Edition 26 - Sharing in Petrobras - number 1/2008


Published on

Published in: Business, Economy & Finance
  • 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 26 - Sharing in Petrobras - number 1/2008

  1. 1. Investor Relations • Year VII • nº 26 Petrobras em Ações Sharing in Petrobras Petrobras is the company HIGHLIGHTS The world’s sixth biggest energy company ■ Petrobras rose from 11th to 6th place in the ranking with the highest market published by the PFC Energy 50 consultancy firm, which listed the world’s biggest oil companies based value in Latin America on their market values in late 2007. The company T appears ahead of companies of the likes of BP and he announcement of the 2007 fourth quarter and annual results Total. PFC Energy is an energy consultancy that has achieved by Petrobras revealed a new record: it is the compa- been performing with companies and governments ny with the biggest market value in Latin America from all over the world for more than 20 years. (The – R$430 billion (approximately $243 billon), an 87% growth com- ranking is available at www.pfcenergy.com). pared to 2006. Global Note issuing completed Two factors influenced this achievement the most: the discovery of new exploratory frontiers (Tupi and Jupiter areas, in the so-called pre-salt ■ Petrobras, via its Petrobras International Finance layer, in the Santos Basin), which might rank Company (PIFCo) subsidiary, has completed an issuing, reopening the Global Note-type bond in the Brazil as one of the world’s biggest oil- international capitals market due on 03/01/2018, as producing countries, and the growth in an unsecured senior, non-subordinated debt for $750 investments foreseen by the company’s million. This reopening will be a single issuing fungible Strategic Planning, particularly in produc- with the $1 billion launched on 11/01/2007. In total, tion development. there will be $1.750 billion in bonds issued and due on This led to the biggest record in 03/01/2018, representing the lowest historical cost of the shareholders’ total return a Brazilian company in the debt market in Dollars. in Petrobras’ recent history: 83.9% for the shareholders (PETR4) and Payment of anticipation of interest on own capital 131.4% for those who hold ADRs (PBR), considering the reinvestment of the ■ On 01/23/08, Petrobras paid the first installment received dividends. The company’s of the anticipation of interest on own capital to the holders of ordinary and preferred stock on the preferred shares exceeded, for base date of 08/17/07, for the total gross value the fourth year in a row, the of R$0.5034 per share. The second parcel was paid São Paulo Stock Exchange on 03/31/08 to the holders of ordinary or preferred (Bovespa) Ibovespa rate. So far as the ordi- stock on the base date of 10/05/07, for a total gross nary receipts are concerned, 2007 was the value of R$0.5130 per share. Income Tax withholding fifth year in a row that these bonds must be observed, except for shareholders who are eclipsed the Amex Oil, the sec- immune or exempt. tor’s benchmark. In the United Petrobras’ Headquarter States, the appreciation of Petrobras’ Power generation record shares traded at the New York Stock ■ In February 2008, Petrobras set a new power Exchange (NYSE) was also expressive. generation record for the National Integrated System These results show the success the company’s Investment (SIN). In total, 4,040 MW were produced in natural gas, diesel fuel, and fuel oil plants, compared to Plan has achieved and set positive perspectives for 2008. The con- jugation of the planning that was made with the investments that are in the mark of 2,900 MW in November 2007. Several factors contributed to this result: the Cabiúnas) – course will contribute to ensuring Petrobras’ future and sustainable Vitória gas pipeline kicking-off operations, growth. the use of more efficient units, and lower internal consumption at the company. More than two Exploratory Reference million barrels success in the among oil per day pre-salt layer companies PAGE 3 PAGE 3 PAGE 4
  2. 2. PROFITABILITY Results of the fourth quarter 2007 T he improved sale performance Meanwhile, total derivative production cost in Brazil, in Dollars, rose 24%. in the internal and external mar- increased 8%. In Brazil, the increase was Discounting the effects of the more kets drove the net operating 2% when comparing 2007 to 2006. In expensive Real, at 10%, the refining costs revenues (8% more than in 2006). the international ambit, in 2007 there in Reais were up 13%. Internationally, The consolidated annual net profit was was a significant increase, both in pro- the refining cost surged 71% in the affected by the more expensive Real, duction and in the installed capacity 2007/2006 comparison, due to the by oil and derivative import costs, and with the acquisition of the Pasadena inclusion of the refinery in the US. by extraordinary expenditures with Refinery, in the US. The short-term debt decreased the personnel (Petros pension plan). The sales volume in the internal 31%, while total indebtedness was The EBITDA remained stable in 2007. market rose 3% in 2007. The offshore down 15%. Even with a 53% availabil- The total investments climbed and refinery operations in the US ity reduction, the EBITDA allows the to US$ 21 billion in 2007, 34% drove the international sales vol- total debt to be liquidated in nine more than in 2006. ume last year, up 17% compared months and the net indebtedness in The average oil and gas produc- to 2006, compensating for the exclu- six. 2007 was marked by impor- tion also remained stable compared sion of the operations in Venezuela tant appreciations of Petrobras’ to 2006, since four of the five major and of the refineries in Bolivia. Oil and stock, both in Brazil and in the US. production projects foreseen for 2007 derivative exports climbed 5% and The economic contribution closed only went online in the end of the 7%, respectively. In financial terms, the 2007 at relative stability compared to year, when a new daily oil produc-balance was positive, by US$ 73 2006. Government participations in tion record was set in Brazil – million, in 2007. Brazil were down 7% in the same peri- 2,000,238 barrels. Five new units Lifting costs rose 5% in Reais (with- od, reflecting the 10% appreciation of slated to kick-off operations in 2008 out government participation) in the the Real and the application of a lower will contribute to growing production. 2007/2006 comparison, and 17% in Special Participation aliquot derived from Compared to 2006, the average Dollars. In the external ambit, they the lower production due to the natural derivative price realization rose 1%. were up 24% in 2007. The unit refining decline in the main producing fields. Petrobras ADRs versus DOW JONES and Amex Oil Indexes Economic and Financial Figures RESULTS & RETROSPECTIVE In US$ million 2007 2006 Variation (%) 1443% PBR (ADR ON) 1336% PBRA (ADR PN) Sales of products and services 112,425 93,893 20 249% Amex Oil Net operating revenues 87,735 72,347 21 1.600 1.500 59% Dow Jones Gross profit 32,402 28,490 14 1.400 1.300 Net income 13,138 12,826 2 1.200 1.100 Earnings per share 2.99 2.92 2 1.000 Earnings per ADS 5.98 5.84 2 900 800 Net cash provided by operating activities 22,664 21,077 8 700 600 Capital Expenditures 20,978 14,643 43 500 400 Net debt 14,908 8,650 72 300 200 Debt to equity ratio 50% 55% -5 pp 100 * Antes das receitas e despesas financeiras e da equivalência patrimonial. Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-o7 Dec-o7 Real Increase in Stock Price* Operating Performance In thousand barrels of oil equivalent per day 2007 2006 Variation (%) 900% 840.8 800% ■ Ibovespa Total crude oil, NGLs and natural gas 700% ■ Petrobras PN production 2,301 2,297 - 600% ■ Petrobras ON 457.0 481.5 Total oil products production 2,046 1,892 8 500% 445.1% 400% 314.3% Net Exports of crude oil and oil products 77 93 -17 300% Refining and marketing operations 200% 144.9% 64.5 78.6 Brazil - Utilization 90% 89% 1 pp 100% 33.1 0% International - Utilization 85% 81% 4 pp -100% Domestic crude oil of total 10 Years 5 Years 1 Year feedstock processed 78% 80% -2 pp * Monthly changes discounted for inflation in accordance with IGP-DI index
  3. 3. PRODUCTION RECORD Petrobras reaches a production of 2,000,000 barrels/day in Brazil I n December, Petrobras set anoth- To achieve this feat, five new The average onshore field produc- er daily oil production record platforms went online in 2007 tion has oscillated around 230,000 in Brazil: 2,000,238 barrels, a alone. When they reach peak produc- barrels of oil per day. mark previously achieved by but a tion, they will add another 590,000 This onshore production volume few oil-producing countries in the barrels of oil to the installed capaci- has been being world. The record was the outcome ty. The previous record had been set maintained in the of the progressive increase in pro- in October 2006: 1,912,000 barrels. past few years duction that has been made in The pace at which new produc- thanks to the the past few years and represents tion systems kick-off their operations new technologies yet another decisive step towards in the company’s portfolio will Petrobras has Brazil’s self-sufficiency in this area. increase in 2008, when five new plat- been developing forms are slated to go online. One of to boost mature them will be the P-51, the first plat- field useful lives. form built entirely in Brazil. Furthermore, the Although more than 80% of the company expects oil Petrobras produces in Brazil onshore produc- comes from offshore fields, onshore tion to grow production also had an important in the upcoming role in the record the company set. years. NEW FRONTIERS EXPLORATION AND PRODUCTION Exploratory success in the pre-salt layer A fter the discovery of the Tupi area, in the Santos Basin, which now constitutes one of the world’s most important oil provinces, Petrobras has announced another important discovery: a major natural gas and condensate field in the area known as Jupiter, in Discovery the same basin. This reinforces the potential of the so- called pre-salt region, in which the company holds stakes in Peru in 13 blocks in the exploratory phase The pioneer well is located at a final depth of 5,252 T he consortium formed by Petrobras (35.15%), Repsol (41% – operator), and Burlington Resources (23.85%) has made a gas discovery in Peru, in an exploratory well in meters. It is located 290 km off the Rio de Janeiro coast and 37 km from the Tupi area, and is at a water depth of 2,187 meters. The area is explored by a consortium formed by the province of Cuzco. The first production tests, currently in Petrobras (80% – operator) and Portuguese outfit Galp progress, registered a flow of 1 million cubic meters Energia (20%). of gas and of 198 cubic meters of condensate per day. Additionally, the consortium proved the existence of a The structure that was discovered is more than 22 kilome- light oil field in another area in the Santos Basin, ters long and bears some 115 meters of liquid gas and con- also in the pre-salt region. The well is located 280 km off the densate reservoirs. Although the available data do not allow the coast of São Paulo, at a water depth of 2,234 meters, and discovery’s resources to be defined with precision, the struc- at a depth of 5,350 meters from the ocean floor. The invest- ture’s dimensions indicate volumes of some 2 TCF (56 billion ments and activities that are required to check the dimen- cubic meters). The new field is near blocks 58 and 110, where sions of the new fields and reservoir characteristics continue Petrobras undertakes exploratory activities and holds 100% of underway. the stakes.
  4. 4. NEWS BOARD SUSTAINABILITY Petrobras in the World Economic Forum Petrobras’ president, José Sergio Gabrielli de Azevedo, and the company’s CFO and Investor Relations director, Almir Barbassa, participated in the annual gathering of the World Economic Forum, held in Davos, Switzerland. The event brought corporate and government leaders, in addition to civil society representatives from all over the world together Urucu – Amazônia to discuss the challenges that must be faced for global development. Urucu, Amazonia One of Petrobras’ main engagements in Davos was the Energy Summit, which welcomed executives from some of the world’s biggest oil companies The most and authorities of the main oil-producer and consumer countries. During the event, the company’s executives held work meetings to discuss issues sustainable among that are relevant to the sector. the oil companies P etrobras has been acknowledged, in a survey carried out by Management & Excellence (M&E), as the world’s New Partnership for most sustainable oil company. The criteria used for the ranking took premium fuel ethanol logistics compliance with several international Petrobras has launched the Add standards into account. M&E is a Cleaner premium fuel, a new product aimed at the industrial P etrobras has approved the incorporation of a company with Mitsui and Camargo Correa to build an ethanol Spanish consultancy firm that is spe- cialized in organizational assessments segment to be used to generate pipeline between between Goiás and and is one of the institutions the energy via burning in the São Paulo. The project also includes a investor market and the media in the transformation process (kilns and second section that will interconnect United States, Europe, and Latin boilers). This fuel is more efficient the Tietê-Paraná Waterway to the America respect the most. and increases the combustion Paulínia Terminal. The initiative is part of This result shows the acknowl- system’s useful life, it allows the the Ethanol Exports Corridor, designed to time involved in the scheduled edgement of the company’s commit- cover the states of Goiás, Minas Gerais, shutdowns for equipment São Paulo, and Rio de Janeiro. ment to issues of governance, ethics, maintenance and cleaning to be The ethanol pipeline’s main trunk transparency, social and environmen- reduced and extends the period flow capacity will be up to 12 million m3 tal responsibility, as well as to its rela- between maintenances. It is also of ethanol/year. Petrobras will make this tionship with investors and other cleaner and has important structure available to the market as a stakeholders. environmental benefits. transportation service and ensure efficient ethanol arrival to the export harbors. Initiatives In the sustainability context, Petrobras increased its investments in processes that allow it to improve its operations’ Biofuels reduce CO2 emissions ecoefficiency. In 2007, among other improvements, it invested US$ 873 mil- etrobras’ goal is to prevent the emissions of 21.3 million tons of CO2 to P the atmosphere between 2007 and 2012. The company intends to achieve levels of excellence in greenhouse effect gas emissions and, thus, contribute to lion (US$ 597 million in 2006) in pollutant gas emission reductions and in water and power consumption business sustainability and to mitigating climate change. Projections show that the transportation sector will be the world’s biggest oil management. consumer in the 2005-2025 period, and the partial substitution of fossil fuels for On another front, the company, the so-called biofuels, such as biodiesel, will play an important role in reducing via its Center of Environmental emissions. Petrobras has invested Excellence in the Amazon (Ceap), in biodiesel development and it the Ibama and the Government of believes that in the near future this the State of Pará, signed a protocol fuel’s participation in the of intentions for the integrated man- transportation sector will increase. agement of the knowledge regarding The legislation of several countries the Amazon region in the socioenvi- determines biofuel be mixed to ronmental area. In 2008, the Ceap fossil fuel. In Brazil, biodiesel is mixed at a rate of 2% to regular will invest some US$ 28 million in the diesel, a percentage that will be Amazon, while through 2012 total increased to 5% in 2013. resources are expected to top-out at US$ 55 million. Newssheet edited by Petrobras' Investor Relations Department • Executive Manager: Theodore Helms • Editor: Cláudio Paula (RJ-21059-JP) • Writer: Orlando Gonçalves Jr. • Colaboration: Ana Paula Carvalho and Fábio Rocha • Contact: Petrobras' Shareholders Department • Phones: (55-21) 3224-1540/4914 • Fax: (55-21) 2262-3678 • Address: Av. República do Chile, 65 / 2202-B • Centro – Rio de Janeiro – RJ – Brazil – 20031-912 • E-mail: acionistas@petrobras.com.br • Design: Estúdio Matiz Depositary Bank: JPMorgan Chase Bank • JPMorgan Depositary Receipts • 4 New York Plaza, 13th Fl. • New York, NY 10004 • +1 (866) JPM-ADRS (576-2377) Visit our website at www.petrobras.com.br/ri/english