This document provides an overview and summary of Petrobras' 2nd Quarter 2012 financial results. Key points include: - Petrobras reported a loss in 2Q12 versus a profit in 1Q12, due to factors like exchange rate devaluation, lower oil product prices in Brazil, production stoppages, and increased exploration expenses. - The average exchange rate depreciated in 2Q12 compared to 1Q12, negatively impacting costs. - Operational highlights included refining throughput records and advances in contracting for offshore oil development. - 2Q12 results were affected by unique factors that are unlikely to occur together or at the same intensity in future quarters.

1. 2nd Quarter 2012 (IFRS)
Conference Call/Webcast
August 6th, 2012

2. DISCLAIMER
FORWARD-LOOKING STATEMENTS:
DISCLAIMER
The presentation may contain forward-looking statements We undertake no obligation to publicly update or
about future events within the meaning of Section 27A of revise any forward-looking statements, whether as
the Securities Act of 1933, as amended, and Section 21E a result of new information or future events or for
of the Securities Exchange Act of 1934, as amended, that any other reason. Figures for 2012 on are
are not based on historical facts and are not assurances of estimates or targets.
future results. Such forward-looking statements merely
reflect the Company’s current views and estimates of
future economic circumstances, industry conditions, All forward-looking statements are expressly
company performance and financial results. Such terms qualified in their entirety by this cautionary
as "anticipate", "believe", "expect", "forecast", "intend", statement, and you should not place reliance on
"plan", "project", "seek", "should", along with similar or any forward-looking statement contained in this
analogous expressions, are used to identify such forward- presentation.
looking statements. Readers are cautioned that these
statements are only projections and may differ materially
from actual future results or events. Readers are referred NON-SEC COMPLIANT OIL AND GAS RESERVES:
to the documents filed by the Company with the SEC,
CAUTIONARY STATEMENT FOR US INVESTORS
specifically the Company’s most recent Annual Report on
Form 20-F, which identify important risk factors that could We present certain data in this presentation, such
cause actual results to differ from those contained in the as oil and gas resources, that we are not permitted
forward-looking statements, including, among other to present in documents filed with the United
things, risks relating to general economic and business States Securities and Exchange Commission (SEC)
conditions, including crude oil and other commodity under new Subpart 1200 to Regulation S-K because
prices, refining margins and prevailing exchange rates, such terms do not qualify as proved, probable or
uncertainties inherent in making estimates of our oil and possible reserves under Rule 4-10(a) of Regulation
gas reserves including recently discovered oil and gas S-X.
reserves, international and Brazilian political, economic
and social developments, receipt of governmental
approvals and licenses and our ability to obtain financing.
2

3. OPERATIONAL HIGHLIGHTS
» 2012-2016 Business and Management Plan of US$ 236.5 billion, of which US$ 208.7 billion related to projects under
implementation and US$ 27.8 billion to projects under evaluation (subjected to adequate return and financeability)
» Price increases for diesel (10%) and gasoline (8%)
» Domestic refining troughput record (2.01 million bpd)
» Advances in contracting and development of the local industry:
» Contracts for construction of 12 drilling rigs by Sete
Brasil (6 at Brasfels and 6 at Jurong Aracruz shipyards)
» New technical partner defined for Atlântico Sul Shipyard
» Contracts for the construction and integration of the first
topsides of 8 FPSOs for the Pre-salt
» 4 foreign built drilling rigs arrived to Brazil in 2Q12 P-55
Deck mating conclusion of P-55 in Rio Grande
Shipyard. The operation was the heaviest structure
ever lifted in the world (17 thousand tons)
P-56
3

4. 2Q12 RESULTS
» Loss of R$ 1.3 billion in 2Q12 vs net income of R$ 9.2 billion in 1Q12
» EBITDA of R$ 10.6 billion in 2Q12 vs R$16.5 billion in 1Q12
Principal factors underlying results
• Exchange rate devaluation (impact on debt and cost)
• Price differential for oil products sold in Brazil
• Lower production (operational stoppages and Frade) and lifting cost increases (start-up of PROEF*)
• Exploration expenses from dry/subcommercial wells drilled mainly between 2009 and 2012 in new exploratory
frontiers
• Increase of LNG imports due to higher natural gas demand from power generation
These factors are less likely to occur jointly and with the same intensity in subsequent
quarters
P-56
*PROEF – Programa de Aumento da Eficiência Operacional da Unidade de Operações da Bacia de Campos (Operating Efficiency Improvement Program in Campos Basin Operational Unit) 4

5. EXCHANGE RATE
R$/US$
2011 2012
2.30
2Q11 1Q12 2Q12
2.20 Average 1.60 Average 1.77 Average 1.96
2.10 2.05 2.03
1.98
2.00
1.90 1.84 1.85
1.77 1.79 1.79 1.79
1.80 1.74 1.72
1.68. 1.67 1.66
1.70 1.60
1.59 1.61 1.59
1.60 1.56
0,00
Jan-11 Feb-11 Mar-11 Apr-11 May-11 June-11 July-11 Aug-11 Sept-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 June-12 July-12
» A higher devaluation of the Real at the end of 2Q12 resulted in a Net Financial Loss of R$ 6.4 billion
» Average depreciation of the Real throughout 2Q12 negatively affected the Company’s main costs (lifting cost, government take,
imports of oil, oil products and LNG, and oil products logistics)
» However, FX has stabilized following the devaluation
Source: Brazilian Central Bank (PTAX)
5

6. DOMESTIC AND INTERNATIONAL PRICES
2011 2012
260 900
Period when 2Q12 inventories
were built 800
240
Average Realization Price in 700
220 US Golf Coast
Average Realization Price (R$/bbl)
Imported Volumns (kbbl / d)
600
200
500
180
400
Average Realization Price in Brazil
160
300
140
200
120 100
100 0
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
ARP USGC (with volumes sold in Brazil) ARP Brazil Gasoline Imports Diesel Imports
» Inventories recognized in COGS in 2Q12 were acquired during the period of the highest price differential (March-May/12)
» The differential with international prices decreased at the end of 2Q12 as a result of the decline in international oil prices and
the domestic increases in diesel and gasoline prices
6

7. OIL AND NGL PRODUCTION (BRAZIL)
Kbpd 2011 2012
2,200 2Q11 1Q12 2Q12
Average: 2,018 Average: 2,066 Average: 1,970
2,150
2,110
2,084 2,098
2,100 2,069 2,061
2,040 2,047
2,050
2,020 2,002 1,989
2,001
2,000 2,003 2,003 1,993
1,968 1,963 1,961 1,960
1,950
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
» 5% decrease in production 2Q12/1Q12 (- 96 kbpd) as a result of:
» Operational stoppages (-54 kbpd), lower operational efficiency (-18 kbpd) and Frade (-15 kbpd)
» Decline of potential as expected
» 2 new systems will start-up on 2H12:
» FPSO Cidade de Anchieta (Baleia Azul), 100 kbpd, in August
» FPSO Cidade de Itajaí (Baúna e Piracaba), 80 kbpd, in October
» Maintenance of 2012 oil production target (flat when compared to 2011, +/-2%)
» Production recovery only in 4Q12 (scheduled stoppages will continue on 3Q12)
7

8. BALEIA AZUL (FPSO ANCHIETA):
S-CURVE OF PHYSICAL PROGRESS FOR THE WHOLE PROJECT
Cumulative until 06/30/12:
Planned: 84.7%
Actual: 78.2%
Projected
Exp. 2 - Delay in cumulative physical advance: Cumulative physical advance below
Exp. 1 - Schedule delay: 1-month delay in operating start-up (first oil) due to
baseline due to the delay in the project’s wells construction and flexible lines
the delay in the FPSO’s conversion works
manufacturing
8
8
Confidencial

9. BAÚNA E PIRACABA (FPSO ITAJAÍ):
S-CURVE OF PHYSICAL PROGRESS FOR THE WHOLE PROJECT
Projected
Exp. 2 - Delay in cumulative physical advance- Delay of 12.48% in physical
Exp.1: schedule delay - The 3-month delay in the operational start-up is due
advance until 06/30/12 due to delays in the FPSO construction (0.21%), delay in
to the postponement of the production unit ‘s arrival date on site because of
Baúnas’ wells completion (7.81%), postponement of interconnecting materials
the low construction performance in the Jurong shipyard in Singapore
arrival (1.55%), postponement in pre-anchoring and disbursement of the unit
(especially mechanical completion and systems comissioning)
mobilization tax (2.93%) and unplanned environmental analysis (0.02%)
Confidencial 9
9

10. LIFTING COST
(R$/barrel)
65.11 » Expenses related to workovers and subsea engineering
60.04 61.73
55.14 increased 35%, from R$ 1,024 million on 1Q12 to R$ 1,385
54.11
million in 2Q12, principally due to higher number of units
38.48 and of drilling rigs/days allocated to maintenance activities
37.57 39.03 (from 443 to 760 days in Campos Basin)
34.21 31.80
» This increase in activities and disbursements is due to the
PROEF (Operational Efficiency Improvement Program). The
20.93 22.31 22.47 22.70 26.63 recovery in UO-BC’s operational efficiency will be seen by
4Q12
2Q11 3Q11 4Q11 1Q12 2Q12 » Government Take: decrease due to lower production in
fields with a higher Special Participation bracket
Govt Take Lifting Cost
10
10

11. EXPLORATORY ACTIVITIES: DRY WELLS
R$ million Dry Hole Expenses
3.500
3.000
2.737
2.500
2.000
1.500
1.000 896
561 615 536
473 572 577 528
500 274 415 204
174 229
0
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
-500
Dry/abandoned/subcommercial wells
» Write-off - 41 dry or subcommercial wells in 2Q12, which were drilled between 2009 and 2012, the majority in new frontiers:
» Activities in new frontiers imply lower success ratio than Pre-Salt’s over the last years, higher logistic costs and,
consequently, higher expenses related to dry/subcommercial wells
11

12. 2Q12 DRY WELLS
Pecém
(New Discovery)
41 wells
» By type
21 dry, 8 subcommercial, 9 cancelled projects,
2 abandoned e 1 mechanic accident
» By area
13 in Post-salt, 15 onshore, 2 in Pre-Salt and
11 cancelled or abandoned projects
Total Cost: R$ 2.7 billion
• 5 wells responsible for R$ 1.539 billion (57%)
12

13. OIL PRODUCTS SALES IN BRAZIL
+6%
+3%
» 2Q12 vs. 2Q11: Increase of 6% in oil products sales :
2,168 2,237 » 16% growth in gasoline volumes due to increase
2,118
in fleet and lower prices relative to ethanol
439 431
441 » 5% increase in diesel volumes due to retail growth
228
kbpd
227 214
» Increase of 3% on the 2Q12 x 1Q12 comparison due to
545 557 demand seasonality
481
» Incremental volume supplied by imports,
especially diesel, reduced downstream margins
969 970 1021
2Q11 1Q12 2Q12
Diesel + Jet Fuel Gasoline LPG Others
13
Confidencial

14. TRADE BALANCE
Exports Imports Balance
703 714 764
721 724
554
(mil barris/dia)
358 341
347
kbpd
480 497
351
374 406 383
223 217 203 2T11
2Q11 1T12
1Q12 2T12
2Q12
2T11
2Q11 1T12
1Q12 2T12
2Q12 2T11
2Q11 1T12
1Q12 2T12
2Q12 -18
-50
Oil Oil Products
-170
» Lower domestic oil production reduced oil exports during 2Q12
» Higher volumes of domestic oil processed in our refineries also contributed to lower exports
» Growth in domestic consumption (mainly diesel) required increased imports of oil products with negative margins
14

15. HIGHER THERMAL DEMAND: LNG IMPORTS
Demand
Million m³/day 2011 2012
60 2Q11 1Q12 2Q12
Average: 64.0 Average: 67.2 Average: 79.4
50
Non Thermal
40
26,5
30 23,8
18,6
20 Refineries and Fertllizer plants
10 15,5
11,6
Thermal 8,1
0
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
Supply
Million m³/day » Higher thermo-electric consumption (+96% compared to 1Q12)
+16%
due to lower rainfall in 2Q12
80.7
69.4 » Increase in domestic supply and imported gas in 2Q12, especially
66.0
LNG, to meet thermo-electric demand
44.4
Domestic 38.7 42.6 » Increase of PLD (settlement price of differences) resulted in
Bolivia negative impact on power trading margins
27.2
LNG 25.7 26.2 » Reduction of thermal demand at the end of 2Q12 with the
1.6 0.7 9.0
recovery of hydroelectric reservoir levels
2Q11 1Q12 2Q12
15

16. INTERNATIONAL PRODUCTION
Oil and Natural Gas Production
kboed
2011 2012
270
2Q11 1Q12 2Q12
260 Average: 227 Average: 239 Average: 240
249
250 246 246
244
242 242
241 238
240 236 237 237
238 239
230 231 233
232 226 230
219
80
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12*
Até 11 de julho
19
» Highlight: Cascade (U.S.) production ramp-up
» Lower sales volume in Nigeria due to lower participation in the Akpo field, as a result of the termination of the recovery of
past costs
» Lower commodity prices in 2Q12 resulted in a higher impairment of inventories in the U.S. and Japan (R$ 509 million)
» Provision related to the agreement of the Pasadena refinery (R$ 140 million)
16

17. FINANCIAL RESULTS

18. OPERATING INCOME 2Q12 VS 1Q12
(R$ million) 1,913
11,771
(6,142) 5,282
(292)
(1,968)
1Q12 Sales Revenue COGS SG&A Other Expenses 2Q12
Operating Income Operating Income
» Reduction in operating income:
» Increase in sales revenues, due to higher domestic demand (4%) and FX depreciation effect on export prices
» Increase in COGS due to higher sales volume on domestic market, sales from inventories acquired at higher costs and
FX effect over costs in dollars
» Higher exploratory costs (2Q12/1Q12:+238% ) due to dry and sub-commercials wells – exploration of new frontiers
18

19. NET INCOME 2Q12 VS 1Q12
(R$ million)
9,214
(6,489)
2,624 739
(1,346)
(6,872)
(562)
1Q12 Operating Income Financial Results Equity Income Taxes Minority Interest 2Q12
Net Income Net Income
» Losses:
» Reduction of operating income
» Financial expenses of R$ 6.4 billlion due to FX depreciation (11%) on debt
19

20. E&P 2Q12 vs 1Q12
Operating Income
(R$ million)
1,213 (1,442)
18,846 (902) 621 (2,164)
16,172
1Q12 Price Effect Volume effect Average Cost Volume Effect Operational 2Q12
Operational on Revenue on Revenue effect in COGS on COGS Expenses Operational
Results Results
» Higher domestic oil prices due to depreciation of the Real
» Lower level of domestic oil production
» Higher maintenance costs and well interventions partially offset by lower governament take
» Increase in geology, geophysics and dry/subcommercial wells expenses
20

21. DOWNSTREAM 2Q12 vs 1Q12
Operating Income
(R$ million)
487
(7,101) (272)
53 150
(3,285) (9,968)
1Q12 Price Effect Volume Effect Average Cost Volume Effect Operational 2Q12
Operational on Revenue on Revenue Effect in COGS on COGS Expenses Operational
Results Results
» Higher sales prices only at the end of quarter
» Lower oil and oil products exports – domestic oil production chanelled to supply Brazilian domestic market
» Higher level of acquisition costs/internal transfer prices and sales of inventories acquired at higher costs
21

22. DOMESTIC OUTPUT OF OIL PRODUCTS
Oil products output * Throughput and Utilization Factor Refining Cost (R$/bbl)
2500 92.5% 94.3% 100
2,035 89.9%
1,894 1,967 90
1,884 1,927
2000 1,837 80
Utilization factor (%)
Throughput (kbpd)
349 350 70
353
1500 60
kbpd
50
+2%
1000 40
1,484 1,534 1,576 30
500 20
10
0 0
2Q11 1Q12 2Q12
Diesel + Jet Fuel Gasoline LPG Others Utilization Factor Imported Oil Domestic Oil
» Increase in oil products output due to higher throughput as a result of higher operational availability and higher utilization in
conversion and quality units
» Higher utilization factor in existing refineries, and a record in monthly processing in June (98.7%)
» Small increase in refining cost, in Reais, due to higher costs associated to maintenance stoppages with no impact on
throughput. In US dollars, it decreased 8%
* Includes E&P’s LPG production 22
Confidencial

23. CAPITAL STRUCTURE
1 2
Net debt/EBITDA Net debt/Net Capitalization
50%
5,5
28% 40%
4,5 22% 24% 24% 30%
3,5 17%
2.46 20%
2,5 1.66 1.61 10%
1.07 1.41
1,5 0%
0,5 -10%
-0,5 -20%
2Q11 3Q11 4Q11 1Q12 2Q12
R$ Billion 06/30/12 03/31/12
Short-term Debt 17.7 18.0
» 2Q12 weak results do not reflect expectations for
Long-term Debt 161.5 146.1 the remaining quarters
Total Debt 179.2 164.1
» Divestment plans continue as targeted
(-) Cash and cash equivalents 3 45.9 57.9
= Net Debt 133.2 106.2
» No change in estimates and leverage limits
US$ Billion 06/30/12 03/31/12 established on the 2012-2016 Business and
Net Debt 65.9 58.3 Management Plan
1) Net Debt / ((EBITDA 1Q12 + EBITDA 2Q12) x 2)
2) Net Debt / (Net Debt + shareholder’s equity)
3) Includes tradable securities (maturing in more than 90 days)
23

24. INVESTMENTS
1H2011 1H2012
R$ 32.0 billion R$ 38.7 billion
(US$ 19.6 billion) (US$ 20.7 billion)
1% 1% 2% 1% 0% 2%
6% 5%
6% 5%
38% 34%
E&P Downstream G&E International Distribution Biofuel Corporate
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25. ‘Finally, I would like to reaffirm my confidence in Petrobras’ privileged
position in the oil and gas sector. Our reserves, highly qualified
personnel, R&D investments and track record of overcoming
challenges will lift the Company to levels of excellence that will
generate consistent returns for our shareholders.’
Presidente Maria das Graças Silva Foster

26. Information:
Investor Relations
+55 21 3224-1510
petroinvest@petrobras.com.br
26