Edition 38 - Sharing in Petrobras - June/2013


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Edition 38 - June/2013

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Edition 38 - Sharing in Petrobras - June/2013

  1. 1. June, 2013 • #38 www.petrobras.com.br/ir SHARING PETROBRAS NEWS I n April, Petrobras presented its 2013-2017 BMP with an investment forecast of US$ 236.7 billion, with US$ 207.1 billion for projects under implementation and US$ 29.6 billion for projects under evaluation. The investments are concentrated in the Exploration and Production segment, with a value of US$ 147.5 billion, which represents an increase of US$ 15.9 billion in relation to the previous Plan. This growth reflects the investments foreseen until 2017, observing the increase in production estimated between 2016 and 2020, reaching 4.2 million barrels of oil/day at the end of the period. Among the resources for E&P, 73% will be allocated to production development, with US$ 72.6 billion in the pre-salt and Transfer of Rights areas. Of the remaining 16% will be invest in exploration and 11% in infrastructure. For the Downstream area, the forecast is US$ 43.2 billion for the portfolio of projects under implementation, with the main projects being the Abreu e Lima Refinery (RNEST) and the first phase of Complexo Petroquímico do Rio de Janeiro (COMPERJ). The Plan also includes investments in the segments of Gas and Energy (US$ 9.9 billion), Distribution (US$ 2.9 billion), Biofuels (US$ 1.1 billion), and in the International area (US$ 3.2 billion). The 2013-2017 BMP continues with supporting programs initiated in 2012, and incorporates new initiatives totaling five programs: Campos Basin Operational Efficiency Improvement Program (Proef); Operating Expenses Optimization Program (Procop); Divestment Program (Prodesin); Logistical Infrastructure Optimization Program (Infralog); and Well Cost Reduction Program (PRC-Poço). The resources necessary to finance projects under implementation will come from operating cash flow generation (US$ 164.7 billion), use of surplus cash (US$ 10.7 billion), divestment and financial restructuring (US$ 9.9 billion) and debt (US$ 61.3 billion gross and US$ 21.4 billion net). The company maintains its commitment to an investment grade rating and not issuing shares. The plan’s fundamentals include the integrated portfolio management through taking maximum utilization of synergies among the company’s assets, with capital discipline and management focused on fulfilling the physical and financial targets of each project. HIGHLIGHTS Price Readjustments Petrobras announced in the first quarter two priceincreasesfordiesel,totalling+10,7%,and one for gasoline of +6,6%. The readjustments respect the company’s price policy, which seeks convergence to international parity, with a medium and long term perspective. Payment of dividends In Petrobras’ Ordinary General Meeting in April, the distribution of dividends referring to the 2012 results was approved (in the form of interest on own capital): • R$ 0.20 per common and preferred share (share position on May 11, 2012); • R$ 0.27 per common share and R$ 0.76 per preferred share (share position on April 29, 2013). Sale of assets We have made US$ 2.2 billion of our Divestment Program forecast in PNG 2013- 2017. The main transactions were: sale of 20% stake in exploratory blocks in the Gulf of Mexico (USA), in the asset Gila, in April, receiving US$ 110 million and additional equity in other block; disposal of common shares held by Petrobras in Brasil PCH to Cemig in the total amount of R$ 650 million, in June; and a joint venture with BTG Pactual for oil and gas exploration and production at Africa for the total amount of US$ 1.525 billion, also in June. The best managers Petrobras CEO, Graça Foster, has been elected one of the ten best women managers in Brazil, inresearchcarriedoutbythenewspaperValor Econômico/Egon Zehnder Consultants. The researchwasconductedwiththeparticipation of a jury made up of representatives of universities and the business sector. Petrobras presents its 2013-2017 Business and Management Plan — CEO Graça Foster and the company Directors at the presentation of the 2013-2017 BMP
  2. 2. 339% 429% 82% 0 400 800 1200 1600 2000 mar-03 mar-05 mar-07 mar-09 mar-11 mar-13 PBR PBR/A DJIA In thousand barrels of oil equivalent per day 1Q 13 4Q 12 Variation Total crude oil, NGLs and natural gas production 2,552 2,614 -2% Crude oil and NGLs production in Brazil 1,910 1,980 -4% Total oil products production 2,127 2,010 6% Net imports of crude oil and oil products 454 429 6% Utilization of nominal capacity – Brazil refineries 98% 97% 1% Domestic crude oil of total feedstock processed 83% 83% - In US$ million 1Q 13 4Q 12 Variation Sales revenues 36,345 35,660 2% Gross profit 9,448 8,046 17% Operating income* 4,935 2,788 77% Net income 3,854 3,763 2% Earnings per share 0.30 0.29 3% Adjusted EBITDA 8,133 5,803 40% Market value* 112,499 126,540 -11% Capital expenditures 9,907 11,818 -16% Net debt 74,820 72,335 3% Net debt/Adjusted EBITDA 2.30 2.62 -12% Net debt/(Net debt + shareholder's equity) 31% 31% - 2013 first quarter results — P etrobras’ net income reached US$ 3.9 billion, remaining stable in relation to the fourth quarter of 2012. The operating income increased 77%, reaching US$ 4.9 billion, and was compensated by lower financial result and by higher income tax. The operational cash flow, measured by the adjusted EBITDA, reached US$ 8.1 billion, 40% higher than the previous quarter. Investments in the period totaled US$ 9.9 billion, with 54% in Exploration and Production activities, with priority for the production development projects. The efforts in favor of improvement in efficiency in operational activities and in the expenses with investment projects, as well as by the excellence in costs, have brought improvement in our cash flow. The Operational Costs Optimization Program (PROCOP) generated global results above those expected for the quarter, with an economy of US$ 0.7 billion (one third of the 2013 target). Also, the Operational Efficiency Improvement Program (Proef) presented an increase of 34,000 barrels/day in the production of oil and LNG in the quarter. The total production of oil and gas reached 2.5 million barrels/day in the quarter,being2%lowerthantheprevious quarter. As expected, the production decreased owing to the natural decline of the fields and the greater number of maintenancestoppages,concentratedin the first half of the year. Two production systems began operation in the Santos Basin: FPSO Cidade de São Paulo in the Sapinhoá field in the pre-salt area and FPSO Cidade de Itajaí in the Baúna field in the post-salt region. In the Downstream segment, there was an increase of 185,000 barrels/ day in the production of oil products, representing a growth of 10% in relation to the first quarter in 2012. Also, the volume of sales of oil products on the domestic market grew 7% in relation to the same period. The net debt grew 3% in relation to December 31, 2012, mainly due to a lower cash flow than investments. The indicators were within the limits of the internal targets: the Net Debt/adjusted EBITDA ratio was 2.30 and the leverage remained stable in relation to the previous quarter (31%). PBR PBR/A DJIA Last 10 years (03/31/03 to 03/31/13) 339% 429% 82% Last year (03/31/12 to 03/31/13) -38% -29% 10% *Net Income before financial results, share of profit of equity-accounted investments and income taxes. Operating performanceEconomic and financial figures Petrobras ADR’s return (NYSE) (Index number = 100 in 03/31/2003) Performance shares (NYSE): PBR and PBR/A
  3. 3. Seven new systems begin operation in 2013 — I n January, the FPSO Cidade de São Paulo began production in the Sapinhoá field, in the pre-salt area in the Santos Basin. In the same basin, the FPSO Cidade de Itajaí began operation in February in the Baúna field, in the post-salt area. The FPSO Cidade de Paraty went on stream in June initiating the Lula NE Pilot. In the second half of the year, four more platforms will enter into operation: P-63 and P-61 in the Papa-Terra project; P-55 in Roncador; and P-58 in Parque das Baleias (Whales Park). These seven units will have a total capacity of 820,000 barrels per day of oil. Record production in the pre-salt T he production of oil in the pre-salt reached 322 thousand barrels per day (bpd) in May 18th , 2013, of which 83% correspond to Petrobras portion and the rest to the partners portion. The record was reached only seven years after the discovery (the US partoftheGulfofMexicotook17yearsto reach this level). The good results come from important technological advances, through the drilling of additional wells, of new seismic data, and of the carrying out of extended well tests and pilot systems. The well productivity has been above initial forecasts and there was a reduction in the drilling time, lowering costs. The record was reached with eight platforms and 19 wells producing in the pre-salt area, in the Campos and Santos basins. It is important to highlight that the accumulated production in the pre-salt already surpasses 200 million barrels of oil equivalent. The forecast is to reach the mark of 1 million bpd operated by Petrobras in 2017, with 16 new production units, and to reach 2.1 million bpd in 2020. Mais descobertasde óleo de boa qualidade As áreas da Cessão Onerosa continuam apresentando des- cobertas de petróleo de boa qua- lidade. Este ano já foi anunciada descoberta no Sul de Tupi, Florim e Entorno de Iara, variando a qua- lidade do óleo entre 26º e 29º API. Fora da cessão onerosa, a desco- berta em Sagitário no pré-sal da Bacia de Santos também constatou ocorrência de óleo de boa qualidade (31º API). Oil products on the rise Petrobras’ efforts to maximize the production of oil products in Brazil has resulted in successive records in oil processing in the refineries. The latest record was on May 26, with 2.170 million barrels of oil processed. The use of the nominal capacity of the refineries also beat a record, reaching 98% in the first quarter of the year. FPSO Cidade de São Paulo in Santos Basin Work at the Alberto Pasqualini Refinery – REFAP More discoveries of good quality oil The areas of the Transfer of Rights continue to present discoveries of oil with good quality. This year discoveries in the South of Tupi, Florim, and Entorno de Iara have been announced, with the quality of the oil varying between 26° and 29° API. Outside the Transfer of Rights, the discovery in Sagitário also found good quality oil (31° API), in the pre-salt layer of the Santos Basin.
  4. 4. NewsletterpublishedbyPetrobras’ExecutiveManagementofInvestorRelations•Executivemanager:TheodoreHelms•Journalist:OrlandoGonçalvesJr.MTb-MA993•Collaboration: IzabelRamos,FernandaBianchini,DanielaUltra,JoséRobertoDarbillyandDiogoFerraz (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 NEWS PANEL Sustainability Report: a new edition launched The 2012 Sustainability Report, which has information about Petrobras’ performance, is available at the site www.petrobras.com. br/rs2012. Produced yearly, the report aims at providing the company’s stakeholders with datas about its activities related to sustainable development. The English version will be available soon. The publication follows the guidelines of the GlobalReportingInitiative(GRI),themainworld reference in the area. Some highlights were the investments in environmental protection, which totaled R$ 2.9 billion (an increase of 7% in relation to 2011), and the R$ 2.2 billion invested in Research and Development. Petrobras at the 2013 OTC In May, Petrobras was present in Houston (USA) at the Offshore Technology Conference (OTC), the largest event in the world in the area of exploration and production of oil offshore. The company highlighted the mark of 311,000 barrels/day produced in the Brazilian pre-salt region in April. The Cascade and Chinook projects in the US part of the Gulf of Mexico, whose production began in 2012, were also presented at the conference. The highlight was the operationofthefirstFPSO(floatingproductionplatform- ship, with capacity to store and offload) in that region – the FPSO BW Pioneer, which is also the production unit in the greatest depth of water (2,500 meters) and which is interconnected with the deepest gas pipeline in the world. The operation in the Gulf reinforces Petrobras’ position as one of the major players in ultra-deep water. Diesel S-10 is already at the service stations In January, Petrobras launched in all of Brazil Diesel S-10 with ultra-low sulfur content, within the process of the quality improvement of its fuels, and which substituted Diesel S-50. The environmental benefits of the new diesel are greater in vehicles produced as of 2012 which use motors with technology to reduce vehicular emissions. Other advantages are the better cold start, decreased white smoke, and increased life of the lubricant oil. Water economized was more than 23 billion liters Petrobras has invested in actions in favor of the rational and efficient use of water, especially reuse projects. In 2012, the volume of reused water surpassed 23 billion liters, an amount sufficient to supply 11% of the company’s activities and supply a city with a population of about 550,000 for one year. This total is almost 7% higher than the total in the previous year. The conclusion of new projects of this type in refineries will make possible an economy of more than 35 billion liters per year in 2015.