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
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
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
per year. The plant is expected to start-up
in 2017 and, with the new facility, 87% of
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
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
PROCOP extends to our
operations abroad. Initia-
tives encompass our op-
erational assets in eight
Bolivia, Chile, Uruguay,
United States and
Japan), in the up-
stream and down-
stream oil and gas
May, 2014 • #42
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
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
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%
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%
(03/31/13 to 31/03/14)
-20,64% -23,58% 12,89%
Petrobras ADR’s return (NYSE)
PBR PBR/A Dow Jones
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.
of pre-salt wells
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
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.
of Campos Basin
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).
RIO DE JANEIRO
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
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
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.
New Petrobras Sustainability Report
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.
IzabelRamos,FernandaBianchini,DanielaUltra,JoséRobertoDarbillyandLuanBarbosa (trainee)• Graphicprojectanddesktoppublishing: EstúdioMatiz.
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/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