PETRÓLEO BRASILEIRO S.A. - PETROBRAS
As of March 31, 2023, with the independent registered public accounting firm report
1 |
INDEX
Petróleo Brasileiro S.A. - 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 | Information by operating segment | 11 |
9 | Trade and other receivables | 15 |
10 | Inventories | 16 |
11 | Trade payables | 16 |
12 | Taxes | 17 |
13 | Employee benefits | 18 |
14 | Provisions for legal proceedings, judicial deposits and contingent liabilities | 23 |
15 | Provision for decommissioning costs | 27 |
16 | Other Assets and Liabilities | 27 |
17 | Property, plant and equipment | 28 |
18 | Intangible assets | 30 |
19 | Exploration and evaluation of oil and gas reserves | 30 |
20 | Collateral for crude oil exploration concession agreements | 31 |
21 | Investments | 31 |
22 | Disposal of assets and other transactions | 31 |
23 | Finance debt | 34 |
24 | Lease liabilities | 36 |
25 | Equity | 37 |
26 | Risk management | 39 |
27 | Related party transactions | 45 |
28 | Supplemental information on statement of cash flows | 47 |
29 | Subsequent events | 47 |
Report of Independent Registered Public Accounting Firm | 49 |
2 |
Unaudited Consolidated Statements of Financial Position
PETROBRAS
As of March 31, 2023 and December 31, 2022 (Expressed in millions of US Dollars, unless otherwise indicated)
Assets | Note | 03.31.2023 | 12.31.2022 |
Cash and cash equivalents | 3.1 | 10,290 | 7,996 |
Marketable securities | 3.2 | 2,879 | 2,773 |
Trade and other receivables | 9.1 | 4,625 | 5,010 |
Inventories | 10 | 7,968 | 8,779 |
Recoverable income taxes | 12.1 | 181 | 165 |
Other recoverable taxes | 12.2 | 1,020 | 1,142 |
Others | 16 | 2,039 | 1,777 |
29,002 | 27,642 | ||
Assets classified as held for sale | 22 | 1,939 | 3,608 |
Current assets | 30,941 | 31,250 | |
Trade and other receivables | 9.1 | 1,942 | 2,440 |
Marketable securities | 3.2 | 2,642 | 1,564 |
Judicial deposits | 14.2 | 12,026 | 11,053 |
Deferred income taxes | 12.1 | 728 | 832 |
Other recoverable taxes | 12.2 | 4,051 | 3,778 |
Others | 16 | 2,025 | 1,553 |
Long-term receivables | 23,414 | 21,220 | |
Investments | 21 | 1,636 | 1,566 |
Property, plant and equipment - PP&E | 17 | 133,576 | 130,169 |
Intangible assets | 18 | 3,051 | 2,986 |
Non-current assets | 161,677 | 155,941 | |
Total assets | 192,618 | 187,191 |
Liabilities | Note | 03.31.2023 | 12.31.2022 |
Trade payables | 11 | 5,047 | 5,464 |
Finance debt | 23.1 | 4,098 | 3,576 |
Lease liability | 24 | 5,642 | 5,557 |
Income taxes payable | 12.1 | 1,356 | 2,883 |
Other taxes payable | 12.2 | 3,023 | 3,048 |
Dividends payable | 25.2 | − | 4,171 |
Employee benefits | 13 | 2,339 | 2,215 |
Others | 16 | 2,737 | 3,001 |
24,242 | 29,915 | ||
Liabilities related to assets classified as held for sale | 22 | 1,041 | 1,465 |
Current liabilities | 25,283 | 31,380 | |
Finance debt | 23.1 | 25,738 | 26,378 |
Lease liability | 24 | 17,871 | 18,288 |
Income taxes payable | 12.1 | 305 | 302 |
Deferred income taxes | 12.1 | 8,380 | 6,750 |
Employee benefits | 13 | 11,246 | 10,675 |
Provisions for legal proceedings | 14.1 | 3,242 | 3,010 |
Provision for decommissioning costs | 15 | 19,084 | 18,600 |
Others | 16 | 2,065 | 1,972 |
Non-current liabilities | 87,931 | 85,975 | |
Current and non-current liabilities | 113,214 | 117,355 | |
Share capital (net of share issuance costs) | 25.1 | 107,101 | 107,101 |
Capital reserve and capital transactions | 1,144 | 1,144 | |
Profit reserves | 73,775 | 66,434 | |
Accumulated other comprehensive (deficit) | (102,876) | (105,187) | |
Attributable to the shareholders of Petrobras | 79,144 | 69,492 | |
Non-controlling interests | 260 | 344 | |
Equity | 79,404 | 69,836 | |
Total liabilities and equity | 192,618 | 187,191 | |
The notes form an integral part of these unaudited consolidated interim financial statements. |
3 |
Unaudited Consolidated Statements of Income
PETROBRAS
Three-month periods ended March 31, 2023 and 2022 (Expressed in millions of US Dollars, unless otherwise indicated)
Note | Jan-Mar/2023 | Jan-Mar/2022 | |
Sales revenues | 4 | 26,771 | 27,189 |
Cost of sales | 5.1 | (12,658) | (12,779) |
Gross profit | 14,113 | 14,410 | |
Income (expenses) | |||
Selling expenses | 5.2 | (1,221) | (1,178) |
General and administrative expenses | 5.3 | (357) | (299) |
Exploration costs | 19 | (157) | (79) |
Research and development expenses | (154) | (206) | |
Other taxes | (200) | (59) | |
Other income and expenses, net | 6 | (471) | (321) |
(2,560) | (2,142) | ||
Income before net finance income (expense), results of equity-accounted investments and income taxes | 11,553 | 12,268 | |
Finance income | 465 | 262 | |
Finance expenses | (844) | (757) | |
Foreign exchange gains (losses) and inflation indexation charges | (243) | 1,091 | |
Net finance income (expense) | 7 | (622) | 596 |
Results of equity-accounted investments | 21 | 35 | 350 |
Net income before income taxes | 10,966 | 13,214 | |
Income taxes | 12.1 | (3,596) | (4,566) |
Net income for the period | 7,370 | 8,648 | |
Net income attributable to shareholders of Petrobras | 7,341 | 8,605 | |
Net income attributable to non-controlling interests | 29 | 43 | |
Basic and diluted earnings per common and preferred share - in U.S. dollars | 25.3 | 0.56 | 0.66 |
The notes form an integral part of these unaudited consolidated interim financial statements. |
4 |
Unaudited Consolidated Statements of Comprehensive Income
PETROBRAS
Three-month periods ended March 31, 2023 and 2022 (Expressed in millions of US Dollars, unless otherwise indicated)
Note | Jan-Mar/2023 | Jan-Mar/2022 | |
Net income for the period | 7,370 | 8,648 | |
Items that will not be reclassified to the statement of income: | |||
Actuarial losses on post-employment defined benefit plans | 13.3 | ||
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 | 26.3 | ||
Recognized in equity | 1,468 | 11,596 | |
Reclassified to the statement of income | 1,154 | 1,380 | |
Deferred income tax | (892) | (4,412) | |
1,730 | 8,564 | ||
Translation adjustments (*) | |||
Recognized in equity | 569 | 4,897 | |
Share of other comprehensive income in equity-accounted investments | 21 | ||
Recognized in equity | 89 | 250 | |
Other comprehensive income | 2,316 | 13,711 | |
Total comprehensive income | 9,686 | 22,359 | |
Comprehensive income attributable to shareholders of Petrobras | 9,652 | 22,239 | |
Comprehensive income attributable to non-controlling interests | 34 | 120 | |
(*) It includes cumulative translation adjustments in associates and joint ventures. | |||
The notes form an integral part of these unaudited consolidated interim financial statements. |
5 |
Unaudited Consolidated Statements of Cash Flows
PETROBRAS
Three-month periods ended March 31, 2023 and 2022 (Expressed in millions of US Dollars, unless otherwise indicated)
Note | Jan-Mar/2023 | Jan-Mar/2022 | |
Cash flows from operating activities | |||
Net income for the period | 7,370 | 8,648 | |
Adjustments for: | |||
Pension and medical benefits - actuarial gains | 13 | 370 | 307 |
Results of equity-accounted investments | 21 | (35) | (350) |
Depreciation, depletion and amortization | 28.1 | 2,924 | 3,170 |
Impairment of assets (reversals) | 3 | (1) | |
Inventory write-back to net realizable value | 10 | (8) | (7) |
Allowance for credit loss on trade and other receivables | 24 | 21 | |
Exploratory expenditure write-offs | 19 | 32 | 23 |
Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA | (496) | (476) | |
Foreign exchange, indexation and finance charges | 656 | (489) | |
Income taxes | 12.1 | 3,596 | 4,566 |
Revision and unwinding of discount on the provision for decommissioning costs | 15 | 212 | 154 |
Results from co-participation agreements in bid areas | (28) | − | |
Early termination and cash outflows revision of lease agreements | (167) | (225) | |
Losses with legal, administrative and arbitration proceedings, net | 6 | 254 | 259 |
Decrease (Increase) in assets | |||
Trade and other receivables | 412 | 641 | |
Inventories | 989 | (1,917) | |
Judicial deposits | (403) | (398) | |
Other assets | 111 | (27) | |
Increase (Decrease) in liabilities | |||
Trade payables | (478) | (138) | |
Other taxes payable | (217) | 230 | |
Pension and medical benefits | (178) | (1,477) | |
Provisions for legal proceedings | (85) | (52) | |
Other employee benefits | 35 | (150) | |
Provision for decommissioning costs | (165) | (132) | |
Other liabilities | (101) | (297) | |
Income taxes paid | (4,280) | (1,575) | |
Net cash provided by operating activities | 10,347 | 10,308 | |
Cash flows from investing activities | |||
Acquisition of PP&E and intangible assets | (2,423) | (2,376) | |
Investments in investees | (8) | (9) | |
Proceeds from disposal of assets - Divestment | 1,855 | 1,753 | |
Financial compensation from co-participation agreements | 391 | 61 | |
Investment in marketable securities | (930) | (469) | |
Dividends received | 11 | 52 | |
Net cash used in investing activities | (1,104) | (988) | |
Cash flows from financing activities | |||
Changes in non-controlling interest | (75) | 84 | |
Proceeds from finance debt | 23.3 | 51 | 150 |
Repayment of principal - finance debt | 23.3 | (750) | (1,491) |
Repayment of interest - finance debt | 23.3 | (570) | (567) |
Repayment of lease liability | 24 | (1,389) | (1,321) |
Dividends paid to Shareholders of Petrobras | (4,192) | − | |
Dividends paid to non-controlling interests | (48) | (5) | |
Net cash used in financing activities | (6,973) | (3,150) | |
Effect of exchange rate changes on cash and cash equivalents | 24 | 582 | |
Net change in cash and cash equivalents | 2,294 | 6,752 | |
Cash and cash equivalents at the beginning of the period | 7,996 | 10,480 | |
Cash and cash equivalents at the end of the period | 10,290 | 17,232 | |
The notes form an integral part of these unaudited consolidated interim financial statements. | |||
6 |
Unaudited Consolidated Statements of Changes In Shareholders' Equity
PETROBRAS
Three-month periods ended March 31, 2023, and 2022 (Expressed in millions of US Dollars, unless otherwise indicated)
Share capital (net of share issuance costs) | Accumulated other comprehensive income (deficit) and deemed cost | Profit Reserves | ||||||||||||||
Share Capital | Share issuance costs | Capital reserve, Capital Transactions and Treasury shares | Cumulative translation adjustments | Cash flow hedge - highly probable future exports | Actuarial gains (losses) on defined benefit pension plans | Other comprehensive income (loss) and deemed cost | Legal | Statutory | Tax incentives | Profit retention | Additional dividends proposed | Retained earnings (losses) | Equity attributable to shareholders of Petrobras | Non-controlling interests | Total consolidated equity | |
Balance at December 31, 2021 | 107,380 | (279) | 1,143 | (75,122) | (24,169) | (11,205) | (1,152) | 9,769 | 3,084 | 1,220 | 52,050 | 6,688 | − | 69,407 | 405 | 69,812 |
107,101 | 1,143 | (111,648) | 72,811 | − | 69,407 | 405 | 69,812 | |||||||||
Capital transactions | − | − | − | − | − | − | − | − | − | − | − | − | − | − | 83 | 83 |
Net income | − | − | − | − | − | − | − | − | − | − | − | − | 8,605 | 8,605 | 43 | 8,648 |
Other comprehensive income (loss) | − | − | − | 4,820 | 8,564 | − | 250 | − | − | − | − | − | − | 13,634 | 77 | 13,711 |
Appropriations: | ||||||||||||||||
Dividends | − | − | − | − | − | − | − | − | − | − | − | − | − | − | (2) | (2) |
Balance at March 31, 2022 | 107,380 | (279) | 1,143 | (70,302) | (15,605) | (11,205) | (902) | 9,769 | 3,084 | 1,220 | 52,050 | 6,688 | 8,605 | 91,646 | 606 | 92,252 |
107,101 | 1,143 | (98,014) | 72,811 | 8,605 | 91,646 | 606 | 92,252 | |||||||||
Balance at December 31, 2022 | 107,380 | (279) | 1,144 | (74,171) | (17,507) | (12,576) | (933) | 11,574 | 3,281 | 1,677 | 43,038 | 6,864 | − | 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) | 11,574 | 3,281 | 1,677 | 43,038 | 6,864 | 7,341 | 79,144 | 260 | 79,404 |
107,101 | 1,144 | (102,876) | 66,434 | 7,341 | 79,144 | 260 | 79,404 | |||||||||
The notes form an integral part of these unaudited consolidated interim financial statements. |
7 |
NOTES TO THE UNAUDITED 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, 2022, 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 11, 2023.
2. | Summary of significant 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, 2022.
Regarding the IFRS standards that became effective on January 1, 2023, their initial application did not result in material effects on these unaudited condensed consolidated interim financial statements.
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.
03.31.2023 | 12.31.2022 | |
Cash at bank and in hand | 135 | 216 |
Short-term financial investments | ||
- In Brazil | ||
Brazilian interbank deposit rate investment funds and other short-term deposits | 3,281 | 2,763 |
Other investment funds | 130 | 244 |
3,411 | 3,007 | |
- Abroad | ||
Time deposits | 3,121 | 2,388 |
Automatic investing accounts and interest checking accounts | 3,603 | 2,365 |
Other financial investments | 20 | 20 |
6,744 | 4,773 | |
Total short-term financial investments | 10,155 | 7,780 |
Total cash and cash equivalents | 10,290 | 7,996 |
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 CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
3.2. | Marketable securities |
03.31.2023 | 12.31.2022 | |
Fair value through profit or loss | 840 | 713 |
Amortized cost - Bank Deposit Certificates and time deposits | 4,631 | 3,574 |
Amortized cost - Others | 50 | 50 |
Total | 5,521 | 4,337 |
Current | 2,879 | 2,773 |
Non-current | 2,642 | 1,564 |
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/2023 | Jan-Mar/2022 | |
Diesel | 8,305 | 7,483 |
Gasoline | 3,694 | 3,725 |
Liquefied petroleum gas | 929 | 1,186 |
Jet fuel | 1,406 | 991 |
Naphtha | 478 | 611 |
Fuel oil (including bunker fuel) | 286 | 366 |
Other oil products | 1,084 | 1,274 |
Subtotal oil products | 16,182 | 15,636 |
Natural gas | 1,526 | 1,723 |
Oil | 1,350 | 1,761 |
Renewables and nitrogen products | 21 | 66 |
Breakage | 220 | 104 |
Electricity | 110 | 293 |
Services, agency and others | 244 | 238 |
Domestic market | 19,653 | 19,821 |
Exports | 6,741 | 6,734 |
Oil | 5,547 | 4,812 |
Fuel oil (including bunker fuel) | 1,034 | 1,885 |
Other oil products | 160 | 38 |
Sales abroad (*) | 377 | 633 |
Foreign market | 7,118 | 7,368 |
Sales revenues | 26,771 | 27,189 |
(*) Sales revenues from operations outside of Brazil, including trading and excluding exports. |
9 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
Jan-Mar/2023 | Jan-Mar/2022 | |
Domestic market | 19,653 | 19,821 |
China | 2,493 | 1,571 |
Americas (except United States) | 1,423 | 1,666 |
Europe | 1,348 | 1,255 |
Asia (except China and Singapore) | 809 | 500 |
United States | 563 | 1,135 |
Singapore | 481 | 1,240 |
Others | 1 | 1 |
Foreign market | 7,118 | 7,368 |
Sales revenues | 26,771 | 27,189 |
In the three-month period ended on March 31, 2023, sales to two clients of the refining, transportation and marketing segment represented individually 16% and 11% of the Company's sales revenues. In the same period of 2022, one client of the same segment represented 14% of the Company's sales revenues.
5. | Costs and expenses by nature |
5.1. | Cost of sales |
Jan-Mar/2023 | Jan-Mar/2022 | |
Raw material, products for resale, materials and third-party services (*) | (7,095) | (5,761) |
Depreciation, depletion and amortization | (2,396) | (2,562) |
Production taxes | (2,783) | (4,064) |
Employee compensation | (384) | (392) |
Total | (12,658) | (12,779) |
(*) It Includes short-term leases and inventory turnover. |
5.2. | Selling expenses |
Jan-Mar/2023 | Jan-Mar/2022 | |
Materials, third-party services, freight, rent and other related costs | (1,026) | (948) |
Depreciation, depletion and amortization | (150) | (200) |
Allowance for expected credit losses | (21) | (8) |
Employee compensation | (24) | (22) |
Total | (1,221) | (1,178) |
5.3. | General and administrative expenses |
Jan-Mar/2023 | Jan-Mar/2022 | |
Employee compensation | (229) | (198) |
Materials, third-party services, rent and other related costs | (102) | (78) |
Depreciation, depletion and amortization | (26) | (23) |
Total | (357) | (299) |
10 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
6. | Other income and expenses |
Jan-Mar/2023 | Jan-Mar/2022 | |
Unscheduled stoppages and pre-operating expenses | (499) | (376) |
Pension and medical benefits - retirees | (281) | (238) |
Losses with legal, administrative and arbitration proceedings | (254) | (259) |
Performance award program | (140) | (118) |
Profit sharing | (35) | (31) |
Impairment | (3) | 1 |
Losses on decommissioning of returned/abandoned areas | (1) | (24) |
Results from co-participation agreements in bid areas | 28 | - |
Gains (losses) with commodities derivatives | 79 | (53) |
Amounts recovered from Lava Jato investigation (*) | 89 | 12 |
Government grants | 104 | 74 |
Reimbursements from E&P partnership operations | 161 | 27 |
Early termination and changes to cash flow estimates of leases | 167 | 225 |
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control | 496 | 476 |
Others (**) | (382) | (37) |
Total | (471) | (321) |
(*) Through December 31, 2022, the amount recovered of US$ 1,618 was recognized through collaboration and leniency agreements entered into with individuals and legal entities. | ||
(**) It includes, in 2023, expenses with compensation for the termination of a vessel charter agreement in the amount of US$ 317. | ||
7. | Net finance income (expense) |
Jan-Mar/2023 | Jan-Mar/2022 | |
Finance income | 465 | 262 |
Income from investments and marketable securities (Government Bonds) | 333 | 163 |
Other income, net | 132 | 99 |
Finance expenses | (844) | (757) |
Interest on finance debt | (541) | (530) |
Unwinding of discount on lease liabilities | (358) | (290) |
Capitalized borrowing costs | 271 | 238 |
Unwinding of discount on the provision for decommissioning costs | (212) | (130) |
Other finance expenses , net | (4) | (45) |
Foreign exchange gains (losses) and indexation charges | (243) | 1,091 |
Foreign exchange gains (losses) (*) | 797 | 2,421 |
Reclassification of hedge accounting to the Statement of Income (*) | (1,154) | (1,380) |
Monetary restatement of dividends payable | (32) | − |
Recoverable taxes inflation indexation income | 64 | 21 |
Other foreign exchange gains and indexation charges, net | 82 | 29 |
Total | (622) | 596 |
(*) For more information, see notes 26.3a and 26.3c. |
8. | Information by operating segment |
In 2022, Petrobras implemented changes to its financial reporting system, according to the metric approved by the Executive Board. These changes did not change the allocation of Petrobras' reportable operating segments (E&P, RT&M and G&P). However, the measurement of certain components of the operating segments and of Corporate and other businesses was changed as following:
· | trade and other receivables, recoverable income taxes and other recoverable taxes, previously allocated to operating segments, are now presented in Corporate and other businesses. Expected credit losses are now also presented in Corporate and other businesses; |
11 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
· | losses with commodity derivatives (within other income and expenses, net), previously presented in Corporate and other businesses, are now presented in operating segments; |
· | general and administrative expenses related to logistics and fuel sales, previously presented in Corporate and other businesses, are now disclosed in the RT&M segment. |
This information reflects the Company's current management model and is used by the Board of Executive Officers (Chief Operating Decision Maker - CODM) to make decisions regarding resource allocation and performance evaluation. In this context, the information by operating segment of the first quarter of 2022 has been reclassified for comparative purposes, as follows:
Consolidated Statement of Income by operating segment - Jan-Mar/2022 Reclassified | ||||||
Exploration and Production (E&P) | Refining, Transportation & Marketing (RT&M) | Gas & Power (G&P) | Corporate and other businesses | Total | ||
Eliminations | ||||||
Net income (loss) of the period disclosed in Jan-Mar/2022 | 7,954 | 1,987 | (241) | (247) | (805) | 8,648 |
Changes in the measurement | (1) | (49) | 4 | 46 | − | − |
Net income (loss) of the period reclassified - Jan-Mar/2022 | 7,953 | 1,938 | (237) | (201) | (805) | 8,648 |
12 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
8.1. | Net income by operating segment |
Consolidated Statement of Income by operating segment | ||||||
Jan-Mar/2023 | ||||||
Exploration and Production (E&P) | Refining, Transportation & Marketing (RT&M) | Gas & Power (G&P) | Corporate and other businesses | Eliminations | Total | |
Sales revenues | 15,730 | 24,842 | 2,854 | 76 | (16,731) | 26,771 |
Intersegments | 15,450 | 474 | 805 | 2 | (16,731) | − |
Third parties | 280 | 24,368 | 2,049 | 74 | - | 26,771 |
Cost of sales | (6,379) | (21,868) | (1,467) | (77) | 17,133 | (12,658) |
Gross profit (loss) | 9,351 | 2,974 | 1,387 | (1) | 402 | 14,113 |
Income (expenses) | (123) | (1,178) | (779) | (475) | (5) | (2,560) |
Selling expenses | (7) | (533) | (652) | (24) | (5) | (1,221) |
General and administrative expenses | (16) | (78) | (15) | (248) | - | (357) |
Exploration costs | (157) | - | - | - | - | (157) |
Research and development expenses | (124) | (2) | (1) | (27) | - | (154) |
Other taxes | (18) | (106) | (9) | (67) | - | (200) |
Other income and expenses, net | 199 | (459) | (102) | (109) | - | (471) |
Income (loss) before net finance income (expense), results of equity-accounted investments and income taxes | 9,228 | 1,796 | 608 | (476) | 397 | 11,553 |
Net finance expense | - | - | - | (622) | - | (622) |
Results of equity-accounted investments | 17 | 14 | 4 | - | - | 35 |
Net income / (loss) before income taxes | 9,245 | 1,810 | 612 | (1,098) | 397 | 10,966 |
Income taxes | (3,138) | (611) | (206) | 494 | (135) | (3,596) |
Net income (loss) for the period | 6,107 | 1,199 | 406 | (604) | 262 | 7,370 |
Attributable to: | ||||||
Shareholders of Petrobras | 6,108 | 1,199 | 388 | (616) | 262 | 7,341 |
Non-controlling interests | (1) | - | 18 | 12 | - | 29 |
13 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
Jan-Mar/2022 - Reclassified | ||||||
Exploration and Production (E&P) | Refining, Transportation & Marketing (RT&M) | Gas & Power (G&P) | Corporate and other businesses | Eliminations | Total | |
Sales revenues | 19,684 | 24,685 | 3,365 | 126 | (20,671) | 27,189 |
Intersegments | 19,374 | 433 | 861 | 3 | (20,671) | − |
Third parties | 310 | 24,252 | 2,504 | 123 | - | 27,189 |
Cost of sales | (7,676) | (21,547) | (2,885) | (125) | 19,454 | (12,779) |
Gross profit (loss) | 12,008 | 3,138 | 480 | 1 | (1,217) | 14,410 |
Income (expenses) | (35) | (613) | (882) | (608) | (4) | (2,142) |
Selling expenses | (2) | (405) | (756) | (11) | (4) | (1,178) |
General and administrative expenses | (12) | (61) | (16) | (210) | - | (299) |
Exploration costs | (79) | - | - | - | - | (79) |
Research and development expenses | (173) | (3) | (3) | (27) | - | (206) |
Other taxes | (15) | (7) | (10) | (27) | - | (59) |
Other income and expenses, net | 246 | (137) | (97) | (333) | - | (321) |
Income (loss) before net finance income (expense), results of equity-accounted investments and income taxes | 11,973 | 2,525 | (402) | (607) | (1,221) | 12,268 |
Net finance income (expense) | - | - | - | 596 | - | 596 |
Results of equity-accounted investments | 51 | 271 | 29 | (1) | - | 350 |
Net income / (loss) before income taxes | 12,024 | 2,796 | (373) | (12) | (1,221) | 13,214 |
Income taxes | (4,071) | (858) | 136 | (189) | 416 | (4,566) |
Net income (loss) for the period | 7,953 | 1,938 | (237) | (201) | (805) | 8,648 |
Attributable to: | ||||||
Shareholders of Petrobras | 7,954 | 1,938 | (263) | (219) | (805) | 8,605 |
Non-controlling interests | (1) | - | 26 | 18 | - | 43 |
The amount of depreciation, depletion and amortization by segment is set forth as follows:
Exploration and Production (E&P) | Refining, Transportation & Marketing (RT&M) | Gas & Power (G&P) | Corporate and other businesses | Total | |
Jan-Mar/2023 | 2,215 | 558 | 124 | 27 | 2,924 |
Jan-Mar/2022 | 2,470 | 572 | 108 | 20 | 3,170 |
8.2. | Assets by operating segment |
The segment information reflects the financial information used in the decision-making process for resource allocation and performance evaluation carried out by the Company's Board of Executive Officers (as Chief Operating Decision Makers).
14 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
Exploration and Production (E&P) | Refining, Transportation & Marketing (RT&M) | Gas & Power (G&P) | Corporate and other business | Elimina-tions | Total | |
Consolidated assets by operating segment - 03.31.2023 | ||||||
Current assets | 3,632 | 10,914 | 381 | 20,929 | (4,915) | 30,941 |
Non-current assets | 115,084 | 22,791 | 7,319 | 16,483 | − | 161,677 |
Long-term receivables | 7,309 | 1,890 | 97 | 14,118 | − | 23,414 |
Investments | 387 | 1,032 | 178 | 39 | − | 1,636 |
Property, plant and equipment | 104,847 | 19,753 | 6,966 | 2,010 | − | 133,576 |
Operating assets | 92,883 | 16,782 | 4,808 | 1,614 | − | 116,087 |
Under construction | 11,964 | 2,971 | 2,158 | 396 | − | 17,489 |
Intangible assets | 2,541 | 116 | 78 | 316 | − | 3,051 |
Total Assets | 118,716 | 33,705 | 7,700 | 37,412 | (4,915) | 192,618 |
Consolidated assets by operating segment - 12.31.2022 | ||||||
Current assets | 5,224 | 12,035 | 391 | 18,864 | (5,264) | 31,250 |
Non-current assets | 111,110 | 22,396 | 7,193 | 15,242 | − | 155,941 |
Long-term receivables | 6,351 | 1,811 | 94 | 12,964 | − | 21,220 |
Investments | 379 | 977 | 173 | 37 | − | 1,566 |
Property, plant and equipment | 101,875 | 19,496 | 6,851 | 1,947 | − | 130,169 |
Operating assets | 92,087 | 16,851 | 4,808 | 1,585 | − | 115,331 |
Under construction | 9,788 | 2,645 | 2,043 | 362 | − | 14,838 |
Intangible assets | 2,505 | 112 | 75 | 294 | − | 2,986 |
Total Assets | 116,334 | 34,431 | 7,584 | 34,106 | (5,264) | 187,191 |
9. | Trade and other receivables |
9.1. | Trade and other receivables |
03.31.2023 | 12.31.2022 | |
Receivables from contracts with customers | ||
Third parties | 5,049 | 5,210 |
Related parties | ||
Investees (note 27.1) | 94 | 93 |
Subtotal | 5,143 | 5,303 |
Other trade receivables | ||
Third parties | ||
Receivables from divestments and Transfer of Rights Agreement (*) | 1,385 | 1,922 |
Lease receivables | 388 | 394 |
Other receivables | 604 | 765 |
Related parties | ||
Petroleum and alcohol accounts - receivables from Brazilian Federal Government | 629 | 602 |
Subtotal | 3,006 | 3,683 |
Total trade and other receivables, before ECL | 8,149 | 8,986 |
Expected credit losses (ECL) - Third parties | (1,579) | (1,533) |
Expected credit losses (ECL) - Related parties | (3) | (3) |
Total trade and other receivables | 6,567 | 7,450 |
Current | 4,625 | 5,010 |
Non-current | 1,942 | 2,440 |
(*) As of March 31, 2023 and December 31, 2022, it mainly refers to the receivables from the transactions of Atapu, Sépia, Carmópolis, Roncador, Maromba, Miranga, Baúna, Pampo and Enchova, Breitener, Rio Ventura and Cricaré. |
Trade and other receivables are generally classified as measured at amortized cost, except for receivables with final prices linked to changes in commodity price after their transfer of control, which are classified as measured at fair value through profit or loss, amounting to US$ 466 as of March 31, 2023 (US$ 470 as of December 31, 2022).
15 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
9.2. | Aging of trade and other receivables - third parties |
03.31.2023 | 12.31.2022 | |||
Trade and other receivables | Expected credit losses | Trade and other receivables | Expected credit losses | |
Current | 5,525 | (35) | 6,474 | (39) |
Overdue: | ||||
1-90 days | 115 | (44) | 189 | (48) |
91-180 days | 96 | (31) | 30 | (27) |
181-365 days | 105 | (62) | 63 | (51) |
More than 365 days | 1,585 | (1,407) | 1,535 | (1,368) |
Total | 7,426 | (1,579) | 8,291 | (1,533) |
9.3. | Changes in provision for expected credit losses - third parties and related parties |
2023 Jan-Mar | 2022 Jan-Mar | |
Opening balance | 1,536 | 1,448 |
Additions | 43 | 41 |
Write-offs | − | (5) |
Reversals | (21) | (25) |
Translation adjustment | 24 | 138 |
Closing balance | 1,582 | 1,597 |
Current | 267 | 209 |
Non-current | 1,315 | 1,388 |
10. | Inventories |
03.31.2023 | 12.31.2022 | |
Crude oil | 3,476 | 3,738 |
Oil products | 2,599 | 3,278 |
Intermediate products | 568 | 587 |
Natural gas and Liquefied Natural Gas (LNG) | 128 | 135 |
Biofuels | 17 | 14 |
Fertilizers | 1 | 4 |
Total products | 6,789 | 7,756 |
Materials, supplies and others | 1,179 | 1,023 |
Total | 7,968 | 8,779 |
In the three-month period ended March 31, 2023, the Company recognized a US$ 8 reversal of cost of sales, adjusting inventories to net realizable value (a US$ 7 reversal of cost of sales in the three month period ended March 31, 2022), primarily due to changes in international prices of crude oil and oil products.
At March 31, 2023, the Company had pledged crude oil and oil products volumes as collateral for the Term of Financial Commitment (TFC) related to plans PPSP-R, PPSP-R Pre-70 and PPSP-NR Pre-70 signed by Petrobras and Petros Foundation in 2008, in the estimated amount of US$ 931, after deducting the partial early settlement, made in February 2022.
11. | Trade payables |
03.31.2023 | 12.31.2022 | |
Third parties in Brazil | 3,004 | 3,497 |
Third parties abroad | 2,034 | 1,935 |
Related parties | 9 | 32 |
Total | 5,047 | 5,464 |
16 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
12. | Taxes |
12.1. | Income taxes |
Current assets | Current liabilities | Non-current liabilities | ||||
03.31.2023 | 12.31.2022 | 03.31.2023 | 12.31.2022 | 03.31.2023 | 12.31.2022 | |
Taxes in Brazil | ||||||
Income taxes | 175 | 160 | 920 | 2,505 | − | − |
Income taxes - Tax settlement programs | − | − | 52 | 50 | 305 | 302 |
175 | 160 | 972 | 2,555 | 305 | 302 | |
Taxes abroad | 6 | 5 | 384 | 328 | − | − |
Total | 181 | 165 | 1,356 | 2,883 | 305 | 302 |
Reconciliation between statutory income tax rate and effective income tax rate
The following table provides the reconciliation of Brazilian statutory tax rate to the Company's effective rate on income before income taxes:
Jan-Mar/2023 | Jan-Mar/2022 | |
Net income before income taxes | 10,966 | 13,214 |
Nominal income taxes computed based on Brazilian statutory corporate tax rates (34%) | (3,729) | (4,492) |
Adjustments to arrive at the effective tax rate: | ||
Different jurisdictional tax rates for companies abroad | 246 | 191 |
Brazilian income taxes on income of companies incorporated outside Brazil (*) | (101) | (299) |
Tax incentives | 43 | 8 |
Tax loss carryforwards (unrecognized tax losses) | (5) | 9 |
Non-taxable income (non-deductible expenses), net | 6 | 24 |
Post-employment benefits | (77) | (142) |
Results of equity-accounted investments in Brazil and abroad | 11 | 123 |
Others | 10 | 12 |
Income taxes | (3,596) | (4,566) |
Deferred income taxes | (672) | (1,961) |
Current income taxes | (2,924) | (2,605) |
Effective tax rate of income taxes | 32.8% | 34.6% |
(*) It relates to Brazilian income taxes on earnings of offshore investees, as established by Law No. 12,973/2014. |
Deferred income taxes - non-current
The changes in the deferred income taxes are presented as follows:
Jan-Mar/2023 | Jan-Mar/2022 | |
Opening balance | (5,918) | (625) |
Recognized in the statement of income for the period | (672) | (1,961) |
Recognized in shareholders' equity | (855) | (4,412) |
Translation adjustment | (208) | (776) |
Use of tax loss carryforwards | − | (720) |
Others | 1 | 4 |
Closing balance | (7,652) | (8,490) |
The composition of deferred tax assets and liabilities is set out in the following table:
17 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
Nature | Realization basis | 03.31.2023 | 12.31.2022 |
PP&E - Exploration and decommissioning costs | Depreciation, amortization and write-offs of assets | 585 | 158 |
PP&E - Impairment | Amortization, impairment reversals and write-offs of assets | 3,478 | 3,602 |
PP&E - depreciation methods and capitalized borrowing costs | Depreciation, amortization and write-offs of assets | (16,234) | (15,438) |
Loans, trade and other receivables / payables and financing | Payments, receipts and considerations | (212) | 810 |
Lease liabilities | Appropriation of the considerations | 192 | 434 |
Provision for legal proceedings | Payments and use of provisions | 960 | 885 |
Tax loss carryforwards | Taxable income compensation | 932 | 914 |
Inventories | Sales, write-downs and losses | 209 | 333 |
Employee Benefits | Payments and use of provisions | 1,615 | 1,518 |
Others | 823 | 866 | |
Total | (7,652) | (5,918) | |
Deferred tax assets | 728 | 832 | |
Deferred tax liabilities | (8,380) | (6,750) |
Uncertain tax treatments
On April 24, 2023, the Company received an additional charge from the Dutch tax authority, due to a final assessment on the calculation of the Corporate Income Tax (CIT) of subsidiaries in the Netherlands in 2018, arising from the valuation of platforms and equipment nationalized under the Repetro tax regime, in the amount of US$ 279, classified as a contingent liability (note 14.3).
Tax treatments related to 2019 to 2022 have not yet been assessed by this tax authority. Any charges by the Dutch tax authority for these years, on a similar basis to 2018, could reach the amount of US$ 301. Thus, the total amount of these uncertain tax treatments, from 2018 to 2022, is US$ 580.
The Company will continue to defend its position that the valuation of platforms and equipment was carried out in compliance with the relevant legislation, through the use of administrative appeals or by the Dutch judicial courts. Therefore, no provision was recorded in these unaudited condensed consolidated interim financial statements for the period ended March 31, 2023.
12.2. | Other taxes |
Current assets | Non-current assets | Current liabilities | Non-current liabilities (*) | |||||
03.31.2023 | 12.31.2022 | 03.31.2023 | 12.31.2022 | 03.31.2023 | 12.31.2022 | 03.31.2023 | 12.31.2022 | |
Taxes in Brazil | ||||||||
Current / Non-current ICMS (VAT) | 665 | 716 | 488 | 473 | 731 | 699 | − | − |
Current / Non-current PIS and COFINS | 296 | 378 | 2,587 | 2,362 | 110 | 28 | 103 | 89 |
Claim to recover PIS and COFINS | − | − | 681 | 657 | − | − | − | − |
CIDE | − | 1 | − | − | − | 5 | − | − |
Production taxes | − | − | − | − | 1,812 | 1,996 | 144 | 114 |
Withholding income taxes | − | − | − | − | 73 | 149 | − | − |
Others | 51 | 40 | 281 | 273 | 278 | 152 | 93 | 90 |
Total in Brazil | 1,012 | 1,135 | 4,037 | 3,765 | 3,004 | 3,029 | 340 | 293 |
Taxes abroad | 8 | 7 | 14 | 13 | 19 | 19 | − | − |
Total | 1,020 | 1,142 | 4,051 | 3,778 | 3,023 | 3,048 | 340 | 293 |
(*) Other non-current taxes are classified within other non-current liabilities in the balance sheet. |
13. | Employee benefits |
Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees or for the termination of employment. It also includes expenses with directors and management. Such benefits include salaries, post-employment benefits, termination benefits and other benefits.
18 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
03.31.2023 | 12.31.2022 | |
Liabilities | ||
Short-term employee benefits | 1,555 | 1,452 |
Termination benefits | 171 | 192 |
Post-employment benefits | 11,859 | 11,246 |
Total | 13,585 | 12,890 |
Current | 2,339 | 2,215 |
Non-current | 11,246 | 10,675 |
13.1. | Short-term employee benefits |
03.31.2023 | 12.31.2022 | |
Variable compensation program - PPP | 592 | 489 |
Accrued vacation and 13th salary | 580 | 505 |
Salaries and related charges and other provisions | 258 | 327 |
Profit sharing | 125 | 131 |
Total | 1,555 | 1,452 |
Current | 1,521 | 1,421 |
Non-current (*) | 34 | 31 |
(*) Remaining balance relating to the four-year deferral of 40% of the PPP portion of executive officers and the upper management |
The Company recognized the following amounts in the statement of income:
Jan-Mar/2023 | Jan-Mar/2022 | |
Salaries, accrued vacations and related charges | (747) | (678) |
Variable compensation program - PPP | (140) | (118) |
Profit sharing | (35) | (31) |
Management fees and charges | (2) | (3) |
Total | (924) | (830) |
13.1.1. | Variable compensation programs |
Performance award program (PPP)
As of March 31, 2023, the Company had paid US$ 136 and, in April 2023, made the final payment of US$ 396, totalizing US$ 532 regarding the PPP for 2022, since the related metrics relating to the Company's and individual performance were achieved in 2022.
Regarding the PPP for 2023, the Company is revising the model for this program. However, due to the expectation of maintaining the program with a similar nature of 2022, in the three-month period ended March 31, 2023, the Company provisioned US$ 139 referring to this program for 2023 (US$ 118 for the same period of 2022), recorded in other income and expenses.
Profit Sharing (PLR)
The Company made an advance of US$ 44 related to the PLR 2022, with final payment expected to occur on May 30, 2023, considering the current agreement for the PLR, approved by the Secretariat of Management and Governance of the State-owned Companies (SEST), which provides that only employees without managerial functions will be entitled to receive profit sharing with individual limits according to their remuneration.
In the three-month period ended March 31, 2023, the Company provisioned US$ 35 referring to PLR for 2023 (US$ 31 for the same period of 2022), recorded in other income and expenses.
19 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
13.2. | Termination benefits |
Termination benefits are employee benefits provided in exchange for the termination of labor contract as a result of either: i) the Company's decision to terminate the labor contract before the employee's normal retirement date; or ii) an employee's decision to accept an offer of benefits in exchange for the termination of their employment.
The Company has voluntary severance programs (PDV), specific for employees of the corporate segment and of divestment assets, which provide for the same legal and indemnity advantages.
For the current programs, there are 11,732 adhesions accumulated through March 31, 2023 (11,688 through December 31, 2022).
Changes to the provisions for termination benefits are presented as follows:
Jan-Mar/2023 | Jan-Mar/2022 | |
Opening Balance | 192 | 349 |
Effects in the statement of income | (4) | 3 |
Enrollments | 3 | 4 |
Revision of provisions | (7) | (1) |
Effects in cash and cash equivalents | (23) | (129) |
Terminations in the period | (23) | (129) |
Translation adjustment | 6 | 50 |
Closing Balance | 171 | 273 |
Current | 70 | 147 |
Non-current | 101 | 126 |
Recognition of the provision for expenses occur as employees enroll to the programs.
The Company disburse the severance payments in two installments, one at the time of termination and the remainder one year after the termination.
As of March 31, 2023, from the balance of US$ 171, US$ 34 refers to the second installment of 590 retired employees and US$ 137 refers to 1,319 employees enrolled in voluntary severance programs with expected termination by September 2025.
13.3. | Employee benefits (post-employment) |
The Company maintains a health care plan for its employees in Brazil (active and retiree) and their dependents (Saúde Petrobras), and five other major types of post-employment pension benefits (collectively referred to as "pension plans").
The following table presents the balance of post-employment benefits:
03.31.2023 | 12.31.2022 | |
Liabilities | ||
Health Care Plan - Saúde Petrobras | 6,087 | 5,813 |
Petros Pension Plan - Renegotiated (PPSP-R) | 3,746 | 3,606 |
Petros Pension Plan - Non-renegotiated (PPSP-NR) | 1,080 | 1,041 |
Petros Pension Plan - Renegotiated - Pre-70 (PPSP-R Pre 70) | 414 | 284 |
Petros Pension Plan - Non-renegotiated - Pre-70 (PPSP-NR Pre 70) | 356 | 339 |
Petros 2 Pension Plan (PP-2) | 176 | 163 |
Total | 11,859 | 11,246 |
Current | 748 | 719 |
Non-current | 11,111 | 10,527 |
Health Care Plan
The health care plan is managed by Petrobras Health Association (Associação Petrobras de Saúde - APS), a nonprofit civil association, and includes prevention and health care programs. The plan covers all employees and retirees and is open to future employees.
20 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
Benefits are paid by the Company based on the costs incurred by the participants. The financial participation of the Company and the beneficiaries on the expenses are provided for in the Collective Bargaining Agreement (ACT), being 60% by the Company and 40% by the participants.
Pension plans
The management of the supplementary pension plans sponsored by the Company is under the responsibility of Fundação Petrobras de Seguridade Social - Petros, which was established by Petrobras as a non-profit, private legal entity with administrative and financial autonomy.
The net obligation with pension plans recorded by the Company is measured in accordance with the requirements of IFRS which has a different measurement methodology to that applicable to pension funds, regulated by the Conselho Nacional de Previdência Complementar - CNPC.
The table below presents the reconciliation of the deficit of Petros Plan registered by Petros Foundation as of December 31, 2022 with the net actuarial liability registered by the Company:
PPSP-R (*) | PPSP-NR (*) | |
Deficit registered by Petros | 330 | 341 |
Ordinary and extraordinary future contributions - sponsor | 4,212 | 1,079 |
Contributions related to the TFC - sponsor | 691 | 391 |
Financial assumptions (interest rate and inflation), changes in fair value of plan assets and actuarial valuation method | (1,343) | (431) |
Net actuarial liability recorded by the Company | 3,890 | 1,380 |
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. | ||
On March 29, 2023, the Deliberative Council of Petros approved the financial statements of the pension plans sponsored by the Company for the year ended December 31, 2022.
Deficit Settlement Plan 2021 referring to the PPSP-R plan
On November 10, 2022, Petros' Foundation Deliberative Council approved a plan to settle the deficit registered by the PPSP-R in 2021. On April 1, 2023, this plan was implemented, following a favorable decision held on March 17, 2023 by the SEST.
This deficit, amounting to US$ 1,676 (R$ 8,515 million) as of March 31, 2023, must be settled on an equal basis between sponsors and participants, of which US$ 790 (R$ 4,012 million) will be paid by Petrobras, during the lifetime of the plan. The deduction from the payroll of participants, relating to these extraordinary payments, began in April 2023.
21 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
13.3.1. | Changes in the actuarial liabilities recognized in the statement of financial position |
Net actuarial liabilities represent the obligations of the Company, net of the fair value of plan assets (when applicable), at present value.
Changes in the actuarial liabilities related to pension and healthcare plans with defined benefit characteristics is presented as follows:
Pension Plans | Health Care Plan | Other plans | Total | |||
PPSP-R (*) | PPSP-NR (*) | Petros 2 | Saúde Petrobras | |||
Balance at December 31, 2022 | 3,890 | 1,380 | 163 | 5,813 | − | 11,246 |
Recognized in the Statement of Income | 118 | 40 | 7 | 205 | − | 370 |
Current service cost | 3 | 1 | 2 | 35 | − | 41 |
Net interest | 115 | 39 | 5 | 170 | − | 329 |
Recognized in Equity - other comprehensive income | 109 | − | − | − | − | 109 |
Remeasurement effects (**) | 109 | − | − | − | − | 109 |
Cash effects | (66) | (22) | − | (90) | − | (178) |
Contributions paid | (66) | (22) | − | (90) | − | (178) |
Other changes | 109 | 38 | 6 | 159 | − | 312 |
Others | − | − | − | 1 | 1 | 2 |
Translation Adjustment | 109 | 38 | 6 | 158 | (1) | 310 |
Balance at March 31, 2023 | 4,160 | 1,436 | 176 | 6,087 | − | 11,859 |
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. | ||||||
(**) It relates to a complement of 2022. |
Pension Plans | Health Care Plan | Other plans | Total | |||
PPSP-R (*) | PPSP-NR (*) | Petros 2 | Saúde Petrobras | |||
Balance at December 31, 2021 | 4,050 | 1,169 | 165 | 4,485 | 11 | 9,880 |
Recognized in the Statement of Income | 113 | 36 | 8 | 150 | − | 307 |
Current service cost | 2 | − | 3 | 26 | − | 31 |
Net interest | 111 | 36 | 5 | 124 | − | 276 |
Cash effects | (1,058) | (338) | − | (81) | − | (1,477) |
Contributions paid | (55) | (17) | − | (81) | − | (153) |
Payments related to Term of financial commitment (TFC) | (1,003) | (321) | − | − | − | (1,324) |
Other changes | 629 | 179 | 30 | 805 | (10) | 1,633 |
Others | − | − | − | − | (10) | (10) |
Translation Adjustment | 629 | 179 | 30 | 805 | − | 1,643 |
Saldo em March 31, 2022 | 3,734 | 1,046 | 203 | 5,359 | 1 | 10,343 |
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. | ||||||
The net expense with pension and healthcare plans is presented below:
22 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
Pension Plans | Health Care Plan | Other Plans | Total | |||
PPSP-R (*) | PPSP-NR (*) | Petros 2 | Saúde Petrobras | |||
Related to active employees (cost of sales and expenses) | (12) | (2) | (3) | (72) | − | (89) |
Related to retirees (other income and expenses) | (106) | (38) | (4) | (133) | − | (281) |
Net costs for Jan-Mar/2023 | (118) | (40) | (7) | (205) | − | (370) |
Related to active employees (cost of sales and expenses) | (8) | (1) | (5) | (55) | − | (69) |
Related to retirees (other income and expenses) | (105) | (35) | (3) | (95) | − | (238) |
Net costs for Jan-Mar/2022 | (113) | (36) | (8) | (150) | − | (307) |
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70. |
13.3.2. | Contributions |
In the three-month period ended March 31, 2023, the Company contributed with US$ 178 (US$ 1,477 in the same period of 2022 , including US$ 1,324 related to Term of financial commitment) the defined benefit plans (reducing the balance of obligations of these plans, as presented in note 13.3.1), and with US$ 54 and US$ 0.4, respectively, to the defined contribution portions of PP-2 and PP-3 plans (US$ 46 for PP-2 and US$ 0.4 for PP-3 in the same period of 2022).
The contribution to the defined benefit portion of the PP-2, which had been suspended in July 2012, was restored in April 2023, pursuant to a decision by the Petros Foundation's Deliberative Council. Thus, a portion of the monthly contribution will be destined to risk coverage (payment of sickness allowance, reclusion allowance, lump sum death benefit and minimum guarantees) to reduce the balance of the actuarial liability.
14. | Provisions for legal proceedings, judicial deposits and contingent liabilities |
14.1. | Provisions for legal proceedings |
The Company recognizes provisions for legal, administrative and arbitral proceedings based on the best estimate of the costs for which it is probable that an outflow of resources embodying economic benefits will be required and that can be reliably estimated. These proceedings mainly include:
· | Labor claims, in particular: (i) several individual and collective labor claims; (ii) opt-out claims related to a review of the methodology by which the minimum compensation based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime - RMNR) is calculated; and (iii) actions of outsourced employees. |
· | Tax claims including: (i) tax notices for alleged non-compliance with ancillary obligations; (ii) claims relating to benefits previously taken for Brazilian federal tax credits applied that were subsequently alleged to be disallowable; and (iii) claims for alleged non-payment of CIDE on imports of propane and butane. |
· | Civil claims, in particular: (i) lawsuits related to contracts; (ii) penalties applied by ANP, mainly relating to production measurement systems; and (iii) litigation involving corporate conflicts. |
· | Environmental claims, specially: (i) fines relating to an environmental accident in the State of Paraná in 2000; (ii) fines relating to the Company's offshore operation; and (iii) public civil action for oil spill in 2004 in Serra do Mar-São Paulo State Park. |
Provisions for legal proceedings are set out as follows:
Non-current liabilities | 03.31.2023 | 12.31.2022 |
Labor claims | 765 | 737 |
Tax claims | 505 | 466 |
Civil claims | 1,678 | 1,504 |
Environmental claims | 294 | 303 |
Total | 3,242 | 3,010 |
23 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
Jan-Mar/2023 | Jan-Mar/2022 | |
Opening Balance | 3,010 | 2,018 |
Additions, net of reversals | 182 | 205 |
Use of provision | (102) | (80) |
Revaluation of existing proceedings and interest charges | 69 | 48 |
Others | (1) | (12) |
Translation adjustment | 84 | 376 |
Closing Balance | 3,242 | 2,555 |
In preparing its unaudited consolidated interim financial statements for the three-month period ended March 31, 2023, the Company considered all available information concerning legal proceedings in which the Company is a defendant, in order to estimate the amounts of obligations and probability that outflows of resources will be required.
14.2. | Judicial deposits |
Judicial deposits are set out in the table below according to the nature of the corresponding lawsuits:
Non-current assets | 03.31.2023 | 12.31.2022 |
Tax | 8,497 | 7,876 |
Labor | 938 | 907 |
Civil | 2,410 | 2,089 |
Environmental | 110 | 109 |
Others | 71 | 72 |
Total | 12,026 | 11,053 |
Jan-Mar/2023 | Jan-Mar/2022 | |
Opening Balance | 11,053 | 8,038 |
Additions | 402 | 405 |
Use | (19) | (23) |
Accruals and charges | 278 | 159 |
Others | (2) | (16) |
Translation adjustment | 314 | 1,484 |
Closing Balance | 12,026 | 10,047 |
14.3. | Contingent liabilities |
The estimates of contingent liabilities are indexed to inflation and updated by applicable interest rates. Estimated contingent liabilities for which the possibility of loss is classified as possible are set out in the following table:
Nature | 03.31.2023 | 12.31.2022 |
Tax | 33,272 | 32,094 |
Labor | 8,732 | 8,272 |
Civil | 7,845 | 7,548 |
Environmental | 1,385 | 1,257 |
Total | 51,234 | 49,171 |
The main contingent liabilities are:
· | Tax matters comprising: i) withholding income tax (IRRF), Contribution of Intervention in the Economic Domain (CIDE), Social Integration Program (PIS) and Contribution to Social Security Financing (COFINS) on remittances for payments of vessel charters; (ii) income from foreign subsidiaries and associates located outside Brazil not included in the computation of taxable income (IRPJ and CSLL); (iii) collection of customs taxes and fines related to imports under the Repetro regime in the Frade consortium; (iv) collection of PIS and COFINS, resulting from the payment of taxes negotiated with the Brazilian Federal Government, excluding the payment of fines; (v) collection of ICMS involving several states; and (vi) deduction from the PIS and COFINS tax base, including ship-or-pay agreements and chartering of aircraft and vessels. |
24 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
· | Labor matters comprising mainly actions requiring a review of the methodology by which the minimum compensation based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime - RMNR) is calculated. |
· | Civil matters comprising mainly: (i) lawsuits related to contracts; (ii) administrative and legal proceedings challenging an ANP order requiring Petrobras to pay additional special participation fees and royalties (production taxes) with respect to several fields; and (iii) regulation agencies fines. |
· | Environmental matters comprising indemnities for damages and fines related to the Company operation. |
14.4. | Minimum Compensation Based on Employee's Position and Work Schedule (Remuneração Mínima por Nível e Regime - RMNR) |
As of March 31, 2023, there are lawsuits related to the Minimum Compensation Based on Employee's Position and Work Schedule (RMNR), with the objective of reviewing its calculation criteria.
The RMNR consists of a minimum remuneration guaranteed to employees, based on salary level, work schedule and geographic location. This policy was created and implemented by Petrobras in 2007 through collective bargaining with union representatives, and was approved at employee meetings, and started being the subject of lawsuits three years after its implementation.
In 2018, the Brazilian Superior Labor Court (TST) ruled against the Company, which filed extraordinary appeals against its decision. Therefore, the Brazilian Supreme Federal Court (STF) suspended the effects of the decision issued by the TST and determined the national suspension of the ongoing proceedings related to the RMNR.
On July 29, 2021, a monocratic decision was published in which the STF's Judge-Rapporteur granted an extraordinary appeal filed, accepting the Company's thesis and recognizing the validity of the collective bargaining agreement freely signed between Petrobras and the unions, reversing the decision of the TST.
In February 2022, the judgment of the appeals filed by the plaintiff and several amicus curiae was started. The judgment is currently underway in the First Panel of the Supreme Federal Court, with 3 votes in favor of the Company, confirming that there is an understanding of recognizing the merit of the collective bargaining agreement signed between Petrobras and the unions. Considering that the last minister to vote requested additional time for analysis, the trial was suspended, and is pending the presentation of the vote by this last minister.
As of March 31, 2023, the balance of provisioned proceedings regarding RMNR amounts to US$ 169, while the contingent liabilities amount to US$ 7,223.
14.5. | Class actions and related proceedings |
On January 23, 2017, Stichting Petrobras Compensation Foundation ("Foundation") filed a class action in the Netherlands, at the District Court of Rotterdam, against Petróleo Brasileiro S.A. - Petrobras, Petrobras International Braspetro B.V. (PIB BV), Petrobras Global Finance B.V. (PGF), Petrobras Oil & Gas B.V. (PO&G) and some former Petrobras managers. The Foundation alleges that it represents the interests of an unidentified group of investors and claims that, based on the facts revealed by Operation Lava-Jato, the defendants acted illegally before investors. On 26 May 2021, the District Court of Rotterdam decided that the class action must proceed and that the arbitration clause of Petrobras' bylaws does not prevent the Company's shareholders from having access to the Dutch Judiciary and being represented by the Stichting Petrobras Compensation Foundation ("Foundation"). However, investors who have already started arbitration against Petrobras or who are parties to legal proceedings in which the applicability of the arbitration clause has been definitively recognized are excluded from the action. The class action is in the merit discussion stage and a decision is expected for July 26, 2023, but it may be brought forward or postponed by the Court.
In relation to the arbitration in Argentina, the Argentine Supreme Court denied the appeal, but the Consumidores Damnificados Asociación Civil para su Defensa ("Association") filed a new appeal, which has not yet been judged. This arbitration discusses Petrobras' liability for an alleged loss of market value of Petrobras' shares in Argentina, as a result of the Lava Jato Operation.
25 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
At the same time, the Association also filed a class action before the Civil and Commercial Court of Buenos Aires, Argentina, where Petrobras spontaneously appeared on April 10, 2023. The Association claims Petrobras' responsibility for an alleged loss of market value of its securities in Argentina, as a result of allegations made within the scope of the Lava Jato Operation and its effects on the Company's financial statements prior to 2015. Such demand does not generate immediate financial and economic effects for Petrobras. The Company denies such allegations and will vigorously defend itself against the accusations made by the author of the collective action.
Regarding criminal proceeding in Argentina related to an alleged fraudulent offer of securities, aggravated by the fact that Petrobras allegedly declared false data in its financial statements prior to 2015, the Court of Appeals revoked on October 21, 2021, the lower court decision that had recognized Petrobras' immunity from jurisdiction and recommended that the lower court judge take steps to certify whether the Company could be considered criminally immune in Argentina for further reassessment of the issue. Petrobras appealed against this decision, but the higher courts upheld the decision of the Court of Appeals, thus the immunity will have to be reassessed by the lower court. The Court of Appeals recognized that the Association could not act as a representative of financial consumers, due to the loss of its registration with the competent Argentine bodies, which was also the subject of an appeal upheld by the Court of Appeals on September 15, 2022, recognizing the Association the right to represent financial consumers. Petrobras presented other procedural defenses, still subject to assessment by the Argentine Court of Appeals. This criminal action is being processed before the Economic Criminal Court No. 2 of the City of Buenos Aires.
As for the other criminal action for alleged non-compliance with the obligation to publish "press release" in the Argentine market about the existence of a class action filed by Consumidores Damnificados Asociación Civil para su Defensa before the Commercial Court, there are no developments during the three-month period ended March 31, 2023.
The EIG Energy Fund XIV, L.P. and affiliates ("EIG") filed a lawsuit against Petrobras, before the District Court of Columbia, United States, to recover alleged losses related to its investment in Sete Brasil Participações S.A. On August 8, 2022, the judge upheld EIG's claim as to Petrobras' responsibility for the alleged losses, which are recorded as provisions for legal proceedings, but denied the motion for summary judgment with respect to damages, whereby the award of compensation will be subject to the proof of damages by EIG at a hearing and to the consideration of the defenses by the Company. In the same decision, the judge denied the request to dismiss the case based on Petrobras' immunity from jurisdiction, which is why an appeal was filed with the Federal Court of Appeals for the District of Columbia. Considering the filing of the appeal, Petrobras requested the suspension of the process, which was granted by the lower court judge on October 26, 2022.
On August 26, 2022, the District Court of Amsterdam granted a precautionary measure to block certain Petrobras assets in the Netherlands, at the request of EIG. This granting was based on the decision of the District Court of Columbia, on August 8, 2022, and was intended to ensure the satisfaction of EIG's claims contained in the aforementioned US lawsuit. For the purpose of this injunction, the District Court of Amsterdam limited EIG's claims to a total of US$ 297.2, although the US Court ruled that any award of damages would depend on evidence of damages by EIG at a trial hearing. There are some discussions about the scope of the assets blocked by EIG, but there is no related lawsuit pending in the Netherlands. This precautionary block does not prevent Petrobras and its subsidiaries from complying with their obligations to third parties.
14.6. | Arbitrations proposed by non-controlling Shareholders in Brazil |
In the three-month period ended March 31, 2023, there were no events that changed the assessment and information on arbitrations in Brazil. For more information, see explanatory note 18.5 to the financial statements for the year ended December 31, 2022.
14.7. | Legal proceedings - Compulsory Loan - Eletrobrás |
In the three-month period ended March 31, 2023, there were no events that changed the assessment on this proceeding. For more information, see explanatory note 18.6 to the financial statements for the year ended December 31, 2022.
14.8. | Lawsuits brought by natural gas distributors and others |
In the three-month period ended March 31, 2023, there were no events that changed the assessment and information on lawsuits and arbitrations. For more information, see explanatory note 18.7 to the financial statements for the year ended December 31, 2022.
26 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
15. | Provision for decommissioning costs |
The following table details the amount of the provision for decommissioning costs by producing area:
03.31.2023 | 12.31.2022 | |
Onshore | 430 | 418 |
Shallow waters | 4,559 | 4,399 |
Deep and ultra-deep post-salt | 10,156 | 9,988 |
Pre-salt | 3,939 | 3,795 |
19,084 | 18,600 |
Changes in the provision for decommissioning costs are presented as follows:
Non-current liabilities | 2023 Jan-Mar | 2022 Jan-Mar |
Opening balance | 18,600 | 15,619 |
Adjustment to provision | 7 | 34 |
Transfers related to liabilities held for sale (*) | − | (598) |
Use of provisions | (224) | (199) |
Interest accrued | 202 | 121 |
Others | (3) | (13) |
Translation adjustment | 502 | 2,710 |
Closing balance | 19,084 | 17,674 |
(*) In the three-month period ended March 31, 2022, it refers to the Norte Capixaba Group (US$ 32), in Espírito Santo state, and the Potiguar Group (US$ 566), in Rio Grande do Norte state. |
16. | Other Assets and Liabilities |
Assets | 03.31.2023 | 12.31.2022 | |
Escrow account and/ or collateral | 1,312 | 1,087 | |
Advances to suppliers | 1,909 | 1,561 | |
Prepaid expenses | 387 | 363 | |
Derivatives transactions | 62 | 54 | |
Assets related to E&P partnerships | 181 | 71 | |
Others | 213 | 194 | |
4,064 | 3,330 | ||
Current | 2,039 | 1,777 | |
Non-Current | 2,025 | 1,553 | |
Liabilities | 03.31.2023 | 12.31.2022 | |
Obligations arising from divestments | 1,335 | 1,355 | |
Contractual retentions | 623 | 601 | |
Advances from customers | 619 | 906 | |
Provisions for environmental expenses, research and development and fines | 791 | 674 | |
Other taxes | 340 | 293 | |
Unclaimed dividends | 265 | 241 | |
Derivatives transactions | 99 | 147 | |
Various creditors | − | - | |
Others | 730 | 756 | |
4,802 | 4,973 | ||
Current | 2,737 | 3,001 | |
Non-Current | 2,065 | 1,972 | |
27 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
17. | Property, plant and equipment |
17.1. | By class of assets |
Land, buildings and improvement | Equipment and other assets (*) | Assets under construction (**) | Exploration and development costs (***) | Right-of-use assets | Total | |
Balance at December 31, 2022 | 2,538 | 55,147 | 14,838 | 38,434 | 19,212 | 130,169 |
Cost | 4,343 | 105,429 | 23,938 | 67,581 | 29,670 | 230,961 |
Accumulated depreciation and impairment (****) | (1,805) | (50,282) | (9,100) | (29,147) | (10,458) | (100,792) |
Additions | − | 111 | 2,071 | − | 945 | 3,127 |
Decommissioning costs - Additions to / review of estimates | − | − | − | 6 | − | 6 |
Capitalized borrowing costs | − | − | 268 | − | − | 268 |
Write-offs | − | (55) | (10) | (33) | (150) | (248) |
Transfers (*****) | 40 | 207 | (122) | 104 | (8) | 221 |
Transfers to assets held for sale | (1) | (20) | (4) | (12) | − | (37) |
Depreciation, amortization and depletion | (21) | (1,139) | − | (1,091) | (1,185) | (3,436) |
Impairment recognition | − | (15) | (5) | − | − | (20) |
Impairment reversal | − | 17 | − | − | − | 17 |
Translation adjustment | 68 | 1,467 | 453 | 1,010 | 511 | 3,509 |
Balance at March 31, 2023 | 2,624 | 55,720 | 17,489 | 38,418 | 19,325 | 133,576 |
Cost | 4,476 | 108,349 | 26,295 | 69,235 | 30,969 | 239,324 |
Accumulated depreciation and impairment (****) | (1,852) | (52,629) | (8,806) | (30,817) | (11,644) | (105,748) |
Balance at December 31, 2021 | 2,383 | 53,126 | 16,922 | 35,847 | 17,052 | 125,330 |
Cost | 4,080 | 98,085 | 25,954 | 61,906 | 26,382 | 216,407 |
Accumulated depreciation and impairment (****) | (1,697) | (44,959) | (9,032) | (26,059) | (9,330) | (91,077) |
Additions | − | 194 | 1,543 | 1 | 1,015 | 2,753 |
Decommissioning costs - Additions to / review of estimates | − | − | − | 11 | − | 11 |
Capitalized borrowing costs | − | − | 236 | − | − | 236 |
Write-offs | − | (27) | (68) | (4) | (35) | (134) |
Transfers (*****) | 57 | 1,000 | (2,242) | 1,212 | (1) | 26 |
Transfers to assets held for sale | (7) | (553) | (171) | (653) | − | (1,384) |
Depreciation, amortization and depletion | (21) | (1,163) | − | (1,270) | (1,094) | (3,548) |
Impairment reversal | − | 1 | − | − | − | 1 |
Translation adjustment | 419 | 9,410 | 2,686 | 6,220 | 2,989 | 21,724 |
Balance at March 31, 2022 | 2,831 | 61,988 | 18,906 | 41,364 | 19,926 | 145,015 |
Cost | 4,780 | 114,880 | 29,135 | 71,896 | 31,007 | 251,698 |
Accumulated depreciation and impairment (****) | (1,949) | (52,892) | (10,229) | (30,532) | (11,081) | (106,683) |
(*) It is composed of production platforms, refineries, thermoelectric power plants, natural gas processing plants, pipelines, and other operating, storage and production plants, including subsea equipment for the production and flow of oil and gas, depreciated based on the units of production method. | ||||||
(**) See note 8 for assets under construction by operating segment. | ||||||
(***) It is composed of exploration and production assets related to wells, abandonment and dismantling of areas, signature bonuses associated with proved reserves and other costs directly associated with the exploration and production of oil and gas (oil and gas production properties). | ||||||
(****) In the case of land and assets under construction, it refers only to impairment losses. | ||||||
(*****) It includes mainly transfers between classes of assets and transfers from advances to suppliers. | ||||||
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PETROBRAS - Petróleo Brasileiro SA published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 14:06:06 UTC.