Petroleo Brasileiro Sa · BMFBOVESPA:PETR3
Petroleo Brasileiro Sa — Petrobras - Petroleo Brasileiro — Q2 2009 Earnings Presentation
25 slides from Petroleo Brasileiro Sa's earnings presentation, Aug 18, 2009
Slide 1: Net income
Net income 1998 19,50 ‘2008 1H.2000 ent 2ons Net Income a8 roe oe roam ‘we2008 30,936 ‘2000
Slide 2: Net Income and Consolidated Economic Indicators
First-half investments came to R$ 32,500 million, mostly allocated to expanding future oil and gas production capacity, the Company’s investment priority, which absorbed 45% of the total. In percentage growth terms, the leaders were the Supply, Gas and Energy, and International segments, where the r
Slide 3: Operating expenses, financial result and physical indicators
(*) In the quarterly COGS comparison, note that COGS in the 1Q-2009 was negatively impacted by higher unit costs formed in previous periods. This trend was reversed as of the 2Q-2009. • A R$ 500 million reduction in the following operating expenses: • Other operating expenses (R$ 258 million) due to
Slide 4: Lifting cost fell
The lifting cost fell due to the decrease in the average Brazilian oil price used to calculate the government take, partially offset by the increase in the special participation tax rate due o due to higher output from the new platforms.
Slide 5: Lifting cost moved up
The lifting cost moved up due to the increase in the average Brazilian oil price used to calculate the government take, thanks to the international price recovery.
Slide 6: International unit lifting cost increased
The international unit lifting cost increased due to higher third-party service costs in Argentina, higher prices and the start-up of production in Nigeria, where costs are lower than the average in the Company’s international segment.
Slide 7: International lifting cost and refining cost
The quarter-over-quarter increase was due to higher material and third-party service costs in Argentina and the higher number of well interventions, partially offset by higher output. Refining Cost (US$/Barrel)
Slide 8: Domestic refining cost
Excluding the impact of the depreciation of the Real, the domestic refining cost moved up by 1%, due to higher personnel expenses resulting from the 2008/2009 collective bargaining agreement and increased expenses with materials and lower feedstock processed.
Slide 9: Domestic refining cost quarter-over-quarter
Excluding the impact of the depreciation of the Real, the refining cost increased by 8% due to greater expenditure on conservation and repairs, and increased expenses with materials associated with production.
Slide 10: International refining cost fell
The international refining cost fell by 7% due to the higher volume of processed crude in the Pasadena refinery (USA) following the scheduled stoppage in the 1Q-2008, together with the inclusion of the Japanese refinery as of April 2008, whose refining costs are lower than the international average.
Slide 11: International refining cost quarter-over-quarter
The quarter-over-quarter upturn was chiefly due to reduced production in Japan due to the scheduled stoppage in May/2009 and maintenance of the alkylation unit in the USA.
Slide 12: Corporate overhead
Excluding the impact of the depreciation of the Real, corporate overhead fell by 1% over the 1H-2008 due to reduced expenses from sponsorships and advertising, partially offset by the upturn in data-processing and personnel expenses.
Slide 13: Corporate overhead and sales volume
Discounting the appreciation of the Real, corporate overhead increased by 8% over the previous quarter, due to higher data-processing, sponsorship and personnel expenses. Sales Volume – thousand barrels/day Domestic sales volume fell by 5% over the 1H-2008, led by diesel and natural gas. Diesel sale
Slide 14: Exploration & Production result
The lower result reflected the new level of international oil prices and the increase in exploration costs due to higher geological and geophysical costs. Part of these effects were offset by the 7% increase in average daily oil and NGL production and the lower government take. The spread between th
Slide 15: Exploration & Production quarterly result
The quarter-over-quarter results increase was due to the upturn in international oil prices and the increase of 7% in the oil sale/transfer volume, as well as the reduction in exploration costs due to the write-off of dry or economically unviable wells. These factors were partially offset by the hig
Slide 16: Supply result
The year-on-year improvement in the Supply result was due to lower oil acquisition/transfer costs and reduced imported oil product costs, reflecting the new level of international oil prices. These effects were partially offset by the following factors: • The reduction in average oil product prices
Slide 17: Gas and Energy result
The improved result was due to lower electricity purchase costs due to the reduction in the difference settlement price, the greater availability of electricity for commercialization, due to the recovery of the peg, and the increase in fixed revenue from auctions, as well as higher electricity expor
Slide 18: Gas and Energy quarterly result
The quarter-over-quarter result recorded an upturn due to higher electricity sales/generation margins generated by the reduction in spot market acquisition costs, increased export volume and lower gas import costs. These effects were partially offset by the reduction in the average gas sales price.
Slide 19: Distribution result
The year-on-year decline was caused by narrower sales margins, in turn due to lower average sales prices. This was partially offset by the 10% upturn in sales volume, primarily thanks to the consolidation of ALVO Distribuidora, despite the consequent increase in SG&A expenses. The Company’s share of
Slide 20: Distribution quarterly result
The higher result was caused by the 9% increase the sales margins and the 5% upturn in sales volume. These effects were partially offset by higher SG&A expenses due to increased freight costs. The segment recorded a 38.0% share of the fuel distribution market in the 2Q-2009, versus 38.8% in the prev
Slide 21: International segment result
The main events impacting the year-on-year reduction were: • The reduction in gross profit due to lower international oil prices; • Lower equity income due to losses on investments in the USA from the acquisition of the remaining 50% of the Pasadena refinery.
Slide 22: International quarterly result
Higher oil prices and the upturn in sales volume due to the start-up of production in Akpo, in Nigeria, increased gross profit by R$ 189 million. The constitution of provisions for losses on investments in the USA in the 1Q-2009 also contributed to the improvement.
Slide 23: Corporate result
The increase in the negative result was due to the upturn in the negative financial result (R$ 1,440 million), as dealt with on page 6, and the minority interest result, reflecting the impact of appreciation of the Real against the dollar on the debt of Special Purpose Companies and controlled compa
Slide 24: Consolidated Debt
The increase in the negative result was due to the upturn in the negative financial result (R$ 1,612 million), as mentioned on page 10, and the minority interest result, despite the increase in income tax and social contribution credits. Consolidated Debt R$ millions 06.30.2009 03.31.2009 Δ % Short-
Slide 25: Consolidated Investments
Consolidated Investments In compliance with the goals outlined in its strategic plan, Petrobras continues to prioritize investments in the expansion of its oil and natural gas production capacity by investing its own funds and by structuring ventures with strategic partners. On June 30, 2009, total
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