Performance Report
3Q24
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Table of Contents
Liquidity and capital resources | 12 |
Debt indicators | 14 |
Results by business segment | 15 |
Exploration and Production | 15 |
Refining, Transportation and Marketing | 17 |
Gas and Low Carbon Energies | 18 |
Reconciliation of Adjusted EBITDA | 19 |
Exhibits | 20 |
Financial statements | 20 |
Financial information by business segment | 29 |
Glossary | 40 |
PETROBRAS | Performance Report | 3Q24 | 2 |
DISCLAIMER
This report may contain forward-looking statements about future events. Such forecasts reflect only the expectations of the company's management about future economic conditions, as well as the company's industry, performance and financial results, among others. The terms "anticipates", "believes", "expects", "predicts", "intends", "plans", "projects", "aims", "should", as well as other similar terms, are intended to identify such forecasts, which, of course, involve risks and uncertainties foreseen or not foreseen by the company and, consequently, are not guarantees of the company's future results. Therefore, future results of the company's operations may differ from current expectations, and the reader should not rely solely on the information contained herein. The Company undertakes no obligation to update the presentations and forecasts in the light of new information or future developments. The figures reported for 3Q24 onwards are estimates or targets. Additionally, this presentation contains some financial indicators that are not recognized under BR GAAP or IFRS. These indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by other companies. We provide these indicators because we use them as measures of the company's performance; they should not be considered in isolation or as a substitute for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA and Net Debt in the Glossary and respective reconciliations in the Liquidity and Capital Resources, Reconciliation of Adjusted EBITDA and Net Debt sections. Consolidated interim financial information prepared in accordance with International Accounting Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) and reviewed by the independent auditors.
PETROBRAS | Performance Report | 3Q24 | 3 |
Highlights - 3Q24
Highlights - 3Q24
- Considers only non-recurring items that impact EBITDA
- Net Income excluding non-recurring items and without the Exchange rate effect of Real vs Dollar
In this third quarter of 2024, we achieved consistent financial results amid a context of declining Brent prices, which we were able to offset with higher sales volumes of oil products. We maintained strong cash generation of US$ 11.3 billion, up 24% from the previous quarter, sustained by the quality and performance of our assets. In 3Q24, we had no significant impact from non-recurring items, unlike in 2Q24. As a result, we recorded a net profit of US$ 5.9 billion and recurring EBITDA of US$ 11.6 billion.
We are also pleased to announce that we made investments of US$ 4.5 billion in this third quarter, around 30% more than last quarter. In the first nine months of the year, Petrobras investments amounted to US$ 10.9 billion. This demonstrates our commitment to delivering our projects and executing our Strategic Plan with diligence.
Evidence of this commitment is reflected in the early start-up of Maria Quitéria FPSO. Exactly 15 days later, FPSO Marechal Duque de Caxias started operating on October 30. Also in October, FPSO Almirante Tamandaré arrived in Brazil. This effort to execute and even anticipating deadlines deadlines will translate into accelerated revenue generation as these assets reach full capacity and in the increased supply of energy to the country. We are committed to Petrobras' growth and to creating value for shareholders and Brazilian society." Fernando Melgarejo, Chief Financial and
Investor Relations Officer
PETROBRAS | Performance Report | 3Q24 | 4 |
Highlights - 3Q24
Main highlights:
- Strong operating cash generation of US$ 11.3 billion, among the six best quarters, and Free Cash Flow of US$ 6.9 billion
- Consistent results: Recurring EBITDA of US$ 11.6 billion and Recurring Net income of US$ 5.9 billion
- Financial debt reached US$ 25.8 billion, the lowest level since 2008. Gross debt is under control at US$ 59.1 billion, within the range established in our Strategic Plan
- Capex totaled US$ 10.9 billion in 9M24, an increase of 19.5% compared to 9M23
Contributions
- Return to society with payment of R$ 64.4 billion in taxes
- Approval of dividends and interest on equity of R$ 17.1 billion, to be paid in two installments (February and March).
Main items
Table 1 - Main items
Variation (%) | |||||||||||||||||||
US$ million | 3Q24 | 2Q24 | 3Q23 | 9M24 | 9M23 | 3Q24 X | 3Q24 X | 9M24 X | |||||||||||
2Q24 | 3Q23 | 9M23 | |||||||||||||||||
Sales revenues | 23,366 | 23,467 | 25,552 | 70,601 | 75,302 | (0.4) | (8.6) | (6.2) | |||||||||||
Gross profit | 12,005 | 11,727 | 13,570 | 35,989 | 39,320 | 2.4 | (11.5) | (8.5) | |||||||||||
Operating expenses | (3,605) | (5,022) | (3,590) | (11,900) | (9,309) | (28.2) | 0.4 | 27.8 | |||||||||||
Consolidated net income (loss) | |||||||||||||||||||
attributable to the shareholders of | 5,870 | (344) | 5,456 | 10,308 | 18,625 | − | 7.6 | (44.7) | |||||||||||
Petrobras | |||||||||||||||||||
Recurring consolidated net income | |||||||||||||||||||
(loss) attributable to the shareholders | 5,937 | 3,060 | 5,577 | 13,813 | 18,927 | 94.0 | 6.5 | (27.0) | |||||||||||
of Petrobras (*) | |||||||||||||||||||
Net cash provided by operating | 11,307 | 9,087 | 11,554 | 29,780 | 31,543 | 24.4 | (2.1) | (5.6) | |||||||||||
activities | |||||||||||||||||||
Free cash flow | 6,857 | 6,148 | 8,364 | 19,552 | 23,001 | 11.5 | (18.0) | (15.0) | |||||||||||
Adjusted EBITDA | 11,480 | 9,627 | 13,551 | 33,234 | 38,944 | 19.2 | (15.3) | (14.7) | |||||||||||
Recurring adjusted EBITDA (*) | 11,614 | 11,967 | 13,691 | 36,006 | 40,168 | (2.9) | (15.2) | (10.4) | |||||||||||
Gross debt (US$ million) | 59,132 | 59,630 | 60,997 | 59,132 | 60,997 | (0.8) | (3.1) | (3.1) | |||||||||||
Net debt (US$ million) | 44,251 | 46,160 | 43,725 | 44,251 | 43,725 | (4.1) | 1.2 | 1.2 | |||||||||||
Net debt/LTM Adjusted EBITDA ratio | 0.95 | 0.95 | 0.83 | 0.95 | 0.83 | − | 14.5 | 14.5 | |||||||||||
Average commercial selling rate for U.S. | 5.55 | 5.22 | 4.88 | 5.24 | 5.01 | 6.3 | 13.7 | 4.6 | |||||||||||
dollar | |||||||||||||||||||
Brent crude (US$/bbl) | 80.18 | 84.94 | 86.76 | 82.79 | 82.14 | (5.6) | (7.6) | 0.8 | |||||||||||
Price of basic oil products - Domestic | 88.10 | 91.34 | 95.04 | 91.76 | 99.97 | (3.5) | (7.3) | (8.2) | |||||||||||
Market (US$/bbl) | |||||||||||||||||||
TRI (total recordable injuries per million | - | - | - | 0.70 | 0.80 | - | - | (12.5) | |||||||||||
men-hour frequency rate) | |||||||||||||||||||
ROCE (Return on Capital Employed) | 9.2% | 9.8% | 11.5% | 9.2% | 11.5% | -0.6 p.p. | -2.3 p.p. | -2.3 p.p. | |||||||||||
(*) See reconciliation of Recurring net income and Adjusted EBITDA in the non-recurring Items section.
PETROBRAS | Performance Report | 3Q24 | 5 |
Consolidated Results
Consolidated results
In 3Q24, we posted solid results, despite a challenging external scenario. Recurring Adjusted EBITDA reached US$ 11.6 billion and recurring net income was US$ 5.9 billion.
Recurring Adjusted EBITDA for 3Q24 was 3% lower than the previous quarter, reflecting a 6% decline in Brent prices and a lower margin on oil products, especially diesel, due to a 16% international crack spread decrease. These impacts were partially offset by a higher volume of oil produced in the oil products mix and the increase in sales.
In addition, there was an increase in domestic oil sales, due to increased deliveries to Acelen, and higher revenues from electricity.
Operating expenses totaled US$ 3.6 billion, a 28% decrease compared to 2Q24, mainly reflecting the absence of special items recorded in the previous quarter, especially costs related to the tax transaction.
The financial result for 3Q24 was a negative US$ 281 million, an improvement from the negative $6.9 billion recorded in 2Q24. This result was mainly impacted by the appreciation of BRL against dollar. BRL appreciated by 2% in 3Q24 (final exchange rate of R$5.45/US$), compared to a 11.2% depreciation in 2Q24 (final exchange rate of R$5.56/US$). Additionally, financial expenses were lower due to the impact of tax transaction adherence recorded in the previous quarter.
Net income reached US$ 5.9 billion due to improved financial results and lower operating expenses.
In 3Q24, there was no significant impact from non-recurring items. Disregarding these items, net profit and Recurring EBITDA would have remained at the same level.
PETROBRAS | Performance Report | 3Q24 | 6 |
Non-recurring Items
Non-recurring items
Table 2 - Non-recurring items
Variation (%) | |||||||||||||||||||||
US$ million | 3Q24 | 2Q24 | 3Q23 | 9M24 | 9M23 | 3Q24 X | 3Q24 X | 9M24 X | |||||||||||||
2Q24 | 3Q23 | 9M23 | |||||||||||||||||||
Net income (loss) | 5,891 | (325) | 5,484 | 10,371 | 18,713 | − | 7.4 | (44.6) | |||||||||||||
Non-recurring items | (100) | (4,271) | (187) | (4,433) | (460) | (97.7) | (46.5) | 863.7 | |||||||||||||
Non-recurring items that do not | 34 | (1,931) | (47) | (1,661) | 764 | − | − | − | |||||||||||||
affect Adjusted EBITDA | |||||||||||||||||||||
Impairment of assets and | (3) | 39 | (71) | 61 | (474) | − | (95.8) | − | |||||||||||||
investments | |||||||||||||||||||||
Gains and losses on | (97) | 124 | (37) | 190 | 1,150 | − | 162.2 | (83.5) | |||||||||||||
disposal/write-offs of assets | |||||||||||||||||||||
Results from co-participation | − | 55 | 19 | 103 | 46 | − | − | 123.9 | |||||||||||||
agreements in bid areas | |||||||||||||||||||||
Effect of the tax transaction on | 110 | (2,149) | − | (2,039) | − | − | − | − | |||||||||||||
net finance income (expense) | |||||||||||||||||||||
Discount and premium on | 24 | − | 42 | 24 | 42 | − | (42.9) | (42.9) | |||||||||||||
repurchase of debt securities | |||||||||||||||||||||
Other non-recurring items | (134) | (2,340) | (140) | (2,772) | (1,224) | (94.3) | (4.3) | 126.5 | |||||||||||||
Voluntary Separation Plan | 11 | (1) | 1 | 8 | 6 | − | 1000.0 | 33.3 | |||||||||||||
Collective bargaining agreement | − | (6) | − | (9) | (6) | − | − | 50.0 | |||||||||||||
Amounts recovered from Lava | 31 | 2 | 6 | 38 | 99 | 1450.0 | 416.7 | (61.6) | |||||||||||||
Jato investigation | |||||||||||||||||||||
Gains/(losses) on | |||||||||||||||||||||
decommissioning of | − | − | (2) | (7) | (13) | − | − | (46.2) | |||||||||||||
returned/abandoned areas | |||||||||||||||||||||
Gains/(losses) related to legal | (287) | (240) | (140) | (808) | (670) | 19.6 | 105.0 | 20.6 | |||||||||||||
proceedings | |||||||||||||||||||||
Effect of the tax transaction on | 105 | (790) | − | (685) | − | − | − | − | |||||||||||||
other taxes | |||||||||||||||||||||
Equalization of expenses - | |||||||||||||||||||||
Production Individualization | (5) | (14) | (15) | (29) | (38) | (64.3) | (66.7) | (23.7) | |||||||||||||
Agreements | |||||||||||||||||||||
Gains/(losses) arising from | |||||||||||||||||||||
actuarial review of health care | − | (1,291) | − | (1,291) | − | − | − | − | |||||||||||||
plan | |||||||||||||||||||||
Gains/(losses) with the transfer of | 11 | − | − | 11 | − | − | − | − | |||||||||||||
rights on concession agreements | |||||||||||||||||||||
Compensation for the termination | − | − | − | − | (317) | − | − | − | |||||||||||||
of a vessel charter agreement | |||||||||||||||||||||
Export tax on crude oil | − | − | 10 | − | (285) | − | − | − | |||||||||||||
Net effect of non-recurring items on | 33 | 869 | 67 | 931 | 159 | (96.2) | (50.7) | 485.5 | |||||||||||||
IR/CSLL | |||||||||||||||||||||
Recurring net income | 5,958 | 3,077 | 5,604 | 13,873 | 19,014 | 93.6 | 6.3 | (27.0) | |||||||||||||
Shareholders of Petrobras (*) | 5,937 | 3,060 | 5,577 | 13,813 | 18,927 | 94.0 | 6.5 | (27.0) | |||||||||||||
Non-controlling interests | 21 | 17 | 27 | 60 | 87 | 23.5 | (22.2) | (31.0) | |||||||||||||
Adjusted EBITDA | 11,480 | 9,627 | 13,551 | 33,234 | 38,944 | 19.2 | (15.3) | (14.7) | |||||||||||||
Non-recurring items | (134) | (2,340) | (140) | (2,772) | (1,224) | (94.3) | (4.3) | 126.5 | |||||||||||||
Recurring Adjusted EBITDA | 11,614 | 11,967 | 13,691 | 36,006 | 40,168 | (2.9) | (15.2) | (10.4) | |||||||||||||
- Recurring net income excluding foreign exchange variation of Brazilian Reais x Dollar in the following periods: 3Q24: +US$ 5,474 million; 2Q24: +US$ 5,394 million; 3Q23: +US$ 6,246 million; 9M24: +US$ 16,286 million; 9M23: +US$ 17,993 million.
PETROBRAS | Performance Report | 3Q24 | 7 |
Non-recurring Items
In management's view, the non-recurring items presented above, although related to the Company's business, were highlighted as complementary information for a better understanding and evaluation of the result. Such items do not necessarily occur in all periods and shall be disclosed when relevant.
PETROBRAS | Performance Report | 3Q24 | 8 |
Capex | |||||||||||||||||||||
Capex | |||||||||||||||||||||
Table 3 - Capex | |||||||||||||||||||||
Variation (%) | |||||||||||||||||||||
US$ million | 3Q24 | 2Q24 | 3Q23 | 9M24 | 9M23 | 3Q24 X | 3Q24 X | 9M24 X | |||||||||||||
2Q24 | 3Q23 | 9M23 | |||||||||||||||||||
Exploration & Production | 3,773 | 2,767 | 2,892 | 9,013 | 7,531 | 36.4 | 30.5 | 19.7 | |||||||||||||
Refining, Transportation and Marketing | 452 | 447 | 322 | 1,262 | 1,029 | 1.1 | 40.4 | 22.6 | |||||||||||||
Gas & Low Carbon Energies | 97 | 93 | 67 | 297 | 143 | 3.8 | 43.8 | 108.0 | |||||||||||||
Others | 111 | 86 | 111 | 298 | 271 | 29.7 | 0.0 | 9.8 | |||||||||||||
Subtotal | 4,433 | 3,393 | 3,392 | 10,869 | 8,974 | 30.7 | 30.7 | 21.1 | |||||||||||||
Signature bonus | 21 | − | − | 21 | 141 | − | − | (85.2) | |||||||||||||
Total | 4,454 | 3,393 | 3,392 | 10,890 | 9,115 | 31.3 | 31.3 | 19.5 | |||||||||||||
In 3Q24, Capex totaled US$ 4.5 billion, 31.3% higher than in 2Q24. In the first nine months of the year, Capex totaled US$ 10.9 billion, an increase of 19.5% compared to 9M23.
In the Exploration and Production segment, Capex amounted to US$ 3.8 billion, 36.4% higher than in 2Q24, and were mainly concentrated on: (i) developing production in the Santos Basin pre-salt area (US$ 2.2 billion); (ii) developing production in the Campos Basin pre/ post-salt areas (US$ 0.8 billion); (iii) exploratory investments (US$ 0.2 billion). The increase compared to the previous quarter does not change the 2024 investment projection revised in 2Q24 and is largely due to the concentration of planned milestone payments, including those related to the arrival of equipment for the new production units in Búzios, and the realization of Capex related to the beginning of construction work on units P-84, in Atapu, and P-85, in Sépia.
In the Refining, Transportation and Marketing segment, Capex totaled US$ 0.5 billion, in line with 2Q24, with emphasis on spending on scheduled refinery stoppages and progress of REPLAN's medium hydrotreating (HDT) project
In the Gas and Low-Carbon Energy segment, Capex totaled US$ 0.1 billion, in line with 2Q24, with investments in the Rota-3 natural gas processing unit standing out.
In addition, there was a payment of US$ 21 million relating to signature bonuses for 26 blocks (Shell partnership) in the Pelotas Basin.
The following table presents the main information about the new oil and gas production systems, already contracted.
PETROBRAS | Performance Report | 3Q24 | 9 |
Capex
Table 4 - Main projects
FPSO | Petrobras | Petrobras | ||||||||||||
Actual | Total | Petrobras | ||||||||||||
Unit | Start-up | capacity | Status | |||||||||||
Investment | Investment | Stake | ||||||||||||
(bbl/day) | ||||||||||||||
(US$ bn) | (US$ bn) (1) | |||||||||||||
Project in execution | ||||||||||||||
Mero 2 | phase with | |||||||||||||
production system in | ||||||||||||||
FPSO Sepetiba | 2023 | 180,000 | 0.8 | 1.1 | 38.6% | |||||||||
operation. | ||||||||||||||
(Chartered unit) | ||||||||||||||
13 wells drilled and | ||||||||||||||
13 completed. | ||||||||||||||
Integrado Parque | Project in execution | |||||||||||||
phase with | ||||||||||||||
das Baleias (IPB) | ||||||||||||||
production system in | ||||||||||||||
FPSO Maria | 2024 | 100,000 | 0.9 | 1.9 | 100% | |||||||||
operation. | ||||||||||||||
Quitéria | ||||||||||||||
3 wells drilled and 3 | ||||||||||||||
(Chartered unit) | ||||||||||||||
completed. (2) | ||||||||||||||
Project in execution | ||||||||||||||
Mero 3 | phase with | |||||||||||||
FPSO Marechal | 2024 | 180,000 | 0.4 | 0.9 | 38.6% | production system in | ||||||||
Duque de Caxias | operation. | |||||||||||||
(Chartered unit) | 12 wells drilled and | |||||||||||||
11 completed. | ||||||||||||||
Project in execution | ||||||||||||||
Búzios 7 | phase with | |||||||||||||
FPSO Almirante | 2025 | 225,000 | 1.0 | 2.1 | 88.99% | production system | ||||||||
Tamandaré | at location. | |||||||||||||
(Chartered unit) | 14 wells drilled and 8 | |||||||||||||
completed. | ||||||||||||||
Project in execution | ||||||||||||||
Búzios 6 | phase with | |||||||||||||
production system | ||||||||||||||
P-78 | 2025 | 180,000 | 1.9 | 4.8 | 88.99% | |||||||||
under construction. | ||||||||||||||
(Owned unit) | ||||||||||||||
7 wells drilled and 4 | ||||||||||||||
completed. | ||||||||||||||
Project in execution | ||||||||||||||
Mero 4 | phase with | |||||||||||||
FPSO Alexandre de | 2025 | 180,000 | 0.2 | 1.3 | 38.6% | production system | ||||||||
Gusmão | under construction. | |||||||||||||
(Chartered unit) | 7 wells drilled and 5 | |||||||||||||
completed. | ||||||||||||||
Project in execution | ||||||||||||||
Búzios 8 | phase with | |||||||||||||
production system | ||||||||||||||
P-79 | 2026 | 180,000 | 1.7 | 5.1 | 88.99% | |||||||||
under construction. | ||||||||||||||
(Owned unit) | ||||||||||||||
9 wells drilled and 4 | ||||||||||||||
completed. | ||||||||||||||
Project in execution | ||||||||||||||
Búzios 9 | phase with | |||||||||||||
production system | ||||||||||||||
P-80 | 2026 | 225,000 | 1.0 | 5.4 | 88.99% | |||||||||
under construction. | ||||||||||||||
(Owned unit) | 3 wells drilled and 2 |
completed. | |
PETROBRAS | Performance Report | 3Q24 | 10 |
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PETROBRAS - Petróleo Brasileiro SA published this content on November 08, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 08, 2024 at 05:27:08.651.