) |
(*) It is composed of production platforms, refineries, thermoelectric power plants, natural gas processing plants, pipelines, and other operating, storage and production plants, including subsea equipment for the production and flow of oil and gas, depreciated based on the units of production method. |
(**) See note 21 for assets under construction by operating segment. |
(***) It is composed of exploration and production assets related to wells, abandonment and dismantling of areas, signature bonuses associated with proved reserves and other costs directly associated with the exploration and production of oil and gas (oil and gas production properties). |
(****) In the case of land and assets under construction, it refers only to impairment losses. |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
The right-of-use assets comprise the following
underlying assets:
|
Platforms |
Vessels |
Properties |
Total |
Balance at June 30, 2022 |
9,850 |
6,581 |
1,275 |
17,706 |
Cost |
13,754 |
12,434 |
1,783 |
27,971 |
Accumulated depreciation and impairment |
(3,904) |
(5,853) |
(508) |
(10,265) |
Balance at December 31, 2021 |
9,840 |
5,997 |
1,215 |
17,052 |
Cost |
13,362 |
11,267 |
1,753 |
26,382 |
Accumulated depreciation and impairment |
(3,522) |
(5,270) |
(538) |
(9,330) |
| 15.2. | Unitization agreements |
Petrobras has Production Individualization Agreements
(AIP) signed in Brazil with partner companies in E&P consortia. These agreements result in reimbursements payable to (or receivable
from) partners regarding expenses and production volumes related to Atapu, Berbigão, Sururu, Albacora Leste, Tartaruga Verde and
other fields.
The table below presents changes on the reimbursements
payable by Petrobras relating to AIPs submitted for approval by the ANP, presented within trade payables. This estimate reflects the best
available estimate of the assumptions used in calculating the calculation base and the sharing of relevant assets in areas to be equalized.
|
|
|
|
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Opening balance |
|
|
|
|
364 |
370 |
Additions/(Write-offs) on PP&E |
|
|
|
|
(37) |
(67) |
Other income and expenses |
|
|
|
|
12 |
54 |
Cumulative translation adjustments |
|
|
|
|
22 |
15 |
Closing balance |
|
|
|
|
361 |
372 |
| 15.3. | Capitalization rate used to determine
the amount of borrowing costs eligible for capitalization |
The capitalization rate used to determine the amount
of borrowing costs eligible for capitalization was the weighted average of the borrowing costs applicable to the borrowings that were
outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. For the six-month
period ended June 30, 2022, the capitalization rate was 6.56% p.a. (6.08% p.a. for the six-month period ended June 30, 2021).
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
|
Rights and Concessions (*) |
Software |
Goodwill |
Total |
Balance at December 31, 2021 |
2,695 |
308 |
22 |
3,025 |
Cost |
2,744 |
1,321 |
22 |
4,087 |
Accumulated amortization and impairment |
(49) |
(1,013) |
- |
(1,062) |
Addition |
895 |
87 |
- |
982 |
Capitalized borrowing costs |
- |
5 |
- |
5 |
Write-offs |
(11) |
(1) |
- |
(12) |
Transfers |
(10) |
(1) |
- |
(11) |
Signature Bonuses Transfers (**) |
(840) |
- |
- |
(840) |
Amortization |
(2) |
(35) |
- |
(37) |
Impairment recognition |
- |
(1) |
- |
(1) |
Cumulative translation adjustment |
124 |
18 |
1 |
143 |
Balance at June 30, 2022 |
2,851 |
380 |
23 |
3,254 |
Cost |
2,905 |
1,487 |
23 |
4,415 |
Accumulated amortization and impairment |
(54) |
(1,107) |
- |
(1,161) |
Estimated useful life in years |
(***) |
5 |
Indefinite |
|
|
|
|
|
|
|
Rights and Concessions (*) |
Software |
Goodwill |
Total |
Balance at December 31, 2020 |
14,714 |
210 |
24 |
14,948 |
Addition |
12 |
59 |
- |
71 |
Capitalized borrowing costs |
- |
2 |
- |
2 |
Write-offs |
(7) |
- |
- |
(7) |
Transfers |
(43) |
2 |
- |
(41) |
Amortization |
(4) |
(28) |
- |
(32) |
Cumulative translation adjustment |
571 |
8 |
1 |
580 |
Balance at June 30, 2021 |
15,243 |
253 |
25 |
15,521 |
Cost |
15,336 |
1,351 |
25 |
16,712 |
Accumulated amortization and impairment |
(93) |
(1,098) |
- |
(1,191) |
(*) It comprises mainly signature bonuses (amounts paid in concession contracts for oil or natural gas exploration and production sharing), in addition to public service concessions, trademarks and patents and others. |
(**) Transfer to PP&E relating to Sépia and Atapu. |
(***) Mainly composed of assets with indefinite useful lives, which are reviewed annually to determine whether events and circumstances continue to support an indefinite useful life assessment. |
| 16.2. | Surplus volumes of Transfer of
Rights Agreement |
Búzios
Expenses incurred by Petrobras in the ordinary
operations of the bidding area for the benefit of the consortium, in the amount of US$ 61, made prior to the start of the Co-Participation
Agreement and not included in the total compensation amount, were reimbursed to Petrobras by the partners CNODC Brasil Petróleo
e Gás Ltda. (CNODC) and CNOOC Petroleum Brasil Ltda. (CPBL) in February 2022.
In addition, on March 4, 2022, Petrobras signed
an agreement with its partner CPBL for the transfer of 5% of its interest in the Production Sharing Contract for the Surplus Volume of
the Transfer of Rights Agreement of the Búzios field, in the pre-salt layer of the Santos basin, to this company. The agreement
results from the call option exercised by CNOOC on September 29, 2021.
The amount to be received by Petrobras at the closing
of the operation is US$ 2,120, referring to the compensation and reimbursement of the signature bonus of CNOOC's additional interest,
subject to price adjustments and to the fulfillment of conditions precedent, such as CADE, ANP and Ministry of Mines and Energy (MME)
approval.
After the transaction becomes effective, Petrobras
will hold an 85% interest in the Production Sharing Contract of the Surplus Volume of the Transfer of Rights Agreement of the Búzios
field, CNOOC will hold a 10% interest and CNODC a 5% interest. The total participation in this Búzios Co-participation Agreement, including
the portions of the Transfer of Rights Agreement and of the BS-500 Concession Agreement (100% of Petrobras) will be 88.99% of Petrobras,
7.34% of CNOOC and 3.67% of CNODC.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
At June 30, 2022, the assets and liabilities related
to the transfer of 5% of its interest in the Production Sharing Contract to the Transfer of Rights Agreement are classified as held for
sale.
Atapu and Sépia
On April 27, 2022, Petrobras signed the Production
Sharing Contract for the surplus volume of the Transfer of Rights Agreement related to the Atapu field, in partnership with Shell Brasil
Petróleo Ltda (Shell, 25%) and TotalEnergies EP Brasil Ltda. (TotalEnergies, 22.5%), and related to the Sépia field in consortium
with TotalEnergies (28%), Petronas Petróleo Brasil Ltda. (Petronas, 21%) and QP Brasil Ltda. (QP, 21%), according to the results
of the Second Bidding Round for the Surplus Volume of the Transfer of Rights Agreement in the Production Sharing regime, which was held
on December 17, 2021.
On the same date, the Company also signed the Co-participation
Agreements and the Amendments to the Agreement for the Individualization of Atapu and Sépia Production (AIPs), which are necessary
to manage the coexisting deposits of the Transfer of Rights Agreement and the Production Sharing Contract (related to the surplus volume)
of these areas.
The compensation to Petrobras for Atapu and Sépia,
including an estimate of the gross-up of the taxes levied, pursuant to Ordinance No. 8 of April 19, 2021 of the MME, were paid by the
partners in April 2022, totaling US$ 2,093 for Atapu and US$ 3,059 for Sépia.
The agreements became effective on May 2, 2022,
when Pré-Sal Petróleo S.A. (PPSA) confirmed there was no settlement pending for this transaction, in accordance with the
provisions of Ordinance No. 519 of May 21, 2021.
On the same date, a partial write-off of the assets
associated with these fields was carried out, in exchange for the financial compensation, resulting in a transaction similar to a sale.
Furthermore, the Company accounted for an additional
US$ 129 gain corresponding to the difference between the estimate and the final calculation of the gross-up of taxes levied on the
gain on the transfer of assets to the Production Sharing regime, as provided for in the mentioned ordinance (US$ 60 for Atapu and US$
69 for Sépia). These amounts were paid to Petrobras in July 2022.
The total gain in this operation was US$ 2,872
(US$ 1,028 for Atapu and US$ 1,844 for Sépia), accounted for within other income and expenses.
The signature bonus corresponding to the Company's
participation in the Production Sharing Contract was US$ 416 for Atapu and US$ 424 for Sépia.
Since these agreements relate to the surplus volume
of fields with technical and commercial feasibility already identified, the signature bonuses paid by the Company in the first quarter
of 2022, totaling US$ 840, were transferred from intangible assets to property, plant and equipment after the Co-participation Agreements
came into effect.
(Losses) / reversals |
Jan-Jun/2022 |
Jan-Jun/2021 |
Apr-Jun/2022 |
Apr-Jun/2021 |
Property, plant and equipment |
(83) |
(106) |
(84) |
(11) |
Intangible assets |
(1) |
− |
− |
− |
Assets classified as held for sale |
(83) |
(74) |
(84) |
(79) |
Impairment losses |
(167) |
(180) |
(168) |
(90) |
Investments |
(10) |
399 |
(2) |
425 |
Net effect within the statement of income |
(177) |
219 |
(170) |
335 |
Losses |
(218) |
(312) |
(208) |
(156) |
Reversals |
41 |
531 |
38 |
491 |
The Company annually tests its assets for impairment
or when there is an indication that their carrying amount may not be recoverable, or that there may be a reversal of impairment losses
recognized in previous years.
In the six-month period ended June 30, 2022, the
Company recognized net impairment losses amounting to US$ 167, mainly due to:
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
| · | definitive cessation of the operations of platform
P-35, in the Marlim field, which led to the exclusion of this asset from the CGU North group and classification as a separate asset, resulting
in the recognition of a US$ 52 impairment loss; |
| · | approval for the disposal of Golfinho group of fields,
which comprises Golfinho field (which produces oil), Canapu field, which produces non-associated gas, and the exploratory block BM-ES-23.
As a result, the Company assessed the recoverability of the carrying amount of these assets, considering the fair value net of disposal
expenses, resulting in the recognition of a US$ 51 impairment loss; |
| · | approval for the disposal of LUBNOR Refinery, in
the state of Ceará, separating it from the Downstream CGU. As a result, the Company assessed the recoverability of the carrying
amount of the refinery, considering the fair value net of disposal expenses, resulting in the recognition of a US$ 44 impairment loss. |
In the six-month period ended June 30, 2021, impairment
losses were recognized, in the amount of US$ 180, mainly due to:
| · | discontinuation of use of platforms P-33 and P-26,
in the Marlim field, resulting in their exclusion of CGU North group and testing for impairment as separate assets, with the recognition
of a US$ 190 impairment loss; |
| · | approval for the sale of thermoelectric power plants
Arembepe, Muryci and Bahia 1, located in Camaçari, in the state of Bahia. As a result, considering fair value net of selling expenses,
a US$ 79 impairment loss was accounted for in the second quarter of 2021; |
| · | assessment for impairment of producing properties
considering fair value net of selling expenses, resulting in a US$ 61 impairment reversal in the second quarter of 2021, mainly due to
the approval for sale of the Papa-Terra field, located in the Campos Basin, state of Rio de Janeiro (a US$ 41 impairment reversal); and
|
| · | the decision to use in producing fields in the Santos
basin, certain equipment that were previously part of platforms P-72 and P-73. Thus, considering estimated future cash flows for these
assets, the Company recognized a US$ 27 impairment reversal. |
| 17.1. | Investment in publicly traded
associate (Petrobras Distribuidora S.A. – BR Distribuidora) |
On August 26, 2020 the Company’s Board of
Directors approved the disposal of the remaining interest in BR Distribuidora and, on June 30, 2021, approved the price per common share
of BR Distribuidora in the amount of US$ 5.20 (R$ 26.00) for the secondary public offering (follow on) of these shares, totaling US$ 2,252
(R$ 11,264 million), net of transaction costs.
Accordingly, considering the sale of the shares
and the cash flows arising from this sale, a US$ 404 impairment reversal was accounted for in the six-month period ended June 30, 2021.
| 18. | Exploration and evaluation of
oil and gas reserves |
Changes in the balances of capitalized costs directly
associated with exploratory wells pending determination of proved reserves and the balance of amounts paid for obtaining rights and concessions
for exploration of oil and natural gas (capitalized acquisition costs) are set out in the following table:
|
|
|
Capitalized Exploratory Well Costs / Capitalized Acquisition Costs (*) |
Jan-Jun/2022 |
Jan-Jun/2021 |
Property plant and equipment |
|
|
Opening Balance |
2,376 |
3,024 |
Additions |
95 |
222 |
Write-offs |
(14) |
(178) |
Transfers |
(42) |
(145) |
Cumulative translation adjustment |
(259) |
104 |
Closing Balance |
2,156 |
3,027 |
Intangible Assets |
2,734 |
15,057 |
Capitalized Exploratory Well Costs / Capitalized Acquisition Costs |
4,890 |
18,084 |
(*) Amounts capitalized and subsequently expensed in the same period have been excluded from this table. |
|
|
|
Exploration costs recognized in the statement of
income and cash used in oil and gas exploration and evaluation activities are set out in the following table:
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Apr-Jun/2022 |
Apr-Jun/2021 |
Exploration costs recognized in the statement of income |
|
|
|
|
Geological and geophysical expenses |
136 |
154 |
83 |
87 |
Exploration expenditures written off (includes dry wells and signature bonuses) |
94 |
187 |
71 |
56 |
Contractual penalties on local content requirements (*) |
(108) |
43 |
(110) |
28 |
Other exploration expenses |
1 |
21 |
- |
19 |
Total expenses |
123 |
405 |
44 |
190 |
Cash used in : |
|
|
|
|
Operating activities |
135 |
174 |
81 |
106 |
Investment activities |
980 |
245 |
904 |
130 |
Total cash used |
1,115 |
419 |
985 |
236 |
(*) There was a US$ 127 reversal on June 30, 2022, as described in note 30. |
|
|
|
|
| 19. | Collateral for crude oil exploration
concession agreements |
The Company has granted collateral to ANP in connection
with the performance of the Minimum Exploration Programs established in the concession agreements for petroleum exploration areas in the
total amount of US$ 1,913 (US$ 1,574 as of December 31, 2021) of which US$ 1,913 were still in force as of June 30, 2022 (US$
1,574 as of December 31, 2021), net of commitments undertaken. As of June 30, 2022, the collateral comprises crude oil from previously
identified producing fields, pledged as collateral, amounted to US$ 1,324 (US$ 1,243 as of December 31, 2021) and bank guarantees
of US$ 589 (US$ 331 as of December 31, 2021).
| 20.1. | Investments in associates and
joint ventures |
0 |
Joint Ventures |
Associates (*) |
Total |
Balance at December 31, 2021 |
509 |
1,001 |
1,510 |
Investments |
14 |
5 |
19 |
Transfer to assets held for sale |
1 |
(59) |
(58) |
Restructuring, capital decrease and others |
(1) |
(14) |
(15) |
Results of equity-accounted investments |
157 |
184 |
341 |
CTA |
2 |
(16) |
(14) |
OCI |
1 |
144 |
145 |
Dividends |
(105) |
(106) |
(211) |
Balance at June 30, 2022 |
578 |
1,139 |
1,717 |
|
Joint Ventures |
Associates (*) |
Total |
Balance at December 31, 2020 |
813 |
2,460 |
3,273 |
Investments |
5 |
6 |
11 |
Transfer to assets held for sale |
(2) |
(2,129) |
(2,131) |
Restructuring, capital decrease and others |
- |
(175) |
(175) |
Results of equity-accounted investments |
109 |
1,100 |
1,209 |
CTA |
20 |
(72) |
(52) |
OCI |
- |
141 |
141 |
Dividends |
(65) |
(153) |
(218) |
Balance at June 30, 2021 |
880 |
1,178 |
2,058 |
(*) It includes Braskem and other investments. |
| 21. | Assets by operating segment |
The segment information reflects the financial
information used in the decision-making process for resource allocation and performance evaluation carried out by the Company’s
Board of Executive Officers (as Chief Operating Decision Makers).
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
|
Exploration and Production (E&P) |
Refining, Transportation & Marketing (RT&M) |
Gas
&
Power (G&P) |
Corporate and other business |
Elimina-tions |
Total |
|
|
|
|
|
|
|
Consolidated assets by operating segment - 06.30.2022 |
|
|
|
|
|
|
|
Current assets |
8,812 |
18,161 |
3,029 |
21,378 |
(8,466) |
42,914 |
Non-current assets |
108,601 |
23,307 |
7,629 |
9,369 |
− |
148,906 |
Long-term receivables |
5,914 |
2,701 |
642 |
7,259 |
− |
16,516 |
Investments |
405 |
1,125 |
156 |
31 |
− |
1,717 |
Property, plant and equipment |
99,476 |
19,376 |
6,756 |
1,811 |
− |
127,419 |
Operating assets |
88,352 |
16,526 |
4,739 |
1,496 |
− |
111,113 |
Under construction |
11,124 |
2,850 |
2,017 |
315 |
− |
16,306 |
Intangible assets |
2,806 |
105 |
75 |
268 |
− |
3,254 |
Total Assets |
117,413 |
41,468 |
10,658 |
30,747 |
(8,466) |
191,820 |
|
|
|
|
|
|
|
Consolidated assets by operating segment - 12.31.2021 |
|
|
|
|
|
|
|
Current assets |
6,034 |
12,691 |
3,838 |
13,259 |
(5,673) |
30,149 |
Non-current assets |
107,112 |
21,697 |
6,751 |
8,639 |
− |
144,199 |
Long-term receivables |
5,042 |
2,212 |
322 |
6,758 |
− |
14,334 |
Investments |
393 |
970 |
119 |
28 |
− |
1,510 |
Property, plant and equipment |
99,033 |
18,419 |
6,241 |
1,637 |
− |
125,330 |
Operating assets |
87,210 |
16,086 |
3,739 |
1,373 |
− |
108,408 |
Under construction |
11,823 |
2,333 |
2,502 |
264 |
− |
16,922 |
Intangible assets |
2,644 |
96 |
69 |
216 |
− |
3,025 |
Total Assets |
113,146 |
34,388 |
10,589 |
21,898 |
(5,673) |
174,348 |
| 22. | Disposal of assets and other
changes in organizational structure |
The Company has an active partnership and divestment
portfolio, which takes into account opportunities for disposal of non-strategic assets in several areas in which it operates, whose development
of transactions also depends on conditions beyond the control of the Company. The divestment projects and strategic partnerships follow
the procedures aligned with the guidelines of the Brazilian Federal Auditor’s Office (Tribunal de Contas da União –
TCU) and the current legislation.
The major classes of assets and related liabilities
classified as held for sale are shown in the following table:
|
|
06.30.2022 |
12.31.2021 |
|
E&P |
RT&M |
Gas & Power |
Corporate and other business |
Total |
Total |
Assets classified as held for sale |
|
|
|
|
|
|
Cash and cash equivalents |
- |
− |
7 |
− |
7 |
13 |
Trade receivables |
- |
− |
38 |
− |
38 |
31 |
Inventories |
- |
83 |
1 |
− |
84 |
73 |
Investments |
- |
54 |
271 |
2 |
327 |
210 |
Property, plant and equipment |
5,025 |
161 |
1 |
2 |
5,189 |
1,975 |
Others |
- |
2 |
145 |
− |
147 |
188 |
Total |
5,025 |
300 |
463 |
4 |
5,792 |
2,490 |
Liabilities on assets classified as held for sale |
|
|
|
|
|
|
Trade payables |
- |
- |
1 |
- |
1 |
2 |
Finance debt |
- |
- |
- |
35 |
35 |
1 |
Provision for decommissioning costs |
1,756 |
- |
- |
- |
1,756 |
833 |
Others |
- |
- |
30 |
- |
30 |
31 |
Total |
1,756 |
− |
31 |
35 |
1,822 |
867 |
| 22.1. | Transactions pending closing
at June 30, 2022 |
The significant transactions signed prior to January
1, 2022 and pending closing at June 30, 2022 are: (i) sale of the Company’s entire interest in Peroá group of fields; (ii)
sale of the Company’s entire interest in Papa-Terra producing field; (iii) sale of onshore fields in the states of Bahia, Ceará,
Espírito Santo and Sergipe; (iv) sale of the Company’s entire interest in Gaspetro; (v) sale of Isaac Sabbá refinery
(REMAN); (vi) sale of interest in Unidade de Industrialização de Xisto - SIX (a shale processing plant); and (vii) the Transfer
of Rights Agreement and the Production Sharing Contract
for the surplus volume of the Búzios field (for which more information is presented in note 16 – Intangible assets - Surplus
volumes of Transfer of Rights Agreement).
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Regarding the divestment of the REMAN refinery,
on March 8, 2022, the Administrative Council for Economic Defense (CADE) published a statement declaring Act of Concentration and ordering
the execution of diligence on this sale to Ream Participações S.A., which was signed in August 2021. This diligence is expected
to last between 240 and 330 days as of November 2021. Petrobras continues to collaborate with CADE to obtain the approval for the transaction
within the legal deadline.
In relation to the sale of 51% of Petrobras Gás
S.A. (Gaspetro), it was closed on July 11, 2022, as described in note 30.
The following table presents the transactions for
which agreements were signed in the six-month period ended June 30, 2022:
Transaction |
Acquirer |
Date of approval / signing |
Transaction amount (*) |
Further information |
Sale of the Company's entire interest (100%) in a set of 22 production onshore and shallow water field concessions, together with its associated infrastructure, located in the Potiguar Basin, in the state of Rio Grande do Norte, jointly called the Potiguar group of fields. |
3R Potiguar SA, subsidiary of 3R Petroleum Óleo e Gás SA |
January 2022 |
1,385 |
a |
Sale of the Company's entire interest in a set of four onshore production fields, with integrated facilities, located in the state of Espírito Santo, jointly called Norte Capixaba group of fields. |
Petromais Global Exploração e Produção S.A. (renamed Origem Energia S.A.) |
February 2022 |
478 |
b |
Sale of the Company's entire interest in the Albacora Leste concession, located predominantly in deep waters in the Campos Basin. |
Petro Rio Jaguar Petróleo Ltda. (PetroRio), subsidiary of Petro Rio S.A. |
April
2022 |
1,951 |
c |
Sale of the Company's entire interest (27.88%) in Deten Química S.A (Deten), a petrochemical plant located in the industrial hub of Camaçari, in the state of Bahia. |
Cepsa Química S.A. |
April
2022 |
112 |
d |
Sale of the Lubrificantes e Derivados de Petróleo do Nordeste (LUBNOR) refinery and its associated logistics assets, located in the state of Ceará. |
Grepar Participações Ltda. |
May
2022 |
34 |
e |
Sale of the Company's entire interest in a set of maritime concessions called Golfinho and Camarupim groups of fields, in deep waters in the post-salt, located in the Espírito Santo Basin. |
BW Energy Maromba do Brasil Ltda (BWE) |
June
2022 |
15 |
f |
(*) Amounts considered at the signing of the transaction, not including contingent assets. |
(**) Transactions signed in Brazilian reais are translated to U.S. dollars with the closing exchange rate of the period. |
These transactions may provide for price adjustments
until the closing of the transaction and be also subject to the fulfillment of conditions precedent, such as approval by the Brazilian
Agency of Petroleum, Natural Gas and Biofuels (ANP) and CADE.
| a) | Sale of Potiguar group of fields
and related assets |
The agreement provides for the receipt of US$ 110
at the transaction signing, US$ 1,040 at the transaction closing, and US$ 235 to be paid in 4 annual installments of US$ 58.75,
starting in March 2024.
| b) | Sale of Norte Capixaba group
of fields |
The agreement provides for the receipt of US$ 36
at the transaction signing, and US$ 442 at the transaction closing and up to US$ 66 in contingent payments provided for in the
contract, depending on future Brent prices.
| c) | Sale of Albacora Leste concession |
The agreement provides for the receipt of US$ 293
at the transaction signing, US$ 1,658 at the transaction closing, and up to US$ 250 in contingent payments provided for in the
contract, depending on future Brent prices.
| d) | Sale of Deten petrochemical plant |
The agreement provides for the receipt of 5% of
the total amount at the transaction signing, and 95% at the transaction closing. Transaction closed in Brazilian reais (R$ 585 million).
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
| e) | Sale of LUBNOR refinery |
The agreement provides for the receipt of US$ 3
at the transaction signing, US$ 10 at the transaction closing, and 3 annual installments of US$ 7 expected to occur from 2024
to 2026.
| f) | Sale of interest in Golfinho
and Camarupim concessions |
The agreement provides for the receipt of US$ 3
at the transaction signing, and US$ 12 at the transaction closing and up to US$ 60 in contingent payments provided for in the
contract, depending on future Brent prices and the development of these assets.
| 22.2. | Transactions closed in the six-month
period ended June 30, 2022 |
Transaction |
Acquirer |
Signature date (S)
Closing date (C) |
Sale amount (*) (**) |
Gain/ (loss) (***) |
Further information |
Sale of the Company's entire interest in a set of seven onshore and shallow water fields called Alagoas group, and of Alagoas Natural Gas Processing Unit, in the state of Alagoas. |
Petromais Global Exploração e Produção S.A. (renamed Origem Energia S.A.) |
July 2021 (S)
February 2022 (C) |
300 |
334 |
a |
Sale of the Company's entire interest in 14 onshore production fields (Polo Recôncavo), in the state of Bahia |
3R Candeias S.A, wholly-owned subsidiary of 3R Petroleum Óleo e Gás S.A. |
December 2020 (S)
May 2022 (C) |
256 |
215 |
b |
Total |
|
|
556 |
549 |
|
(*) Amounts considered at the signing of the transaction, not including contingent assets. Transactions signed in Brazilian reais are translated to U.S. dollars with the closing exchange rate of the period. |
(**) The amount of "Proceeds from disposal of assets" in the Statement of Cash Flows is composed of amounts received this period, including installments of operations from previous years, and advances referring to operations not completed. |
(***) Recognized in “Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control” within other income and expenses (note 6). |
The operations were concluded after the fulfillment
of conditions precedent.
| a) | Sale of Alagoas group of fields
and related assets |
The transaction was closed with the payment of
US$ 240 to Petrobras in February 2022, in addition to the US$ 60 paid to Petrobras on the signing date (July 2021).
| b) | Sale of Recôncavo group
of onshore fields |
The transaction was closed with the payment of
US$ 246 to Petrobras in May 2022, in addition to the US$ 10 paid to Petrobras on the signing date (December 2020).
| 22.3. | Price adjustments – transactions
closed in previous periods |
| a) | Sale of RLAM refinery assets |
The transaction closed in November 2021 included
price adjustments provided for in the contract, for which the Company recognized US$ 68 in January 2022 within other income and expenses.
This sale is still subject to residual price adjustment.
| 22.4. | Contingent assets from disposed
investments |
Some disposed assets provide for receipts subject
to contractual clauses, especially related to the Brent variation in sales related to E&P assets.
The divestments that may generate revenue recognition,
accounted for within other income and expenses, are presented below:
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Transaction |
Closing date |
Amounts subject to recognition |
Assets recognized in Jan-Jun/2022 |
Assets
recognized in previous periods |
Sale in previous years |
|
|
|
|
Riacho of Forquilha group of fields |
December/2019 |
62 |
8 |
− |
Pampo and Enchova group of fields |
July/2020 |
650 |
125 |
36 |
Baúna field |
November/2020 |
285 |
95 |
17 |
Frade field |
February/2021 |
20 |
− |
− |
Ventura group of fields |
July/2021 |
43 |
− |
43 |
Miranga group of fields |
December/2021 |
85 |
33 |
15 |
Cricare group of fields |
December/2021 |
118 |
20 |
− |
Total |
|
|
281 |
111 |
|
On March 23, 2022, the dissolution of Participações
em Complexos Bioenergéticos S.A. – PCBios, in which Petrobras held 50%, was concluded, after approval at this company's Extraordinary
General Meeting. There were no accounting effects arising from this transaction.
| 23.1. | Balance by type of finance debt |
In Brazil |
06.30.2022 |
12.31.2021 |
Banking Market |
1,242 |
1,237 |
Capital Market |
2,800 |
2,504 |
Development banks (*) |
770 |
769 |
Others |
6 |
7 |
Total |
4,818 |
4,517 |
Abroad |
|
|
Banking Market |
7,916 |
8,525 |
Capital Market |
15,461 |
19,527 |
Export Credit Agency |
2,688 |
2,951 |
Others |
168 |
180 |
Total |
26,233 |
31,183 |
Total finance debt |
31,051 |
35,700 |
Current |
4,116 |
3,641 |
Non-current |
26,935 |
32,059 |
(*) It includes BNDES, FINAME and FINEP |
Current finance debt is composed of:
|
06.30.2022 |
12.31.2021 |
Short-term debt |
151 |
108 |
Current portion of long-term debt |
3,497 |
3,063 |
Accrued interest on short and long-term debt |
468 |
470 |
Total |
4,116 |
3,641 |
The capital market balance is mainly composed of
US$ 14,869 in global notes issued abroad by the wholly-owned subsidiary PGF and
US$ 2,624 in debentures issued by Petrobras in reais in Brazil.
The balance in global notes has maturities between
2024 to 2115 and does not require collateral. Such financing was carried out in dollars, euros and pounds, 87%, 2% and 11%, of the total
global notes, respectively.
The debentures, with maturities between 2022 and
2034 and without guarantees, are not convertible into shares.
At June 30, 2021, there was no default, breach
of covenants or change in collateral provided or clauses that would result in change in payment terms compared December 31, 2021.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
| 23.2. | Changes in finance debt |
|
In Brazil |
Abroad |
Total |
Balance at December 31, 2021 |
4,517 |
31,183 |
35,700 |
Additions |
− |
330 |
330 |
Principal amortization (*) |
(177) |
(5,186) |
(5,363) |
Interest amortization (*) |
(125) |
(790) |
(915) |
Accrued interest (**) |
201 |
953 |
1,154 |
Foreign exchange/ inflation indexation charges |
109 |
(532) |
(423) |
Cumulative translation adjustment (CTA) |
293 |
275 |
568 |
Balance at June 30, 2022 |
4,818 |
26,233 |
31,051 |
|
In Brazil |
Abroad |
Total |
Balance at December,31 2020 |
8,854 |
45,035 |
53,889 |
Additions |
- |
1,668 |
1,668 |
Principal amortization (*) |
(3,430) |
(9,254) |
(12,684) |
Interest amortization (*) |
(158) |
(1,106) |
(1,264) |
Accrued interest (**) |
159 |
1,436 |
1,595 |
Foreign exchange/ inflation indexation charges |
127 |
(220) |
(93) |
Cumulative translation adjustment (CTA) |
213 |
180 |
393 |
Balance at June 30, 2021 |
5,765 |
37,739 |
43,504 |
(*) It includes pre-payments. |
(**) It includes premium and discount over notional amounts, as well as gains and losses by modifications in contractual cash flows. |
The Company repaid several finance debts, in the
amount of US$ 6,393 notably US$ 3,986 to repurchase and withdraw global bonds previously issued by the Company in the capital
market.
| 23.3. | Reconciliation with cash flows
from financing activities |
|
|
|
Jan-Jun/2022 |
|
|
Jan-Jun/2021 |
|
Additions |
Principal amortization |
Interest amortization |
Additions |
Principal amortization |
Interest amortization |
Movement in financing |
330 |
(5,363) |
(915) |
1,668 |
(12,684) |
(1,264) |
Repurchase of debt securities |
− |
(110) |
− |
− |
(848) |
− |
Deposits linked to financing (*) |
− |
(4) |
(1) |
− |
(26) |
37 |
Net cash used in financing activities |
330 |
(5,477) |
(916) |
1,668 |
(13,558) |
(1,227) |
(*) Deposits linked to financing with China Development Bank (CDB), with semiannual settlements in June and December. |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
| 23.4. | Summarized information on current
and non-current finance debt |
Maturity in |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 onwards |
Total (*) |
Fair Value |
|
|
|
|
|
|
|
|
|
Financing in U.S.Dollars (US$): |
1,648 |
2,558 |
3,257 |
2,585 |
1,545 |
12,093 |
23,686 |
23,491 |
Floating rate debt (**) |
1,248 |
2,558 |
2,675 |
1,934 |
1,143 |
897 |
10,455 |
|
Fixed rate debt |
400 |
- |
582 |
651 |
402 |
11,196 |
13,231 |
|
Average interest rate p.a. |
5.0% |
6.2% |
6.1% |
6.0% |
6.4% |
6.6% |
6.4% |
|
Financing in Brazilian Reais (R$): |
954 |
481 |
671 |
221 |
436 |
2,053 |
4,816 |
4,643 |
Floating rate debt (***) |
702 |
282 |
280 |
138 |
138 |
528 |
2,068 |
|
Fixed rate debt |
252 |
199 |
391 |
83 |
298 |
1,525 |
2,748 |
|
Average interest rate p.a. |
6.1% |
5.9% |
5.4% |
4.8% |
4.3% |
4.8% |
5.2% |
|
Financing in Euro (€): |
- |
15 |
13 |
313 |
- |
570 |
911 |
891 |
Fixed rate debt |
- |
15 |
13 |
313 |
- |
570 |
911 |
|
Average interest rate p.a. |
- |
4.7% |
4.7% |
4.7% |
- |
4.7% |
4.7% |
|
Financing in Pound Sterling (£): |
39 |
16 |
- |
- |
651 |
932 |
1,638 |
1,556 |
Fixed rate debt |
39 |
16 |
- |
- |
651 |
932 |
1,638 |
|
Average interest rate p.a. |
6.2% |
6.2% |
- |
- |
6.2% |
6.4% |
6.3% |
|
Total as of June 30, 2022 |
2,641 |
3,070 |
3,941 |
3,119 |
2,632 |
15,648 |
31,051 |
30,581 |
Average interest rate |
5.3% |
6.1% |
6.0% |
5.8% |
6.0% |
6.5% |
6.3% |
|
Total as of December 31, 2021 |
3,641 |
2,973 |
3,988 |
3,449 |
2,832 |
18,817 |
35,700 |
37,891 |
Average interest rate |
5.2% |
5.3% |
5.5% |
5.6% |
5.9% |
6.5% |
6.2% |
|
(*)The average maturity of outstanding debt as of June 30, 2022 and 2021 is 13.04 years (13.39 years as of December 31, 2021). |
(**) Operations with variable index + fixed spread. |
(***) Operations with variable index + fixed spread, if applicable. |
The fair value of the Company's finance debt is
mainly determined and categorized into a fair value hierarchy as follows:
Level 1- quoted prices in active markets for identical
liabilities, when applicable, amounting to US$ 14,402 of June 30, 2022 (US$ 20,770 of December 31, 2021); and
Level 2 – discounted cash flows based on
discount rate determined by interpolating spot rates considering financing debts indexes proxies, taking into account their currencies
and also Petrobras’ credit risk, amounting to US$ 16,179 as of June 30, 2022 (US$ 17,121 as of December 31, 2021).
The sensitivity analysis for financial instruments
subject to foreign exchange variation is set out in note 27.3.
A maturity schedule of the Company’s finance
debt (undiscounted), including face value and interest payments is set out as follows:
Maturity |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 and thereafter |
06.30.2022 |
12.31.2021 |
Principal |
2,150 |
3,102 |
4,039 |
3,210 |
2,723 |
16,572 |
31,796 |
36,557 |
Interest |
933 |
1,665 |
1,488 |
1,243 |
1,115 |
20,090 |
26,533 |
30,557 |
Total |
3,083 |
4,767 |
5,527 |
4,453 |
3,838 |
36,662 |
58,329 |
67,114 |
A maturity schedule of the lease arrangements (nominal
amounts) is set out in note 24.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
|
|
|
|
|
|
06.30.2022 |
Company |
Financial
institution |
Date |
Maturity |
Available
(Lines of Credit) |
Used |
Balance |
Abroad |
|
|
|
|
|
|
PGT BV |
Syndicate of banks |
12/16/2021 |
11/16/2026 |
5,000 |
− |
5,000 |
PGT BV (*) |
Syndicate of banks |
3/27/2019 |
2/27/2024 |
3,250 |
− |
3,250 |
Total |
|
|
|
8,250 |
− |
8,250 |
|
|
|
|
|
|
|
In Brazil |
|
|
|
|
|
|
Petrobras |
Banco do Brasil |
3/23/2018 |
9/26/2026 |
382 |
− |
382 |
Petrobras |
Bradesco |
6/1/2018 |
5/31/2023 |
382 |
− |
382 |
Petrobras |
Banco do Brasil |
10/4/2018 |
9/5/2025 |
382 |
− |
382 |
Transpetro |
Caixa Econômica Federal |
11/23/2010 |
Not defined |
63 |
− |
63 |
Total |
|
|
|
1,209 |
− |
1,209 |
(*) In April 2021, the subsidiary PGT BV extended part of the Revolving Credit Facility. As such, US$ 2,050 will be available for withdrawal from February 28, 2024 until February 27, 2026. |
Changes in the balance of lease liabilities are
presented below:
|
In Brazil |
Abroad |
Total |
Balance at December 31, 2021 |
4,604 |
18,439 |
23,043 |
Remeasurement / new contracts |
962 |
548 |
1,510 |
Payment of principal and interest |
(784) |
(1,897) |
(2,681) |
Interest expenses |
162 |
481 |
643 |
Foreign exchange gains and losses |
(152) |
(1,177) |
(1,329) |
Cumulative translation adjustment |
262 |
1,115 |
1,377 |
Transfers |
− |
(36) |
(36) |
Balance at June 30, 2022 |
5,054 |
17,473 |
22,527 |
|
In Brazil |
Abroad |
Total |
Balance at December 31, 2020 |
4,340 |
17,310 |
21,650 |
Remeasurement / new contracts |
324 |
477 |
801 |
Payment of principal and interest |
(753) |
(2,146) |
(2,899) |
Interest expenses |
108 |
492 |
600 |
Foreign exchange gains and losses |
(98) |
(584) |
(682) |
Cumulative translation adjustment |
148 |
576 |
724 |
Transfers |
3 |
(17) |
(14) |
Balance at June 30, 2021 |
4,072 |
16,108 |
20,180 |
A maturity schedule of the lease arrangements (nominal
amounts) is set out as follows:
Nominal Future Payments |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 onwards |
Total |
Balance at June 30, 2022 |
2,861 |
4,686 |
3,528 |
2,586 |
2,062 |
15,285 |
31,008 |
Balance at December 31, 2021 |
5,567 |
3,944 |
3,027 |
2,309 |
1,972 |
14,608 |
31,427 |
Payments in certain lease agreements vary due to
changes in facts or circumstances occurring after their inception other than the passage of time. Such payments are not included in the
measurement of the lease obligations. Variable lease payments in the six-month period ended June 30, 2022, amounted to US$ 598, representing
22% in relation to fixed payments (US$ 371 and 13% in the same period of 2021).
In the six-month period ended June 30, 2022, the
Company recognized lease expenses in the amount of US$ 83 relating to short-term leases (US$ 46 in the same period of 2021).
At June 30, 2022, the nominal amounts of lease
agreements for which the lease term has not commenced, as they relate to assets under construction or not yet available for use, is US$ 77,064
(US$ 79,557 at December 31, 2021).
The sensitivity analysis of financial instruments
subject to exchange variation is presented in note 27.3.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
| 25.1. | Share capital (net of share issuance
costs) |
As of June 30, 2022 and December 31, 2021, subscribed
and fully paid share capital, net of issuance costs, was US$ 107,101, represented by 7,442,454,142 common shares and 5,602,042,788
preferred shares, all of which are registered, book-entry shares with no par value.
Preferred shares have priority on returns of capital,
do not grant any voting rights and are non-convertible into common shares.
As of June 30, 2022 and December 31, 2021, the
Company held treasury shares, of which 222,760 are common shares and 72,909 are preferred shares.
| 25.2. | Distributions to shareholders |
Dividends payable
On April 13, 2022, the Annual General Shareholders
Meeting approved dividends relating to 2021, amounting to US$ 18,541 (corresponding to US$ 1.4215 per outstanding share), of
which US$ 11,853 was anticipated during 2021 (updated by SELIC interest rate from the date of each payment to December 31, 2021) and US$
6,688 of complementary dividends.
These complementary dividends were reclassified
from shareholders' equity to liabilities on the date of approval on the Annual General Shareholders Meeting and paid on May 16, 2022,
updated by the Selic interest rate from December 31, 2021 to the payment date.
Anticipation of dividends
On May 5, 2022, the Board of Directors approved
the distribution of remuneration to shareholders in the total amount of US$ 9,683 (R$ 48,466 million), equivalent to US$ 0.7423 (R$ 3.7154)
per common and preferred shares, based on the result for the period from January to March 2022 (interim) and the use of a portion of the
profit retention reserve account (intermediate), as shown in the following table:
|
Date of register |
Amount per Share |
Amount |
Anticipation of dividends |
05.23.2022 |
0.5412 |
7,059 |
Anticipation of interest on capital |
05.23.2022 |
0.0859 |
1,121 |
Total anticipations based on the net income of Jan-Mar/2022 |
|
0.6271 |
8,180 |
Intermediate dividends by use of a portion of profit retention reserve |
05.23.2022 |
0.1152 |
1,503 |
Total distribution to shareholders |
|
0.7423 |
9,683 |
Outstanding preferred shares |
|
0.7423 |
4,159 |
Outstanding common shares |
|
0.7423 |
5,525 |
Amounts translated into U.S. dollar based on the exchange rate prevailing at the date of the approval. |
These dividends and interest on capital were paid
in June and July 2022, in 2 equal installments.
The amount is indexed to the Selic rate, from the
date of the payment to the end of the fiscal year, and will be considered when determining the remaining dividends to be paid relating
to 2022 when the annual amounts are calculated.
The anticipation of interest on capital for the
year 2022 resulted in a deductible expense which reduced the income tax expense by US$ 385. This amount was subject to withholding
income tax (IRRF) of 15%, except for immune and exempt shareholders, as established in applicable law.
Dividends payable
At June 30, 2022, the balance of dividends payable,
in the amount of US$ 4,633, corresponds to the second installment of the anticipation of dividends for the year 2022 (amount of R$
24,233 million paid in Brazilian reais translated at the final exchange rate of the period) , which was paid on July 20, 2022.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
|
|
Jan-Jun/2022 |
|
Jan-Jun/2021 |
|
Common |
Preferred |
Total |
Common |
Preferred |
Total |
Net income attributable to shareholders of Petrobras |
11,191 |
8,424 |
19,615 |
4,736 |
3,565 |
8,301 |
Weighted average number of outstanding shares |
7,442,231,382 |
5,601,969,879 |
13,044,201,261 |
7,442,231,382 |
5,601,969,879 |
13,044,201,261 |
Basic and diluted earnings per share - in U.S. dollars |
1.50 |
1.50 |
1.50 |
0.64 |
0.64 |
0.64 |
Basic and diluted earnings per ADS equivalent - in U.S. dollars (*) |
3.00 |
3.00 |
3.00 |
1.28 |
1.28 |
1.28 |
|
|
|
Apr-Jun/2022 |
|
Apr-Jun/2021 |
|
Common |
Preferred |
Total |
Common |
Preferred |
Total |
Net income attributable to shareholders of Petrobras |
6,282 |
4,728 |
11,010 |
4,633 |
3,488 |
8,121 |
Weighted average number of outstanding shares |
7,442,231,382 |
5,601,969,879 |
13,044,201,261 |
7,442,231,382 |
5,601,969,879 |
13,044,201,261 |
Basic and diluted earnings per share - in U.S. dollars |
0.84 |
0.84 |
0.84 |
0.62 |
0.62 |
0.62 |
Basic and diluted earnings per ADS equivalent - in U.S. dollars (*) |
1.68 |
1.68 |
1.68 |
1.24 |
1.24 |
1.24 |
(*) Petrobras' ADSs are equivalent to two shares. |
Basic earnings per share are calculated by dividing
the net income attributable to shareholders of Petrobras by the weighted average number of outstanding shares during the period.
Diluted earnings per share are calculated by adjusting
the net income attributable to shareholders of Petrobras and the weighted average number of outstanding shares during the period taking
into account the effects of all dilutive potential shares (equity instrument or contractual arrangements that are convertible into shares).
Basic and diluted earnings are identical as the
Company has no potentially dilutive shares.
| 26. | Fair value of financial assets
and liabilities |
|
Level I |
Level II |
Level III |
Total fair
value
recorded |
Assets |
|
|
|
|
Marketable securities |
622 |
- |
- |
622 |
Commodity derivatives |
39 |
4 |
- |
43 |
Balance at June 30, 2022 |
661 |
4 |
- |
665 |
Balance at December 31, 2021 |
650 |
23 |
− |
673 |
|
|
|
|
|
Liabilities |
|
|
|
|
Foreign currency derivatives |
- |
(273) |
- |
(273) |
Interest rate derivatives |
− |
(7) |
- |
(7) |
Balance at June 30, 2022 |
− |
(280) |
- |
(280) |
Balance at December 31, 2021 |
(1) |
(272) |
− |
(273) |
|
|
|
|
|
The estimated fair value for the Company’s
non-current debt, computed based on the prevailing market rates, is set out in note 23.
Certain receivables are classified as fair value
through profit or loss, as presented in note 9.
The fair values of cash and cash equivalents, current
debt and other financial assets and liabilities are equivalent or do not differ significantly from their carrying amounts.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
| 27.1. | Derivative financial instruments |
A summary of the positions of the derivative financial
instruments held by the Company and recognized in other current assets and liabilities as of June 30, 2022 , as well as the amounts recognized
in the statement of income and other comprehensive income and the guarantees given is set out as follows:
|
|
Statement of Financial Position |
|
|
|
|
Fair value |
|
|
Notional value |
Asset Position (Liability) |
Maturity |
|
06.30.2022 |
12.31.2021 |
06.30.2022 |
12.31.2021 |
|
Derivatives not designated for hedge accounting |
|
|
|
|
|
Future contracts - total (*) |
(3,884) |
(1,308) |
39 |
(1) |
|
Long position/Crude oil and oil products |
5,242 |
1,380 |
- |
- |
2022 |
Short position/Crude oil and oil products |
(9,126) |
(2,688) |
- |
- |
2022 |
Swap (**) |
|
|
|
|
− |
Long put/ Soybean oil (**) |
(13) |
(11) |
2 |
- |
2022 |
Options |
|
|
|
|
|
Long put/ Soybean oil (**) |
(25) |
− |
2 |
- |
2022 |
Forward contracts |
|
|
|
|
|
Short position/Foreign currency (BRL/USD) (***) |
US$ 64 |
US$ 15 |
(3) |
- |
2022 |
Short position/Foreign currency (EUR/USD) (***) |
EUR 94 |
- |
(1) |
− |
2022 |
Swap |
|
|
|
|
|
Foreign currency / Cross-currency Swap (***) |
GBP 583 |
GBP 583 |
(31) |
23 |
2026 |
Foreign currency / Cross-currency Swap (***) |
GBP 442 |
GBP 442 |
(137) |
(50) |
2034 |
Swap - IPCA |
R$ 3,008 |
R$ 3,008 |
(7) |
(1) |
2029/2034 |
Foreign currency / Cross-currency Swap (***) |
US$ 729 |
US$ 729 |
(102) |
(221) |
2024/2029 |
Total recognized in the Statement of Financial Position |
|
|
(238) |
(250) |
|
(*) Notional value in thousands of bbl. |
(**) Notional value in thousands of tons. |
(***) Amounts in US$, GBP, EUR and R$ are presented in million.
|
|
Gains/ (losses) recognized in the statement of income |
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Apr-Jun/2022 |
Apr-Jun/2021 |
Commodity derivatives |
|
|
|
|
Other commodity derivative transactions - 27.2 (a) |
(222) |
(42) |
(169) |
(19) |
Recognized in Other Income and Expenses |
(222) |
(42) |
(169) |
(19) |
Currency derivatives |
|
|
|
|
Swap Pounds Sterling x Dollar - 27.3 (b) |
(156) |
(3) |
(126) |
(32) |
NDF – Pounds Sterling x Dollar - 27.3 (b) |
− |
9 |
− |
5 |
Swap CDI x Dollar - 27.3 (b) |
147 |
56 |
(22) |
84 |
Others |
− |
1 |
− |
− |
|
(9) |
63 |
(148) |
57 |
Interest rate derivatives |
|
|
|
|
Swap - CDI X IPCA |
(16) |
(10) |
(15) |
18 |
|
(16) |
(10) |
(15) |
18 |
Cash flow hedge on exports (*) |
(2,488) |
(2,307) |
(1,108) |
(1,194) |
Recognized in Net finance income (expense) |
(2,513) |
(2,254) |
(1,271) |
(1,119) |
Total |
(2,735) |
(2,296) |
(1,440) |
(1,138) |
(*) As presented in note 27.3 |
|
|
|
|
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
|
Gains/ (losses) recognized in other comprehensive income |
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Apr-Jun/2022 |
Apr-Jun/2021 |
Cash flow hedge on exports (*) |
7,561 |
4,758 |
(5,415) |
9,236 |
|
|
|
|
|
(*) As presented in note 27.3 |
|
|
|
|
|
|
|
Guarantees given as collateral |
|
|
|
06.30.2022 |
12.31.2021 |
Commodity derivatives |
|
|
111 |
15 |
Currency derivatives |
|
|
134 |
27 |
Total |
|
|
245 |
42 |
A sensitivity analysis of the derivative financial
instruments for the different types of market risks as of June 30, 2022 is set out as follows:
Financial Instruments |
Risk |
Probable Scenario |
Reasonably possible
scenario |
Remote
Scenario |
Derivatives not designated for hedge accounting |
|
|
|
|
Future and forward contracts |
Crude oil and oil products - price changes |
- |
(192) |
(384) |
Future and forward contracts |
Soybean oil - price changes |
2 |
7 |
17 |
Option |
Soybean oil – price changes |
2 |
3 |
11 |
Non-deliverable forwards (NDF) |
Foreign currency - depreciation BRL x USD |
(3) |
18 |
33 |
|
|
1 |
(164) |
(323) |
The probable scenario uses market references, used
in pricing models for oil, oil products and natural gas markets, and takes into account the closing price of the asset on June 30, 2022.
Therefore, no variation is considered arising from outstanding operations in this scenario. The reasonably possible and remote scenarios
reflect the potential effects on the statement of income from outstanding transactions, considering a variation in the closing price of
25% and 50%, respectively. To simulate the most unfavorable scenarios, the variation was applied to each asset according to open transactions:
price decrease for long positions and increase for short positions.
| 27.2. | Risk management of products prices |
The Company is usually exposed to commodity price
cycles, although it may use derivative instruments to hedge exposures related to prices of products purchased and sold to fulfill operational
needs and in specific circumstances depending on business environment analysis and assessment of whether the targets of the Strategic
Plan are being met.
| a) | Other commodity derivative transactions |
Petrobras, by use of its assets, positions and
market knowledge from its operations in Brazil and abroad, occasionally seeks to optimize some of its commercial operations in the international
market, with the use of commodity derivatives to manage price risk.
| 27.3. | Foreign exchange risk management |
| a) | Cash Flow Hedge involving the
Company’s future exports |
The carrying amounts, the fair value as of June
30, 2022, and a schedule of expected reclassifications to the statement of income of cumulative losses recognized in other comprehensive
income (shareholders’ equity) based on a US$ 1.00 / R$ 5.2380 exchange rate are set out below:
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
|
|
|
Present value of hedging instrument notional
value at
06.30.2022 |
Hedging Instrument |
Hedged Transactions |
Nature
of the Risk |
Maturity
Date |
US$ million |
R$ million |
Foreign exchange gains and losses on proportion of non-derivative financial instruments cash flows |
Foreign exchange gains and losses of highly probable future monthly exports revenues |
Foreign Currency
– Real vs U.S. Dollar
Spot Rate |
July 2022 to June 2032 |
64,626 |
338,509 |
Changes in the present value of hedging instrument notional value |
US$ million |
R$ million |
Amounts designated as of December 31, 2021 |
72,640 |
405,370 |
Additional hedging relationships designated, designations revoked and hedging instruments re-designated |
6,162 |
32,036 |
Exports affecting the statement of income |
(5,794) |
(29,264) |
Principal repayments / amortization |
(8,382) |
(42,533) |
Foreign exchange variation |
- |
(27,100) |
Amounts designated as of June 30, 2022 |
64,626 |
338,509 |
Nominal value of hedging instrument (finance debt and lease liability) at June 30, 2022 |
75,052 |
393,121 |
In the first half of 2022, the Company recognized
a US $83 loss within foreign exchange gains (losses) due to ineffectiveness (a US$ 15 gain in the same period of 2021).
The average ratio of future exports for which cash
flow hedge accounting was designated to the highly probable future exports is 62.77%.
A roll-forward schedule of cumulative foreign exchange
losses recognized in other comprehensive income as of June 30, 2022 is set out below:
|
Exchange rate variation |
Tax effect |
Total |
Balance at December 31, 2021 |
(36,621) |
12,452 |
(24,169) |
Recognized in Other comprehensive income |
5,073 |
(1,725) |
3,348 |
Reclassified to the statement of income - occurred exports |
2,488 |
(846) |
1,642 |
Balance at June 30, 2022 |
(29,060) |
9,881 |
(19,179) |
|
|
|
|
|
Exchange rate variation |
Tax effect |
Total |
Balance at December 31, 2020 |
(37,257) |
12,667 |
(24,590) |
Recognized in Other comprehensive income |
2,451 |
(833) |
1,618 |
Reclassified to the statement of income - occurred exports |
2,307 |
(784) |
1,523 |
Balance at June 30, 2021 |
(32,499) |
11,050 |
(21,449) |
Additional hedging relationships may be revoked
or additional reclassification adjustments from equity to the statement of income may occur as a result of changes in forecasted export
prices and export volumes following a revision of the Company’s strategic plan. Based on a sensitivity analysis considering a US$ 10/barrel
decrease in Brent prices stress scenario, when compared to the Brent price projections in the Strategic Plan 2022-2026, would not indicate
a reclassification from equity to the statement of income.
A schedule of expected reclassification of cumulative
foreign exchange losses recognized in other comprehensive income to the statement of income as of June 30, 2022 is set out below:
|
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 a 2031 |
Total |
Expected realization |
(4,281) |
(7,051) |
(5,289) |
(3,329) |
(2,828) |
(3,040) |
(3,242) |
(29,060) |
|
|
|
|
|
|
|
|
|
| b) | Information on ongoing contracts |
As of June 30, 2022, the Company has outstanding
swap contracts - IPCA x CDI and CDI x Dollar, as well as Swap - Pound sterling x Dollar.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Swap contracts – IPCA x
CDI and CDI x Dollar
Changes in future interest rate curves (CDI) may
have an impact on the Company's results, due to the market value of these swap contracts. The parallel shock was estimated from the average
term of swap contracts (25% of the future interest rate). A sensitivity analysis on CDI through a parallel shock keeping all other variables
remaining constant, would result in the impacts shown in the following table:
Sensitivity Analysis |
Result |
Parallel increase of 300 basis points |
(29) |
Parallel reduction of 300 basis points |
48 |
| c) | Sensitivity analysis for foreign
exchange risk on financial instruments |
A sensitivity analysis is set out below, showing
the probable scenario for foreign exchange risk on financial instruments, computed based on external data along with reasonably possible
and remote scenarios (25% and 50% changes in the foreign exchange rates prevailing on June 30, 2022, respectively), except for assets
and liabilities of foreign subsidiaries, when transacted in a currency equivalent to their respective functional currencies. This analysis
only covers the exchange rate variation and maintains all other variables constant.
Financial Instruments |
Exposure at 06.30.2022 |
Risk |
Probable Scenario (*) |
Reasonably possible
scenario |
Remote
Scenario |
Assets |
4,458 |
|
10 |
1,115 |
2,229 |
Liabilities |
(86,164) |
Dollar/Real |
(197) |
(21,541) |
(43,082) |
Exchange rate - Cross currency swap |
(574) |
|
(1) |
(144) |
(287) |
Cash flow hedge on exports |
64,626 |
|
148 |
16,156 |
32,313 |
|
(17,654) |
|
(40) |
(4,414) |
(8,827) |
Assets |
3 |
Euro/Real |
− |
1 |
2 |
Liabilities |
(128) |
|
(1) |
(32) |
(64) |
|
(125) |
|
(1) |
(31) |
(62) |
Assets |
936 |
Euro/Dollar |
3 |
234 |
468 |
Liabilities |
(1,869) |
|
(6) |
(467) |
(935) |
|
(933) |
|
(3) |
(233) |
(467) |
Assets |
2 |
Pound/Real |
− |
1 |
1 |
Liabilities |
(20) |
|
− |
(5) |
(10) |
|
(18) |
|
− |
(4) |
(9) |
Assets |
1,661 |
Pound/Dollar |
5 |
415 |
830 |
Liabilities |
(3,267) |
|
(9) |
(817) |
(1,634) |
Derivative - cross currency swap |
1,246 |
|
4 |
312 |
623 |
|
(360) |
|
− |
(90) |
(181) |
Total at June 30, 2022 |
(19,090) |
|
(44) |
(4,772) |
(9,546) |
(*) At June 30, 2022, the probable scenario was computed based on the following risks: R$ x U.S. Dollar - a 0.23% depreciation of the Real; Euro x U.S. Dollar: a 0.3% appreciation of the Euro; Pound Sterling x U.S. Dollar: a 0.29% appreciation of the Pound Sterling; Real x Euro: a 0.5% depreciation of the Real; and Real x Pound Sterling - a 0.5% depreciation of the Real. Source: Focus and Thomson Reuters. |
| 27.4. | Interest rate risk management |
The Company considers that interest rate risk does
not create a significant exposure and therefore, preferably does not use derivative financial instruments to manage interest rate risk,
except for specific situations faced by certain subsidiaries of Petrobras.
The sensitivity analysis of interest rate risk
presented in the table below is carried out for a 12-month term. Amounts referring to reasonably possible and remote scenarios mean the
total floating interest expense if there is a variation of 25% and 50% in these interest rates, respectively, maintaining all other variables
constant.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Risk |
|
Probable Scenario (*) |
Reasonably possible
scenario |
Remote
Scenario |
LIBOR 3M |
|
9 |
11 |
12 |
LIBOR 6M |
|
529 |
603 |
677 |
CDI |
|
138 |
173 |
207 |
TJLP |
|
69 |
87 |
104 |
IPCA |
|
89 |
111 |
133 |
|
|
834 |
985 |
1,133 |
(*) The probable scenario was calculated considering the quotations of currencies and floating rates to which the debts are indexed. |
| 27.5. | Liquidity risk management |
The possibility of a shortage of cash or other
financial assets in order to settle the Company’s obligations on the agreed dates is managed by the Company. Following its liability
management strategy, the Company regularly evaluates market conditions and may enter into transactions to repurchase its own securities
or those of its affiliates, through a variety of means, including tender offers, make whole exercises and open market repurchases, in
order to improve its debt repayment profile and cost of debt.
| 28. | Related-party transactions |
| 28.1. | Transactions with joint ventures,
associates, government entities and pension plans |
The Company has engaged, and expects to continue
to engage, in the ordinary course of business in numerous transactions with joint ventures, associates, pension plans, as well as with
the Company’s controlling shareholder, the Brazilian Federal Government, which include transactions with banks and other entities
under its control, such as financing and banking, asset management and other transactions.
The balances of significant transactions are set
out in the following table:
|
|
06.30.2022 |
|
12.31.2021 |
|
|
|
|
|
|
Assets |
Liabilities |
Assets |
Liabilities |
Joint ventures and associates |
|
|
|
|
State-controlled gas distributors (joint ventures) |
205 |
51 |
255 |
42 |
Petrochemical companies (associates) |
2 |
10 |
26 |
12 |
Other associates and joint ventures |
96 |
1 |
104 |
13 |
Subtotal |
303 |
62 |
385 |
67 |
Brazilian government – Parent and its controlled entities |
|
|
|
|
Government bonds |
1,767 |
- |
1,446 |
- |
Banks controlled by the Brazilian Government |
9,825 |
1,611 |
8,417 |
1,267 |
Petroleum and alcohol account - receivables from the Brazilian Government |
582 |
- |
506 |
- |
Brazilian Federal Government - dividends payable |
− |
1,327 |
− |
− |
Others |
52 |
54 |
28 |
54 |
Subtotal |
12,226 |
2,992 |
10,397 |
1,321 |
Pension plans |
57 |
32 |
51 |
61 |
Total |
12,586 |
3,086 |
10,833 |
1,449 |
Current |
2,678 |
2,039 |
2,110 |
315 |
Non-Current |
9,908 |
1,047 |
8,723 |
1,134 |
Total |
12,586 |
3,086 |
10,833 |
1,449 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
The income/expenses of significant transactions
are set out in the following table:
|
2022 |
2021 |
2022 |
2021 |
|
Jan-Jun |
Jan-Jun |
Apr-Jun |
Apr-Jun |
|
|
|
|
|
Joint ventures and associates |
|
|
|
|
BR Distribuidora (now called Vibra Energia) |
− |
7,608 |
− |
4,298 |
Natural Gas Transportation Companies |
− |
(304) |
− |
(59) |
State-controlled gas distributors (joint ventures) |
1,196 |
1,034 |
622 |
585 |
Petrochemical companies (associates) |
2,457 |
1,590 |
1,332 |
822 |
Other associates and joint ventures |
89 |
119 |
60 |
77 |
Subtotal |
3,742 |
10,047 |
2,014 |
5,723 |
Brazilian government – Parent and its controlled entities |
|
|
|
|
Government bonds |
93 |
20 |
51 |
13 |
Banks controlled by the Brazilian Government |
(30) |
(93) |
(51) |
(30) |
Receivables from the Electricity sector |
− |
112 |
− |
97 |
Petroleum and alcohol account - receivables from the Brazilian Government |
46 |
22 |
27 |
11 |
Brazilian Federal Government - dividends |
(77) |
(4) |
(77) |
(4) |
Empresa Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S.A. – PPSA |
(171) |
(67) |
(132) |
(36) |
Others |
(5) |
(33) |
(16) |
(43) |
Subtotal |
(144) |
(43) |
(198) |
8 |
Total |
3,598 |
10,004 |
1,816 |
5,731 |
Revenues, mainly sales revenues |
3,800 |
10,604 |
2,019 |
5,870 |
Purchases and services |
5 |
(486) |
1 |
(106) |
Income (expenses) |
(245) |
(147) |
(156) |
(104) |
Foreign exchange and inflation indexation charges, net |
(31) |
(45) |
(43) |
(5) |
Finance income (expenses), net |
69 |
78 |
(5) |
76 |
Total |
3,598 |
10,004 |
1,816 |
5,731 |
The liability related to pension plans of the Company's
employees and managed by the Petros Foundation, including debt instruments, is presented in note 12.
| 28.2. | Compensation of key management
personnel |
The criteria for compensation of members of
the Board of Directors and the Board Executive Officers is based on the guidelines established by the Secretariat of Management and Governance
of the State-owned Companies (SEST) of the Ministry of Economy, and by the MME. The total compensation is set out as follows:
|
|
Jan-Jun/2022 |
|
Jan-Jun/2021 |
|
Executive Officers |
Board of Directors |
Total |
Executive Officers |
Board of Directors |
Total |
Wages and short-term benefits |
1.3 |
− |
1.3 |
1.3 |
− |
1.3 |
Social security and other employee-related taxes |
0.4 |
− |
0.4 |
0.3 |
− |
0.3 |
Post-employment benefits (pension plan) |
0.2 |
− |
0.2 |
0.1 |
− |
0.1 |
Benefits due to termination of tenure |
0.1 |
- |
0.1 |
0.2 |
- |
0.2 |
Total compensation recognized in the statement of income |
2.0 |
− |
2.0 |
1.9 |
− |
1.9 |
Total compensation paid (*) |
4.1 |
− |
4.1 |
3.9 |
− |
3.9 |
Average number of members in the period (**) |
9.00 |
11.00 |
20.00 |
9.00 |
10.33 |
19.33 |
Average number of paid members in the period (***) |
9.00 |
2.83 |
11.83 |
9.00 |
5.00 |
14.00 |
(*) The variable compensation (PPP) paid to management is included in the Executive Officers columns. |
(**) Monthly average number of members. |
(***) Monthly average number of paid members. |
In the six-month period ended June 30, 2022, expenses
related to compensation of the board members and executive officers of Petrobras amounted to US$ 5.8 (US$ 6.2 for the same period
of 2021).
On April 13, 2022, the Company’s Annual Shareholders’
Meeting set the threshold for the overall compensation for executive officers and board members at US$ 8 (R$ 39.5 million) from
April 2021 to March 2022.
The compensation of the Advisory Committees to
the Board of Directors is separate from the fixed compensation set for the Board Members and, therefore, has not been classified under
compensation of Petrobras’ key management personnel.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
In accordance with Brazilian regulations applicable
to companies controlled by the Brazilian Federal Government, Board members who are also members of the Statutory Audit Committees are
only compensated with respect to their Audit Committee duties. The total compensation concerning these members was US$ 340 thousand
for the six-month period ended June 30, 2022 (US$ 408 thousand with tax and social security costs). For the same period of 2021,
the total compensation concerning these members was US$ 245 thousand (US$ 290 thousand with tax and social security costs).
| 29. | Supplemental information on statement
of cash flows |
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Amounts paid/received during the period: |
|
|
Withholding income tax paid on behalf of third-parties |
604 |
386 |
Transactions not involving cash |
|
|
Purchase of property, plant and equipment on credit |
19 |
- |
Lease |
3,168 |
1,094 |
Provision/(reversals) for decommissioning costs |
10 |
(1) |
Use of tax credits and judicial deposit for the payment of contingency |
1,137 |
- |
Remeasurement of property, plant and equipment acquired in previous periods |
38 |
- |
The final balance of Cash and cash equivalents
in the Statements of Cash Flows includes amounts related to assets classified as held for sale, as shown in the reconciliation below:
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Reconciliation of the balance at the beginning of the period |
|
|
Cash and cash equivalents in statements of financial position |
10,467 |
11,711 |
Cash and cash equivalents classified as assets held for sale |
13 |
14 |
Cash and cash equivalents according to Statements of Cash Flows (opening balance) |
10,480 |
11,725 |
Reconciliation of the balance at the end of the period |
|
|
Cash and cash equivalents in statements of financial position |
16,287 |
9,821 |
Cash and cash equivalents classified as assets held for sale |
7 |
1 |
Cash and cash equivalents according to Statements of Cash Flows (closing balance) |
16,294 |
9,822 |
Agreement with ANP on the collection of royalties
on the exploration of shale oil
On July 1, 2022, Petrobras signed an agreement
with the Brazilian Agency of Petroleum, Natural Gas and Biofuels (ANP), in the amount of US$ 115 (R$ 601 million), previously
approved by the Board of Directors and the Board of Executive Officers in October 2021, related to the collection of royalties on the
operation of Unidade de Industrialização de Xisto - SIX (a shale processing plant), located in the state of Paraná,
as well as an agreement to regulate the exploration and production of oil and gas from shale at this plant. This amount will be paid by
Petrobras with a down payment of US$ 29 (R$ 150 million) and the remaining balance in 60 monthly installments..
The effectiveness of the agreement is subject to
its judicial approval, so that, with said approval, all legal and administrative proceedings related to the collection of royalties and
administrative fines arising from the exploration of shale oil at SIX will be terminated.
The amount of the agreement was previously provisioned
in Petrobras’ financial statements at December 31, 2021, considering the probability of future cash outflow.
Closing of the sale of Deten petrochemical plant
On July 5, 2022, Petrobras closed the sale of its
entire interest (27.88%) in Deten Química S.A (Deten), a petrochemical plant, after fulfilling all conditions precedent, with the
receipt of US$ 98 (R$ 514 million), adjusted by dividends received since the transaction signing.
Information on the agreement signed in April 2022
is described in note 22, and the result arising from this operation will be recognized in the third quarter of 2022.
Credit line with sustainability commitments
On July 8, 2022, the Company signed with Bank of
China, MUFG and The Bank of Nova Scotia, a credit line with sustainability commitments (Sustainability-Linked Loan - SLL), in the amount
of US$ 1,250, maturing in July 2027. This agreement includes incentives for the achievement of sustainability commitments,
based on corporate performance indicators of Greenhouse Gas (GHG) Intensity in the E&P and Refining segments, as well as of Methane
Intensity in the E&P segment. The Company draw down the full amount in July 2022.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Sale of the Company’s entire interest
in Gaspetro
On July 11, 2022, Petrobras finalized the sale
of its remaining 51% interest in Petrobras Gás S.A. (Gaspetro) to Compass Gás e Energia S.A. (Compass). The transaction
was closed in the amount of US$ 400 (R$ 2,097 million), fully paid on that date.
The result arising from this operation will be
recognized in the third quarter of 2022.
Settlement of tender offer
On July 15, 2022, Petrobras concluded the tender
offer to buy back global notes maturing between 2024 and 2115, made by its wholly-owned subsidiary PGF BV. The principal amount delivered
by investors, excluding unpaid accrued interest, was US$ 854. The total amount paid was US$ 791, considering the prices offered
and excluding accrued interest until the closing date.
Conduct Adjustment Agreement with ANP
On July 27, 2022, Petrobras approved the execution
with the ANP of a Conduct Adjustment Agreement (TAC) for compensation of local content fines related to 22 concessions in which Petrobras
has a 100% interest, located in the Barreirinhas, Campos, Espírito Santo, Parecis, Potiguar, Recôncavo, Santos, Sergipe-Alagoas
and Solimões basins.
The TAC provides for the conversion of fines into
investment commitments in Exploration and Production with local content. Under the terms of the agreement, Petrobras is committed to investing
US$ 191 (R$1,000 million) in local content by December 31, 2026. Thus, all administrative proceedings related to the collection of fines
arising from non-compliance with local content in these concessions will be terminated, resulting in a reduction in the liability and
a reversal of exploration costs, in the amount of US$ 127, on June 30, 2022.
Distribution of remuneration to shareholders
On July 28, 2022, Petrobras’s Board of Directors
approved the distribution of remuneration to shareholders in the amount of US$ 16,839, or R$ 87,814 million (US$ 1.2909
per outstanding preferred and common shares, or R$ 6.732003), of which US$ 9,778, or R$ 50,993 million, as an anticipation
based on the net income for the three-month period ended June 30, 2022, and US$ 7,061, or R$ 36,821 million, as an intermediate
distribution by use of a portion of the the profit retention reserve, as presented in the following table:
|
Date of register |
Amount per Share |
Amount |
Anticipation of dividends |
08.11.2022 |
0.6677 |
8,710 |
Anticipation of interest on capital |
08.11.2022 |
0.0819 |
1,068 |
Total anticipations based on the net income of Apr-Jun/2022 |
|
0.7496 |
9,778 |
Intermediate dividends by use of a portion of profit retention reserve |
08.11.2022 |
0.5413 |
7,061 |
Total distribution to shareholders |
|
1.2909 |
16,839 |
Outstanding preferred shares |
|
1.2909 |
7,232 |
Outstanding common shares |
|
1.2909 |
9,607 |
Amounts translated into U.S. dollar based on the exchange rate prevailing at the date of the approval. |
These dividends and interest on capital will be
paid in two equal installments, on August 31 and September 20, 2022, and will be deducted from the remuneration that will be distributed
to shareholders relating to the fiscal year 2022.
For the purpose of calculating the total dividends
to be paid relating to the fiscal year 2022, these amounts will be adjusted by the Selic rate from the date of the payments to the end
of the fiscal year.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Report
of Independent Registered Public Accounting Firm
KPMG Auditores Independentes Ltda.
Rua do Passeio, 38 - Setor 2 - 17º andar - Centro
20021-290 - Rio de Janeiro/RJ - Brasil
Caixa Postal 2888 - CEP 20001-970 - Rio de Janeiro/RJ - Brasil
Telefone +55 (21) 2207-9400
kpmg.com.br
Report of independent registered public accounting firm
The Shareholders and Board of Directors of
Petróleo Brasileiro S.A. - Petrobras
Results of review of consolidated interim financial statements
We have reviewed the consolidated interim statement of financial position
of Petróleo Brasileiro S.A. - Petrobras and subsidiaries (the “Company”) as of June 30, 2022, the related consolidated
statements of income and comprehensive income for the three and six-month periods ended June 30, 2022 and 2021, the related consolidated
statements of changes in shareholders’ equity and cash flows for the six-month periods ended June 30, 2022 and 2021, and the related
notes (collectively, the consolidated interim financial statements). Based on our reviews, we are not aware of any material modifications
that should be made to the consolidated interim financial statements for it to be in accordance with IAS 34 - Interim Financial Reporting,
as issued by the International Accounting Standards Board (IASB).
We have previously audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Company as of December
31, 2021, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows
for the year then ended (not presented herein); and in our report dated March 30, 2022, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the accompanying consolidated statement of financial position as of
December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which
it has been derived.
Basis for review results
These consolidated interim financial statements are the responsibility of
the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect
to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our reviews in accordance with the standards of the PCAOB.
A review of consolidated interim financial statements consists principally of applying analytical procedures and making inquiries of persons
responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards
of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly,
we do not express such an opinion.
/s/ KPMG Auditores Independentes Ltda.
Rio de Janeiro - RJ
July 28, 2022