Petrobras : Financial Perfomance 2Q22 (R$)

Petrobras financial performance in 2Q22

Rio de Janeiro, July 28, 2022 - Once again we delivered solid quarterly results. According to our CFO, Rodrigo Araujo Alves, "Second quarter results show the resilience and strength of the Company, which is able to generate sustainable results, following its trajectory of value creation. In line with our commitment to distribute our results, we approved a shareholder remuneration of R$ 6.73 per common and preferred share. In addition, we collected a total of BRL 77 billion in taxes and government take in the second quarter, which amounted to around BRL 147 billion in the year, an increase of 92% compared to the first half of last year".

Main achievements:

• Recurring EBITDA of US$ 20.2 billion (+34% vs 1Q22) and free cash flow of US$ 12.8 billion (+61% vs 1Q22), mainly reflecting the appreciation of Brent prices in the period, better results with oil products and natural gas sales and lower volumes of LNG imports.
• Recurring net income of US$ 9.1 billion (+9% vs 1Q22) due to the factors described above, partially offset by the negative financial result because of the depreciation of the BRL.
• Gross debt of US$ 53.6 billion (-9% vs 1Q22), mainly due to debt prepayments and amortizations.
• CAPEX of US$ 3.1 billion in 2Q22 (+74% vs 1Q22), including US$ 892 million signature bonus related to the Sépia and Atapu fields.
• Beginning of the coparticipation agreement for the Sepia and Atapu fields, in which Petrobras will be the operator in partnership with other companies. Cash inflow from this agreement amounted to US$ 5,2 billion in 2Q22.
• Start-upof FPSO Guanabara in 04/30/22, the first definitive system in Mero field.
• Cash inflows from divestments of US$ 1.6 billion in 2Q22. We highlight the signing of the LUBNOR sale agreement on June 15th. On July 11, we concluded the sale of our 51% Gaspetro for R$ 2.1 billion.
• On June 27, we relaunched the sale processes of the Abreu e Lima Refinery (RNEST), Presidente Getúlio Vargas Refinery (REPAR) and Alberto Pasqualini Refinery (REFAP), in line with the company's portfolio management and capital allocation strategy.
• In July, we signed the first credit line with sustainability commitments (Sustainability-Linked Loan) in the amount of US$ 1.25 billion, maturing in July 2027

This report may contain forward-looking statements. Such forward-looking statements only reflect expectations of the Company's managers regarding future economic conditions, as well as the Company's performance, financial performance and results, among others. The terms "anticipates", "believes", "expects", "predicts", "intends", "plans", "projects", "objective", "should", and similar terms, which evidently involve risks and uncertainties that may or may not be anticipated by the Company and therefore are not guarantees of future results of the Company's operations that may differ from current expectations. The readers should not rely exclusively on any forward-looking statement contained herein. The Company does not undertake any responsibility to update the presentations and forecasts in the light of new information or its future developments, and the figures reported for 2Q22 onwards are estimates or targets. These indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by others. We provide these indicators because we use them as measures of company performance; they should not be considered in isolation or as a substitute for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA and Net Indebtedness in the Glossary and their reconciliations in the Liquidity and Capital Resources sections, Reconciliation of Adjusted EBITDA and Net Indebtedness. Consolidated accounting information audited by independent auditors in accordance with international accounting standards (IFRS).

2

Main items

Table 1 - Main items

																			Variation (%)
	R$ million			2Q22			1Q22			2Q21			1H22			1H21			2Q22 X		2Q22 X		1H22 X
													1Q22		2Q21		1H21
	Sales revenues	170,960		141,641		110,710		312,601		196,884		20.7		54.4		58.8
	Gross profit	95,861		74,766		57,005		170,627		101,038		28.2		68.2		68.9
	Operating expenses	627		(11,184)		(10,129)		(10,557)	(21,277)			−		−	(50.4)
	Consolidated net income (loss)
	attributable to the shareholders of	54,330		44,561		42,855		98,891		44,022		21.9		26.8		124.6
	Petrobras
	Recurring consolidated net income (loss)
	attributable to the shareholders of		45,039			43,569			40,890			88,608			42,411			3.4			10.1			108.9
	Petrobras *
	Net cash provided by operating activities	71,804		52,824		56,564		124,628		96,634		35.9		26.9		29.0
	Free cash flow	63,421		40,486		48,674		103,907		79,763		56.6		30.3		30.3
	Adjusted EBITDA	98,260		77,710		61,938		175,970		110,887		26.4		58.6		58.7
	Recurring adjusted EBITDA*	99,337		78,214		60,033		177,551		107,731		27.0		65.5		64.8
	Gross debt (US$ million)	53,577		58,554		63,685		53,577		63,685		(8.5)		(15.9)		(15.9)
	Net debt (US$ million)	34,435		40,072		53,262		34,435		53,262		(14.1)		(35.3)		(35.3)
	Net debt/LTM Adjusted EBITDA ratio **	0.60		0.81		1.49		0.60	1.49		(25.9)		(59.7)		(59.7)
	Average commercial selling rate for U.S.		4.92			5.23			5.30			5.08			5.38			(5.9)			(7.2)			(5.6)
	dollar
	Brent crude (US$/bbl)	113.78		101.40		68.83		107.59		64.86		12.2		65.3		65.9
	Domestic basic oil by-products price		665.50			544.25			401.19			605.42			376.63			22.3			65.9			60.7
	(R$/bbl)
	TRI (total recordable injuries per million										0.52	0.56		-		-		(7.1)
	men-hour frequency rate)
	ROCE (Return on Capital Employed)	12.8%		9.9%		5.1%		12.8%	5.1%			2,9 p.p.		7,7 p.p.	7,7 p.p.

• See reconciliation of Recurring net income and Adjusted EBITDA in the Special Items section.
• *Ratio calculated in USD

3

Consolidated results

Net revenues

Table 2 - Net revenues by products

																			Variation (%)
	R$ million			2Q22			1Q22			2Q21			1H22			1H21			2Q22 X	2Q22 X		1H22 X
													1Q22	2Q21		1H21
	Diesel	52,603		38,875		32,100		91,478		57,261		35.3	63.9		59.8
	Gasoline	21,187		19,404		14,439		40,591		25,507		9.2	46.7		59.1
	Liquefied petroleum gas (LPG)	7,074		6,172		5,908		13,246		10,926		14.6	19.7		21.2
	Jet fuel	6,899		5,176		2,107		12,075		4,435		33.3	227.4		172.3
	Naphtha	3,555		3,182		1,889		6,737		3,701		11.7	88.2		82.0
	Fuel oil (including bunker fuel)	1,734		1,911		2,027		3,645		3,856		(9.3)	(14.5)		(5.5)
	Other oil products	7,949		6,650		5,319		14,599		10,134		19.5	49.4		44.1
	Subtotal Oil Products	101,001		81,370		63,789		182,371		115,820		24.1	58.3		57.5
	Natural gas	9,649		9,028		7,007		18,677		12,685		6.9	37.7		47.2
	Crude oil	13,251		9,147			−	22,398		290		44.9	−	7623.4
	Renewables and nitrogen products	466		343		47		809		121		35.9	891.5		568.6
	Revenues from non-exercised rights	834		539		500		1,373		865		54.7	66.8		58.7
	Electricity	534		1,553		3,092		2,087		6,062		(65.6)	(82.7)		(65.6)
	Services, agency and others	1,508		1,239		900		2,747		1,776		21.7	67.6		54.7
	Total domestic market	127,243		103,219		75,335		230,462		137,619		23.3	68.9		67.5
	Exports	40,401		35,110		33,567		75,511		56,367		15.1	20.4		34.0
	Crude oil	27,589		25,043		24,759		52,632		40,221		10.2	11.4		30.9
	Fuel oil (including bunker fuel)	11,224		9,865		6,683		21,089		13,281		13.8	67.9		58.8
	Other oil products and other products	1,588		202		2,125		1,790		2,865		686.1	(25.3)		(37.5)
	Sales abroad (*)	3,316		3,312		1,808		6,628		2,898		0.1	83.4		128.7
	Total foreign market	43,717		38,422		35,375		82,139		59,265		13.8	23.6		38.6
	Total	170,960		141,641		110,710		312,601		196,884		20.7	54.4		58.8

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

In 2Q22, sales revenues grew 21% compared to 1Q22, mainly due to the 12% increase in Brent prices, higher oil and oil products sales volumes and higher oil products and natural gas prices, amid the recovery in global demand for oil and oil products after the critical period of the COVID-19 pandemic and the impacts in supply by the war in Ukraine. Revenues from oil products in the domestic market were 24% higher than in 1Q22, with higher revenues from all products except fuel oil, due to a drop in volume, mainly because there were no deliveries for thermoelectric generation in 2Q22. Oil revenues in the domestic market increased 45% due to higher sales to Acelen.

On the other hand, there was a drop in revenues from electricity, given the lower thermoelectric dispatch with the continued recovery in hydrological conditions in 2Q22.

In terms of the breakdown of revenues in the domestic market, diesel and gasoline continued to be the main products, together accounting for 73% of oil products domestic sales in 2Q22.

4

Graph 1 - Oil products sales revenues 2Q22 - domestic market

Other 8%

Fuel Oil 2%

Naphta 4%

Jet Fuel 7%

LPG 7%

Diesel 52%

Gasoline 21%

A relevant change in petroleum flows was observed in 1H22, stemming from the war in Ukraine. Russian exports, which previously supplied Europe, were diverted to Asian markets, mainly India and China. The constant search for global opportunities and the development of new customers that Petrobras has been implementing over the years were decisive for the company to also change the flow of its exports, taking advantage of new arbitrage and maximizing the generation of value in its sales.

In 2Q22, we had the following distribution of export destinations by volume:

Table 3 - Destination of oil exports					Table 4 - Destination of exports of oil products
	Country		2Q22		1Q22			2Q21				Country						2Q22 1Q22	1Q21
	China		15%		38%		45%
							Singapore						55%	59%	55%
	Europe	39%		28%	22%
					USA						26%	28%	18%
	Latam		24%		17%		7%
							Others						19%	13%	27%
	USA	8%		11%	9%
	Caribbean		2%		2%		3%
	Asia (Ex China)	12%		4%	14%
Cost of goods sold
Table 5 - Cost of goods sold
																							Variation (%)
		R$ million						2Q22		1Q22			2Q21			1H22			1H21			2Q22 X		2Q22 X		1H22 X
																1Q22		2Q21		1H21
		Acquisitions				(26,649)	(24,207)		(18,998)		(50,856)		(31,836)	10.1			40.3			59.7
		Crude oil imports					(12,930)	(8,808)		(8,552)		(21,738)		(13,772)	46.8			51.2			57.8
		Oil products imports		(8,901)	(7,012)		(6,897)		(15,913)		(10,546)	26.9			29.1			50.9
		Natural gas imports		(4,818)	(8,387)		(3,549)		(13,205)		(7,518)	(42.6)			35.8			75.6
		Production				(44,117)	(39,111)		(32,490)		(83,229)		(59,746)	12.8			35.8			39.3
		Crude oil						(37,139)		(32,198)			(26,114)			(69,338)			(47,686)			15.3			42.2			45.4
		Production taxes		(20,327)	(16,562)		(13,193)		(36,889)		(22,115)	22.7			54.1			66.8
		Other costs						(16,812)		(15,636)			(12,921)			(32,449)			(25,571)			7.5			30.1			26.9
		Oil products				(3,152)	(3,260)		(3,732)		(6,412)		(6,997)	(3.3)			(15.5)			(8.4)
		Natural gas						(3,826)		(3,653)			(2,644)			(7,479)			(5,063)			4.7			44.7			47.7
		Production taxes		(1,282)	(1,210)		(814)		(2,492)		(1,480)	6.0			57.5			68.4
		Other costs						(2,544)		(2,443)			(1,830)			(4,987)			(3,583)			4.1			39.0			39.2
		Services, electricity, operations abroad and	(4,333)	(3,557)		(2,217)		(7,889)		(4,264)	21.8			95.4			85.0
		others
		Total						(75,099)		(66,875)			(53,705)			(141,974)			(95,846)			12.3			39.8			48.1

5