1. Investor Relations • Year VII • 29
Petrobras em Ações
Sharing in Petrobras
HIGHLIGHTS
Record production in september
I Petrobras’ average oil production in Brazil
Petrobras makes another
in september set the monthly record of
1,897,563 barrels per day, surpassing the
major discovery and starts
previous month’s mark by 12.400 barrels, i.e.,
1%. Compared to a year earlier, the increase producing in the pre-salt
was 7.26%. The average total volume in the
domestic fields and in the fields abroad rose
P
etrobras proved yet
to 2,450,610 barrels of oil equivalent per day
(boe), 7.6% more than in september 2007. another significant
light oil discovery (30
First service station in Japan degrees API) in the pre-salt
I Petrobras is going to enter the fuel area off the coast of Espírito
distribution market in Asia: the first service Santo. The discoveries’
station carrying the company’s flag will be recoverable volume is
inaugurated in early 2009 in Japan.
estimated between 1.5 and
Petrobras’ new international business in the
region also include expanding the japanese 2 billion barrels of oil
market share for brazilian ethanol. equivalent (boe).
The reservoirs are nestled
The 2007 energy company at depths ranging from
I Petrobras was the grand winner of the 4.200 to 4.800 meters at
Petroleum Economist Awards, an annual
a site known as Parque
international award granted by The Economist
magazine, one of the sector’s most respected das Baleias. These excel-
publications, to companies and professionals lent results, the outstanding
who stood out during the year. President Long-Duration Test (LDT)
José Sergio Gabrielli was picked the
results, and the logistic facil-
Executive of the Year in the energy area, and
the company was a finalist in the stakeholder ities that are already installed
communication category. and being installed in the
area led the company to
Biggest & Better heighten studies to speed
I Petrobras, Petrobras Distribuidora, production up.
Liquigás, and Transpetro are among the
market and economic index leaders,
according to the ranking published by Production commencement
brazilian publication Exame, which lists The first oil started being produced in the pre-salt layer in september,
the country’s leaders in several business in the Jubarte field, also off the coast of Espírito Santo. This operation
segments annually. Petrobras leads the represents an investment of some US$ 30 million. FPSO JK (P-34),
ranking of the 500 Biggest in Sales, Net
Revenues, Adjusted Net Worth, and Open baptized in tribute to former brazilian president Juscelino Kubitschek, is
Capital by Market Value. undertaking an LDT to analyze the behavior of the oil in the pre-salt,
both in the reservoir and in the platform’s process plant.
Most admired of Brazil Petrobras has already invested some US$ 1 billion in drilling 15 wells
I Carta Capital magazine held the 11th in the pre-salt layer. Eight have been tested and showed the presence of
edition of its Most Admired Companies in high commercial value light oil and of a large amount of associated
Brazil awards. Petrobras was picked the
most admired with regard to its commitment
natural gas, but they have not yet been declared commercial and are still
to the country and to its financial solidity, and in their assessment phase.
ranked third among the Top Ten. Petrobras
Distribuidora was also a winner in the Fuel
Distribution category. LNG Two Another
terminal new biodiesel thermoelectric
inaugurated plants plant
PAGE 3 PAGE 3 PAGE 4

2. PROFITABILITY
Third quarter results for 2008
I
n the third quarter of 2008, Petrobras’ In line with the international trend, derivatives production.
net profit set a record and reached the 10% and 15% readjustments made The company’s extraction costs,
US$ 5,99 billion, 56% more than in may 2008 to gasoline and diesel calculated in reais and not considering
a year earlier. The result was the out- fuel prices increased the average government take, increased 11%
come of increased production and of the derivatives realization price in compared to the first nine months
average oil, derivative, and exports real- reais by 14% in the first nine months of 2007, a fact that can be explained
ization prices. The net operating of 2008 compared to 2007. The Brent by the higher charge and personnel
revenue surged 54% compared to a oil price rose even more (66% costs, and partially compensated for by
year ago, to US$ 36,1 million. in dollars) in the same period. As a the lower expenses with materials and
The domestic oil and natural gas result, refining margins were com- services.
production was up 5% in the first nine pressed. The level of indebtedness measured
months of 2008 compared to the pre- The domestic derivatives production via the EBITDA remained low (0.59
vious year’s mark. The international oil was up 1% in the first nine months of in the third quarter of 2008), show-
and natural gas production, mean- 2008 over a year earlier. The usage of ing the company’s high capacity to pay
while, was down 7%. Total oil and nat- the installed capacity in Brazil its financing via cash generation. This
ural gas production, including Brazil rose to 92%. International derivatives index shows the company needs some
and abroad, in the first nine months of production decreased 31% due to seven months of cash generation to
2008 was 4% higher than in the the 2007 sale of the Bolivia refineries liquidate its net debt.
same period of 2007. and to the scheduled shutdowns at the Due to the global economic crisis,
In the first nine months of 2008, refineries in Argentina and in the US. Petrobras’ market value showed a
total investments reached US$ In the first nine months, total sales decreasing trend in the third quarter,
20,1 billion 43% more than a year in the internal market grew closing at US$ 180 billion. The compa-
earlier. The company is still directing 8% compared to the previous ny’s shares and receipts kept pace
most of its investments towards explo- year’s mark. Exports increased with the negative performance of the
ration and production, prioritizing the 1% over 2007, while international Bovespa and of the Dow Jones Index
development of its oil and natural gas sales were down 5% in the period on in the third quarter and in the year
production capacity. account of the decreased international to date.
Petrobras ADRs versus DOW JONES and Amex Oil Indexes Economic and financial figures
RESULTS & RETROSPECTIVE
1,079% PBR (ADR ON) 3rd Quarter
1,900 1,018% PBRA (ADR PN)
In US$ million 2008 2007 Variation (%)
1,700
159% Amex Oil
30% Dow Jones Sales of products and services 44,199 29,770 48
1,500
Net operating revenues 36,083 23,447 54
1,300
Gross profit 11,426 8,692 31
1,100
Net income 5,997 3,833 56
900
Earnings per share 0.68 0.44 55
700
Earnings per ADS 1.36 0.88 55
500
Net cash provided by operating activities 7,439 5,241 42
300
Capital Expenditures 7,893 5,138 54
100
Net debt 19,494 12,978 50
(100)
Debt to equity ratio 47% 50% (3) pp
Jun-07
Mar-03
Mar-04
Mar-05
Mar-06
Mar-07
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Sep-03
Sep-04
Sep-05
Sep-06
Sep-07
Jun-03
Jun-04
Jun-05
Jun-06
Mar-08
Jun-08
Sep-08
Real increase in stock price* Operating performance
3rd Quarter
2,400%
I Ibovespa
In thousand barrels of oil equivalent per day 2008 2007 Variation (%)
I Petrobras PN
1,970.0% Total crude oil, NGLs and natural gas
1,900%
I Petrobras ON
production 2,437 2,309 6
1,400% Total oil products production 2,006 2,027 (1)
Net Exports of crude oil and oil products (36) 57 (163)
900% 762.9%
Refining and marketing operations
400% 231.6% 270.4%
Brazil – Utilization 93% 91% 2 pp
173.6% 121.4% -2.8% 6.1% 9.0% International – Utilization 63% 93% (30) pp
-100%
10 years 5 years 1 year Domestic crude oil of total
* Monthly changes discounted for inflation in accordance with IGPM-DI Index feedstock processed 76% 78% (2) pp

3. BIODIESEL
Inauguration of the biodiesel plants
and delivery of the first commercial production
first commercial year. Together, they add up invest-
P
etrobras’
biodiesel production plants ments of US$ 177 million, generat-
were inaugurated recently in ing work and income for 55,000
Candeias, state of Bahia, and in Qui- family farmers, hired to provide feed-
xadá, state of Ceará. A third plant, stock, with support from Petrobras.
currently in the assembly stage, is slat- The company delivered its
ed to go online in Montes Claros, state first commercial production of
of Minas Gerais. The units are man- biodiesel. The 44,780-liter shipment
aged by Petrobras Biocombustível, left the Candeias Unit on October 3.
the subsidiary created to concentrate The delivery is part of the production
the projects in this area. the company sold in the biodiesel auctions
The three units will have the same pro- held by the National Petroleum Agency
duction capacity: 57 million liters per (NPA), which totaled 8,000,000 liters.
EXPLORATION AND PRODUCTION
NEW FRONTIER
Petrobras participates New
in a discovery in Angola platforms are
baptized
T
he company discovered oil in block 15/06, in deep angolan waters, in
which it holds 5% stakes. The discovery was made in well N’Goma-1,
located about 350 kilometers away from Luanda, the country’s capital.
etrobras baptized two new
P
Sonagol E.P. is the concessionaire of the block, and Eni Angola is the operator,
holding 35% of the stakes. The oil that was extracted has a specific platforms. In october, it inau-
gravity of 22.5 degrees API. gurated the P-51, the first
Petrobras started operating in Angola in 1979. The company believes semi-submersible platform built en-
strongly in the country's potential and has planned investments of US$ 900 tirely in Brazil and slated to go on-
million for the 2008-2012 period, according to the current business plan. line in the Marlim Sul field, in the
Campos Basin. In 2010, when it
reaches its top operating capacity, of
180,000 barrels of oil and 6 million
cubic meters of gas per day, the P-
LNG terminal in Ceará 51 will be responsible for nearly 8%
of the domestic oil production.
razil’s first Liquefied Natural
B
The new unit is part of the Natural
Gas (LNG) regasification Gas Production Anticipation Plan
terminal was inaugurated and will be strategic to boost supply
in august. The project is installed in in the brazilian market.
the Port of Pecém, in the municipal- The P-53, programmed to op-
ity of São Gonçalo do Amarante, erate in the Marlim Leste field, also in
Ceará. An unprecedented project in the Campos Basin, was
the world, this terminal kicks-off baptized in septem-
Petrobras’ performance as an agent ber. Its construction
in the international LNG market. generated some
The terminal is capable of regasi- 4,500 direct and
fying 7 million cubic meters per 15,000 indirect
day. The LNG will be used to, prior- jobs, and 75% of its
itarily, to supply thermoelectric content were pro-
plants and will allow the country vided by the national
more flexibility and security in sup- industry. Important
plying natural gas to the thermal to maintain Brazil’s
and non-thermal markets. By late oil self-sufficiency,
2008, Petrobras’ second regasifica- the P-53 will have
tion terminal will be inaugurated similar production
in the Guanabara Bay, in Rio de capacity to the P-51.
Janeiro.

4. NEWS BOARD Petrobras debates the Eight Millennium
Development Goals
The president and CEO of Petrobras, José Sergio Gabrielli, participated in the
debate held by the United Nations (UN), in New York, to make sure the Millennium
Development Goals are achieved by 2015. Gabrielli spoke about ‘Poverty and
Hunger.’ In addition to corporate leaderships, some one hundred heads of State,
of government and of non-governmental organizations also attended the event.
During the gathering, discussions focused on the progress reached since 2000, when, in the same city,
the Eight Millennium Development Goals were approved by 124 heads of State and Government, including Brazil.
N e w n a u ti c a l Market
die s el r o ll ed- o u t acknowledgement
Petrobras Distribuidora Petrobras was once again granted
rolled-out its Lubrax Náutica the Transparency Trophy by the Na-
Diesel. The new product, which adds tional Association of Finance, Adminis-
to Lubrax Náutica and to Lubrax tration and Accounting Executives, the
Náutica Syntonia (for two-stroke Accounting, Actuarial, and Financial
engines) lines, is aimed at the nautical Research Institute Foundation, and
sports and leisure segment, specifically Serasa. The award encourages corpo-
for diesel-fueled four-stroke engines. rate transparency by providing quality
The company also already produces financial information and represents
diesel fuel specifically for this market, an important accounting quality certi-
the Verana. fication, in addition to being a reference
in credibility for the brazilian market.
The company is among the top ten
brazilian publicly held companies that
Thermoelectric plant and refinery in Rio Grande do Norte stood out the most for their financial
Petrobras inaugurated the Jesus Soares Pereira statements in 2007.
Thermoelectric Plant, and signed the deployment protocol for the Petrobras was also the grand win-
Clara Camarão Refinery, in september, in Rio Grande do Norte. ner of the Valor 1000 Yearbook, pub-
lished by the Valor Ecônomico journal,
Installed in the town of Alto do Rodrigues, which puts the limelight on the most ef-
the plant is an important project to increase ficient companies in 25 sectors of the
electric energy supply in northeastern Brazil economy. In addition to the Oil & Gas
and to diversify the domestic power segment, the company was elected the
generation sources. With the new refinery, company of Value, the top award
the state, already Brazil’s biggest onshore granted to the company that scores
oil producer and already self-sufficient the highest in indices such as finances,
in the remaining derivatives, will also be corporate governance, and socioenvi-
in gasoline. ronmental responsibility.
Brazil Day in New York
he fourth edition of the Brazil Day, edition in which Brazil already has the
T an event held biennially to discuss
the brazilian capital market trends, was
Investment Grade.
Petrobras was represented by its ex-
held on October 28, in New York. This is ecutive manager for Investor Relations,
an opportunity for investors to discuss Theodore Helms, who made a presen-
issues regarding the brazilian economy tation about the company’s main in-
in the United States. This was the first vestments and met with shareholders.
Newssheet edited by Petrobras' Investor Relations Department • Executive Manager: Theodore Helms • Editor: Cláudio Paula (RJ-21059-JP) • Writers: Luciana Guilliod and Orlando
Gonçalves Jr. • Colaboration: Carlos Eduardo Curvello • 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)
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