Petrobras : Demonstrações Financeiras 1T24 - US$

Unaudited Condensed

Consolidated Interim

Financial Statements

PETRÓLEO BRASILEIRO S.A. - PETROBRAS

As of March 31, 2024, with the independent registered public accounting firm report

INDEX

Petróleo Brasileiro S.A. - Petrobras

Unaudited Condensed Consolidated Statements of Financial Position	3
Unaudited Condensed Consolidated Statements of Income	4
Unaudited Condensed Consolidated Statements of Comprehensive Income	5
Unaudited Condensed Consolidated Statements of Cash Flows	6
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity	7
1.	Basis of preparation	8
2.	Material accounting policies	8
3.	Cash and cash equivalents and marketable securities	8
4.	Sales revenues	9
5.	Costs and expenses by nature	10
6.	Other income and expenses, net	11
7.	Net finance income (expense)	11
8.	Information by operating segment	12
9.	Trade and other receivables	14
10.	Inventories	15
11.	Trade payables	16
12.	Taxes	16
13.	Employee benefits	18
14.	Provisions for legal proceedings, judicial deposits and contingent liabilities	22
15.	Provision for decommissioning costs	26
16.	Other assets and liabilities	27
17.	Property, plant and equipment	28
18.	Intangible assets	30
19.	Impairment	30
20.	Exploration and evaluation of oil and gas reserves	31
21.	Collateral for crude oil exploration concession agreements	31
22.	Investments	32
23.	Disposal of assets and other transactions	32
24.	Finance debt	33
25.	Lease liability	36
26.	Equity	37
27.	Financial risk management	38
28.	Related party transactions	44
29.	Supplemental information on statement of cash flows	46
30.	Subsequent events	47
Report of Independent Registered Public Accounting Firm	48

2

Unaudited Condensed Consolidated Statements of Financial Position

PETROBRAS

As of March 31, 2024 and December 31, 2023 (Expressed in millions of US Dollars, unless otherwise indicated)

	Assets	Note	03.31.2024	12.31.2023
	Cash and cash equivalents	3	11,547	12,727
	Marketable securities	3	4,818	2,819
	Trade and other receivables	9	5,041	6,135
	Inventories	10	8,176	7,681
	Recoverable income taxes	12	362	218
	Other recoverable taxes	12	1,179	960
	Others	16	1,761	1,570
			32,884	32,110
	Assets classified as held for sale	23	335	335
	Current assets		33,219	32,445
	Trade and other receivables	9	1,462	1,847
	Marketable securities	3	1,880	2,409
	Judicial deposits	14	14,821	14,746
	Deferred income taxes	12	1,167	965
	Other recoverable taxes	12	4,417	4,516
	Others	16	2,245	2,315
	Long-term receivables		25,992	26,798
	Investments	22	1,235	1,358
	Property, plant and equipment - PP&E	17	150,211	153,424
	Intangible assets	18	2,966	3,042
	Non-current assets		180,404	184,622
	Total assets		213,623	217,067
	Liabilities	Note	03.31.2024	12.31.2023
	Trade payables	11	5,164	4,813
	Finance debt	24	4,914	4,322
	Lease liability	25	7,455	7,200
	Income taxes payable	12	1,007	1,300
	Other taxes payable	12	3,954	4,166
	Dividends payable	26	20	3,539
	Provision for decommissioning costs	15	2,054	2,032
	Employee benefits	13	2,796	2,932
	Others	16	2,912	3,015
			30,276	33,319
	Liabilities related to assets classified as held for sale	23	523	541
	Current liabilities		30,799	33,860
	Finance debt	24	22,824	24,479
	Lease liability	25	26,645	26,599
	Income taxes payable	12	279	299
	Deferred income taxes	12	10,040	10,910
	Employee benefits	13	15,310	15,579
	Provisions for legal proceedings	14	3,369	3,305
	Provision for decommissioning costs	15	20,378	21,171
	Others	16	1,930	1,890
	Non-current liabilities		100,775	104,232
	Current and non-current liabilities		131,574	138,092
	Share capital (net of share issuance costs)	26	107,101	107,101
	Capital reserve and capital transactions		178	410
	Profit reserves	26	77,423	72,641
	Accumulated other comprehensive deficit		(103,112)	(101,569)
	Attributable to the shareholders of Petrobras		81,590	78,583
	Non-controlling interests		459	392
	Equity		82,049	78,975
	Total liabilities and equity		213,623	217,067

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

3

Unaudited Condensed Consolidated Statements of Income

PETROBRAS

For the three-month periods ended March 31, 2024 and 2023 (Expressed in millions of US Dollars, unless otherwise indicated)

		Note	Jan-Mar/2024	Jan-Mar/2023
Sales revenues	4	23,768	26,771
Cost of sales	5	(11,511)	(12,658)
Gross profit			12,257	14,113
Income (expenses)
Selling expenses	5	(1,333)	(1,221)
General and administrative expenses	5	(447)	(357)
Exploration costs	20	(135)	(157)
Research and development expenses			(183)	(154)
Other taxes			(140)	(200)
Impairment (losses) reversals, net		19	9	(3)
Other income and expenses, net	6	(1,044)	(468)
			(3,273)	(2,560)
Income before net finance income (expense), results of equity-accounted investments and income taxes			8,984	11,553
Finance income			552	465
Finance expenses			(1,072)	(844)
Foreign exchange gains (losses) and inflation indexation charges			(1,419)	(243)
Net finance income (expense)	7	(1,939)	(622)
Results of equity-accounted investments	22	(93)	35
Net income before income taxes			6,952	10,966
Income taxes	12	(2,147)	(3,596)
Net income for the period			4,805	7,370
Net income attributable to shareholders of Petrobras			4,782	7,341
Net income attributable to non-controlling interests			23	29
Basic and diluted earnings per common and preferred share - in U.S. dollars	26	0.37	0.56

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

4

Unaudited Condensed Consolidated Statements of Comprehensive Income

PETROBRAS

For the three-month periods ended March 31, 2024 and 2023 (Expressed in millions of US Dollars, unless otherwise indicated)

Note Jan-Mar/2024Jan-Mar/2023

Net income for the period	4,805	7,370
Items that will not be reclassified to the statement of income:
Actuarial gains (losses) on post-employment defined benefit plans	13
Recognized in equity		−	(109)
Deferred income tax		−	37
		−	(72)
Items that may be reclassified subsequently to the statement of income:
Unrealized gains (losses) on cash flow hedge - highly probable future exports	27
Recognized in equity	(2,022)	1,468
Reclassified to the statement of income	697	1,154
Deferred income tax	451	(892)
	(874)	1,730
Translation adjustments (1)
Recognized in equity	(672)	569
Share of other comprehensive income (loss) in equity-accounted investments	22
Recognized in equity	(9)	89
Other comprehensive income (loss)	(1,555)	2,316
Total comprehensive income		3,250	9,686
Comprehensive income attributable to shareholders of Petrobras	3,239	9,652
Comprehensive income attributable to non-controlling interests	11	34

(1) It includes cumulative translation adjustments in associates and joint ventures.

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

5

Unaudited Condensed Consolidated Statements of Cash Flows

PETROBRAS

For the three-month periods ended March 31, 2024 and 2023 (Expressed in millions of US Dollars, unless otherwise indicated)

		Note	Jan-Mar/2024	Jan-Mar/2023
	Cash flows from operating activities
	Net income for the period		4,805	7,370
	Adjustments for:
	Pension and medical benefits	13	433	370
	Results of equity-accounted investments	22	93	(35)
	Depreciation, depletion and amortization	29	3,362	2,924
	Impairment of assets (reversals), net	19	(9)	3
	Inventory write down (write-back) to net realizable value	10	(44)	(8)
	Allowance (reversals) for credit loss on trade and other receivables, net		30	24
	Exploratory expenditure write-offs	20	50	32
	Gain on disposal/write-offs of assets	6	(162)	(496)
	Foreign exchange, indexation and finance charges		1,935	656
	Income taxes	12	2,147	3,596
	Revision and unwinding of discount on the provision for decommissioning costs		280	212
	Results from co-participation agreements in bid areas	6	(48)	(28)
	Early termination and cash outflows revision of lease agreements		(69)	(167)
	Losses with legal, administrative and arbitration proceedings, net	6	281	254
	Decrease (Increase) in assets
	Trade and other receivables		604	412
	Inventories		(627)	989
	Judicial deposits		(288)	(403)
	Other assets		34	111
	Increase (Decrease) in liabilities
	Trade payables		407	(478)
	Other taxes payable		(520)	(217)
	Pension and medical benefits		(203)	(178)
	Provisions for legal proceedings		(78)	(85)
	Other employee benefits		(59)	35
	Provision for decommissioning costs		(263)	(165)
	Other liabilities		(82)	(101)
	Income taxes paid		(2,623)	(4,280)
	Net cash provided by operating activities		9,386	10,347
	Cash flows from investing activities
	Acquisition of PP&E and intangible assets		(2,838)	(2,423)
	Acquisition of equity interests		(1)	(8)
	Proceeds from disposal of assets - Divestment		569	1,855
	Financial compensation from co-participation agreements		397	391
	Divestment (Investment) in marketable securities		(1,475)	(930)
	Dividends received		24	11
	Net cash (used in) provided by investing activities		(3,324)	(1,104)
	Cash flows from financing activities
	Changes in non-controlling interest		93	(75)
	Proceeds from finance debt	24	2	51
	Repayment of principal - finance debt	24	(1,007)	(750)
	Repayment of interest - finance debt	24	(594)	(570)
	Repayment of lease liability	25	(1,918)	(1,389)
	Dividends paid to Shareholders of Petrobras	26	(3,455)	(4,192)
	Share repurchase program	26	(232)	−
	Dividends paid to non-controlling interests		(57)	(48)
	Net cash used in financing activities		(7,168)	(6,973)
	Effect of exchange rate changes on cash and cash equivalents		(74)	24
	Net change in cash and cash equivalents		(1,180)	2,294
	Cash and cash equivalents at the beginning of the period		12,727	7,996
	Cash and cash equivalents at the end of the period		11,547	10,290

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

6

Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity

PETROBRAS

For the three-month periods ended March 31, 2024 and 2023 (Expressed in millions of US Dollars, unless otherwise indicated)

			Share capital (net of share				Accumulated other comprehensive income (deficit) and deemed cost	Profit
			issuance costs)				Reserves

Share Capital

	Capital reserve,
Share issuance	Capital
costs	Transactions and
	Treasury shares

Cumulative	Cash flow hedge -
translation	highly probable
adjustments	future exports

Actuarial gains	Other
(losses) on	comprehensive
defined benefit	income (loss) and
pension plans	deemed cost

Profit Reserves

Retained earnings (losses)

Equity attributable to shareholders of Petrobras

Non-controlling interests

Total consolidated equity

	Balance at December 31, 2022		107,380	(279)	1,144	(74,171)	(17,507)	(12,576)	(933)	66,434	−	69,492	344	69,836
				107,101	1,144				(105,187)	66,434	−	69,492	344	69,836
Capital transactions		−	−	−	−	−	−	−	−	−	−	(74)	(74)
Net income		−	−	−	−	−	−	−	−	7,341	7,341	29	7,370
Other comprehensive income (loss)		−	−	−	564	1,730	(72)	89	−	−	2,311	5	2,316
Appropriations:
	Dividends		−	−	−	−	−	−	−	−	−	−	(44)	(44)
	Balance at March 31, 2023		107,380	(279)	1,144	(73,607)	(15,777)	(12,648)	(844)	66,434	7,341	79,144	260	79,404
				107,101	1,144				(102,876)	66,434	7,341	79,144	260	79,404
	Balance at December 31, 2023		107,380	(279)	410	(73,004)	(12,020)	(15,879)	(666)	72,641	−	78,583	392	78,975
				107,101	410				(101,569)		−	78,583	392	78,975
Treasury shares		−	−	(232)	−	−	−	−	−	−	(232)	−	(232)
Capital transactions		−	−	−	−	−	−	−	−	−	−	94	94
Net income		−	−	−	−	−	−	−	−	4,782	4,782	23	4,805
Other comprehensive income (loss)		−	−	−	(660)	(874)	−	(9)	−	−	(1,543)	(12)	(1,555)
Expired unclaimed dividends		−	−	−	−	−	−	−	−	−	−	−	−
Appropriations:
	Dividends		−	−	−	−	−	−	−	−	−	−	(38)	(38)
	Balance at March 31, 2024		107,380	(279)	178	(73,664)	(12,894)	(15,879)	(675)	72,641	4,782	81,590	459	82,049
				107,101	178				(103,112)	72,641	4,782	81,590	459	82,049

The notes form an integral part of these unaudited condensed consolidated interim financial statements.

7

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PETROBRAS

(Expressed in millions of US Dollars, unless otherwise indicated)

1. Basis of preparation

1.1. Statement of compliance and authorization of unaudited condensed consolidated interim financial statements

These unaudited condensed consolidated interim financial statements of Petróleo Brasileiro S.A. ("Petrobras" or "Company") have been prepared and presented in accordance with IAS 34 - "Interim Financial Reporting" as issued by the International Accounting Standards Board (IASB). They present the significant changes in the period, avoiding repetition of certain notes to the annual consolidated financial statements previously reported. Hence, they should be read together with the Company's audited annual consolidated financial statements for the year ended December 31, 2023, which include the full set of notes.

These unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Company's Board of Directors in a meeting held on May 13, 2024.

1.2. New standards and interpretations

On January 1, 2024, amendments to standards issued by the IASB came into force and were adopted by the Company, as disclosed in note 6 of the financial statements of December 31, 2023. According to the assessment carried out by Management, there were no material impacts on the initial application of these amendments in these unaudited condensed consolidated interim financial statements.

2. Material accounting policies

The accounting policies and methods of computation followed in these unaudited condensed consolidated interim financial statements are the same as those followed in the preparation of the annual financial statements of the Company for the year ended December 31, 2023.

3. Cash and cash equivalents and marketable securities

3.1. Cash and cash equivalents

They include cash, available bank deposits and short-term financial investments with high liquidity, which meet the definition of cash equivalents.

		03.31.2024	12.31.2023
	Cash at bank and in hand	723	103
	Short-term financial investments
	- In Brazil
	Brazilian interbank deposit rate investment funds and other short-term deposits	555	1,742
	Other investment funds	133	279
		688	2,021
	- Abroad
	Time deposits	6,469	7,737
	Automatic investing accounts and interest checking accounts	3,652	2,852
	Other financial investments	15	14
		10,136	10,603
	Total short-term financial investments	10,824	12,624
	Total cash and cash equivalents	11,547	12,727

Short-term financial investments in Brazil primarily consist of investments in funds holding Brazilian Federal Government Bonds that can be redeemed immediately, as well as reverse repurchase agreements that mature within three months as of the date of their acquisition. Short- term financial investments abroad comprise time deposits that mature in three months or less from the date of their acquisition, highly-liquid automatic investment accounts, interest checking accounts and other short-term fixed income instruments.

8

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PETROBRAS

(Expressed in millions of US Dollars, unless otherwise indicated)

3.2. Marketable securities

		03.31.2024	12.31.2023
	Fair value through profit or loss	934	926
	Amortized cost - Bank Deposit Certificates and time deposits	5,711	4,249
	Amortized cost - Others	53	53
	Total	6,698	5,228
	Current	4,818	2,819
	Non-current	1,880	2,409

Marketable securities classified as fair value through profit or loss refer mainly to investments in Brazilian Federal Government Bonds (amounts determined by level 1 of the fair value hierarchy). These financial investments have maturities of more than three months.

Securities classified as amortized cost refer to investments in Brazil in post-fixed Bank Deposit Certificates with daily liquidity, with maturities between one and two years, and to investments abroad in time deposits with maturities of more than three months from the contracting date.

4. Sales revenues

Jan-Mar/2024Jan-Mar/2023

	Diesel	7,076	8,305
	Gasoline	3,205	3,694
	Liquefied petroleum gas	758	929
	Jet fuel	1,184	1,406
	Naphtha	427	478
	Fuel oil (including bunker fuel)	344	286
	Other oil products	1,019	1,084
	Subtotal oil products	14,013	16,182
	Natural gas	1,322	1,526
	Crude oil	1,229	1,350
	Renewables and nitrogen products	31	21
	Breakage	140	220
	Electricity	128	110
	Services, agency and others	247	244
	Domestic market	17,110	19,653
	Exports	6,398	6,741
	Crude oil	4,911	5,547
	Fuel oil (including bunker fuel)	1,322	1,034
	Other oil products and other products	165	160
	Sales abroad (1)	260	377
	Foreign market	6,658	7,118
	Sales revenues	23,768	26,771

(1) Sales revenues from operations outside of Brazil, including trading and excluding exports.

9

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

PETROBRAS

(Expressed in millions of US Dollars, unless otherwise indicated)

Jan-Mar/2024Jan-Mar/2023

	Domestic market	17,110	19,653
	China	1,481	2,493
	Americas (except United States)	1,051	1,423
	Europe	1,213	1,348
	Asia (except China and Singapore)	483	475
	United States	1,475	563
	Singapore	950	815
	Others	5	1
	Foreign market	6,658	7,118
	Sales revenues			23,768		26,771

In the three-month period ended March 31, 2024, sales to one client of the refining, transportation and marketing segment represented individually 15% of the Company's sales revenues; in the same period of 2023, sales to two clients of the same segment represented individually 16% and 11% of the Company's sales revenues.

5. Costs and expenses by nature

5.1. Cost of sales

Jan-Mar/2024Jan-Mar/2023

	Raw material, products for resale, materials and third-party services (1)	(5,391)	(7,095)
	Depreciation, depletion and amortization	(2,649)	(2,396)
	Production taxes	(3,030)	(2,783)
	Employee compensation	(441)	(384)
	Total		(11,511)	(12,658)
	(1) It Includes short-term leases and inventory turnover.
5.2. Selling expenses
			Jan-Mar/2024	Jan-Mar/2023
	Materials, third-party services, freight, rent and other related costs	(1,120)	(1,026)
	Depreciation, depletion and amortization	(173)	(150)
	Allowance for expected credit losses	(10)	(21)
	Employee compensation	(30)	(24)
	Total	(1,333)	(1,221)
5.3. General and administrative expenses
			Jan-Mar/2024	Jan-Mar/2023
	Employee compensation	(292)	(229)
	Materials, third-party services, rent and other related costs	(120)	(102)
	Depreciation, depletion and amortization	(35)	(26)
	Total		(447)	(357)

10