The document provides an overview of Petrobras' financial results for the first quarter of 2007. Some key points: - Oil and gas production decreased 1.2% domestically due to scheduled platform maintenance, while international production fell 3% due to unrest in Ecuador. - Revenue fell 5.2% from the previous quarter due to lower sales volumes and oil prices. Operating profit rose 15% through cost reductions. - Net income declined 20.6% to R$4.1 billion, impacted by higher financial expenses from currency fluctuations and an absence of tax benefits from the prior quarter. - Investments totaled R$8.3 billion, with 48% toward E&P and 23

1. Conference Call / Webcast Almir Barbassa
RESULTS ANNOUCEMENT CFO and Investor
1st Quarter 2007 Relations Officer
(Brazilian Corporate Law) May 15th 2007

2. Disclaimer
The presentation may contain forecasts about future events. Such forecasts merely reflect the
expectations of the Company's management. Such terms as "anticipate", "believe", "expect",
"forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous
expressions, are used to identify such forecasts. These predictions evidently involve risks and
uncertainties, whether foreseen or not by the Company. Therefore, the future results of
operations may differ from current expectations, and readers must not base their expectations
exclusively on the information presented herein. The Company is not obliged to update the
presentation/such forecasts in light of new information or future developments.
Cautionary Statement for US investors
The United States Securities and Exchange Commission permits oil and gas companies, in their
filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual
production or conclusive formation tests to be economically and legally producible under existing
economic and operating conditions. We use certain terms in this presentation, such as oil and
gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with
the SEC.
1

3. DOMESTIC OIL AND NGL PRODUCTION
Δ=-
1.2%
1,823
1,800
• Decrease of 1.2% in the 1Q07
thous. bpd
due to scheduled stoppage in P-
37 platform (Marlim), from
January 15 to February 05, 2007.
4Q06 1Q07
2

4. TOTAL OIL, NGL AND NATURAL GAS PRODUCTION
Thous. boed
2%
Δ = 1.
2,304 2,334 2,305
Δ=
-1.2
%
2,279
2,273
1Q06 2Q06 3Q06 4Q06 1Q07
• Decrease in the 1Q07 production due to the scheduled stoppage in platform P-37; problems in the
production growth acceleration in FPSO-Capixaba (Golfinho) and P-34 (Jubarte) units, preventing a
better performance in the quarter;
• 3% decrease in international production due to the interruption of activities in Ecuador caused by
popular unrest.
3

5. E&P – OIL PRICES
69.62 69.49
61.53 61.75
64.74 66.07 59.68 57.75
56.9
56.39
57.59 58.20 58.69
52.7
US$/bbl
51.59 56.08 55.24
47.50 53.69
54.24
49.33
48.70 47.79
44.19 46.05
43.04
37.48
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07
Average Sales Price Brent (aver.) OPEC Basket
•Decrease in Petrobras’ average oil sales price aligned to the international market.
4

6. REFINING IN BRAZIL AND SALES IN THE DOMESTIC MARKET
Thous. barrels/day
%
91 93 89 90
85 90
1,9 50
81 80 79 78 77 80
1,812
1,795
1,8 0 0 1,781
1,753 1,746
1,696 1,711 70
1,684
1,652
1,6 50 1,623
60
1,50 0 50
1T06 2T06 3T06 4T06 1T07
D o m e s t ic o il pro duc t s pro duc t io n O il pro duc t s s a le s v o lum e
P rim a ry pro c e s s e d ins t a lle d c a pa c it y - B ra zil ( %) D o m e s t ic c rude o il a s % o f t o t a l
• Reversal in the oil products production, which increased 5%, due to higher utilization factor (+ 5 p.p.);
• Decrease in the volumes of oil products sold in the 1Q07 due to seasonality.
5

7. AVERAGE REALIZATION PRICE - ARP
100
1Q06 4Q06 1Q07
Avrg Avrg Avrg
80
71.0 70.6 71.5
70.2 68.8 67.3
60
61.8 59.7 57.8
40
20
Dec-04 M ar-05 Jun-05 Sep-05 Dec-05 M ar-06 Jun-06 Sep-06 Dec-06 M ar-07
A RP B rasil (US$ /bbl)
A verage B rent P rice (US$ /bbl)
A RP USA (US$ /bbl w/sales vo l.in B rasil)
• Steady ARP Brazil confirms our policy of aligning the domestic prices to international benchmarks in the
mid/long term;
•Due to Real appreciation, ARP in Reais presented a slight decrease (from R$ 152,10 to R$ 150,97, or -0.74%).
6

8. INCOME STATEMENT 1Q07 VS 4Q06
4Q06 1Q07
38.894
Net Revenues - 5.2%
41.041
23.629
GOGS -11.5%
26.696
R$ million
10.993
EBITDA
10.225 7.5%
8.582
Operational Profit
7.460 15.0%
4.131 - 20.6%
Net Income
5.200
• Drop in net revenues due to lower sales volumes of oil products and lower average realization prices;
• Drop in COGS as a result of lower oil prices, lifting cost, government participation, refining cost and import
volumes
• Increase in the Operating profit due to better cost structure aligned with stable operating expenses even
considering the non-recurring expense of R$ 1 billion related to renegotiation of terms of the Petros Retirement
Fund Plan;
• Net income was negatively affected by the financial result (FX variation) and the absence of fiscal benefit, when
compared to the previous quarter.
7

9. NET INCOME
1Q-2007 4Q-2006
Operating Profit 8.582 7.460
Net Financial Expenses (950) (72)
Gains from investments in subsidiaries (84) 20
Operating profit (after fin. exp.) 7.547 7.408
Non-operating Income (Expenses) 27 35
Income Tax / Social Contribution (2,968) (1,901)
Minority Interest (476) (342)
Net Income 4.131 5.200
• Higher net financial expenses due to FX variation on international assets;
• Net Income in the 1Q07 did not reflect fiscal benefits from the payment of
interests in own-capital occurred in the previous quarter.
8

10. OPERATIONAL EXPENSES ANALYSIS 1Q07 VS 4Q06
4Q06 1Q07
1.415 -8.7%
Sales Expenses 1.550
General and 1.641
R$ million
1.728 -5.0%
Administrative
655
Exploratory Costs -19.9%
818
299 -16.0%
Taxes 356
1.844 29.1%
Others
1.428
• Sales: highlights for the decrease of expenses in the distribution and international segments;
• G&A: lower expenditures with wages and benefits;
• Exploratory Costs: decrease due to high level of dry wells write-offs in the 4Q06 (R$ 125 million);
• Others: increase caused mainly by the financial incentive paid to the Petros Plan participants, as a
counterpart for the acceptance of the renegotiation of its terms (R$ 1.040 million).
9

11. CHANGE IN QUARTER REVENUES(1Q07 VS 4Q06)
Exploration & Production –Operating Profit Change– R$ millions
1,823 Domestic Oil, NGL and Condensate – thousand bpd 1,800
781 8.075
1.024 354
433
7.289 244
4Q06 Oper. Price Effect on Avrg Cost Effect Volume Effect Volume Effect Oper. Exp. 1Q07 Oper.
Profit Net Revenue on COGS on Net Revenue on COGS Profit
• Increase of the Operating Profit due to lower production costs and gov. participation, partially offset
by the production decline, as well as lower domestic oil average selling and transfer prices.
10

12. CHANGE IN QUARTER REVENUES (1Q07 VS 4Q06)
Downstream – Change in Operating Profit – R$ million
1.456 1.808
1.474 157 3.210
2.188 57
4Q06 Oper. Price Effect on Avrg Cost Effect Volume Effect Volume Effect Oper. Exp. 1Q07 Oper.
Profit Net Revenue on COGS on Net Revenue on COGS Profit
• Increase of 46% in Operating Profit mainly due to reduction in the oil purchase / transfer cost in
the 1Q07;
• This increase was partially offset by the reduction in selling volumes in the domestic market.
11

13. NET EXPORTS OF OIL AND OIL PRODUCTS
187 thous. bpd Volume Surplus and US$ 528 million Financial in the 1Q07
Exports (thous barrels/day) Imports (thous barrels/day)
669
576 624 540
532 536 510
215 459 442 437
247 137 132
221 115 88 97
270 269
454 354 373 408
377 344 340
355
262 267
1T06 2T06 3T06 4T06 1T07 1Q06 2Q06 3Q06 4Q06 1Q07
Oil Oil Products
• 1Q07 trade balance reflected seasonal demand, increase in the oil products
production and stability in oil production.
12

14. NET INCOME CHANGE – R$ million (1Q07 VS 4Q06)
1,823 Domestic Oil, NGL and Condensate – thousand bpd 1,800
3.067 202 990
1067
5.200 2.147
134
4.131
4Q06 Net Income Revenues COGS Oper. Exp. Fin. Exp, Non Taxes Minority Interest 1Q07 Net Income
Oper. and Others
• Increase in the gross margin, provided by lower oil prices, government participation and import
volumes was insufficient to offset extraordinary expenses related to the financial incentive paid to
retirement plan participants, FX variation effects in the financial results and increase in tax
burden.
13

15. LEVERAGE
Petrobras’ Leverage Ratio
32% R$ million 03/31/2007 12/31/2006
28% 28% 27% (1)
27% Short Term debt 11.879 13.074
26% 26%
24%
(1)
Long Term Debt 32.540 33.531
20%
19% 23% 18% 19%
17%
16% Total Debt 44.419 46.605
19%
Cash and Cash
20.463 27.829
Equivalents
jun/05 set/05 dez/05 mar/06 jun/06 set/06 dez/06 mar/07
(2)
Net Debt/Net Capitalization Net Debt 23.956 18.776
Short-Term Debt/Total Debt
• Increase in Net Debt due to cash/cash equivalent reduction as a result of
interest on own capital payment (R$ 5,9 billion).
(1) Includes debt contracted through leasing contracts (R$ 2.259 million in 03.31.2007 and R$ 2.540 million in 12.31.2006).
(2) Total debt - cash and cash equivalents
14

16. CONSOLIDATED CASH FLOW STATEMENT
R$ million
1Q07 4Q06
(=) Net Cash from Operating Activities 7.493 13.244
(-) Cash used in Cap. Expend. (7.951) (12.061)
(=) Free Cash Flow (458) 1.183
(-) Cash used in Financing and Dividends (6.908) 2.127
Financing (1.035) 2.128
Dividends (5.873) (1)
(=) Net Cash Generated in the Period (7.366) 3.310
Cash at the Beginning of Period 27.829 24.519
Cash at the End of Period 20.463 27.829
• Cash decrease due to dividends and financing payments.
15

17. INVESTMENTS
R$ million
1Q07 %
Direct investments 7.385 88
Exploration & Production 3.986 48
Downstream 1.040 12
Gas & Energy 197 2
International 1.922 23
Distribution 107 1
Corporate 133 2
Special Purpose Companies (SPCs) 861 11
Ventures under Negociation 54 1
Project Finance - -
Total Investments 8.300 100
• Highlight: international capex due to construction of 2 drilling rigs (R$ 636,4 million) and GOM fields’
development (R$ 122,6 million).
16

18. DOMESTIC LIFTING COSTS WITHOUT GOVERNMENT PARTICIPATION
Δ = -0.6% or US$ 0.04
US$/bbl
7.24 7.20
6.64
6.32 6.12
1TQ06 2Q06 3Q06 4Q06 1Q07
• Labor cost reduction duet to 4Q non recurring expenditures, retroactive to sept/06, as a result of
the 2006/2007 Collective Agreement
• Lower material utilization for repairs and well intervention and substitutions.
17

19. LIFTING COSTS INCLUDING GOVERNMENT PARTICIPATION
26
61.5 61.8
56.9 69.6 69.5 59.7 57.8
60
51.6
47.5 18,1 17,6
17,3 17,5
16,1 16,2
16 38.2 15,2 40
US$/boe
28.8 13,6 13,9
24.8
65% 11.4 64%11.5 59% 10.4 56% 9.0
10,7 10.0 64%11.0
7.6 59% 8.5 9.8
8,5 20
7,0
6.4
6 5.1
4.0 57%
6.0 6.1 6.3 6.1 6.6 7.2 7.2
4.3 5.4 5.4 0
3.0 3.4
2002 2003 2004 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07
-4 -20
Lifting Cost Gov. Take Brent
•Lower government take due to decrease in average domestic oil prices, linked
to international benchmarks.
18

20. REFINING COSTS IN BRAZIL (US$bbl)
Δ = -6.3% or US$ 0.17
2.71
2.48 2.54
2.07
1.90
1Q 06 2Q 06 3Q 06 4Q 06 1Q 07
• 6.2% decrease compared to the previous quarter reflecting the lower costs with
personnel (wages and benefits) as a result of the bonus payment in the 4Q06
Collective Bargaining Agreement.
19

21. COSTS: WORLD MARKET TRENDS
2006
• Rising trend beginning in 2002/2004, affecting both the oil industry services and
raw material (steel and iron for the construction of platforms and drilling rigs)
Source: CERA 20

22. QUESTION AND ANSWER SESSION
Visit our website: www.petrobras.com.br/ri
For more information contact:
Petróleo Brasileiro S.A – PETROBRAS
Investor Relations Department
Raul Adalberto de Campos– Executive Manager
E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 – 22o floor
20031-912 – Rio de Janeiro, RJ
(55-21) 3224-1510 / 3224-9947
21