1. Investor Relations • Year XI • #36
Award in Chile
n Petrobras Chile received the Outstanding
Company Award for its contribution to the
News from the
pre-salt region
economic development of that country. The
recognition was achieved for the company’s
importance in the local fuels market, with
T
investments in technology, quality, and the
environment. he first definitive production system in the pre-salt
region began in October, 2010, in the Lula field, with the entry
Agreements with SINOPEC
into operation of the Cidade de Angra dos Reis platform. In the first
and SINOCHEM
n Petrobras has signed two important quarter of 2011, the company began Extended Well Tests (EWTs) in
agreements with the Chinese companies other pre-salt fields in the Campos Basin. The aim of the EWTs is to obtain
SINOPEC (China Petrochemical Corporation) and data about the characteristics of the reservoirs to define the final production
SINOCHEM (SINOCHEM Corporation). With
development project. In February, the EWT began in the Tracajá
SINOPEC, Petrobras signed a Technological
Cooperation Agreement for the exchange of reservoir, located 124 km from the Rio de Janeiro coast, in the pre-salt
knowledge in geophysics, geology, and reservoir area in the East Marlim field. The discovery of Tracajá is part of the Planóleo
engineering. With SINOCHEM, a Memorandum of Program, which is intended to intensify the exploration and production
Understanding on Strategic Cooperation was
work in the areas near the fields that are already in operation.
signed to identify and make feasible business
opportunities in the areas of upstream, In April, two other EWTs were begun: in the northeast area of the Lula
commercialization, and the recovery of mature field, in the pre-salt region of the Santos Basin, about 300 kilometers from
fields. the Rio de Janeiro coast, and in the Brava area, in the Production Concession
in the Marlim field, located 170 km from the city of Macaé, RJ. The EWT
Logistics company to
transport ethanol in Northeast Lula is a project of the consortium made up of Petrobras (the
n In March, Logum Logistics S.A. was created, operator with a 65% interest), BG Group (25%), and Galp Energy (10%).
which will be responsible for the construction, A total of five reservoirs are in production in the pre-salt region of the
development, and operation of a comprehensive Campos Basin: Brava, Jubarte, Baleia Franca, Tracaja, and Carimbé (this last
multimodal logistics system for the transportation
and storing of ethanol. Petrobras, Copersucar one begun in 2010, in the Caratinga field concession). The pre-salt oil
S.A., Cosan S.A. Industry and Commerce, and is already being exported: 1 million barrels of oil extracted from the
Odebrecht Transport Participations S.A. hold 20% Lula field have been sold to the Chilean National Oil Company (ENAP).
each of the company’s shares and Camargo
Correa Óleo e Gas S.A. and Uniduto Logística
S.A. hold 10% each.
Acquisition of Innova
n Petrobras now holds 100% of the social
capital of Innova, a Brazilian petrochemical
company formerly controlled by Petrobras
International Energy (Pesa). Thus, Petrobras will
have the autonomy to make new investments in
Innova and to align this company’s activities
with its businesses in Brazil. At the same time, FPSO Cidade de
Pesa will be able to concentrate its activities Angra dos Reis
in Argentina. The value of the operation was
US$ 332 million.
Production in March
n Petrobras’ average production of oil and gas,
in Brazil and abroad, was 2,613,994 barrels of
oil equivalent per day (boed) in March, compared
to 2,603,953 boed in February. In Brazil,
production reached 2,376,186 boed. In March,
production started again in platforms in Petrobras Oil Construction
maintenance, and the Extended Well Test in the
Sidon field in the Santos Basin began. is a highlight in Executive of and chartering of
the US the Year drilling rigs
Page 3 Page 4 Page 4

2. 2011 first quarter results
PrOFITABILITy
P etrobras registered a record
net profit in the first
quarter of 2011 (1Q11)
of US$ 6 billion 524 million, 51%
above that registered in the
on own capital to shareholders, as
well as US$ 923 million in dividends.
In addition, US$ 1 billion 645 million in
early distribution of compensation
to shareholders was approved, in
refineries made possible a
greater production of diesel
of better quality.
The average price of the oil
products sold on the Brazilian market
same period in 2010 (1Q10) and the form of interest on own capital. increased 4% in comparing 1Q11
also registered an increase in the net The total production of oil and gas with 1Q10, and the sales in this
operating income (a positive difference in Brazil and abroad increased 3% in market were 7% higher than
of US$1 billion 93 million). The 1Q111 in relation to 1Q10, reaching those in 1Q10. In 1Q11, there was
increase in the price of Brent the daily average of 2,627,000 barrels an increase in the importation of oil as
oil, which rose to the average of US$ of oil equivalent (boed). New projects a result of the need to replenish stock.
104.97 in 1Q11 (US$ 76.24 in 1Q10), in the Anticipation of Gas Production In addition, the imports of oil products
raised the export and production. The Plan (PLANGAS) began operating, increased 2%, reflecting the growth
sales revenues in the international and there was an increase in in demand.
segment registered an increase of US$ the production from existing In January 2011, the company
166 million. platforms and also from the pilot in the carried out the largest placement of
In the same period, the expenses Lula field, besides several extended debt by a Brazilian company on the
were stable in relation to 1Q10. With well tests (EWTs) in the pre-salt area. international capital markets, with the
this result, the company registered A highlight in the quarter was the issuance of bonds worth US$ 6 billion
a net operating income 17% higher, use of 92% of the nominal (maturity in 5, 10, and 30 years). The
and an operating cash flow (EBITDA) capacity of the refineries in resources captured are for investments
13% higher than in 1Q10. The Brazil, resulting from the investment stated in the Business Plan, with the
investments in 1Q11 totaled in operational improvements. maintenance of an adequate capital
US$ 9 billion 924 million. 1,852,000 bpd of oil were processed, structure and the degree of financial
In the same period, US$ 1 billion 7% more than in 1Q10. leverage in line with the company’s
308 million was paid as interest The modernization of the goals.
Economic and financial figures
rESULTS & rETrOSPECTIvE
In US$ million 1Q11 1Q10 Variation (%) In US$ million 1Q11 1Q10 Variation (%)
Sales of products and services 41,122 34,620 18.78 Net cash provided by operating activities 9,021 5,473 64.83
Net operating revenues 32,613 27,559 18.34 Capital Expenditures 9,924 9,783 1.44
Net income 6,524 4,317 51.12 Net debt 40,005 45,146 (11.39)
Operating Income 7,394 6,301 17.35 Total liabilities/shareholder equity (%) ** 28 32 (12.50)
Earnings per share 0.50 0.49 2.04 Market Value * 247,349 186.888 32.35
Earnings per ADS 1.00 0.98 2.04 EBITDA 9,522 8,352 14.01
* Source: Bloomberg **(1Q11 x 4Q10)
Operating performance ADR´s, Dow Jones, Amex Oil and Brent
In thousand barrels of oil equivalent per day 1Q11 1Q10 Variation (%)
Total crude oil, NGLs and natural gas production 2,627 2,547 3.14 800
Total oil products production 1,877 1,765 6.35 700
Net exports of crude oil and oil products (38) 126 (130.16) 600
Refining and marketing operations Brazil – Utilization (%) 82 80 2.50
500
Refining and marketing operations International – Utilization (%) 66 73 (9.59) PBR 307%
400
Domestic crude oil of total feedstock processed (%) 82 80 2.50
300 PBRA 293%
Petrobras’ ADR’s Return 200 AMEX OIL 91%
DOW JONES 14%
Dow Jones (%) PETR3 (%) PETR4 (%) 100
SP&500 9%
0
10 years 375 580.5 554.3 1/1/2006 1/7/2006 1/1/2007 1/7/2007 1/1/2008 1/7/2008 1/1/2009 1/7/2009 1/1/2010 1/7/2010 1/1/2011
5 years 80.7 86.8 78.1
1 year (2.5) (8.1) (10.2)

3. Petrobras is a highlight
INTErNATIONAL
ExPLOrATION & PrOdUCTION
New exploratory
block In Africa in the United States
P etrobras acquired a 50%
interest in Block 4, located
off the coast of Benin (a country
P etrobras’ operations in the
United States have been
highlighted. The Bureau of Ocean
The PRSI has been a member of the
Pasadena Chamber of Commerce
for 53 years, and is proud to have
situated on the West coast of Africa), Energy Management, Regulation contributed to the continued growth
with the company Compagnie and Enforcement has granted a and prosperity of the city and the
Béninoise des Hydrocarbures (CBH), permit for the company to surrounding areas. Since Petrobras’
a subsidiary of Lusitsania Petroleum, begin the production of oil purchase of the refinery in 2008, the
which holds the remaining 50%. and natural gas in its project in company has made investments
The CBH is still the operator of the the Cascade and Chinook fields in to improve the refinery’s
asset, but Petrobras has the right to the Gulf of México. efficiency and safety.
assume the operation. The Bureau emphasized the
The expectation is to find light technological quality of Petrobras’
oil, replicating discoveries found in project and stressed the collaboration
exploratory activities on the African between the industry and the US
continent, in line with the Petrobras government for the safe production
strategy of seeking opportunities in of energy resources in the country.
deep and ultra-deep water in the With the granting of this permit,
region, where it already has important Petrobras will soon begin production
activities. The block covers an area in the Gulf of Mexico, in fields located
of about 7,400 square kilometers, at a depth of 2,500 meters and will
with a water depth which varies from use the first FPSO-type platform ship
200 to 3,000 meters, at an average to operate in the region.
distance of 60 km from the coast. As for the Pasadena Refinery
(PRSI), located in Pasadena, Texas
(EUA), it received the award
“Industry of the Year” from
Unprecedented
LOGISTICS
the Chamber of Commerce of that
city. The organ acknowledged the
operation “excellence of the services
P
provided to the community”
etrobras carried out successfully
by the Petrobras refinery. Pasadena’s Refinery
the first bunker supply
operation from another vessel
in São Luís (MA) in March. The procedure
Plans announced for
GAS ANd ENErGy
was carried out about 20 kilometers
regasification terminal of Bahia
from the entrance of the São Luís port,
where 95% of the ships going to
the port of the Maranhão capital are
anchored.
To implement this new supply
modality, the ship Sea Emperor was
I n March, a Protocol of Intentions
between Petrobras and the
government of the state of Bahia was
When the TRBA begins operations,
Brazil will have the capacity
to regasify 35 million m³/day,
included in the bunker fleet. With signed with the objective of defining a volume larger than the 31 million
a double hull, it is equipped with a actions to be taken which will m³/day of natural gas imported
propeller that facilitates maneuvers and provide the conditions for the from Bolivia. Thus, Petrobras will
has the capacity to supply 12,000 tons. implementation of the Bahia aggregate even more security and
The serving capacity at the terminals Regasification Terminal (TBRA). flexibility in serving the market,
that make up the port (Itaqui, Ponta The construction of the terminal, considering that it will expand
da Madeira, and Alumar) is 70 vessels which will have the capacity to the access to different supply
per month. regasify 14 million m³/day, sources (domestic and imported).
With the beginning of the operations, will ensure the injection of natural The Brazilian gas pipeline
Petrobras expects a sustainable growth gas into the largest consumer state network reached 9,634 km
in the sales of the product in the region. of this fuel in the Northeast. in 2010.

4. Oil Executive of the year
P etrobras’ CEO, José Sergio Gabrielli de Azevedo, has been elected
Oil Executive of the Year by Energy Intelligence, an important independent
provider of information and analyses for the energy sector for more than
60 years. He was chosen from among the leaders of the 100 largest
companies in the world in the segment.
The choice of Gabrielli was the result of his role in leading the company in a
period of great growth. His main accomplishments were: the pre-salt discoveries
(the most important in the last decade), the success of the capitalization operation,
the second highest market value among oil companies and the positioning of
Petrobras as a leader of technology in deepwater exploration and production,
with one of the highest safety and efficiency standards in the sector.
Program of Financing One of the
for Suppliers most sustainable
P etrobras has launched the
Progredir (Making Progress) companies
Petrobras is among the 100 most
Program, which makes feasible, in a
fast and standardized way, the offer sustainable companies in the world
of credit in volume and competitive for the second year in a row, according to
conditions for the companies that the ranking Global 100 of the Corporate
are part of Petrobras’ supplier chain. Knights magazine, a Canadian publication
About 20,000 companies make specialized in social responsibility and
up Petrobras’ supplier chain of sustainable development.
goods and services, and the small The study was based on research which
and medium-sized companies have analyzed 3,500 companies in 24 countries
difficulty getting access to financial and in all the sectors of the economy.
resources. It is estimated that the Petrobras jumped 12 positions in relation
suppliers’ capture cost will fall an to the previous ranking and placed 88th, as
average of 20%. one of three Brazilian companies on the list
The program, developed in (Natura placed 66th and Bradesco 91st).
partnership with the six largest
retail banks in the country and with
the Program for the Mobilization
of the Brazilian Oil and Natural
Gas Industry, has the support of the
industry and its class entities. The
Construction and chartering of drilling rigs
credit does not involve Petrobras’
resources.
The pilot phase of the program,
P etrobras has approved the construction
and chartering of seven drilling rigs.
This package is part of the bidding
constituted by the Investment in
Participations Fund, managed by the
Caixa Econômica Federal, which owns
which complements other actions processes for the contracting of up to 90% of the company and will have
of the company aimed at the 28 marine rigs to serve the company’s market investors as shareholders.
strengthening of its supply chain, long-term drilling program, mainly for Petrobras holds 10% of the new
was implanted in September 2010. use in the pre-salt wells. company’s shares. Sete BR will admit
In this first phase, 15 companies The charter contract will be signed as partners and co-owners of the
have obtained financing from the with Sete Brasil S.A. (Sete BR), which drilling rigs companies with operational
banks by means of the program, will assume the construction contract experience to operate the drills in
with a total volume volume of with the Estaleiro Atlântico Sul (South providing services contracted by
approximately US$ 82,47 million. Atlantic Shipyard). Sete BR is a company Petrobras.
9 10
Newssheet edited by Petrobras’ Investor Relations Department • Executive Manager: Theodore Helms • Editor: Orlando Gonçalves Jr. MTb-MA 993 • Colaboration: Bianca Nasser,
Fabrizio Carega, Gregor Iriarte (trainee) and Luciana Guilliod • Contact: Petrobras’ Shareholders Department Phones: (55-21) 3224-1540/4914 • Fax: (55-21) 2262-3678 • Address:
Av. República do Chile, 65 / Sala 2202-B • Centro – Rio de Janeiro – RJ – Brazil – CEP 20031-912 • E-mail: acionistas@petrobras.com.br • 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/ir/english