Edition 42 - Sharing in Petrobras - May/2014


Published on

Sharing Petrobras News

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Edition 42 - Sharing in Petrobras - May/2014

  1. 1. Voluntary Separation Incentive Plan – PIDV We developed the Voluntary Separation Incentive Plan (PIDV) in order to streamline our workforce to meet the challenges of our 2014-2018 Business and Management Plan. We had the enrollment of 8,298 employees, which represents 12.4% of the company’s total workforce. We expect 55% of the separations to take effect in 2014. The program was designed taking into account the retention of knowledge and the safe and sustainable continuation of operations and is expected to generate estimated cost savings of R$ 13 billion from 2014 to 2018. Record of natural gas deliveries On March 26, natural gas deliveries to the Brazilian consumer market reached a record 101.1 million/m³. Of this total, 45.1 million/m³ went to meet the demand of the thermal electric market; 42.5 mil- lion/m³ went to the non-thermal electric sector (industries, residences, transpor- tation and others) and the remaining 13.5 million/m3 to our facilities. New fertilizers plant In May, the cornerstone of the José Alencar Nitrogenated Fertilizer Plant (Fafen-JA), in Uberaba (MG), was laid. Investments will total R$ 1.95 billion and the facility will have a production capacityof519thousandtonsofammonia per year. The plant is expected to start-up in 2017 and, with the new facility, 87% of Brazil’sdemandwillbe produceddomesti- cally by 2020. The fertilizers will be used in crops such as corn, sugar cane, coffee, cot- ton and oranges, among others. PROCOP leads to savings of R$ 6.6 billion in 2013 — Petrobras headquarters F irst-year results of the Operating Expenses Optimization Program (PROCOP) indicated savings of R$ 6.6 billion in 2013. The result surpassed the yearly target of R$ 3.9 billion. This initiative seeks to cut costs with a relevant and continuous impact on operations. According to our CEO, Graça Foster, “this program changes the company’s cost management culture. Not only do we seek excellence in deep water exploration, but we also seek excellence in cost management”. All of our areas presented better-than-expected results. Generated savings are equivalent to an output of 130 thousand barrels per day. In 2014, we continue to exceed our targets We expect to reach a result of R$ 7.3 billion in 2014. In the first quarter alone, we achieved sav- ings of R$ 2.4 billion, up by 42% from our forecast for this period. PROCOP extends to our operations abroad. Initia- tives encompass our op- erational assets in eight countries (Argentina, Bolivia, Chile, Uruguay, Paraguay, Colombia, United States and Japan), in the up- stream and down- stream oil and gas segments. May, 2014 • #42 www.petrobras.com.br/ir SHARING PETROBRAS NEWS
  2. 2. First quarter 2014 results — O ur net income totaled R$ 5.4 billion, down by 14% from the fourth quarter of 2013, largely due to the absence of the tax benefit related to the provision of interest on stockholders’ equity, which took place in the previous quarter. Operating results grew by 8% from the previous quarter to R$ 7.6 billion. This rise reflects higher prices of oil products mainly due to the diesel and gasoline price increases that took place in November 2013; the smallest share of imported oil products on sales in the domestic market; and lower total cost of oil and oil products production, which offset the provision of R$ 2.4 billion for the Voluntary Separation Incentive Plan (PIDV). Investments totaled R$ 20.6 billion, of which 64% were allocated to the Upstream segment in Brazil. Total oil and natural gas output averaged 2 million 531 thousand barrels of oil per day (bpd) for the quarter, remaining stable in relation to the fourth quarter of 2013. The production of oil products in the Brazil- ian’s refineries reached 2 million 124 thousand barrels of oil per day (bpd), up 1% from the fourth quarter of 2013. The utilization factor of refining facilities reached 96%, maintaining an excellent level of efficiency. Gross debt rose by 15%, in Reais, in relation to 12.31.2013, due to new financing, primarily by issuing bonds in the U.S. and European markets, allowing us to finish the quarter with a solid liquidity (R$ 78 billion 478 million in cash). The Net Debt/Adjusted EBITDA ratio was impacted by the annualized provision of the PIDV and closed the quarter at 4 times. Leverage (Net Indebtedness/(Net Indebtedness + Stockholders’ Equity)) remained stable at 39%. In thousand barrels of oil equivalent per day 1Q 14 4Q 13 Variation Total oil, NGL and natural gas output 2,531 2,534 0% Oil and NGL output in Brazil 1,922 1,960 -2% Total oil products output 2,124 2,105 1% Net imports of oil and oil products -417 -378 10% Refining facilities utilization factor (Brazil) 96% 95% 1% Share of domestic oil in throughput 83% 83% 0% Operating performance In US$ million 1Q 14 4Q 13 Variation Sales Revenues 34,494 35,593 -3% Gross Profit 8,229 7,474 10% Operating Income* 3,203 3,091 4% Net income 2,280 2,760 -17% Earnings per share 0.17 0.21 -19% Adjusted EBITDA 6,068 6,832 -11% Market Value** 87,784 92,425 -5% Capital Expenditures (CAPEX) 8,708 15,441 -44% Net debt 101,488 94,579 7% Net debt/Adjusted EBITDA 4.18 3.21 30% Net debt/(net debt + shareholder's equity) 39% 39% – Economic and financial figures Period PBR PBR/A DJIA Last 10 years (03/31/04 to 31/03/14) 57,01% 87,81% 58,89% Last year (03/31/13 to 31/03/14) -20,64% -23,58% 12,89% Petrobras ADR’s return (NYSE) PBR PBR/A Dow Jones 87.81% 57.01% 58.89% 0 400 800 Mar-04 Mar-06 Mar-08 Mar-10 Mar-12 Mar-14 (Index number = 100 in 03/31/2004) Performance shares (NYSE): PBR and PBR/A * Net Income before financial results, share of profit of equity-accounted investments and income taxes. ** Source: Bloomberg.
  3. 3. High productivity of pre-salt wells Start-up of new platforms Platforms P-58 and P-62 started-up on March 17 and May 12, respectively. Both are FPSO (floating production storage and offloading) type units and have a daily processing capacity of 180 thousand barrels of oil and 6 million/m3 of natural gas. P-58 is situated in an area referred to as Parque das Baleias, in Campos Basin, and P-62 is in Roncador field, also in Campos Basin. Production in the pre-salt has been repeatedly setting new records. The latest one was set on May 11 and exceeded 470 thousand barrels of oil per day (bpd) in Santos and Campos Basins fields. Average productivity per well in Santos Basin reached 28 thousand bpd, a rise of nearly 30% compared to February 2013. The first well to be interconnected through the innovative Buoyancy Supported Riser (BSR) technology was installed on FPSO Cidade de São Paulo, in Sapinhoá field, and it has been presenting above average performance and is the best performing production well in Brazil with some 36 thousand bpd. BSR Increasing operational efficiency of Campos Basin — T he Operational Efficiency Increase Program (PROEF) continues to showcase highly positive results. In April, the Campos Basin Operations Unit (UO-BC) reached an efficiency rate of 81%, the highest for the past 46 months, indicating the consistency of the actions implemented to recuperate this vital area. The Rio de Janeiro Operations Unit (UO-RIO), which manages platforms with higher production capacity platforms, presented its highest operational efficiency rate for the last three years of 96% in March. An important consequence of this rise in efficiency was a production gain of 25 thousand barrels of oil per day (bpd) in 2012, 63 thousand bpd in 2013 and 58 thousand bpd in the first quarter of 2014. PROEF was created in May 2012 as one of the structuring programs of our Business and Management Plan with the objective of recovering the operational efficiency of UO-BC, which at the time had indicated a downward trend since 2009. In 2013, UO-RIO was included in the program in order to minimize risks of efficiency losses on newer systems. The program is currently expanding to include the Espírito Santo Operations Unit (UO-ES). Production fields Macaé RIO DE JANEIRO CAMPOS BASIN
  4. 4. Technological partnership with Fiat We executed a memorandum of understanding with Fiat Automóveis, in Rio de Janeiro, for cooperation in Research & Development projects. Technical/economic viability studies will be carried out with an emphasis on more efficient and less pollution-emitting vehicles. Attendance at the 45th OTC In May, we attended the 45th edition of the Offshore Technology Conference (OTC) in Houston/USA, the world’s biggest offshore upstream sector event. We presented works and studies aimed at improvingthemanagementoffieldsalongtheBraziliancoast,withan emphasis on efficiency, increasing productivity and reducing costs. Known as Grifo04, this supercomputer is comprised of 544 servers, which add up to 40 terabytes of RAM memory, and whose performance is 23 thousand times higher than that of the leading personal computer. It is housed in our Integrated Data Processing Center located in Rio de Janeiro. With this capacity and use of specific programs, the supercomputer is capable of processing more than 6 trillion seismic samples per second. This information is important to locate areas of high potential for oil and gas production. Latin America’s most powerful supercomputer is ours! — New Petrobras Sustainability Report I n May, we released the 2013 Sustainability Report (available at: www. petrobras.com.br/rs2013). The publication is prepared on an annual basis and provides information on our corporate actions, operational performance, labor practices and the environment, among other topics. The report is guided by ISO 26000 and complies with the latest guidelines of the Global Reporting Initiative (GRI), the world’s main initiative in defining parameters for such publications. AGENDA NewsletterpublishedbyPetrobras’ExecutiveManagementofInvestorRelations•Executivemanager:TheodoreHelms•Journalist:OrlandoGonçalvesJr.MTb-MA993•Collaboration: IzabelRamos,FernandaBianchini,DanielaUltra,JoséRobertoDarbillyandLuanBarbosa (trainee)• Graphicprojectanddesktoppublishing: EstúdioMatiz. Shareholder Service: 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: acionistas@petrobras.com.br •Site: www.petrobras.com.br/ir >>>> July 22 and 23 National Meeting of Investors Relations, in São Paulo, Brazil >>>> August 21, 22 and 23 The Money Show, in San Francisco, USA