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Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
Webcast 3Q13
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Webcast 3Q13

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Webcast about 3rd Quarter 2013 Results.

Webcast about 3rd Quarter 2013 Results.

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  • 1. Operational and Financial Results 3rd Quarter of 2013 Conference Call / Webcast October 28th, 2013
  • 2. DISCLAIMER FORWARD-LOOKING STATEMENTS: DISCLAIMER The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company’s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. Figures for 2013 on are estimates or targets. All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation. NON-SEC COMPLIANT OIL AND GAS RESERVES: CAUTIONARY STATEMENT FOR US INVESTORS We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X. 2
  • 3. Petrobras: Oil and NGL Production in Brazil As anticipated, 3Q13 production in line with 2Q13 2012 2013 FPSO Cid. São Paulo 3Q12 Average 1,904 Thousand bpd (Sapinhoá) Jan/5 2Q13 Average 1,931 3Q13 Average 1,924 2.300 2.250 FPSO Cidade de Itajaí (Baúna) 2.200 2.150 2.100 2.050 2.000 2.110 FPSO Cid. Paraty (Lula NE Pilot) Jun/6 Feb/16 FPSO Cid. De Anchieta 2.098 (Baleia Azul) Sep/10 2.032 1.993 1.961 1.989 1.950 1.900 1.960 1.968 1.940 1.928 1.940 1.843 1.965 1.979 1.920 1.924 1.892 1.846 1.979 1.908 1.888 1.850 50 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 » Production similar to 2Q13. » September production 3.7% higher than August, due to reduced intensity of programmed maintenance and incorporation of new producing wells. » Lifting cost increased by 9.7% (from R$ 31.25/boe in the 2Q13 to R$ 34.28/boe in the 3Q13) due to FX variation, Collective Bargaining Agreement, start up of FPSO Rio das Ostras (Espadarte EWT). » E&P Net Income: R$ 11.6 billion in the 3Q13 x R$ 8.9 billion in the 2Q13, as a result of higher oil prices. 3
  • 4. 2013 Production – Oil and NGL in Brazil Conclusion of 6 new units in the 4Q13 2012 2013 FPSO Cid. São Paulo 3Q12 Average 1,904 Thousand bpd (Sapinhoá) Jan/5 2Q13 Average 1,931 3Q13 Average 1,924 4Q13 P-63 (Papa-Terra) 2.300 2.250 FPSO Cidade de Itajaí (Baúna) 2.200 2.150 2.100 2.050 2.000 1.950 1.900 (Lula NE Pilot) Jun/6 Feb/16 2.110 P-58 (Parque das Baleias) FPSO Cid. Paraty FPSO Cid. De Anchieta 2.098 (Baleia Azul) P-55 (Roncador) Sep/10 2.032 1.993 1.961 1.989 1.960 1.968 1.940 1.928 1.940 1.843 1.965 1.979 1.920 1.924 1.892 1.846 1.979 1.908 P-61 (Papa-Terra) 1.888 1.850 TAD (Papa-Terra) P-62 (Roncador) 50 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 » 2H13 production will be lower than expected due to:  P-63 / Papa-Terra: late identification of corals led to changes in the subsea arrangement;  FPSO Cidade de São Paulo / Sapinhoá: Subsea 7 delay in building, delivering and installing the Decoupled Buoyancy Supported Risers System (monobuoy); and  Limited availability of PLSVs due to the difficulties of contracting in Brazil between 2010 and 2011, which has delayed well connections. »The reservoirs of producing fields have been performing above expectations. Natural Decline observed during the last 12 months was below the projected range of 10-11%. »The delivery of 6 new units in the 4Q13 will contribute to the sustained production growth during 2014. 4
  • 5. PROEF: Program to Increase Operational Efficiency 65 kbpd gain in the 3Q13, 75% efficiency in UO-BC and 92% in UO-RIO UO-BC: 3Q13 Oil + NGL Production (kbpd) UO-RIO: 3Q13 Operational Efficiency (%) Oil + NGL Production (kbpd) Operational Efficiency (%) +8,0 p.p. +1,2 p.p. +32 kbpd +33kbpd 357 390 Without PROEF With PROEF 66.9 Without PROEF 74.9 840 With PROEF 872 91.2 92.4 Without PROEF With PROEF Without PROEF With PROEF  Total expenditure of US$ 1.338 billion by Aug/13.  Total expenditure of US$ 3.2 million by Aug/13.  NPV of US$ 662 million; focus on recovering wells and subsea systems.  NPV of US$ 804 million; focus on management, integrity improvement and optimization in the usage of resources.  Gain of 33 kbpd in the quarter.  Gain of 32 kbpd in the quarter. 5
  • 6. Libra Auction Result Winning consortium comprised of companies with experience, skills and financial strength Profit-oil to the government will be the minimum established under the bid terms: 41.65%. CONSORTIUM Petrobras (40%) Shell Brasil (20%) Total (20%) CNPC (10%) CNOOC (10%) Albacora Roncador Marlim Leste Marlim 6
  • 7. Oil Products Production in Brazil Monthly records in throughput (Jul/13) and in diesel and gasoline production (Aug/13) Oil Products Output Throughput and Utilization (%) Refining Cost (kbpd) (R$/bbll) (kbpd) +5% 2,026 213 228 144 439 0% 2,138 203 245 146 100 88 501 92 108 +2,1% 2,128 211 239 134 97% 1,974 94 74 364 855 3Q12 +1,1% 2Q13 96% 2,102 2,072 436 382 1.666 1.690 +5% +17% 512 1.611 802 99% 864 3Q13 Others Jet Fuel LPG Fuel Oil Naphtha 3Q12 Diesel 2Q13 3Q12 2Q13 3Q13 Gasoline Utilization (%) Imported Oil 3Q13 Domestic Oil » Stable total output in 3Q13 vs 2Q13, with higher diesel and gasoline production. » Higher volume of domestic oil throughput, despite lower total throughput resulting from scheduled maintenance in REDUC, REVAP and REGAP in 3Q13. » Higher refining cost in reais primarily due to the increase in personnel costs related to the Collective Bargaining Agreement. 7
  • 8. Oil Products Sales in Brazil Growth of 2% in 3Q13. Diesel consumption record Oil Products Sales – Brazil +3% Others * Fuel Oil Jet Fuel Naphtha LPG Gasoline  Diesel: (+5%): Seasonal diesel consumption in 3rd quarter due to agricultural and industrial activities. +2% kbpd bbl/d 2,350 2,372 2,422 212 201 210 169 232 233 569 583 172 170 3Q13 x 2Q13  Gasoline: (+1%): Increase in light vehicles fleet in Brazil.  Fuel Oil: (-31%): Lower thermoelectric demand comparing to 2Q13. 243 +1% 587 3Q13 x 3Q12  Diesel: (+5%): Higher demand due to economic growth (especially retail) and increase of sugar cane and corn harvest. +5% Diesel 3Q12 2Q13  Gasoline: (+3%): Larger flex-fuel vehicles fleet, associated with gasoline price advantages against ethanol in some states. 3Q13 (*) Others – Lubricants, Asphalt, Coke, Propene, Solvent, Benzene, Querosene e Intermediates. 8
  • 9. Trade Balance of Oil and Oil Products Higher diesel imports reduced the net balance Exports Imports Balance +0% -27% +17% 822 +12% 551 kbpd 148 28 3Q12 Oil 402 162 159 206 2Q13 Fuel Oil 334 385 359 375 38 827 708 166 3Q13 Others Oil Products 447 190 84 29 163 180 3Q12 2Q13 Gasoline Diesel 68 13 +55% 238 28 +22% 227 3Q13 3T12 -262 -271 -9 -127 2T13 -284 -349 3Q12 2Q13 3T13 -64 -297 -425 3Q13 3Q13 x 2Q13 » Higher diesel imports to supply seasonal demand growth from agricultural and industrial activities. » Oil export increase due to a larger availability of inventories built in 2Q13 to offset refinery maintenance in 3Q13. » Downstream Net Income: -R$ 5.5 billion in 3Q13 x -2.5 billion in 2Q13, primarily due to higher differential with international price, increased import volumes of oil products, particularly diesel, and higher oil acquisition price. 9
  • 10. Domestic and International Price Comparison Real devaluation and higher Brent price widened the price differential Average Brazil Price* x Average USGC Price** 1.100 Average Sales Price USGC 1.000 Prices (R$/bbl) 900 800 Losses 210 700 Mar 6th 600 Jan 30th 180 Average Sales Price Brazil Jun 25th Jul 16th 500 Adjustments 400 Adjustments 150 300 200 120 100 Imported Volumes (Thousand bbl / d) 240 0 Jan/12 Feb/12 Mar/12 Apr/12 May/12 Jun/12 Jul/12 Aug/12 Sep/12 Oct/12 Nov/12 Dec/12 Jan/13 Feb/13 Mar/13 Apr/13 May/13 Jun/13 Jul/13 Aug/13 Sep/13 Exchange Rate (R$/US$) Brent (US$/bbl) +13% +0,3% 2,03 110 110 2,07 Diesel Imports +8% +11% 2,29 Gasoline Imports » Price differential increased in 3Q13 due to Real devaluation (11%) and higher international oil prices 102 (+8% in Dollars). 3Q12 2Q13 3Q13 * Considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil. ** USGC price with domestic market prices. 3Q12 2Q13 3Q13 10
  • 11. Natural Gas Demand and Supply Thermoelectric demand lower in 3Q13 SUPPLY DEMAND million m³/day +18% +18% -6% 89.4 71.0 Non-thermoelectric 40.3 Thermoelectric 39,3 18.6 39.3 39,9 Downstream E&P/Fertilizers 11,7 3Q12 -7% 71.5 39,6 37,0 38.0 38,6 90.1 83.6 32.1 40,2 41.4 84.1 40.9 39.6 Domestic 30.4 24.6 30.3 Bolivia LNG 2Q13 3Q13 3Q12 2Q13 3Q13 » Thermoelectric demand reduced 16%, 3Q13 vs 2Q13 due to higher levels of water in hydroelectric reservoirs. Natural gas thermoelectric generation remained in a high level of 5.7 GW average in 3Q13. » Lower LNG demand. » Net income of G&E: -R$ 0.2 billion in 3Q13 x R$ 0.6 billion in 2Q13, mainly due to lower generation volume and energy price (PLD). 11
  • 12. PROCOP: Monitoring of Outcomes – Jan to Sep/13 Accomplishment of R$ 4.8 billion, 122% of annual target of operating cost optimization 2013 Target: R$ 3.9 billion Jan-Sep/13 Cost Savings Expected : R$ 2.8 billion (70%) Cost Savings Accomplished : R$ 4.8 billion (122%) 280% 260% Operational Execution (%) 240% 220% 200% 180% 160% 140% 120% 100% 100% 80% 60% 40% 20% 0% Onshore Offshore Production Production Wells Intervention Support Services Exploration & Production Plannec Accomplished as planned or higher Commercialization Refining Oil and Oil Products Logistics NG Logistics Administration Fertilizers And Support ITC Cenpes HSE BR Mngt Building Mngt, PBio Supplies And Stocks Downstream Corporate & Services Gas & Energy Attention points that can put the achievement of the annual target at risk High risk of not achieving the annual target Travels and Lodging Liquigás Engineering, Technology & Materials BR, PBio And Liquigás Transpetro 12
  • 13. Financial Highlights of 3rd Quarter Operating Income EBITDA -36% -39% -9% 11,107 2Q13 14,375 3Q13 3Q12 18,091 2Q13 -45% R$ million -28% R$ million R$ million -51% 3Q12 Net Income 13,091 3Q13 3Q12 2Q13 3Q13 » Lower 3Q13 Operating Income due to: » Higher diesel imports, combined with a weaker Real and higher international prices for oil and oil products; » Higher expenses with dry and subcommercial wells; » Provisioning of personnel expenses related to the proposed Collective Bargaining Agreement 2013; » Lower gains on asset sales. » Lower operating income led to lower cash generation (EBITDA). » 45% drop in net income due to lower operating profit, partially offset by lower net financial expense. 13
  • 14. Operating Income – 2Q13 vs 3Q13 Results impacted by higher oil products imports, especially diesel 4,073 (6,196) 11,107 (2,967) R$ million (523) 5,494 2Q13 Operating Income Sales Revenue COGS SG&A Other Expenses 3Q13 Operating Income » Increase in Sales Revenue due to higher domestic demand (+1%) and higher oil exports volume (+27%). » COGS 11% higher than in 2Q13, mainly due to the higher share of imported oil products in the sales mix, especially diesel, associated with exchange rate depreciation (+11%) and higher Brent price (+8%). » Other Expenses affected by the provision of personnel expenses (Collective Bargaining Agreement), higher expenses related to write-off of dry and subcommercial wells, and lower gains from asset sales. 14
  • 15. Net Income – 2Q13 vs 3Q13 Lower than the previous quarter due to Operating Income 6,201 (5,613) R$ million 842 2,531 2Q13 Net Income Operational Income (669) 3,395 103 Financial Earnings of Result equity investments Taxes Minority Interest 3Q13 Net Income » 45% drop in net income due to lower operating profit, partially offset by financial results and taxes: » Financial Results benefited from lower FX rate depreciation on net debt. » Reduction in taxes due to lower income in the period. 15
  • 16. Investments and Tracking Physical and Financial Progress R$ 25.1 bi in 3Q13 and R$ 69.3 bi in 9M13 R$ 69.3 billion in investments during the 9M13, 16% up on 9M12. When calculated in dollars, investments grew 5%. 9M13 investments by business segment 1% 1% +16% 69.3 5% 6% E&P Downstream International R$ Billion 54% 35% R$ 6,9 bi 32% R$ 10,7 bi G&P 55% Corporate Distribution Biofuel 9M12 9M13 Tracking of physical and financial progress of 165 individual projects (S-curves): 97.7% of projected physical progress and 97.8% of projected financial progress completed. 16
  • 17. Capital Structure Increase in Net Debt in 3Q13 Net Debt/EBITDA 1 5,0 4,0 28% 31% Net debt / Net Capitalization 2 31% 34% 40% 30% 20% 3,0 2,0 36% 2,42 3,05 2,77 2,32 2,57 10% 0% 1,0 -10% 0,0 -20% 3Q12 R$ Billion 4Q12 1Q13 09/30/13 2Q13 3Q13 06/30/13 Short-term Debt 18.2 18.2 Long-term Debt 232.7 230.8 Total Debt 250.9 249.0 provided by operating activities (R$ 14.4 bi) and 57.9 72.8 use of cash (R$ 19.6 bi) for investing activities. 193.0 176.3 86.5 79.6 (-) Cash and Cash Equivalents 3 = Net Debt » Increase in net debt in 3Q13 due to lower cash US$ Billion Net Debt 1) 2) 3) Net Debt / (adjusted EBITDA 9M13/3 x 4). Adjusted EBITDA= EBITDA excluding earnings of equity-accounted investments and impairments Net debt / (Net Debt + Shareholders Equity) Includes tradable securities maturing in more than 90 days 17
  • 18. Operational and Financial Results Information: Investor Relations +55 21 3224-1510 investors@petrobras.com

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