Edition 39 - Sharing in Petrobras - September/2013
September, 2013 • #39
Petrobras issues US$ 11 billion in Global Notes
etrobras has completed in May the issuance of Global Notes in the international
capital markets in the amount of US$ 11 billion. The funding was comprised of notes
maturing in 2016, 2019, 2023 and 2043, with fixed and floating rates.
In just one day, the demand exceeded US$ 42 billion, with over two thousand orders
from investors. The cost and average maturity was 3.79% and 10.37 years, respectively.
These numbers bestow to the operation the title of biggest corporate debt issuance in
dollars of emerging markets and the fifth largest in the world.
The bonds were purchased by U.S. investors (73%), European (17%), Asian (7%) and
other (3%). The proceeds will be used to finance the company’s investments. The success
of the transaction shows investor confidence in the company’s fundamentals and in the
commitment to maintaining the investment grade rating. The transaction continues to be
in line with Petrobras’ strategy to access the debt market in dollars once a year.
Why funding is so important
With the growth opportunities arising from recent discoveries, especially the presalt, we face ahead a number of profitable projects to be developed. The main
source of funds for these investments is the operating cash flow; however, it is
also necessary to rely on loans, which is the second largest source of funds.
Our current Business and Management Plan forecast a gross annual funding
of US$12.3 billion. In recent years, we have experienced an improvement in
our risk assessment by rating agencies, accompanied by a reduction in
The third and final installment of shareholders compensation
for the year 2012 was paid on August 30, 2013. The payments
were made in the form of interest on own capital, based on the
shareholder position as of April 29, 2013: R$ 0.13719 per common
share (ON) and R$ 0.39443 per preferred share (PN).
The tanker Zumbi dos Palmares was the fifth vessel delivered by
Transpetro, a subsidiary of Petrobras, as part of the Program for
Modernization and Expansion of the Fleet (Promef). The vessel,
which had its maiden voyage in May, was built in Estaleiro Atlântico
Sul Shipyard in Pernambuco, and can carry a million barrels of oil,
which is equivalent to almost half of the daily production nationwide.
Program for suppliers reaches R$ 6 billion
The “Progredir” Program, created by Petrobras to streamline and
increase the supply and reduce the cost of financing of the working
capital to its suppliers, reached its second anniversary. 1,200
operations were performed, allocating R$ 6 billion to 510 companies.
In the anticipation of invoices, the volume was R$ 400 million
resulting from 1,070 transactions with 140 suppliers.
Petrobras has signed two letters of intent for projects of Premium
refineries, with the purpose of studying the feasibility of joint
ventures. The Premium Refinery 1 in Maranhão state has been
transacted with Chinese company Sinopec, while the Premium 2 in
Ceará state, with Korean GSE.
Results for the first
half of 2013
Total crude oil, NGLs and natural gas production
Total crude oil and NGLs – Brazil
Oil products production
Net imports of crude oil and oil products
ur net income in the first half of 2013 has
reached R$ 13.9 billion, an increase of 77% over
the same period of 2012. This increase was due
to higher operating profit (+23%) and a lower impact of
foreign exchange rate in the financial result. The higher
operating income was mainly due to the increases in
diesel and gasoline prices, higher production of oil
products, lower dry and sub-commercial wells and
In thousand barrels of oil equivalent per day
Utilization of nominal capacity in Brazilian
Domestic crude oil of total feedstock processed
Economic and financial figures
In US$ million
In the 2 quarter, operating income was 13% higher
than the first quarter of 2013 reflecting, in particular,
gains with the sale of assets in Africa. Net income
was 19% lower, mainly due to the negative financial
result, affected by the devaluation of the real against
The production of oil and natural gas amounted to
2,500 barrels / day in the first half, 3% lower than the
first half of 2012, as a result of the fields natural decline
and concentration of maintenance stoppages during
this period. In the quarter over quarter (2Q13 vs. 1Q13)
comparison, production remained stable, in line with
The production of oil products in Brazil increased by
8% in the first half, as a result of the better operational
performance of refineries, enabling Petrobras to meet
domestic demand growth of 6%, with 19% reduction in
We obtained positive results from our structuring
programs, such as savings of R$2.9 billion provided by
the Operating Costs Optimization Program (PROCOP)
and the increase of R$ 1.9 billion in income and a R$ 3.4
billion in cash from the sale of assets in Africa, under
the Divestment Program (PRODESIN).
In May, we adopted the hedge accounting in order
to make the financial results less volatile and net
income more representative of the actual operating
performance through the hedge relationship between
future exports and debt exposed to changes in
exchange rate. The extension of this standard has
allowed that losses of R$ 8 billion, relative to 70%
of the net exposed to exchange rate variation, to be
recognized in our shareholders’ equity this quarter.
Investments in the first half of the year reached
R$ 44.1 billion, being 54% in Exploration and Production.
Earnings per share
Net debt/Adjusted EBITDA
Net debt/(net debt + shareholder's equity)
*Net Income before financial results, share of profit of equity-accounted investments
and income taxes.
Petrobras ADR’s return (NYSE)
Last 10 years
(06/30/03 to 06/30/13)
(06/30/12 to 06/30/13)
Performance shares (NYSE): PBR and PBR/A
(Index number = 100 in 06/31/2003)
Innovation: Tension Leg Wellhead Platform in Brazil
latform P-61, a TLWP type (Tension
Leg Wellhead) Platform, the first built
in the country and to be used by Petrobras,
is nearing completion in Angra dos Reis
(RJ). It is expected to start up operation
at the end of the year. The platform will
be installed in the Papa-Terra field in
the Campos Basin, operating together
with P-63 platform. It has a capacity to
process 140,000 barrels / day of oil and to
compress one million m3 of gas per day.
The project includes drilling, completion
Petrobras acquires the largest amount of
exploratory blocks offered in ANP’s Licensing
n the 11th Bidding Round held by
the National Agency of Petroleum,
Natural Gas and Biofuels (ANP) in May,
Petrobras bought, whether by itself or
in partnerships, 34 of the 289 blocks
offered in the bid. In addition, Petrobras
has offered the largest portion of the
signing bonus. The total invested by
Petrobras and its partners in the 11th
round was R$ 1.5 billion.
Petrobras also secured, according to its
technicians’, the blocks with the highest
exploratory potential offered by the
agency, located in the Foz do Amazonas,
Espírito Santo and Barreirinhas Basins.
The strategy is aligned with the objectives
set out in the Business and Management
Plan to incorporate new exploratory areas
for continuous replenishment of the
portfolio, in order to ensure the volumes
required for the sustainability of the
companies future production curve.
Light oil in Sergipe Basin
n August, two discoveries of deepwater light oil (best quality) in Sergipe Basin were
reported. The discoveries were confirmed by applying the results of the drilling of
the first extension well ‘Farfan 1’, in partnership with IBV-Brazil, and extension well
‘Muriú 1’, which is fully controlled by Petrobras.
and interconnection of these platforms
to 30 oil producing wells. The entire
production of the P-61 will be transferred
to the P-63, which will be responsible for
the processing, storage and transfer of
the produced oil.
The use of this new type of platform
will allow the control of the wells, in a depth
of near one thousand meters, to be made
on the surface, disregarding the need of
intervention of higher cost underwater
recent study carried out by
Cenpes (Research Center of
Petrobras) has verified that the
water produced in the pre-salt
fields in the Santos Basin is less
acid than expected and therefore
the amount of corrosion will be less.
As a result, the company will be
able to select the most appropriate
metallurgical construction of the
next non-injector wells.
Savings of approximately R$ 500
million are estimated with the switch
of materials. In addition to the
cost reduction, the replacement will
ensure lower delivery time and an
increase in local content.
Ethanol is on the way
etrobras is planning to unravel a new renewable fuel in
the market in 2015: the second-generation ethanol, made
out of sugarcane bagasse. This technology, developed by the
company itself, was successfully tested during the Rio +20
Conference and has received an award from the American
Chamber of Commerce (AmCham).
Brazil is a major producer of ethanol and has plenty of
bagasse available, i.e., it has the potential for commercial
production of the new fuel. This technology allows an increase of
up to 40% of the production on the same acreage, thus reducing
the need for expansion of sugarcane plantations. The business
model will be implemented in the first generation plants with the
purpose of seeking synergy in the production process.
More investments in
training and infrastructure
Graça Foster is featured
in Forbes magazine
raça Foster, Petrobras’ CEO, was appointed by
Forbes as the most powerful woman in the
business sector in Brazil, ranking third in the world
ranking. The classification took into account the
company’s revenue, market value, media presence
and impact in the industry. The magazine highlighted
the fact that Grace Foster “plays a central role” in the
development of Petrobras and stated that it “should
bring good results this year.”
In addition, the CEO also
has been cited as one of
the 100 most influential people
in the world by Time magazine
and named one of the world’s
most powerful executives
by Fortune, ranking first
among the executives
who work outside the
etrobras and FIRJAN / SENAI have signed an agreement
for the development of simulators and virtual environments
for the training of professional in the oil and gas industry
activities. The investment includes 14 new equipments in
the next five years, which will be located in Rio de Janeiro,
comprising an investment of R$ 83.6 million.
On another front, the company and UFRJ / COPPE have also
opened in Rio, a set of three laboratories, which represent an
investment of about R$ 17 million. The goal of such investment
is to seek solutions for the pre-salt exploration.
Newsletter published by Petrobras’ Executive Management of Investor Relations • Executive manager: Theodore Helms • Journalist: Orlando Gonçalves Jr. MTb-MA 993 • Collaboration:
Izabel Ramos, Fernanda Bianchini, Daniela Ultra, José Roberto Darbilly and Luan Barbosa (trainee) • Graphic project and desktop publishing: Estúdio Matiz.
Av. República do Chile, 65/Sala 1002 – Centro • Rio de Janeiro – RJ – Brazil • Zip Code: 20031-912
Telephone: +55 21 3224-9916 • Fax: +55 21 2262-3678 • E-mail: email@example.com • Site: www.petrobras.com.br/ri