Petrobras : Financial Statements USD 2Q22

Unaudited

Consolidated

Interim

Financial

Statements

As of June 30, 2022 and for the six- month periods ended June 30, 2022 and 2021 with report of independent registered public accounting firm

INDEX

PETROBRAS

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION .................................................................................	3
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME ........................................................................................................	4
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME.........................................................................	5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS ...............................................................................................	6
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY....................................................	7
1.		Basis of preparation ............................................................................................................................................................	8
2.	Summary of significant 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 .............................................................................................................................................	11
7.	Net finance income (expense) ..........................................................................................................................................	11
8.	Net income by operating segment...................................................................................................................................	12
9.	Trade and other receivables .............................................................................................................................................	16
10.	Inventories .....................................................................................................................................................................	17
11.	Taxes ..............................................................................................................................................................................	18
12.	Employee benefits ........................................................................................................................................................	20
13.	Provisions for legal proceedings..................................................................................................................................	25
14.	Provision for decommissioning costs..........................................................................................................................	29
15.	Property, plant and equipment....................................................................................................................................	30
16.	Intangible assets ...........................................................................................................................................................	32
17.	Impairment ....................................................................................................................................................................	34
18.	Exploration and evaluation of oil and gas reserves ...................................................................................................	35
19.	Collateral for crude oil exploration concession agreements.....................................................................................	35
20.	Investments ...................................................................................................................................................................	36
21.	Assets by operating segment ......................................................................................................................................	36
22.	Disposal of assets and other changes in organizational structure ..........................................................................	37
23.	Finance debt ..................................................................................................................................................................	41
24.	Lease liabilities ..............................................................................................................................................................	43
25.	Equity .............................................................................................................................................................................	44
26.	Fair value of financial assets and liabilities.................................................................................................................	46
27.	Risk management..........................................................................................................................................................	46
28.	Related-partytransactions ..........................................................................................................................................	51
29.	Supplemental information on statement of cash flows ............................................................................................	53
30.	Subsequent events .......................................................................................................................................................	53
Report of Independent Registered Public Accounting Firm ..................................................................................................	56

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UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

PETROBRAS

As of June 30, 2022 and December 31, 2021 (Expressed in millions of US Dollars, unless otherwise indicated)

Assets	Note		06.30.2022	12.31.2021	Liabilities	Note		06.30.2022	12.31.2021
Current assets					Current liabilities
Cash and cash equivalents	3.1	16,287	10,467	Trade payables		5,528	5,483
Marketable securities	3.2	2,855	650	Finance debt	23.1	4,116	3,641
Trade and other receivables	9.1	5,048	6,368	Lease liability	24	5,224	5,432
Inventories	10	9,512	7,255	Income taxes payable	11.1	1,922	733
Recoverable income taxes	11.1	142	163	Other taxes payable	11.2	3,784	4,001
Other recoverable taxes	11.2	1,132	1,183	Dividends payable	25.2	4,633	−
Others			2,146	1,573	Employee benefits	12	2,007	2,144
		37,122	27,659	Others			3,641	1,875
							30,855	23,309
Assets classified as held for sale	22		5,792	2,490	Liabilities related to assets classified as held for sale	22		1,822	867
			42,914	30,149				32,677	24,176

Non-current assets				Non-current liabilities
Long-term receivables				Finance debt	23.1	26,935	32,059
Trade and other receivables	9.1	1,981	1,900	Lease liability	24	17,302	17,611
Marketable securities	3.2	49	44	Income taxes payable	11.1	310	300
Judicial deposits	13.2	9,716	8,038	Deferred income taxes	11.1	6,895	1,229
Deferred income taxes	11.1	548	604	Employee benefits	12	8,861	9,374
Other recoverable taxes	11.2	3,648	3,261	Provisions for legal proceedings	13.1	2,468	2,018
Others		574	487	Provision for decommissioning costs	14	15,474	15,619
		16,516	14,334	Others		2,081	2,150
						80,326	80,360
				Total liabilities		113,003	104,536

Equity

Investments	20	1,717	1,510	Share capital (net of share issuance costs)	25.1	107,101	107,101
Property, plant and equipment	15	127,419	125,330	Capital reserve and capital transactions		1,144	1,143
Intangible assets	16	3,254	3,025	Profit reserves		76,055	72,811
		148,906	144,199	Accumulated other comprehensive (deficit)		(105,922)	(111,648)
				Attributable to the shareholders of Petrobras		78,378	69,407
				Non-controlling interests		439	405
						78,817	69,812
Total assets		191,820	174,348	Total liabilities and equity		191,820	174,348

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

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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

PETROBRAS

Three and six-month periods ended June 30, 2022 and 2021 (Expressed in millions of US Dollars, unless otherwise indicated)

			Jan-	Jan-	Apr-	Apr-
		Note	Jun/2022	Jun/2021	Jun/2022	Jun/2021
Sales revenues	4	61,892	36,680	34,703	20,982
Cost of sales	5.1	(28,019)	(17,849)	(15,240)	(10,158)
Gross profit			33,873	18,831	19,463	10,824
Income (expenses)
Selling expenses	5.2	(2,425)	(2,034)	(1,247)	(1,086)
General and administrative expenses	5.3	(622)	(533)	(323)	(260)
Exploration costs	18	(123)	(405)	(44)	(191)
Research and development expenses			(426)	(264)	(220)	(147)
Other taxes			(152)	(152)	(93)	(46)
Impairment of assets		17	(167)	(180)	(168)	(90)
Other income and expenses	6	1,867	(393)	2,189	(109)
			(2,048)	(3,961)	94	(1,929)
Income before net finance expense, results of equity-accounted investments and income			31,825	14,870	19,557	8,895
taxes
Finance income			881	328	619	206
Finance expenses			(1,716)	(3,079)	(959)	(1,871)
Foreign exchange gains (losses) and inflation indexation charges			(1,767)	(869)	(2,858)	3,684
Net finance income (expense)	7	(2,602)	(3,620)	(3,198)	2,019
Results of equity-accounted investments	20	341	1,209	(9)	1,026
Net income before income taxes			29,564	12,459	16,350	11,940
Income taxes	11.1	(9,875)	(4,103)	(5,309)	(3,784)
Net income for the period			19,689	8,356	11,041	8,156
Net income attributable to shareholders of Petrobras			19,615	8,301	11,010	8,121
Net income attributable to non-controlling interests			74	55	31	35
Basic and diluted earnings per common and preferred share - in U.S. dollars	25.3	1.50	0.64	0.84	0.62

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

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UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

PETROBRAS

Three and six-month periods ended June 30, 2022 and 2021 (Expressed in millions of US Dollars, unless otherwise indicated)

	Jan-Jun/2022	Jan-Jun/2021	Apr-Jun/2022	Apr-Jun/2021
Net income for the period	19,689	8,356	11,041	8,156
Items that will not be reclassified to the statement of income:
Actuarial losses on post-employment defined benefit plans
Recognized in equity	−	1,719	−	1,722
Deferred income tax	−	(585)	−	(585)
	−	1,134	−	1,137
Items that may be reclassified subsequently to the statement of income:
Unrealized gains (losses) on cash flow hedge - highly probable future exports
Recognized in equity	5,073	2,451	(6,523)	8,042
Reclassified to the statement of income	2,488	2,307	1,108	1,194
Deferred income tax	(2,571)	(1,617)	1,841	(3,140)
	4,990	3,141	(3,574)	6,096
Translation adjustments (*)
Recognized in equity	614	869	(4,283)	1,682
Reclassified to the statement of income	−	34	−	−
	614	903	(4,283)	1,682
Share of other comprehensive income in equity-accounted investments
Recognized in equity	145	141	(105)	253
Other comprehensive income (loss)	5,749	5,319	(7,962)	9,168
Total comprehensive income	25,438	13,675	3,079	17,324
Comprehensive income attributable to shareholders of Petrobras	25,341	13,651	3,102	17,299
Comprehensive income (loss) attributable to non-controlling interests	97	24	(23)	25

1. It includes cumulative translation adjustments in associates and joint ventures. The notes form an integral part of these unaudited consolidated interim financial

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