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 November, 2022
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 Henrique Valadares, 28 – 19th floor
20231-030 – 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____
|
Financial Information
Jan-Sep/2022
—
|
B3: PETR3 (ON) | PETR4 (PN)
NYSE: PBR (ON) | PBRA (PN)
www.petrobras.com.br/ir
petroinvest@petrobras.com.br
+ 55 21 3224-1510
Disclaimer
This presentation contains some financial indicators that are not
recognized by GAAP or the IFRS. The indicators presented herein 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 and liquidity; they should not be considered in
isolation or as a substitute for other financial metrics that have
been disclosed in accordance with IFRS. See definitions of EBITDA,
Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted Cash and Cash
Equivalents, Net Debt, Gross Debt, Free Cash Flow, and Leverage in
the Glossary and their reconciliations in the sections Liquidity
and Capital Resources, Reconciliation of LTM Adjusted EBITDA, Gross
Debt/LTM Adjusted EBITDA and Net Debt/LTM Adjusted EBITDA metrics
and Consolidated Debt.
TABLE OF CONTENTS
CONSOLIDATED RESULTS
The
main functional currency of the Petrobras Group is the Brazilian
real, which is the functional currency of the parent company and
its Brazilian subsidiaries. As the presentation currency of the
Petrobras Group is the U.S. dollar, the results of operations in
Brazilian reais are translated into U.S. dollars using the average
exchange rates prevailing during the period (average exchange rate
of R$/US$ 5.13 in Jan-Sep/2022 compared to R$/US$ 5.33 in
Jan-Sep/2021).
Key Financial Information
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change
(%)
|
|
Sales
revenues |
94,303 |
59,935 |
57.3 |
|
Cost of
Sales |
(43,894) |
(29,712) |
47.7 |
|
Gross
profit |
50,409 |
30,223 |
66.8 |
| Income
(expenses) |
(4,414) |
(2,961) |
49.1 |
|
Consolidated
net income attributable to the shareholders of
Petrobras |
28,378 |
14,239 |
99.3 |
|
Net cash
provided by operating activities |
36,869 |
28,595 |
28.9 |
|
Adjusted
EBITDA |
52,314 |
32,279 |
62.1 |
|
Average
Brent crude (US$/bbl) |
105.35 |
67.73 |
55.5 |
|
Average
Crude Oil sales price (US$/bbl) |
99.79 |
64.19 |
55.5 |
|
Average
Domestic basic oil products price (US$/bbl) |
124.23 |
74.05 |
67.8 |
|
US$ million |
09.30.2022 |
12.31.2021 |
Change
(%)
|
|
Gross
Debt |
54,268 |
58,743 |
(7.6) |
|
Net
Debt |
47,483 |
47,626 |
(0.3) |
| Gross
Debt/LTM Adjusted EBITDA ratio |
0.85 |
1.35 |
(37.0) |
| Net
Debt/LTM Adjusted EBITDA ratio |
0.75 |
1.09 |
(31.2) |
Sales Revenues
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change
(%)
|
|
Diesel |
29,849 |
17,480 |
70.8 |
|
Gasoline |
12,143 |
8,148 |
49.0 |
|
Liquefied
petroleum gas (LPG) |
3,978 |
3,327 |
19.6 |
|
Jet
fuel |
3,925 |
1,456 |
169.6 |
|
Naphtha |
1,964 |
1,219 |
61.1 |
|
Fuel oil
(including bunker fuel) |
1,099 |
1,268 |
(13.3) |
|
Other oil
by-products |
4,373 |
3,080 |
42.0 |
|
Subtotal
Oil By-Products |
57,331 |
35,978 |
59.4 |
|
Natural
gas |
5,691 |
4,086 |
39.3 |
|
Crude
oil |
6,418 |
80 |
7,922.5 |
|
Renewables
and nitrogen products |
230 |
34 |
576.5 |
|
Revenues
from non-exercised rights |
462 |
200 |
131.0 |
|
Electricity |
543 |
2,172 |
(75.0) |
|
Services,
agency and others |
799 |
568 |
40.7 |
|
Total
domestic market |
71,474 |
43,118 |
65.8 |
|
Exports |
20,620 |
16,103 |
28.1 |
|
Crude
oil |
14,042 |
11,642 |
20.6 |
|
Fuel
oil (including bunker fuel) |
5,904 |
3,624 |
62.9 |
|
Other
oil by-products and other products |
674 |
837 |
(19.5) |
|
Sales
abroad * |
2,209 |
714 |
209.4 |
|
Total
foreign market |
22,829 |
16,817 |
35.7 |
|
Total |
94,303 |
59,935 |
57.3 |
|
*
Sales revenues from operations
outside of Brazil, including trading and excluding
exports.
|
|
|
|
Sales revenues were US$ 94,303 million for the period Jan-Sep/2022,
a 57.3% increase (US$ 34,368 million) when compared to US$ 59,935
million for the period Jan-Sep/2021, mainly due to:
|
(i) |
a US$
21,353 million increase in domestic oil by-products revenues, of
which US$ 22,437 million relates to an increase in average Brent
prices, compensated by US$ 1,084 million related to a decrease in
volume; and |
|
(ii) |
a US$
8,738 million increase in crude oil revenues, of which US$ 7,367
million relates to an increase in average Brent prices, and US$
1,371 million relates to an increase in volume. |
Cost of Sales
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change
(%)
|
|
Raw
material, products for resale, materials and third-party services
* |
(22,868) |
(13,505) |
69.3 |
|
Depreciation,
depletion and amortization |
(7,993) |
(6,770) |
18.1 |
|
Production
taxes |
(11,794) |
(7,962) |
48.1 |
|
Employee
compensation |
(1,239) |
(1,475) |
(16.0) |
|
Total |
(43,894) |
(29,712) |
47.7 |
* It
includes short-term leases and inventory turnover.
Cost of sales was US$ 43,894 million for the period Jan-Sep/2022, a
47.7% increase (US$ 14,182 million) when compared to US$ 29,712
million for the period Jan-Sep/2021, mainly due to:
|
· |
higher acquisition costs
of both imported oil and oil by-products due to higher Brent
prices; |
|
· |
higher production taxes
due to higher Brent prices; and |
|
· |
higher sales volumes of
crude oil. |
Income (Expenses)
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change
(%)
|
|
Selling
expenses |
(3,638) |
(3,137) |
16.0 |
|
General
and administrative expenses |
(956) |
(870) |
9.9 |
|
Exploration
costs |
(230) |
(538) |
(57.2) |
|
Research
and development expenses |
(613) |
(415) |
47.7 |
|
Other
taxes |
(245) |
(369) |
(33.6) |
|
Impairment
of assets |
(422) |
2,918 |
- |
|
Other
income and expenses, net |
1,690 |
(550) |
- |
|
Total |
(4,414) |
(2,961) |
49.1 |
Selling expenses were US$ 3,638 million for the period
Jan-Sep/2022, a 16.0% increase (US$ 501 million) compared to US$
3,137 million for the period Jan-Sep/2021, mainly due to higher
unit cost of freight, higher logistical expenses with offshore
trading operations and higher expenses related to natural gas,
whose fees were increased in the period, as provided for in the
transport contracts.
General and administrative expenses were US$ 956 million for the
period Jan-Sep/2022, a 9.9% increase (US$ 86 million) compared
to US$ 870 million for the period Jan-Sep/2021, mainly due to
inflation.
Impairment of assets were US$ 422 million for the period
Jan-Sep/2022 due to the postponement of the beginning of operations
of the Natural Gas Processing Unit (UPGN) of the Gaslub plant in
Itaboraí, permanent shutdown of the P-35 platform in the Marlim
field and losses related to divestments of the Golfinho and LUBNOR
clusters. In Jan-Sep/2021, US$ 2,918 million impairment reversals
were recognized, mainly due to (i) a US$ 3,262 million reversal
arising from producing properties relating to oil and gas
activities in Brazil due to the changes in short-term Brent
assumptions; (ii) a US$ 27 million reversal arising from the
decision to use certain equipment that were previously part of
platforms P-72 and P-73 in producing fields in the Santos basin;
(iii) a US$ 190 million loss arising from the decision to
discontinue the use of P-33 and P-26 platforms in the Marlim field;
(iv) a US$ 90 million loss arising from the approval of the sale of
the company Breitener Energética S.A., located in Manaus, in the
state of Amazonas; (v) a US$ 79 million loss arising from the
decision to sell the thermoelectric power plants Arembepe, Muryci
and Bahia 1, located in Camaçari, in the state of Bahia.
Net finance (expense)
income
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change
(%)
|
|
Finance
income |
1,396 |
555 |
151.5 |
|
Income
from investments and marketable securities (Government
Bonds) |
872 |
174 |
401.1 |
|
Other
income, net |
524 |
381 |
37.5 |
|
Finance
expenses |
(2,506) |
(4,270) |
(41.3) |
|
Interest
on finance debt |
(1,786) |
(2,325) |
(23.2) |
|
Unwinding
of discount on lease liabilities |
(961) |
(895) |
7.4 |
|
Discount
and premium on repurchase of debt securities |
(120) |
(1,098) |
(89.1) |
|
Capitalized
borrowing costs |
795 |
747 |
6.4 |
|
Unwinding
of discount on the provision for decommissioning costs |
(394) |
(579) |
(32.0) |
|
Other
finance expenses and income, net |
(40) |
(120) |
(66.7) |
| Foreign
exchange gains (losses) and indexation charges |
(3,016) |
(4,767) |
(36.7) |
|
Foreign
exchange gains (losses) |
(1) |
(1,956) |
(99.9) |
|
Reclassification
of hedge accounting to the Statement of Income |
(3,597) |
(3,339) |
7.7 |
|
Monetary
restatement of anticipated dividends and dividends payable
(*) |
118 |
7 |
1,585.7 |
|
Recoverable
taxes inflation indexation income (**) |
74 |
489 |
(84.9) |
|
Other
foreign exchange gains (losses) and indexation charges,
net |
390 |
32 |
1,118.8 |
|
Total |
(4,126) |
(8,482) |
(51.4) |
* In
2022, it refers to the income on the monetary restatement of paid
anticipated dividends, in the amount of US$ 417 (US$ 20 in 2021),
and to the expense on the indexation charges on dividends payable,
in the amount of US$ 299 (US$ 13 in 2021).
** In
2021, includes PIS and Cofins inflation indexation income -
exclusion of ICMS (VAT tax) from the basis of calculation.
Net
finance income (expense) was an expense of US$ 4,126 million for
the period Jan-Sep/2022, a decrease of US$ 4,356 million compared
to an expense of US$ 8,482 million for the period Jan-Sep/2021,
mainly due to:
|
· |
foreign exchange losses of
US$ 1 million in Jan-Sep/2022, as compared to US$ 1,956 million
loss in Jan-Sep/2021 reflecting a 3% appreciation of the real/US$
exchange rate in Jan-Sep/2022 (09/30/2022: R$ 5.41/US$, 12/31/2021
R$ 5.58/US$) compared to a 5% depreciation in Jan-Sep/2021
(09/30/2021: R$ 5.44/US$, 12/31/2020: R$ 5.20/US$), which applied
to a lower average net liability exposure to the US$ during
Jan-Sep/2022 than in Jan-Sep/2021; |
|
· |
lower interest on finance
debt of US$ 1,786 million in Jan-Sep/2022, as compared to US$ 2,325
million in Jan-Sep/2021, due to a decrease in the amount of our
debt; |
|
· |
lower discount and premium
on repurchase of debt securities of US$ 120 million in
Jan-Sep/2022, as compared to US$ 1,098 million in Jan-Sep/2021, due
to lower volume of debt repurchase; and |
|
· |
higher income from
investments and marketable securities (Government Bonds) of US$ 872
million in Jan-Sep/2022, as compared to US$ 174 million in
Jan-Sep/2021, due to higher average cash balances and interest
rates. |
Income tax expenses
Income
tax was an expense of US$ 13,763 million in Jan-Sep/2022, compared
to an expense of US$ 5,970 million in Jan-Sep/2021. The increase
was mainly due to higher net income before income taxes (US$ 42,242
million of income in Jan-Sep/2022 compared to a US$ 20,280 million
income in Jan-Sep/2021), resulting in nominal income taxes computed
based on Brazilian statutory corporate tax rates (34%) of US$
14,361 million in Jan-Sep/2022 compared to a US$ 6,896 million in
Jan-Sep/2021.
Net Income attributable to
shareholders of Petrobras
Net
income attributable to shareholders of Petrobras was US$ 28,378
million for the period Jan-Sep/2022, a US$ 14,139 million
increase compared to a net income of US$ 14,239 million for the
period Jan-Sep/2021, mainly due to business performance improvement
reflected in our Gross profit (US$ 50,409 million of income in
Jan-Sep/2022 compared to a US$ 30,223 million income in
Jan-Sep/2021) , led by higher oil prices and increased margins.
CAPITAL EXPENDITURES (CAPEX)
Capital
expenditures, or CAPEX, is based on the cost assumptions and
financial methodology adopted in our strategic plans, which
includes acquisition of intangible assets and property, plant and
equipment, investment in investees and other items that do not
necessarily qualify as cash flows used in investing activities,
comprising 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.
|
CAPEX (US$ million) |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change (%) |
|
Exploration
and Production (*) |
5,626 |
5,030 |
11.8 |
|
Refining,
Transportation and Marketing |
821 |
673 |
22.0 |
|
Gas and
Power |
251 |
252 |
(0.3) |
|
Corporate
and Other businesses |
274 |
186 |
47.3 |
|
Total |
6,972 |
6,141 |
13.5 |
(*) In Jan-Sep/2022, there is US$ 892 million of signature bonus
related to the Sépia and Atapu fields.
We invested a total of US$ 6,972 million in Jan-Sep/2022, of
which 80.7% was in the E&P segment, a 13.5% increase when
compared to our Capital Expenditures of US$ 6,141 million in
Jan-Sep/2021, mainly due to the impact of the signature bonus for
the Sépia and Atapu fields, following the co-participation
agreements 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. In line with our
Strategic Plan, our Capital Expenditures were primarily directed
toward investment projects in which Management believes are most
profitable, relating to oil and gas production.
In Jan-Sep/2022, investments in the E&P segment totaled
US$ 5,626 million, mainly concentrated on: (i) signature bonus
for the Sépia and Atapu fields (US$ 892 million); (ii) the
development of ultra-deep water production in the Santos Basin
pre-salt complex (US$ 1,961 million); (iii) exploratory
investments in the pre-salt and post-salt layers (US$ 377
million), and (iv) development of new projects for the production
in deep water of the post-salt layer (US$ 166 million).
LIQUIDITY AND CAPITAL RESOURCES
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
|
Adjusted
Cash and Cash Equivalents at the beginning of the
period |
11,117 |
12,370 |
|
Government
bonds and time deposits with maturities of more than 3 months at
the beginning of the period |
(650) |
(659) |
|
Cash and
cash equivalents in companies classified as held for sale at the
beginning of the period |
13 |
14 |
|
Cash
and cash equivalents at the beginning of the period |
10,480 |
11,725 |
|
Net
cash provided by operating activities |
36,869 |
28,595 |
|
Acquisition
of PP&E and intangibles assets |
(6,020) |
(4,640) |
|
Investments
in investees |
(20) |
(15) |
|
Proceeds
from disposal of assets – (Divestments) |
3,915 |
2,906 |
|
Financial
compensation from co-participation agreement |
5,334 |
2,938 |
|
Dividends
received |
319 |
294 |
|
Divestment
(Investment) in marketable securities |
(1,615) |
117 |
|
Net
cash provided by (used in) investing activities |
1,913 |
1,600 |
|
(=) Net
cash provided by operating and investing activities |
38,782 |
30,195 |
|
Proceeds
from finance debt |
2,530 |
1,754 |
|
Repayments
of finance debt |
(9,234) |
(22,360) |
|
Net change
in finance debt |
(6,704) |
(20,606) |
|
Repayment
of lease liability |
(4,006) |
(4,381) |
|
Dividends
paid to shareholders of Petrobras |
(33,671) |
(5,828) |
|
Dividends
paid to non-controlling interest |
(68) |
(75) |
|
Investments
by non-controlling interest |
43 |
(11) |
|
Net
cash used in financing activities |
(44,406) |
(30,901) |
|
Effect of
exchange rate changes on cash and cash equivalents |
(482) |
(94) |
|
Cash
and cash equivalents at the end of the period |
4,374 |
10,925 |
|
Government
bonds and time deposits with maturities of more than 3 months at
the end of the period |
2,411 |
537 |
|
Cash and
cash equivalents in companies classified as held for sale at the
end of the period |
- |
(6) |
|
Adjusted
Cash and Cash Equivalents at the end of the period |
6,785 |
11,456 |
|
|
|
|
|
Reconciliation
of Free Cash Flow |
|
|
|
Net cash
provided by operating activities |
36,869 |
28,595 |
|
Acquisition
of PP&E and intangibles assets |
(6,020) |
(4,640) |
|
Free
Cash Flow * |
30,849 |
23,955 |
* Free
cash flow (FCF) is in accordance with the Shareholder Remuneration
Policy, which is the result of the equation: FCF = net cash
provided by operating activities less acquisitions of PP&E and
intangible assets.
As of September 30, 2022, the balance of Cash and cash equivalents
was US$ 4,374 million and Adjusted Cash and Cash Equivalents
totaled US$ 6,785 million.
The nine-month period ended September 30, 2022 had net cash
provided by operating activities of US$ 36,869 million and positive
free cash flow of US$ 30,849 million. This level of cash
generation, together with proceeds from disposal of assets
(divestments) of US$ 3,915 million, financial compensation
from co-participation agreements of US$ 5,334 million and proceeds
from finance debt of US$ 2,530 million, were allocated to: (a)
debt prepayments and to amortizations of principal and interest due
in the period of US$ 9,234 million; (b) repayment of lease
liability of US$ 4,006 million; (c) dividends paid to
shareholders of Petrobras of US$ 33,671 million; (d) acquisition of
PP&E and intangibles assets of US$ 6,020 million; and (e)
investment in marketable securities of US$ 1,615 million.
The Company repaid several finance debts, in the amount of
US$ 9,234 million, notably US$ 4,962 million to
repurchase and withdraw global bonds previously issued by the
Company in the capital market.
In the nine-month period ended September 30, 2022, the Company
raised funds in the amount of US$ 2,530 million, of which (i)
US$ 1,244 million through a Sustainability-Linked Loan, in the
international banking market, maturing in 2027, and (ii)
US$ 573 million through the issuance of commercial notes in
the Brazilian capital market due in 2030 and 2032.
CONSOLIDATED DEBT
|
Debt (US$ million) |
09.30.2022 |
12.31.2021 |
Change (%) |
|
Capital
Markets |
16,800 |
22,031
|
(23.7) |
|
Banking
Market |
10,713 |
9,762
|
9.7 |
|
Development
banks |
721 |
769
|
(6.2) |
|
Export
Credit Agencies |
2,452 |
2,951
|
(16.9) |
|
Others |
169 |
187
|
(9.6) |
|
Finance
debt |
30,855 |
35,700
|
(13.6) |
|
Lease
liabilities |
23,413 |
23,043
|
1.6 |
|
Gross Debt |
54,268 |
58,743
|
(7.6) |
|
Adjusted
Cash and Cash Equivalents |
6,785 |
11,117
|
(39.0) |
|
Net
Debt |
47,483 |
47,626
|
(0.3) |
|
Leverage:
Net Debt/(Net Debt + Shareholders' Equity) |
41% |
41% |
- |
|
Average
interest rate (% p.a.) |
6.4 |
6.2
|
3.2 |
|
Weighted
average maturity of outstanding debt (years) |
12.04 |
13.39
|
(10.1) |
As of September 30, 2022, the Company’s maintained its liability
management strategy to improve the debt profile and to adapt to the
maturity terms of the Company’s long-term investments.
The cash flow generation and continuous liability management
allowed a reduction in our indebtedness. Gross Debt decreased 7.6%
(US$ 4,475 million) to US$ 54,268 million on September
30, 2022 from US$ 58,743 million on December 31, 2021. Gross
Debt was lower than the US$ 60,000 million target established for
2022, mainly due to debt prepayments and amortizations.
Net Debt was reduced by 0.3% (US$ 143 million), reaching US$ 47,483
million on September 30, 2022, compared to US$ 47,626 million on
December 31, 2021.
RECONCILIATION OF EBITDA, LTM
ADJUSTED EBITDA, GROSS DEBT/LTM ADJUSTED EBITDA AND NET DEBT/LTM
ADJUSTED EBITDA METRICS
LTM Adjusted EBITDA reflects the sum of the last twelve months of
Adjusted EBITDA, which is computed by using the EBITDA (net income
before net finance (expense) income, income taxes, depreciation,
depletion and amortization) adjusted by items not considered part
of the Company’s primary business, which include results in
equity-accounted investments, reclassification of comprehensive
income (loss) due to the disposal of equity-accounted investments,
results on disposal and write-offs of assets and on remeasurement
of investment retained with loss of control, impairment and results
from co-participation agreements in bid areas.
LTM
Adjusted EBITDA represents an alternative to the company's
operating cash generation. This measure is used to calculate the
metrics Gross Debt/LTM Adjusted EBITDA and Net Debt/LTM Adjusted
EBITDA, to support management’s assessment of liquidity and
leverage.
EBITDA, Adjusted EBITDA and Net
cash provided by operating activities – OCF
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change (%) |
|
Net
income |
28,479 |
14,310 |
99.0 |
|
Net
finance (expense) income |
4,126 |
8,482 |
(51.4) |
|
Income
taxes |
13,763 |
5,970 |
130.5 |
|
Depreciation,
depletion and amortization |
9,897 |
8,786 |
12.6 |
|
EBITDA |
56,265 |
37,548 |
49.8 |
|
Results in
equity-accounted investments |
(373) |
(1,500) |
(75.1) |
|
Impairment
of assets |
422 |
(2,918) |
- |
|
Reclassification
of comprehensive income (loss) due to the disposal of
equity-accounted investments |
- |
41 |
- |
|
Results on
disposal/write-offs of assets and on remeasurement of investment
retained with loss of control |
(1,138) |
(225) |
405.8 |
|
Results
from co-participation agreements in bid areas |
(2,862) |
(667) |
329.1 |
|
Adjusted
EBITDA |
52,314 |
32,279 |
62.1 |
|
Income
taxes |
(13,763) |
(5,970) |
130.5 |
|
Allowance
(reversals) for credit loss on trade and other
receivables |
42 |
(14) |
- |
|
Trade and
other receivables, net |
729 |
(1,487) |
- |
|
Inventories |
(2,595) |
(2,164) |
19.9 |
|
Trade
payables |
(341) |
850 |
- |
|
Deferred
income taxes, net |
2,239 |
3,998 |
(44.0) |
|
Taxes
payable |
328 |
3,505 |
(90.6) |
|
Others |
(2,085) |
(2,402) |
(13.2) |
|
Net
cash provided by operating activities – OCF |
36,869 |
28,595 |
28.9 |
LTM EBITDA, LTM Adjusted EBITDA,
LTM Net cash provided by operating
activities – OCF
| |
US$ million |
| |
Last
twelve months (LTM) at |
|
|
|
|
| |
09.30.2022 |
12.31.2021 |
Oct-Dec/2021 |
Jan-Mar/2022 |
Apr-Jun/2022 |
Jul-Sep/2022 |
| Net
income |
34,155 |
19,986 |
5,676 |
8,648 |
11,041 |
8,790 |
| Net
finance (expense) income |
6,610 |
10,966 |
2,484 |
(596) |
3,198 |
1,524 |
| Income
taxes |
16,032 |
8,239 |
2,269 |
4,566 |
5,309 |
3,888 |
| Depreciation,
depletion and amortization |
12,806 |
11,695 |
2,909 |
3,170 |
3,460 |
3,267 |
|
EBITDA |
69,603 |
50,886 |
13,338 |
15,788 |
23,008 |
17,469 |
| Results in
equity-accounted investments |
(480) |
(1,607) |
(107) |
(350) |
9 |
(32) |
| Impairment
of assets |
150 |
(3,190) |
(272) |
(1) |
168 |
255 |
| Reclassification
of comprehensive income (loss) due to the disposal of
equity-accounted investments |
- |
41 |
- |
- |
- |
- |
| Results on
disposal/write-offs of assets and on remeasurement of investment
retained with loss of control |
(2,857) |
(1,944) |
(1,719) |
(476) |
(370) |
(292) |
| Results
from co-participation agreements in bid areas |
(2,826) |
(631) |
36 |
- |
(2,872) |
10 |
|
Adjusted
EBITDA |
63,590 |
43,555 |
11,276 |
14,961 |
19,943 |
17,410 |
| Income
taxes |
(16,032) |
(8,239) |
(2,269) |
(4,566) |
(5,309) |
(3,888) |
| Allowance
(reversals) for credit loss on trade and other
receivables |
26 |
(30) |
(16) |
21 |
18 |
3 |
| Trade and
other receivables, net |
141 |
(2,075) |
(588) |
641 |
(584) |
672 |
| Inventories |
(2,765) |
(2,334) |
(170) |
(1,917) |
(117) |
(561) |
| Trade
payables |
(118) |
1,073 |
223 |
(138) |
(3) |
(200) |
| Deferred
income taxes, net |
2,299 |
4,058 |
60 |
1,961 |
28 |
250 |
| Taxes
payable |
1,701 |
4,878 |
1,373 |
1,260 |
543 |
(1,475) |
| Others |
(2,778) |
(3,095) |
(693) |
(1,915) |
(23) |
(147) |
|
Net
cash provided by operating activities – OCF |
46,064 |
37,791 |
9,196 |
10,308 |
14,496 |
12,064 |
Gross Debt/LTM Adjusted EBITDA
and Net Debt/LTM Adjusted EBITDA Metrics
The Gross Debt/LTM Adjusted EBITDA ratio and Net debt/LTM Adjusted
EBITDA metrics are important metrics that support our management in
assessing the liquidity and leverage of Petrobras Group. These
ratios are important measures for management to assess the
Company’s ability to pay off its debt, mainly because Gross Debt is
a Top Metric of our Strategic Plan 2022-2026.
The following table presents the reconciliation for those metrics
to the most directly comparable measure derived from IFRS captions,
which is in this case the Gross Debt Net of Cash and Cash
Equivalents/Net Cash provided by operating activities ratio:
| |
US$ million |
| |
|
|
| |
09.30.2022 |
12.31.2021 |
| Cash and
cash equivalents |
4,374 |
10,467 |
| Government
securities and time deposits (maturity of more than three
months) |
2,411 |
650 |
| Adjusted
Cash and Cash equivalents |
6,785 |
11,117 |
| Finance
debt |
30,855 |
35,700 |
| Lease
liability |
23,413 |
23,043 |
| Current
and non-current debt - Gross Debt |
54,268 |
58,743 |
| Net
debt |
47,483 |
47,626 |
| Net
cash provided by operating activities - LTM OCF |
46,064
|
37,791 |
| Income
taxes |
16,032 |
8,239 |
| Allowance
(reversals) for impairment of trade and other
receivables |
(26) |
30 |
| Trade and
other receivables, net |
(141) |
2,075 |
| Inventories |
2,765 |
2,334 |
| Trade
payables |
118 |
(1,073) |
| Deferred
income taxes, net |
(2,299) |
(4,058) |
| Taxes
payable |
(1,701) |
(4,878) |
| Others |
2,778 |
3,095 |
| LTM
Adjusted EBITDA |
63,590 |
43,555 |
| Gross
Debt net of cash and cash equivalents/LTM OCF ratio |
1.08 |
1.28 |
| Gross
Debt/LTM Adjusted EBITDA ratio |
0.85 |
1.35 |
| Net
debt/LTM Adjusted EBITDA ratio |
0.75 |
1.09 |
RESULTS BY OPERATING BUSINESS
SEGMENTS
Exploration and Production
(E&P)
Financial information
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change (%) |
|
Sales
revenues |
60,917 |
39,803 |
53.0 |
|
Gross
profit |
37,638 |
22,661 |
66.1 |
|
Income
(Expenses) |
2,049 |
2,728 |
(24.9) |
|
Operating
income |
39,687 |
25,389 |
56.3 |
|
Net income
attributable to the shareholders of Petrobras |
26,349 |
16,847 |
56.4 |
|
Average
Brent crude (US$/bbl) |
105.35 |
67.73 |
55.5 |
|
Sales
price – Brazil |
|
|
|
|
Average
Crude oil (US$/bbl) |
99.79 |
64.19 |
55.5 |
|
Production
taxes – Brazil |
11,705 |
7,973 |
46.8 |
|
Royalties |
6,424 |
4,080 |
57.5 |
|
Special
Participation |
5,244 |
3,864 |
35.7 |
|
Retention
of areas |
37 |
29 |
27.6 |
[1]
In the period Jan-Sep/2022, the gross profit of E&P segment was
US$ 37,638 million, an increase of 66% in relation to the period
Jan-Sep/2021, due to higher sales revenues, which reflect mainly
higher Brent prices.
The operating income of US$ 39,687 million in the period
Jan-Sep/2022 was mainly due to the increase in Brent prices, the
gain from the co-participation agreement in Sepia and Atapu fields,
and the gain with sale of Alagoas and Recôncavo Clusters.
In the period Jan-Sep/2022, the increase in production taxes was
caused primarily by the rise in Brent prices, in relation to the
Jan-Sep/2021 period.
Operational information
|
Production in thousand barrels of oil equivalent per day
(mboed) |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change (%) |
|
Crude oil,
NGL and natural gas – Brazil |
2,660 |
2,755 |
(3.4) |
|
Crude oil
and NGL (mbbl/d) |
2,153 |
2,231 |
(3.5) |
|
Natural
gas (mboed) |
507 |
524 |
(3.2) |
|
Crude oil,
NGL and natural gas – Abroad |
37 |
43 |
(14.0) |
|
Total
(mboed) |
2,697 |
2,798 |
(3.6) |
Production of crude oil, NGL and natural gas was 2,697 mboed in the
period Jan-Sep/2022, representing a 3.6% reduction compared to
Jan-Sep/2021, due to the natural decline of fields, maintenance
schedules with more stoppages in the period Jan-Sep/2022, and
co-participation agreements in Búzios and divestments. This being
partially offset by the ramp up of FPSO Carioca (Sépia field), P-67
(Tupi field), P-68 (Berbigão and Sururu fields), P-70 (Atapu field)
and start of production in the FPSO Guanabara (Mero field).
Refining, Transportation and
Marketing
Financial information
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change (%) |
|
Sales
revenues |
85,989 |
53,480 |
60.8 |
|
Gross
profit |
11,048 |
6,632 |
66.6 |
|
Income
(Expenses) |
(2,055) |
(1,951) |
5.3 |
|
Operating
income |
8,993 |
4,681 |
92.1 |
|
Net income
attributable to the shareholders of Petrobras |
6,088 |
3,972 |
53.3 |
|
Average
refining cost (US$ / barrel) – Brazil |
1.93 |
1.64 |
17.7 |
|
Average
domestic basic oil products price (US$/bbl) |
124.23 |
74.05 |
67.8 |
For the period Jan-Sep/2022, Refining, Transportation and Marketing
gross profit was US$ 4,416 million higher than in the period
Jan-Sep/2021 due to the higher margins of diesel, jet fuel and
gasoline, according to the elevation on international margins, and
also due to the positive effect of appreciation of Brent prices
which resulted in an increase of gross profit margin as inventory
was purchased earlier, at lower prices.
The operating income for the period Jan-Sep/2022 reflects higher
gross profit partially offset by an increase of sales expenses
related to higher costs with chartering ships and fuel oil costs
for the fleet of ships.
The refining cost in the period Jan-Sep/2022 was US$ 1.93/bbl,
17.7% higher than in the period Jan-Sep/2021, due to maintenance
costs related to conservation and revitalization of our refineries
and an increase in costs of chemicals and catalysts caused by the
rise of international prices. Besides that, there was an increase
in personnel related costs. The higher utilization rate of our
refineries in 2022 compared to 2021 partially offset these
effects.
Operational information
|
Thousand barrels per day (mbbl/d) |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change (%) |
|
Total
production volume |
1,749 |
1,832 |
(4.5) |
|
Domestic
sales volume |
1,739 |
1,792 |
(3.0) |
|
Reference
feedstock |
1,897 |
2,176 |
(12.8) |
|
Refining
plants utilization factor (%) |
88 |
81 |
8.6 |
|
Processed
feedstock (excluding NGL) |
1,630 |
1,720 |
(5.2) |
|
Processed
feedstock |
1,675 |
1,758 |
(4.7) |
|
Domestic
crude oil as % of total |
91 |
92 |
(1.1) |
Domestic sales in the period Jan-Sep/2022 were 1,739 mbbl/d, a
decrease of 3.0% compared to Jan-Sep/2021, mainly due to the
reduction in the Diesel, Fuel Oil and Liquefied Petroleum Gas sales
between periods, partially offset by higher sales of Naphtha and
Jet Fuel.
Diesel and Liquefied Petroleum Gas had 6.8% and 9.5% reduction in
sales volume in Jan-Sep/2022, respectively, compared to
Jan-Sep/2021, mainly due the impact of the divestment of the RLAM
refinery on November 30, 2021.
Fuel Oil sales decreased 45.9% due to lower demand for
thermoelectric generation and due the impact of the divestment of
RLAM refinery.
Jet Fuel sales increased 40.6% mainly due to the negative effect of
COVID-19 on the aviation market in the period Jan-Sep/2021,
resulting from the restrictive measures associated with the
pandemic.
Naphtha sales were 10.1% higher due to the stoppage at Braskem's
São Paulo plant in April and May 2021.
Total production of oil products for the period Jan-Sep/2022 was
1,749 mbbl/d, 4.5% below Jan-Sep/2021. Even though we have had a
reduction in the volume produced due to the divestment of RLAM, it
was partially compensated by increased output of our main
refineries.
Processed feedstock for the period Jan-Sep/2022 was 1,675 mbbl/d,
with a utilization factor of 88%, 7.0% above
Jan-Sep/2021.
Gas and Power
Financial information
|
US$ million |
Jan-Sep/2022 |
Jan-Sep/2021 |
Change (%) |
|
Sales
revenues |
11,247 |
8,306 |
35.4 |
|
Gross
profit |
3,350 |
2,648 |
26.5 |
|
Income
(expenses) |
(2,295) |
(2,183) |
5.1 |
|
Operating
income (loss) |
1,055 |
465 |
126.9 |
|
Net income
(loss) attributable to the shareholders of Petrobras |
696 |
333 |
109.0 |
|
Average
natural gas sales price – Brazil (US$/bbl) |
67.02 |
41.43 |
61.8 |
In Jan-Sep/2022, the gross profit of the Gas and Power segment was
US$ 3,350 million, 26.5% higher than the gross profit of the
previous year, mainly reflecting the recovery in gas margins,
resulting from: (a) the improvement in the natural gas sales
portfolio, (b) the increase in the Brent oil price, and (c) the
lower need for regasified LNG.
In Jan-Sep/2022, the operating income was higher by US$ 590 million
compared to Jan-Sep/2021, mainly due to higher gross profit and the
stability of operating expenses.
Operational information
|
|
Jan-Sep/2022 |
Jan-Sep/2021 |
Change (%) |
|
Sale of
Thermal Availability at Auction (ACR)- Average MW |
2,053 |
2,458 |
(16.5) |
| Electricity
generation - average MW |
926 |
3,383 |
(72.6) |
|
National
gas delivered - million m³/day |
35 |
43 |
(18.6) |
|
Regasification
of liquefied natural gas - million m³/day |
7 |
22 |
(68.2) |
| Import of
natural gas from Bolivia - million m³/day |
17 |
20 |
(15.0) |
|
Natural
gas sales and for internal consumption - million m³/day |
59 |
85 |
(30.6) |
In
Jan-Sep/2022, electricity generation was 926 MW on average, a
reduction of 72.6% compared to Jan-Sep/2021, mainly due to the
increase in the levels of hydroelectric plants reservoirs, which
reduces demand for the electricity generated by the Gas and Power
segment. Also, in the same period of comparison, there was a 16.5%
reduction in the sales volume of thermal availability at auction,
mainly due to the divestment of fuel oil plants in the
Northeast.
On the supply side, the delivery of domestic gas was reduced to 35
million m³/day, mainly because of the expiration of the terms of
Petrobras' purchase contracts with partners and third parties,
which began to sell their gas directly to their customers, and due
to divestments in E&P in the Northeast. Additionally, there was
a reduction of 15 million m³/day in LNG regasification volumes,
primarily due to lower gas demand for thermoelectric plants.
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 (expense)
income; income taxes; depreciation, depletion and amortization;
results in equity-accounted investments; impairment;
reclassification of comprehensive income (loss) due to the disposal
of equity-accounted investments; results on disposal/write-offs of
assets and on remeasurement of investment retained with loss of
control; and results from co-participation agreements in bid areas.
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 liquidity and supports leverage
management.
ANP - Brazilian National Petroleum, Natural Gas and Biofuels
Agency.
Capital Expenditures – 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.
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.
EBITDA - net income before net finance (expense) income,
income taxes, depreciation, depletion and amortization. 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 liquidity and supports leverage
management.
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 (except for
signature bonus, including the bidding for oil surplus of the
Transfer of Rights Agreement, paid for obtaining concessions for
exploration of crude oil and natural gas). 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.
Gross Debt – Sum of current and non-current finance debt and
lease liability, this measure is not defined under the IFRS.
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 – Adjusted EBITDA for the last twelve
months.
OCF - Net Cash provided by (used in) operating activities
(operating cash flow)
Operating income (loss) - Net income (loss) before finance
(expense) income, results in equity-accounted investments and
income taxes.
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. Management believes that net debt is an
appropriate supplemental measure that helps investors assess our
liquidity and supports leverage management.
Results 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.
|
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: November 18, 2022
PETRÓLEO BRASILEIRO S.A–PETROBRAS
By: /s/ Rodrigo Araujo
Alves
______________________________
Rodrigo Araujo
Alves
Chief Financial Officer and Investor Relations Officer
Petroleo Brasileiro ADR (NYSE:PBR.A)
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