Q4 2023 Petroleo Brasileiro SA Petrobras Earnings Call

March 8, 2024

Operator: Pleasure to have you with us today. This event will be in Portuguese, and we have simultaneous translation into English. You can find the links to both on our investor relations page. All participants will be in listen-only mode during the company's presentation, and then we will have a Q&A session. You may send us your questions to Petrobras, excuse me, petroinvest@petrobras.com.br. We have Jean Paul Prates, the President of Petrobras. Clarice Coppetti, Corporate Affairs. Sergio Caetano Leite, Financial and Investor Relations Director. Mário Spinelli, Governance and Compliance Director. Mauricio Tolmasquim, Energy Transition and Sustainability Director. Joelson Mendes, Exploration and Production Director. William França, Industrial Processes and Products. Claudio Schlosser, Logistics, Trade, and Markets. Carlos Travassos, Engineering, Technology, and Innovation. Maiza Goulart, CENPES. We'll start with a word from our CEO. Go ahead, sir. Thank you. Good morning, everyone.

This event will be in Portuguese and we have simultaneous translation into English.

You can find the links to both.

On our Investor Relations page.

All participants will be in listen only mode. During the Companys presentation, and then we will have a Q&A session and.

And you may send us your questions to Petrobras.

Petro invest at Petrobras Dot Com BR, we have trickle bouts of president Petrobras Clarissa cope pet.

Corporate affairs.

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Financial and Investor Relations Director Mario Spinelli.

Governance, and compliance director Thomas bonus scheme energy transition and sustainability Director show Allison Mendez.

Speaker Change: Exploration and production director <unk> <unk>.

Speaker Change: Industrial processes and products.

Speaker Change: Larger slusher.

Speaker Change: Logistics trade and markets Carlos <unk>.

Speaker Change: Engineering technology, and innovation and my user Golar steps.

Speaker Change: We'll start with award from our CEO.

Speaker Change: Go ahead Sir.

Speaker Change: Thank you good morning, everyone.

Jean Paul Prates: Thank you. Good morning, everyone. Dear shareholders, investors, I'm very happy to talk to you today, not only because of the excellent economic and financial results we're going to present today, but especially because I am convinced we're building a more robust Petrobras that is more resilient and is better able to generate value on the long term to its shareholders and for society, facing the numerous challenges that we know and don't know created by this world in transition. From the beginning of our administration, we have emphasized this need to adapt the company to a new energy context in which the main driver is decarbonizing operations and energy sources. This is due to a legitimate request from society, and it requires new solutions to reduce the use of fossil fuels.

Speaker Change: Dear shareholders investors.

Jean Paul Prates: Dear shareholders, investors, I'm very happy to talk to you today, not only because of the excellent economic and financial results we're going to present today, but especially because I am convinced we're building a more robust Petrobras that is more resilient and is better able to generate value on the long term to its shareholders and for society, facing the numerous challenges that we know and don't know created by this world in transition. From the beginning of our administration, we have emphasized this need to adapt the company to a new energy context in which the main driver is decarbonizing operations and energy sources. This is due to a legitimate request from society, and it requires new solutions to reduce the use of fossil fuels.

Speaker Change: I am very happy to talk to you today, not only because of the excellent economic and financial results, we're going to present today, but especially because I am convinced we are building a more robust Petrobras that is more resilient and better able to.

<unk> value add on the long term to its shareholders and for society facing the numerous challenges that we know and don't know created by this world and transition from the beginning of our administration we have emphasized.

Speaker Change: This need to adapt the company to a new energy context in which the main driver is D carbonized being operations and energy sources.

Speaker Change: Yeah.

Speaker Change: This is due to a legitimate.

Speaker Change: Our request from society and it requires.

Speaker Change: New solutions to <unk>.

Speaker Change: Reduce the use of fossil fuels.

Speaker Change: We're aware of the challenge and so we build a strategic plan that was based on realism and being.

Operator: We're aware of the challenge, so we built a strategic plan that was based on realism and being coherent. We aim to be responsible and transparent in our plan. We understand that we will have to go through a gradual transition, so we will continue investing in producing and exploring oil and gas, an industry that generates the biggest returns, and also in integrating our downstream logistics, supplies, and refinement. We're also going to generate value through a fair and responsible transition process. We want to. Again, we want to be fair and responsible, diversifying our operations into profitable low carbon businesses by prioritizing partnerships. As I've emphasized, we want to do what we know how to do. In each industry, we have synergy between what we used to do and what we will start doing as well.

Jean Paul Prates: We're aware of the challenge, so we built a strategic plan that was based on realism and being coherent. We aim to be responsible and transparent in our plan. We understand that we will have to go through a gradual transition, so we will continue investing in producing and exploring oil and gas, an industry that generates the biggest returns, and also in integrating our downstream logistics, supplies, and refinement. We're also going to generate value through a fair and responsible transition process. We want to. Again, we want to be fair and responsible, diversifying our operations into profitable low carbon businesses by prioritizing partnerships. As I've emphasized, we want to do what we know how to do. In each industry, we have synergy between what we used to do and what we will start doing as well.

Speaker Change: Coherent we aimed to be responsible and transparent in our.

Speaker Change: Plat, we understand that we will have to go through a gradual transition.

Speaker Change: And so we will continue investing and producing and exploring oil and gas and industry that generates the biggest returns.

Speaker Change: And also in integrating our downstream logistics supplies and refinement.

Speaker Change: We're also going to generate value through a fair and responsible transition process.

Speaker Change: We wanted to again, we want to be fair and responsible.

Diversifying our operations into our <unk>.

Speaker Change: Profitable low carbon businesses.

Speaker Change: By prioritizing partnerships.

Speaker Change: And as I've emphasized we want to do what we knew how to do it.

Speaker Change: In each industry, we have synergy between what we used to do and what we will start doing as well.

Speaker Change: And all of it will be done by focusing on capital discipline.

Operator: All of it will be done by focusing on capital discipline and on a solid governance, remaining rational across all decision processes. This rationality has guided the commercial strategy that we've implemented. We're aiming to increase the company's competitiveness to achieve new markets and to create more stability for our decision-making process and for our consumers, as well as our payout policy, because we want to consider higher investments, and we have a need of maintaining our financial health. I'd like to highlight the proposed dividends for 2023, BRL 72.4 billion that will be paid to Brazilian society, which owns 37% of Petrobras shares, and they've benefited from over BRL 240 billion in taxes. We've also had market value records since our administration started.

Jean Paul Prates: All of it will be done by focusing on capital discipline and on a solid governance, remaining rational across all decision processes. This rationality has guided the commercial strategy that we've implemented. We're aiming to increase the company's competitiveness to achieve new markets and to create more stability for our decision-making process and for our consumers, as well as our payout policy, because we want to consider higher investments, and we have a need of maintaining our financial health. I'd like to highlight the proposed dividends for 2023, BRL 72.4 billion that will be paid to Brazilian society, which owns 37% of Petrobras shares, and they've benefited from over BRL 240 billion in taxes. We've also had market value records since our administration started.

Speaker Change: And on a solid governance.

Speaker Change: Remaining rational across all decision processes.

Speaker Change: Okay.

Speaker Change: And this rationality has guided the.

Speaker Change: Commercial strategy that we've implemented.

Speaker Change: Aiming to increase the company's competitiveness to achieve new markets.

Speaker Change: And to create more stability for our decision, making process and for our consumers as well as our payout policy.

Speaker Change: Yeah.

Speaker Change: Because we want to consider higher investments and we have.

Speaker Change: Our need of maintaining our.

Speaker Change: Financial health.

Speaker Change: So I would like to highly.

Speaker Change: Highlight the proposed dividends for 2023, $72 4 billion Brazilian reals that will be.

Speaker Change: Page, two Brazilian society, which owns.

37%.

Speaker Change: Petrobras shares.

Speaker Change: And they've benefited from over 240 billion in taxes. We've also had market value records since our administration started.

Speaker Change: In 2023, the total returns from our preferential shares in the New York Stock Exchange and U S dollars reached 112%.

Operator: In 2023, the total returns from our preferential shares in the New York Stock Exchange in US dollars reached 112%, which is far above the highest returns of the majors, 20%. 20 versus 112%. This was all possible because we put people first. To give them value, we created a diversity, equity, and inclusion policy and a racial equality program. People are definitely our highest asset due to their effort too, due to the love for what they do, and we're building a solid and promising future for our company. Actually, people were the driver behind our biggest results this year, especially now that we're celebrating 15 years of exploring the pre-salt layer. We're reaching record oil and gas production levels with fewer emissions. We've also inaugurated 4 new platforms.

Jean Paul Prates: In 2023, the total returns from our preferential shares in the New York Stock Exchange in US dollars reached 112%, which is far above the highest returns of the majors, 20%. 20 versus 112%. This was all possible because we put people first. To give them value, we created a diversity, equity, and inclusion policy and a racial equality program. People are definitely our highest asset due to their effort too, due to the love for what they do, and we're building a solid and promising future for our company. Actually, people were the driver behind our biggest results this year, especially now that we're celebrating 15 years of exploring the pre-salt layer. We're reaching record oil and gas production levels with fewer emissions. We've also inaugurated 4 new platforms.

Speaker Change: Which is.

Speaker Change: Far above the highest returns of the majors, 20%.

Speaker Change: 'twenty versus 112%.

Speaker Change: This was all possible because we put people first.

Okay.

And to give them value, we created a diversity equity and inclusion policy and a ratio at quality program people are definitely our highest assets due to their.

Speaker Change: FERC to do to the love for what they do and we are building a solid and promising future for our company.

Speaker Change: Actually people were the driver behind.

Speaker Change: <unk>.

Speaker Change: Biggest results this year, especially now that we're celebrating 15 years of exploring the pre salt layer, we're reaching record oil and gas production levels with fewer emissions.

Speaker Change: We've also.

Speaker Change: Inaugurated four new platforms, we've reached record refinement levels.

Operator: We've reached record refinement levels, and we had the highest energy efficiency in our history. We expanded our biorefinement capacity, and we were able to process 100% of soybean oil in an industrial refinement unit with a Petrobras patent. We also improved our carbon efficiency, cutting 1.8 million tons of CO₂ from our emissions. That's not all. We won the main global offshore award, OTC Distinguished Achievement Award, in 2024. We are being recognized for our efforts in renewing the Campos Basin, which has become a benchmark for the global industry. We were also record holders in patents. This is only a part of what we've achieved. We had so many victories that it could be an entire book. That's why I always say to our dear shareholders that Petrobras is back.

Jean Paul Prates: We've reached record refinement levels, and we had the highest energy efficiency in our history. We expanded our biorefinement capacity, and we were able to process 100% of soybean oil in an industrial refinement unit with a Petrobras patent. We also improved our carbon efficiency, cutting 1.8 million tons of CO₂ from our emissions. That's not all. We won the main global offshore award, OTC Distinguished Achievement Award, in 2024. We are being recognized for our efforts in renewing the Campos Basin, which has become a benchmark for the global industry. We were also record holders in patents. This is only a part of what we've achieved. We had so many victories that it could be an entire book. That's why I always say to our dear shareholders that Petrobras is back.

Speaker Change: And we have the highest energy efficiency in our history, we expanded our bio refinement capacity and we were able to process 100%.

Speaker Change: Soybean oil in.

Speaker Change: And industrial refinement unit with a Petrobras patents, we also improved our carbon efficiency cut.

Speaker Change: Cutting one 8 million tonnes of Cotwo from our emissions.

Speaker Change: And that's not all.

Speaker Change: We won the main global off four award OTC Distinguished Achievement Award in 2024.

Speaker Change: So we are being recognized for our efforts in renewing the Campos basin.

Speaker Change: Which has become a benchmark for the global industry.

Speaker Change: We were also record holders and patents.

Speaker Change: This is only a part of what we've achieved.

Speaker Change: We had so many <unk>.

Speaker Change: Victories that it could be an entire book.

Speaker Change: So that's why I always say to our dear shareholders that Petrobras is back.

Speaker Change: It's back to prosperity generating long term value and building a better world.

Operator: It's back to prosperity, generating long-term value, and building a better world. We're going to face the challenges we have and make use of the synergies in our business based on our expertise, which is well known by all. We've never neglected, and we never will neglect, generating economic value, which is a requirement for any company that wants to be competitive and perpetuate its value for future generations. As I said about a year ago, it's very pleasing to lead Petrobras, and these results are a source of pride for all Brazilians and for all shareholders and investors as well. Believing in Petrobras, trusting our administration has paid off.

Jean Paul Prates: It's back to prosperity, generating long-term value, and building a better world. We're going to face the challenges we have and make use of the synergies in our business based on our expertise, which is well known by all. We've never neglected, and we never will neglect, generating economic value, which is a requirement for any company that wants to be competitive and perpetuate its value for future generations. As I said about a year ago, it's very pleasing to lead Petrobras, and these results are a source of pride for all Brazilians and for all shareholders and investors as well. Believing in Petrobras, trusting our administration has paid off.

Speaker Change: We're going to face the challenges we have and.

Speaker Change: Make use of the synergies in our business.

Based on our expertise, which is well known by all.

Speaker Change: We've never neglected and we'd never will neglect.

Speaker Change: Generating economic value.

Speaker Change: Which is a requirement for any company that wants to be competitive and perpetuate its value for future generations.

Speaker Change: As I said about a year ago.

It's very.

Speaker Change: Pleasing to lead Petrobras.

Speaker Change: And these results are a source of pride for all Brazilians and for all shareholders and investors as well.

Speaker Change: We're leaving in Petrobras trusting our administration has paid off.

Speaker Change: These are the results that we're giving to the people who are sticking with US who know that we're on the right track and who know that we're going to get it even more right in the future.

Clarice Coppetti: These are the results that we're giving to the people who are sticking with us, who know that we're on the right track, and who know that we're going to get it even more right in the future. Thank you, Jean. We'll begin our presentation on the Q4 earnings results. I'll pass it over to our Corporate Affairs Director, Clarice Coppetti. Hello, good morning. I have a few highlights from our corporate affairs department at Petrobras. I know that you are probably more interested in other topics, so I'll go very briefly through a few highlights. I'd like to start by thanking my fellow directors for letting me go first because of the numerous activities we have in the company currently for International Women's Day. I'm going to start with something that was very important for the company, which is reorganizing our workforce.

Jean Paul Prates: These are the results that we're giving to the people who are sticking with us, who know that we're on the right track, and who know that we're going to get it even more right in the future.

Speaker Change: Thank you Joe will begin our presentation on.

[Company Representative] (Petrobras): Thank you, Jean. We'll begin our presentation on the Q4 earnings results. I'll pass it over to our Corporate Affairs Director, Clarice Coppetti.

Speaker Change: The fourth courting earnings results, So I'll pass it over to our corporate Affairs director Clarice.

Clarice Coppetti: Hello, good morning. I have a few highlights from our corporate affairs department at Petrobras. I know that you are probably more interested in other topics, so I'll go very briefly through a few highlights. I'd like to start by thanking my fellow directors for letting me go first because of the numerous activities we have in the company currently for International Women's Day. I'm going to start with something that was very important for the company, which is reorganizing our workforce.

Clarice: Hello, Good morning.

I have a few highlights from our corporate affairs Department of Petrobras.

Clarice: Okay.

I know that you are probably more interested in other topics. So will go very briefly through a few highlights.

Clarice: Okay.

Clarice: I'd like to start by thanking my fellow directors for letting me go first because of the numerous activities we have in the company currently.

Clarice: For International Women's day.

Clarice: So I'm going to start with something that was very important for the company, which is reorganizing our workforce.

Clarice: In the last year we.

Clarice: Took on.

Operator: In the last year, we took on nearly 2,300 new employees, all completing the training program. No employee can go into the company without these training courses, which can take four months to even more than a year, depending on where they're going to work for. In the current world, in our society, we also invested in this. This could not be different. We created a diversity, equity, and inclusion department in the company, and we also established goals to achieve better equity and diversity in the company's leadership positions. We also launched a diversity, equity, and inclusion policy. All of our terms of cooperation have a diversity clause. We also won some awards due to the achievements that our teams had last year. Some other highlights.

Clarice Coppetti: In the last year, we took on nearly 2,300 new employees, all completing the training program. No employee can go into the company without these training courses, which can take four months to even more than a year, depending on where they're going to work for. In the current world, in our society, we also invested in this. This could not be different. We created a diversity, equity, and inclusion department in the company, and we also established goals to achieve better equity and diversity in the company's leadership positions. We also launched a diversity, equity, and inclusion policy. All of our terms of cooperation have a diversity clause. We also won some awards due to the achievements that our teams had last year. Some other highlights.

Clarice: Nearly 2300, new employees, all completing the training program.

Clarice: New employee can go into the company without these training courses, which can take four months to even more than a year, depending on where they're going to work for them.

Clarice: Yeah.

Clarice: In the current world in our Society, we also invested in.

Clarice: In this could not be different we created a diversity equity and inclusion department in the company and we also established goals.

Clarice: To achieve better equity and diversity in the company's leadership positions.

Clarice: We also launched a diversity equity and inclusion policy.

Clarice: All of our terms of cooperation have.

Clarice: A diversity clause.

Clarice: And we also won.

Clarice: Some awards due to the achievements that our teams had last year.

Some other highlights.

Clarice: I have to mention our supercomputers.

Operator: I have to mention our supercomputers, which are not only designed to have energy efficiency, but they're also reducing processing time for our simulations. Petrobras does a lot of simulations for our oil and gas reservoirs. We're also investing on quantum computing studies. That's the next level that we hope to have some results on this year still. We had training sessions on human rights for all of our security professionals and everyone who works with corporate security.

Clarice Coppetti: I have to mention our supercomputers, which are not only designed to have energy efficiency, but they're also reducing processing time for our simulations. Petrobras does a lot of simulations for our oil and gas reservoirs. We're also investing on quantum computing studies. That's the next level that we hope to have some results on this year still. We had training sessions on human rights for all of our security professionals and everyone who works with corporate security.

Clarice: Which are not only designed to have energy efficiency, but theyre also reducing processing time for our simulations Petrobras.

Clarice: Does a lot of simulations for our oil and gas reservoirs.

Clarice: We're also investing on.

Clarice: Quantum computing studies, that's the next level that we hope to.

Clarice: Have some results on this year still.

Clarice: We had training sessions on human rights for all of our security professionals and everyone who works with corporate security.

Clarice: And this was for our units and our headquarters.

Clarice Coppetti: This was for our units and our headquarters. Another important highlight that we had last year is that Petrobras is starting to work across the country, taking advantage of regional potentials. We started placing our teams in some of our areas that had been in hibernation in the northeast of Brazil, especially in the states of Bahia and Rio Grande do Norte. We also made investments into artificial intelligence. There's a huge discussion in society, and so our teams have been working on that as well. Of course, I have to highlight this, not only because today is International Women's Day, but also because we're making dedicated investments at all levels of the company in actions aimed at women in the workforce. When we talk about the workforce, we're not only talking about Petrobras employees.

Clarice: Another important highlights that we had last year is that Petrobras is starting to work across the country taking.

Taking advantage of regional potentials.

Clarice: And we started placing our teams.

Clarice: In.

Clarice: Some of our areas that had been in hibernation in the northeast of Brazil, especially in the states off by year and Rio Grande do Norte de <unk>.

Clarice: We also made investments into artificial intelligence.

Clarice: There is a huge discussion in society and so our teams have been working on that as well.

Clarice: And of course I have to highlight this not only because today is international women's day, but also because we are.

Clarice: Making dedicated investments at all levels of the company.

Clarice: And actions aimed at women in the workforce when we talk about the workforce, we're not only talking about Petrobras employees.

Clarice: We're also referring to.

Clarice: Outsoar, our outsourced workforce.

[Company Representative] (Petrobras): We're also referring to our outsourced workforce. We have a number of actions for this. We will also be available to go into details about them if any analyst is interested. Another significant highlight is our commitment to environmental, social, and governance aspects. We have a program titled Commitment with Life, which encompasses our environment, operational safety, excellence, and health and well-being initiatives. We had great records last year, and I have a few highlights for you. We had over 700,000 hours of HSE training. We're also working in the company to be positive in water, so we're launching a number of programs for water safety. Not only do we want to treat all the water we use, but we also want to return clean water to society.

Clarice Coppetti: We're also referring to our outsourced workforce. We have a number of actions for this. We will also be available to go into details about them if any analyst is interested. Another significant highlight is our commitment to environmental, social, and governance aspects. We have a program titled Commitment with Life, which encompasses our environment, operational safety, excellence, and health and well-being initiatives. We had great records last year, and I have a few highlights for you. We had over 700,000 hours of HSE training. We're also working in the company to be positive in water, so we're launching a number of programs for water safety. Not only do we want to treat all the water we use, but we also want to return clean water to society.

We have a number of actions.

Clarice: This.

Clarice: Yeah.

Clarice: We will also be available to go into details about them if any analyst is interested.

Clarice: Okay.

Clarice: Another significant highlight is our commitment to environmental social and governance aspects.

Clarice: We have a program titled commitment with life, which encompasses our environment operational safety.

Clarice: Excellence and health and wellbeing initiatives.

Clarice: We had great records last year and I have a few highlights for you we.

Clarice: We had over.

Clarice: Seven.

Clarice: 100000 hours of HFC training.

Clarice: We're also working the company to be.

Clarice: Positive in water. So we're launching a number of programs for water safety and not only do we want to treat all the water we use but we also want to return clean water to society.

Clarice: Yes.

Clarice: We also had a very important process training our leadership in the company in mental health.

[Company Representative] (Petrobras): We also had a very important process training our leadership in the company in mental health. This is also a significant discussion that I'm sure is taking place in all companies that you analyze. Let's continue with the next slide. I also wanna highlight the social responsibility actions, such as entering the technical cooperation agreement with the Ministry of Human Rights and Citizenship, promoting an enhancement in public policies and business governance practices when it comes to human rights. The launch of our racial equity program last year. Also, the 2023 public selection of the Petrobras social environmental program. BRL 432 million are to be invested in over 60 projects over the course of the 3 years of execution in segments where Petrobras operates.

Clarice Coppetti: We also had a very important process training our leadership in the company in mental health. This is also a significant discussion that I'm sure is taking place in all companies that you analyze. Let's continue with the next slide. I also wanna highlight the social responsibility actions, such as entering the technical cooperation agreement with the Ministry of Human Rights and Citizenship, promoting an enhancement in public policies and business governance practices when it comes to human rights. The launch of our racial equity program last year. Also, the 2023 public selection of the Petrobras social environmental program. BRL 432 million are to be invested in over 60 projects over the course of the 3 years of execution in segments where Petrobras operates.

Clarice: This is also a significant discussion.

Clarice: That I'm sure is taking place in all companies that you analyze.

Clarice: Let's continue with the next slide.

Clarice: Also on our highlights the social responsibility actions such as entering the technical cooperation agreement with the Ministry of human rights and citizenship promoting a an enhancement and public policies and business governance practices. When it comes to human rights the launch.

Clarice: Our ratio equity program last year.

Clarice: Also.

Clarice: The 2023 public selection of the Petrobras social environmental program for 132 million ought to be invested in over 60 projects over the course of the three years of execution in segments, where Petrobras operates so this is a program that we've been a.

Clarice: <unk> ourselves to at very dearly, because it has direct impact on the communities.

[Company Representative] (Petrobras): This is a program that we've been dedicating ourselves to very dearly because it has direct impact on the communities that surround our operations. Additionally, the update of our social responsibility policy and also a recognition of our sustainability report as one of the 10 best reports of 2023. This is my last slide. I know that, we are covering several different segments, and I'd like to make myself available and make Investor Relations available to answer any questions you might have. With that, I'd like to give it forward to our dear Financial Director, Sergio Caetano. Over to you, Sergio. Good morning, everybody, and a very special day to women on this International Women's Day.

Clarice Coppetti: This is a program that we've been dedicating ourselves to very dearly because it has direct impact on the communities that surround our operations. Additionally, the update of our social responsibility policy and also a recognition of our sustainability report as one of the 10 best reports of 2023. This is my last slide. I know that, we are covering several different segments, and I'd like to make myself available and make Investor Relations available to answer any questions you might have. With that, I'd like to give it forward to our dear Financial Director, Sérgio Caetano. Over to you, Sergio.

Clarice: That surround our operations. Additionally, the update of our social responsibility policy and also a recognition of our sustainability report as one of the 10 best reports of 2023.

Clarice: This is my last slide.

Speaker Change: I know that.

We are covering several different segments.

Speaker Change: And I'd like to make myself available.

And it make investor relations available to answer any questions you might have and with that I'd like to give the floor to our Dear financial director Sergio Caetano.

Speaker Change: Over to you sorry, Joe.

Sérgio Caetano Leite: Good morning, everybody, and a very special day to women on this International Women's Day. Like President Jean Paul Prates said, our market valuation was way above our ADR, 112%, whereas the others at 20%. In the first slide, you see the valuation of Petrobras in Brazil. The ONs and PNs are highlighted, where you see very good numbers, and also a comparison with the other majors, the TSRs. With the return to investors, you can see Petrobras. We added value to the company in the amount of BRL 150 billion, and compensation to shareholders, BRL 20.4 billion, with BRL 19.7 billion in dividends and $2.7 billion in the repurchase of shares. To society, we paid between taxes and governmental shares, BRL 240 billion.

Sergio Caetano: Good morning, everybody and a very special day two women on this our women's International day.

Speaker Change: Like President, Sean Paul said, our market valuation.

Sergio Caetano Leite: Like President Jean Paul Prates said, our market valuation was way above our ADR, 112%, whereas the others at 20%. In the first slide, you see the valuation of Petrobras in Brazil. The ONs and PNs are highlighted, where you see very good numbers, and also a comparison with the other majors, the TSRs. With the return to investors, you can see Petrobras. We added value to the company in the amount of BRL 150 billion, and compensation to shareholders, BRL 20.4 billion, with BRL 19.7 billion in dividends and $2.7 billion in the repurchase of shares. To society, we paid between taxes and governmental shares, BRL 240 billion.

Sergio Caetano: Was.

Sergio Caetano: Way above our ADR of 120, 112%, whereas the others at 20% in the first.

Sergio Caetano: Slide you see the evaluation of Petrobras in Brazil, the <unk> and <unk> are highlighted.

Sergio Caetano: Where you see very good numbers and also a comparison with the other majors the Tia Sars.

Sergio Caetano: With the return.

Sergio Caetano: To investors you can see Petrobras.

Sergio Caetano: We added value to the company.

Al.

Sergio Caetano: And the amount of.

Sergio Caetano: <unk> hundred and <unk>.

Sergio Caetano: Billing highs in compensation to shareholders 24 billion with $19 7 billion in dividends and $3 $7 billion and the repurchase of shares to society, we paid between taxes and governmental shares 240 billion <unk>.

Sergio Caetano: This $36 6 billion highs of all dividends paid by Petrobras went through the controlling group that's comprised by the federal government.

[Company Representative] (Petrobras): BRL 36.6 billion of all dividends paid by Petrobras went to the controlling group that's comprised by the federal government. We also contributed another BRL 54 billion in the valuation of the public assets of the state. In addition to adding value, that was also an important collaboration to society in terms of reverting these resources in taxes and dividends. These are some more data in terms of our financial earnings. EBITDA of BRL 52.4 billion is the second biggest in history. The operational cash flow, BRL 43.2 billion, the second biggest in history. Free cash flow, $31.1 billion, the third biggest in history. Net revenue, net profit of BRL 24.9 billion, the second biggest in history. These numbers, the second highest and third highest, they were produced in a very adverse external environment.

Sérgio Caetano Leite: BRL 36.6 billion of all dividends paid by Petrobras went to the controlling group that's comprised by the federal government. We also contributed another BRL 54 billion in the valuation of the public assets of the state. In addition to adding value, that was also an important collaboration to society in terms of reverting these resources in taxes and dividends. These are some more data in terms of our financial earnings. EBITDA of BRL 52.4 billion is the second biggest in history. The operational cash flow, BRL 43.2 billion, the second biggest in history. Free cash flow, $31.1 billion, the third biggest in history. Net revenue, net profit of BRL 24.9 billion, the second biggest in history. These numbers, the second highest and third highest, they were produced in a very adverse external environment.

Sergio Caetano: We also contributed another 54 billion highs and the evaluation of the public.

Sergio Caetano: Assets of the state. So in addition to adding value.

Sergio Caetano: That was also an important collaboration to society in terms of reverting these resources and taxes and dividends.

Sergio Caetano: These are some more data in terms of our financial earnings and EBITDA of $52 4 billion is the second biggest in history.

Sergio Caetano: The operational cash flow.

Sergio Caetano: $43 2 billion the second biggest in history of free clash cash flow $31 $1 billion. The third biggest in history and then.

Sergio Caetano: Revenue and net profit of $24 9 billion. The second biggest in history and these numbers the second highest in third highest.

Sergio Caetano: They were produced in a very adverse external environment.

Sergio Caetano: So we achieved second and third place with a special highlight we're going to look at the devaluation to customers to clients, but there was no decrease in investment.

[Company Representative] (Petrobras): We achieved second and third place with a special highlight. We're gonna look at the devaluation to customer, to clients, but there was no decrease in investment. Quite the opposite. Petrobras has been investing, which brings even more value to these results. Our gross debt in line between BRL 55 and 65 billion. It's important to tell you that at the end of five years, the debt has been forecast to achieve a reduction vis-a-vis the end of last year. Another important aspect when it comes to our financial debt of 28.8 billion, with a reduction of $1.2 billion this year. Return on Capital Employed, 11.2%, which is in line with the previous results.

Sérgio Caetano Leite: We achieved second and third place with a special highlight. We're gonna look at the devaluation to customer, to clients, but there was no decrease in investment. Quite the opposite. Petrobras has been investing, which brings even more value to these results. Our gross debt in line between BRL 55 and 65 billion. It's important to tell you that at the end of five years, the debt has been forecast to achieve a reduction vis-a-vis the end of last year. Another important aspect when it comes to our financial debt of 28.8 billion, with a reduction of $1.2 billion this year. Return on Capital Employed, 11.2%, which is in line with the previous results.

Sergio Caetano: Quite the opposite Petrobras spin investing which brings even more value to these results our gross debt.

Sergio Caetano: In a line between 55, and 65 billion and it's important to tell you that.

Sergio Caetano: At the end of five years, the debt has been forecast.

Sergio Caetano: And to.

Sergio Caetano: To achieve a reduction vis vis the end of last year, another important aspect, but when it comes to our financial debt.

Sergio Caetano: $28 8 billion with.

Sergio Caetano: With the reduction of $1 $2 billion this year.

Sergio Caetano: Return on net capital employed at 11 two.

Sergio Caetano: <unk>, which is in line with the previous results.

Sergio Caetano: <unk> also.

Speaker Change: Brad about the lowest difference.

[Company Representative] (Petrobras): We also brought about the lowest difference, vis-a-vis the American bond to the market, and with that, we won an award, the Quasi Sovereign Bond Deal of the Year award, by issuing $1.5 billion in 10-year bonds. It's worth mentioning the transparency movement by the UN Global Compact. It's an effort that requires the investment and the involvement of the entire company, and we've been disclosing these results to investors and shareholders in the external scenario. On average, in comparison with last year, we had a valuation of 18% in the Brent, which is significant and has impacts on our financial results. As you know, the diesel is the oil byproduct that Petrobras sells the most. Between the Brent oil and the diesel sold, we had a margin devaluation of 23%.

Sérgio Caetano Leite: We also brought about the lowest difference, vis-a-vis the American bond to the market, and with that, we won an award, the Quasi Sovereign Bond Deal of the Year award, by issuing $1.5 billion in 10-year bonds. It's worth mentioning the transparency movement by the UN Global Compact. It's an effort that requires the investment and the involvement of the entire company, and we've been disclosing these results to investors and shareholders in the external scenario. On average, in comparison with last year, we had a valuation of 18% in the Brent, which is significant and has impacts on our financial results. As you know, the diesel is the oil byproduct that Petrobras sells the most. Between the Brent oil and the diesel sold, we had a margin devaluation of 23%.

Speaker Change: Vis vis the American bind to the market and with that we won an award the quasi sovereign bonds deal of the year Award.

Speaker Change: By issuing $1 $5 billion in 10 year bonds also it's worth mentioning the transparency transparency movement.

The UN global compact, it's an effort that requires to invest the investments and the involvement of the entire company.

Speaker Change: And we've been disclosing these results to investors and shareholders and the external scenario on average.

Speaker Change: In <unk>.

Speaker Change: Comparison with last year, we had a valuation of 18% in the brand, which is significant and has impacts on our financial results and.

Speaker Change: As you know the diesel is the oil byproduct that Petrobras is sells the most between the Brent oil.

Speaker Change: And the diesel sold.

Speaker Change: We had a margin of devaluation of 23% in 2022, the oil appreciated reflecting the beginning of the Russia, Ukraine conflict and with the stabilization of the conflict. It went back to the margin, but we had an impact of minus 18 on the brand crack spread mine.

[Company Representative] (Petrobras): In 2022, the oil appreciated, reflecting the beginning of the Russia-Ukraine conflict, and with the stabilization of the conflict, it went back to the margin. We had an impact of -18 on the Brent. Crack spread, -23. In the FX, -3%. The real appreciated 3%, in comparison with the dollar. This combination of factors has big impacts on the net results and the EBITDA. We can see that in line with Brent and crack spread. You see a reduction of 21% to our EBITDA. You can see the Brent prices at the bottom of the slide, but we're gonna see that in spite of these adverse conditions, Petrobras did well. Here you can see our free cash flow showing use of sources, showing our cash generation and how it was allocated in 2023.

Sérgio Caetano Leite: In 2022, the oil appreciated, reflecting the beginning of the Russia-Ukraine conflict, and with the stabilization of the conflict, it went back to the margin. We had an impact of -18 on the Brent. Crack spread, -23. In the FX, -3%. The real appreciated 3%, in comparison with the dollar. This combination of factors has big impacts on the net results and the EBITDA. We can see that in line with Brent and crack spread. You see a reduction of 21% to our EBITDA. You can see the Brent prices at the bottom of the slide, but we're gonna see that in spite of these adverse conditions, Petrobras did well. Here you can see our free cash flow showing use of sources, showing our cash generation and how it was allocated in 2023.

Speaker Change: <unk> 23.

Speaker Change: And the FX of minus 3% the real appreciated 3% in comparison with the dollar. So this combination of factors has a big impact on the net results in the EBITDA.

And we can see that in line with brand and crack spread you see a reduction of 21% to our EBITDA.

Speaker Change: You can see the Brent prices at the bottom of the slide.

Speaker Change: But we're going to see that in spite of these adverse conditions Petrobras did well.

Speaker Change: Here you can see our.

Speaker Change: Power showing usage sources, showing our cash generation and how it was allocated in 2023.

Speaker Change: You'll see a cash flow of $12, one and investments, we actually invested $12 $1 billion in 2023.

[Company Representative] (Petrobras): You see a cash flow of 12.1 in investments. We actually invested $12.1 billion in 2023. There's also an impact on the debt of $8.7 billion with the freight of new platforms. There's also a peak in the debt at the end of the year because we anticipated the addition of an FPSO, and that will be felt further ahead with the anticipation of revenue and oil curve. Our dividends, including repurchase, $20.4 billion, financial expenses and financial amortizations, you can see at the bottom of the tower. A comparison of the impacts of these scenarios, and these are the groups that we compare ourselves to.

Sérgio Caetano Leite: You see a cash flow of 12.1 in investments. We actually invested $12.1 billion in 2023. There's also an impact on the debt of $8.7 billion with the freight of new platforms. There's also a peak in the debt at the end of the year because we anticipated the addition of an FPSO, and that will be felt further ahead with the anticipation of revenue and oil curve. Our dividends, including repurchase, $20.4 billion, financial expenses and financial amortizations, you can see at the bottom of the tower. A comparison of the impacts of these scenarios, and these are the groups that we compare ourselves to.

And.

Speaker Change: There's also an impact on the debt of $8 7 billion with the <unk>.

Speaker Change: Brain of new platforms. There is also a peak in the debt at the end of the year, because we anticipated the.

Speaker Change: The addition of DSO and that will be felt further ahead with the anticipation of revenue and oil curve, our dividends, including our repurchased 24 billion.

Speaker Change: Financial expenses and financial Amortizations, you can see at the bottom of the tower a comparison of the impacts of these scenarios.

Speaker Change: And.

Speaker Change: This these are the groups that we compare ourselves to.

The free cash flow of Petrobras at $31 1 billion.

[Company Representative] (Petrobras): The free cash flow of Petrobras at $31.1 billion, and we were second to Shell only, with the second highest free cash flow in the segment of peer companies. If you look at the oil production, as Director Joelson Mendes will give you the details about, we ended first in a tie with Chevron, and we are by far the leaders in the highest generation, the organic generation of reservoirs. This is the result of the E&P teamwork, something that did not start last year and involves lots of people. Our EBITDA, one of the best in the segments, we finished third, behind Shell and Exxon, which are much bigger companies than Petrobras, but we are there, fighting for the third place with them.

Sérgio Caetano Leite: The free cash flow of Petrobras at $31.1 billion, and we were second to Shell only, with the second highest free cash flow in the segment of peer companies. If you look at the oil production, as Director Joelson Mendes will give you the details about, we ended first in a tie with Chevron, and we are by far the leaders in the highest generation, the organic generation of reservoirs. This is the result of the E&P teamwork, something that did not start last year and involves lots of people. Our EBITDA, one of the best in the segments, we finished third, behind Shell and Exxon, which are much bigger companies than Petrobras, but we are there, fighting for the third place with them.

Speaker Change: And we were second to shell only with the second highest free cash flow in the segment and this segment of peer companies. If you look at the oil production as director to Charleston.

Speaker Change: <unk>.

Speaker Change: Ill give you the details about.

Speaker Change: Weak.

Speaker Change: And at first.

Speaker Change: In a tie with chevron.

Speaker Change: And we are by far the leaders and the highest generation the organic generation of reservoirs. This is the result of the E&P teamwork something that did not start last year and involves lots of people.

Speaker Change: Our EBITDA one of the best in the segments, we finished third.

Speaker Change:

Speaker Change: Behind shell and Exxon, which are much bigger companies than Petrobras, but we are there.

Speaker Change: Planning for the third place with them, it's important to talk about downstream with an expressive increase in food and this comes from a decision of Petrobras.

[Company Representative] (Petrobras): It's important to talk about downstream with an expressive increase in throughput. This comes from a decision of Petrobras to win market share. We're an integrated oil company. The bigger the throughput of our refineries, the bigger the operational results we can present to our investors. Now talking about our debt. You see the indebtedness trajectory since 2019 in a decreasing curve. In 2023, you see a slight increase that happened due to the anticipation of platforms with additional inflation costs in the supply chain, which is felt across the industry, and the BRL 28 billion line with a decreasing trajectory. There was a reduction between 2023 and 2022, and that's a difference that refers to freights.

Sérgio Caetano Leite: It's important to talk about downstream with an expressive increase in throughput. This comes from a decision of Petrobras to win market share. We're an integrated oil company. The bigger the throughput of our refineries, the bigger the operational results we can present to our investors. Now talking about our debt. You see the indebtedness trajectory since 2019 in a decreasing curve. In 2023, you see a slight increase that happened due to the anticipation of platforms with additional inflation costs in the supply chain, which is felt across the industry, and the BRL 28 billion line with a decreasing trajectory. There was a reduction between 2023 and 2022, and that's a difference that refers to freights.

Speaker Change: Two.

Speaker Change: A win market share we are an integrated oil company the biggest the bigger the foot of our refineries and the bigger the.

Speaker Change: <unk> operational results. So we can present to our investors.

Speaker Change: And now talking about our debt.

Speaker Change: You see the indebtedness trajectory since 2019 and decreasing curve in 2023, you see.

Speaker Change: The slight increase that happened due to the anticipation of platforms.

Speaker Change: With additional.

Speaker Change: Inflation cost.

Costs and the.

Speaker Change: Supply chain, which is felt across the industry and the 28 billion line with the decreasing trajectory and there was a reduction between 223 and 2022 and that's a difference that refers to freights are if you look at the amortization Petrobras.

[Company Representative] (Petrobras): If you look at the amortization, Petrobras closed 2023 with a cash of close to something in the range of $18 billion, and cash available in the short term of $8 billion, which is solid and in line with the market turbulence, which reassures us that Petrobras will be able to face the situation. In the line, you can see the amortization profile that's forecast for our debt. As we said before, our net profit suffered an impact of the adverse scenario, but it was still able to deliver to the market the second highest net profit in history without divestments, considering only our work, even in the face of adverse conditions, with the crack spread going down and the dollar going up. Our contribution to society, we also covered that.

Speaker Change: We closed 23 with a cash of close something in the range of $18 billion.

Sérgio Caetano Leite: If you look at the amortization, Petrobras closed 2023 with a cash of close to something in the range of $18 billion, and cash available in the short term of $8 billion, which is solid and in line with the market turbulence, which reassures us that Petrobras will be able to face the situation. In the line, you can see the amortization profile that's forecast for our debt. As we said before, our net profit suffered an impact of the adverse scenario, but it was still able to deliver to the market the second highest net profit in history without divestments, considering only our work, even in the face of adverse conditions, with the crack spread going down and the dollar going up. Our contribution to society, we also covered that.

Speaker Change: And.

Speaker Change: And cash available and.

In the short term of 8 billion, which is solid and in line with the market turbulence of which reassurances that Petrobras will be able to face the situation and the line you can see the amortization profile that's forecast for our debt.

Speaker Change: As we said before.

Speaker Change: Our.

Speaker Change: Net profit suffered an impact of the adverse scenario, but it was still able to deliver it to the market. The second highest net profit in history without divestments, considering only our work even in the face of adverse conditions with the crack went going down and the dollar going up.

Speaker Change: <unk>.

Speaker Change: Our contribution to society, we also cover that.

Speaker Change: Can see the Dana close to 277 billion. He is of which 36 point a 0.6, almost 37 aren't related to the payments of dividends to the controlling shareholder or the Brazilian state at 61, four in government tanks and a 178.

[Company Representative] (Petrobras): Thank you, Jean. We'll begin our presentation on the Q4 earnings results. I'll pass it over to our Corporate Affairs Director, Clarice Coppetti.

[Company Representative] (Petrobras): You can see the data close to BRL 277 billion, of which 36.6, almost thirty-seven, are related to the payments of dividends to the controlling shareholder or the Brazilian state. 61.4 in government takes and 178.8 in taxes paid. Remuneration to shareholders. Overall, we remunerated the shareholders in BRL 78.4 billion in 2023, out of 72.4, there deducted from the repurchase program. This was the first year where Petrobras implemented on a constant basis a repurchase program. In this program, we repurchased 3.6 billion shares from the market. This amount is deducted from the total, and we distributed in dividends the 72.4 billion in 2023.

Sérgio Caetano Leite: You can see the data close to BRL 277 billion, of which 36.6, almost thirty-seven, are related to the payments of dividends to the controlling shareholder or the Brazilian state. 61.4 in government takes and 178.8 in taxes paid. Remuneration to shareholders. Overall, we remunerated the shareholders in BRL 78.4 billion in 2023, out of 72.4, there deducted from the repurchase program. This was the first year where Petrobras implemented on a constant basis a repurchase program. In this program, we repurchased 3.6 billion shares from the market. This amount is deducted from the total, and we distributed in dividends the 72.4 billion in 2023.

Speaker Change: Eight and taxes paid.

Speaker Change: Generation to shareholders.

Speaker Change: Overall, we remunerate ruminated the shareholders and 70 $478 4 billion here is in 2023 out of 72.4.

They are deducted from the repurchase program. This was the first year, where Petrobras implemented on a constant basis, a re purchase program and.

Speaker Change: And in this program, we repurchased $3 6 billion of shares.

Speaker Change: From the market. This amount is deducted from the total Andy we distributed in dividends.

Speaker Change: The $72 4 billion in 2023, it's important to say that the net.

[Company Representative] (Petrobras): It's important to say that the net adjusted profit after deducting the payments of dividends and anticipation of dividends and capital interest in 2023, what we were left with at the end of the year, we allocated to the administrative council, to form a capital remuneration reserve. As we know, that was extensively discussed in 2023, and the purpose of this reserve is to pay dividends. There were some questions as to whether the resources could be used in investments. No, they will not be able to be used to buy investments. This is for dividend distribution alone. We allocated its profit surplus, the Petrobras profit surplus, to that line, and that's where it's gonna stay allocated.

Sérgio Caetano Leite: It's important to say that the net adjusted profit after deducting the payments of dividends and anticipation of dividends and capital interest in 2023, what we were left with at the end of the year, we allocated to the administrative council, to form a capital remuneration reserve. As we know, that was extensively discussed in 2023, and the purpose of this reserve is to pay dividends. There were some questions as to whether the resources could be used in investments. No, they will not be able to be used to buy investments. This is for dividend distribution alone. We allocated its profit surplus, the Petrobras profit surplus, to that line, and that's where it's gonna stay allocated.

Speaker Change: Adjusted profit after deducting the payments of dividends and in anticipation of dividends and capsule interest in 2023, what we were left with at the end of the year, we allocated to the administrative council to form a capital remuneration reserve as we know that was extensively does.

Speaker Change: <unk> in 2023, and the purpose of this reserve is to pay dividends.

Speaker Change: There were some questions as to whether the resources could be used in investments of no. They will not be able to be used to buy investments. So this is for dividend distribution.

Speaker Change: Loan so we allocate it it's <unk>.

Speaker Change: Surplus the Petrobras profit surplus to that line and that's where it's going to stay allocated.

Speaker Change: To put it simply this.

Speaker Change: These were the results as I said and as President Trump. Paul said these are very significant results for the first year of an administration. This is the result of the work of the entire company. This makes us very proud.

Mário Spinelli: To put it simply, these were the results, as I said and as President Jean Paul Prates said, these are very significant results for the first year of an administration. This is the result of the work of the entire company. This makes us very proud. With that, I'd like to give the floor to Director Mário Spinelli, Director of Governance and Compliance at Petrobras. Good morning, everybody. Good morning to those watching us. Special greetings to women. Some highlights in governance and compliance. 2023 was a very important year, and in 2024, our board will celebrate its tenth anniversary. In 2023, we had the first major restructuring in the department, creating new managements and broadening our possibilities in terms of disciplinary responsibilization.

Sérgio Caetano Leite: To put it simply, these were the results, as I said and as President Jean Paul Prates said, these are very significant results for the first year of an administration. This is the result of the work of the entire company. This makes us very proud. With that, I'd like to give the floor to Director Mário Spinelli, Director of Governance and Compliance at Petrobras.

Speaker Change: And with that I'd like to give the floor to directors pinelli director of governance and compliance at Petrobras.

Speaker Change: Everybody.

Speaker Change: Wanting to those watching us a special especially special greetings to women some highlights and governance and compliance 2023 was very important year and in 2024 hour Board will celebrate its 10th anniversary in 2023, we had the first major restructuring and the dip.

Mário Spinelli: Good morning, everybody. Good morning to those watching us. Special greetings to women. Some highlights in governance and compliance. 2023 was a very important year, and in 2024, our board will celebrate its tenth anniversary. In 2023, we had the first major restructuring in the department, creating new managements and broadening our possibilities in terms of disciplinary responsibilization.

Speaker Change: <unk>, creating new managements and broadening our possibilities in terms of a disciplinary responsible as Asian I'd like to highlight that Petrobras is the entity that applies the anti corruption a lot most heavily in Brazil around 20% of the sanctions are applied.

[Company Representative] (Petrobras): I'd like to highlight that Petrobras is the entity that applies the anti-corruption law most heavily in Brazil. Around 20% of the sanctions are applied to companies under Petrobras' responsibility. We also created an area to work with data science.

Mário Spinelli: I'd like to highlight that Petrobras is the entity that applies the anti-corruption law most heavily in Brazil. Around 20% of the sanctions are applied to companies under Petrobras' responsibility. We also created an area to work with data science.

Speaker Change: Two companies under a Petrobras has responsibility at we also created an area to work with data science.

Speaker Change: Making petrobras increasingly more cable to detect irregularities and also as specifics section.

Mário Spinelli: Making Petrobras increasingly more capable to detect irregularities, and also a specific section to deal with violence at the workplace. Last year, we once again did our survey, a compliance survey, with 80% overall. This is a weighted average between all of the replies, and this is a clear demonstration of how the compliance culture is disseminated across the company. We were awarded several prizes, of which I'd like to highlight two. The Public Ethics Commission awarded us a prize. We were the only awarded company in the five categories in the UN Global Compact, 100% transparency, which is also a clear demonstration of how our integrity and governance actions are robust. Our professionals also won awards in several different categories.

Speaker Change: To deal with.

Speaker Change: Violence at the workplace last year are we once again.

Speaker Change: Did it did our survey and compliance survey.

Speaker Change: With Amy.

Speaker Change: Percent overall this is a weighted average.

Speaker Change: Between all of the.

Speaker Change: Replies and this is a clear demonstration of how the complaints culture is disseminated across the company. We were awarded several prices of which I'd like to highlight two.

Speaker Change: The public.

Speaker Change: Public ethics.

Speaker Change: Committee awarded as.

Speaker Change: And we were the only awarded company in the five categories in the U N Global pacts are 100% transparency, which is also a clear demonstration of how our integrity and governance actions are robust and our professionals also won awards in several different categories.

Speaker Change: Now to tell you a bit about something that I think is relevant for everyone in our decision making process we have.

Operator: Now to tell you a bit about something that I think is relevant for everyone in our decision-making process. We have a governance strategy at Petrobras that gives privilege to technical aspects. Every decision is either shared or done through a collegiate process. In some cases, we need to have statutory committees or technical committees present so that the decision-making process is entirely based on technical aspects. We also have a governance structure that deals with compliance, and it's very robust. We have a director's office for compliance, which is one of the eight executive director's office in Petrobras, along with our CEO. Besides that, we also have internal audits, which are also independent. We have a reporting channel that works in three languages, 24/7, across all the countries where Petrobras is.

Mário Spinelli: Now to tell you a bit about something that I think is relevant for everyone in our decision-making process. We have a governance strategy at Petrobras that gives privilege to technical aspects. Every decision is either shared or done through a collegiate process. In some cases, we need to have statutory committees or technical committees present so that the decision-making process is entirely based on technical aspects. We also have a governance structure that deals with compliance, and it's very robust. We have a director's office for compliance, which is one of the eight executive director's office in Petrobras, along with our CEO. Besides that, we also have internal audits, which are also independent. We have a reporting channel that works in three languages, 24/7, across all the countries where Petrobras is.

Speaker Change: E governance.

Speaker Change: Strategy at Petrobras Stat.

Speaker Change: Gibbs privileged to technical aspects. So every decision is either shared or done through a collegiate.

Speaker Change: Process.

Speaker Change: Okay.

Speaker Change: In some cases, we need to have statutory committees are technical committees present, so that the decision making processes entirely based on technical aspects. We also have a governance structure that deals with compliance and it's very robust.

Speaker Change: We have a director's office or compliance.

Speaker Change: Which is one of the eight.

Speaker Change: Executive Directors office in Petrobras.

Speaker Change: Along with our CEO.

Speaker Change: Besides that we also have internal audits, which are also independent.

Speaker Change: We have a reporting channel.

Speaker Change: That is our works in three languages 24 server and across all the countries where Petrobras is.

Speaker Change: We're supervised by a number of regulatory bodies.

Operator: We're supervised by a number of regulatory bodies, and it all aims to ensure that we have technical decisions. We want to prevent undue political interference and ensure that our projects are executed with a financial return for the company. It's also important to highlight a few issues in this process that ensures that we have technical decisions. The compliance officer has the power of veto in the executive board, and it can be used if any decisions do not comply with the applicable legislation or our internal regulations. As I said, the Chief Governance and Compliance Officer is independent. They're selected from the market and have a two-year term, which can only be interrupted if there's a majority of board members elected by minority shareholders. That ensures that they are independent enough to do their activities.

Mário Spinelli: We're supervised by a number of regulatory bodies, and it all aims to ensure that we have technical decisions. We want to prevent undue political interference and ensure that our projects are executed with a financial return for the company. It's also important to highlight a few issues in this process that ensures that we have technical decisions. The compliance officer has the power of veto in the executive board, and it can be used if any decisions do not comply with the applicable legislation or our internal regulations. As I said, the Chief Governance and Compliance Officer is independent. They're selected from the market and have a two-year term, which can only be interrupted if there's a majority of board members elected by minority shareholders. That ensures that they are independent enough to do their activities.

It all ins to ensure that we have technical decisions, we want to prevent undue political interference and ensure that our projects are.

Speaker Change: Executed with a financial return for the company.

Speaker Change: It's also important to highlight a few issues in this process that.

Speaker Change: Ensures that we have technical decisions.

Speaker Change: The compliance officer has the power of veto and the executive board and it can be used if any decisions do not comply with the applicable legislation or our internal regulations as I said, the chief governance and compliance officer is independent.

Speaker Change: There are selected from the market and have a two year term, which can only be interrupted.

Speaker Change: If there's a majority of board members elected by minority shareholders that ensures that they are independent enough to do their activities.

Speaker Change: I have 25 years of experience and.

Operator: I have 25 years of experience in anti-corruption and governance. As I said, our main highlight was the biggest restructuring for the governance and compliance office in the company since 2014. We created new management positions responsible for the entire disciplinary process in the company. Now we have a very robust structure as we've never had before. It's important to highlight that because it demonstrates how this area was strengthened in the previous year. Well, that's what I had to say, and I'll now pass it over to our Executive Officer for Energy Transition and Sustainability, Maurício Tolmasquim.

Mário Spinelli: I have 25 years of experience in anti-corruption and governance. As I said, our main highlight was the biggest restructuring for the governance and compliance office in the company since 2014. We created new management positions responsible for the entire disciplinary process in the company. Now we have a very robust structure as we've never had before. It's important to highlight that because it demonstrates how this area was strengthened in the previous year. Well, that's what I had to say, and I'll now pass it over to our Executive Officer for Energy Transition and Sustainability, Maurício Tolmasquim. I'll be here for any questions you may have at the end of the presentations.

Speaker Change: Anti corruption and governance.

Speaker Change: And I played many roles in the federal government and also state and city governments and also in the private sector.

Speaker Change: You talked about strengthening governance last year as I said.

Our main highlight was the biggest restructuring for the governance and compliance officer.

Speaker Change: And the company since 2014, so we created new management positions responsible for the entire the disciplinary process in the company. So now we have a very robust structure as we've never had before.

Speaker Change: To highlight that because it demonstrates how this area was strengthened in the previous year.

Speaker Change: Well, that's what I had to say and I'll now pass it over to our executive officer for energy transition and sustainability Mauricio Thomas scheme.

Speaker Change: And I'll be here for any questions you may have at the end of the presentations.

Mauricio Tolmasquim: I'll be here for any questions you may have at the end of the presentations. Good morning. I'd like to greet everyone, especially, women who may be watching us. I'll start talking a bit about the gas industry. This was a very good year for it, but we launched new products with more flexibility and terms, indexing, and we made a number of changes that were accepted very well by the market. That led to a record number of new contracts signed in 2023. We had 34 new contracts with 15 distributors. A total of BRL 167 billion in estimated revenues. We also created 22 million cubic meters per day starting in 2024. This is about 55% of the total consumption in the thermal market in Brazil.

Mário Spinelli: Good morning. I'd like to greet everyone, especially, women who may be watching us. I'll start talking a bit about the gas industry. This was a very good year for it, but we launched new products with more flexibility and terms, indexing, and we made a number of changes that were accepted very well by the market. That led to a record number of new contracts signed in 2023. We had 34 new contracts with 15 distributors. A total of BRL 167 billion in estimated revenues. We also created 22 million cubic meters per day starting in 2024. This is about 55% of the total consumption in the thermal market in Brazil.

Mauricio Thomas: Good morning, I'd like to greet everyone, especially.

Mauricio Thomas: Women, who may be watching those.

Mauricio Thomas: So I'll start talking a bit about the gas industry. This was a very good year for it but.

Mauricio Thomas: We launched new products with more flexibility in terms indexing and we made a number of changes that were accepted very well by the market.

Mauricio Thomas: That led to a record number of new contracts signed in 2023, we had 34 new contracts with 15 distributors, a total of 167 billion Brazilian Reals and estimated revenues.

Mauricio Thomas: We also created 22 million cubic meters per day.

Mauricio Thomas: Starting in 2024.

Mauricio Thomas: This is about 55% of the.

Total consumption in the thermal market in Brazil.

Mauricio Thomas: We also made significant strides in resolving a number of disputes.

Operator: We also made significant strides in resolving a number of disputes, especially with a few of our distributors. We were able to reach deals and allowed us to sign new contracts. Next slide, please. I'd also like to briefly discuss the importance of thermal generation for our energy transition. Some people might think, you know, how are thermal plants related to renewable energy? We know that renewable generation is intermittent. You can only generate wind power when you have wind or solar power when you have sunlight. The graph on the left shows how it changes across two normal days. In yellow, we see sunlight, but as we reach the end of the day, it reduces because you have less sunlight, and you need to have sources to replace it during the nighttime.

Mauricio Tolmasquim: We also made significant strides in resolving a number of disputes, especially with a few of our distributors. We were able to reach deals and allowed us to sign new contracts. Next slide, please. I'd also like to briefly discuss the importance of thermal generation for our energy transition. Some people might think, you know, how are thermal plants related to renewable energy? We know that renewable generation is intermittent. You can only generate wind power when you have wind or solar power when you have sunlight. The graph on the left shows how it changes across two normal days. In yellow, we see sunlight, but as we reach the end of the day, it reduces because you have less sunlight, and you need to have sources to replace it during the nighttime.

Mauricio Thomas: Especially with a few of our distributors. So we were able to reach deals.

Mauricio Thomas: And allowed us to sign new contracts.

Speaker Change: Next slide please.

Speaker Change: Okay.

I'd also like to briefly discuss the importance of.

Speaker Change: Thermal generation.

Speaker Change: Or our energy transition.

Speaker Change: Some people might think you know how our thermal.

Speaker Change: Lance related to renewable energy, we know that renewable generation is intermittent.

You can only generate wind power when you have wind or solar power. When you have a sunlight the graph on the left shows how it changes across two normal days in yellow, we see sunlight.

Speaker Change: As we reach the end of the day it reduces because you have less sunlight.

Speaker Change: And you need to have sources to replace it during the night time.

Speaker Change: And here, we have two main sources.

Operator: Here we have two main sources: hydroelectric power when it is available, but usually it is not enough. You also need to complement it with some thermoelectric power. To illustrate this challenge, on the right-hand side graph, we see the variation in thermal generation. You can see that significant increase around 12, and that represents thermal generation. In less than 4 hours, we need to add 2GW to our power generation. That's about the same as what is generated in the Angra 2 and Angra 1 plants. Next slide, please. We also had a very good year in decarbonizing our processes. At E&P, we had a 10% reduction in our carbon intensity, which is very important for Petrobras to continue to use its oil in the future.

Speaker Change: Wind.

Speaker Change: Or excuse me.

Speaker Change: Our hydroelectric power.

Speaker Change: And when it is available.

Speaker Change: But usually it is not enough you also need to complement it with.

Speaker Change: Some thermal electric power.

Speaker Change: To illustrate this challenge on.

Speaker Change: On the right hand side graph, we see.

Speaker Change: The variation.

Speaker Change: In thermal generation, you can see that significant increase.

Around.

Speaker Change: 12.

And that represents thermal generation.

So in less than four hours, we need to add two gigawatts to our power generation.

Speaker Change: That's about the same as what is generated in the <unk> and under one plants.

Speaker Change: Next slide please.

Speaker Change: We also had a very good year in Decarbonising our processes.

Speaker Change: At E&P, we had a 10% reduction in our carbon intensity.

Speaker Change: Which is very important for Petrobras.

Speaker Change: To continue to.

Speaker Change: Use its oil in the future.

Speaker Change: In the future, we will only be able to.

Speaker Change: Ill take oil to the market if you can reduce its emissions.

Operator: In the future, we will only be able to take oil to the market if you can reduce its emissions. In 2022 to 2023, the refining industry reduced carbon intensity as well. The same happened to the thermoelectric industry. There was also a significant reduction in methane emissions, 51%. Why is it so significant? Because methane's impact on global warming is much higher than CO₂. In 100 years, a methane molecule has a 25-fold higher impact than CO₂. Finally, this is the newest section, renewables. In the first year, and actually our term isn't even one year long, it will be in May. During this last year, we created a governance program to approve projects for renewables. This is done in a very safe and responsible manner.

Mauricio Tolmasquim: In the future, we will only be able to take oil to the market if you can reduce its emissions. In 2022 to 2023, the refining industry reduced carbon intensity as well. The same happened to the thermoelectric industry. There was also a significant reduction in methane emissions, 51%. Why is it so significant? Because methane's impact on global warming is much higher than CO₂. In 100 years, a methane molecule has a 25-fold higher impact than CO₂. Finally, this is the newest section, renewables. In the first year, and actually our term isn't even one year long, it will be in May. During this last year, we created a governance program to approve projects for renewables. This is done in a very safe and responsible manner.

Speaker Change: Emissions.

Speaker Change: In 2022 to 2023 the refining.

Industry reduced carbon intensity as well.

Speaker Change: And the same happened to the thermoelectric.

Speaker Change: Ah.

Speaker Change: Industry. There was also a significant reduction in methane emissions 51%.

Speaker Change: Why is it so significant.

Because.

Speaker Change: Methane impact on global warming is much higher than C O two.

Speaker Change: And 100 years, a methane molecule has a.

Speaker Change: 25 fold.

Speaker Change: Higher impact than our Cotwo.

Finally, this is the newest such in renewables.

Speaker Change: In the first year and actually our term isn't even one year long it will be in may but during this.

Last year, we created a governance program to approve projects for renewables.

Speaker Change: And this is done in a very safe and responsible manner.

Speaker Change: Okay.

Speaker Change: We signed.

Speaker Change: Ammo use with about 45 companies.

Operator: We signed MOUs with about 45 companies, so we have 45 business opportunities that are being analyzed. This doesn't mean that we are going to take all of them. Actually, it will be a much smaller percentage than this total number. It's important to have this number of possibilities because this allows us to select things better. In carbon capture, we're looking at a new business which is providing carbon capture services for other industries like refining. We're going to run a pilot in Rio de Janeiro. We also want to highlight the low carbon product area. We have, for example, a partnership with the logistics area launching Podium Gasoline, a carbon neutral gasoline that has a certain market niche.

Mauricio Tolmasquim: We signed MOUs with about 45 companies, so we have 45 business opportunities that are being analyzed. This doesn't mean that we are going to take all of them. Actually, it will be a much smaller percentage than this total number. It's important to have this number of possibilities because this allows us to select things better. In carbon capture, we're looking at a new business which is providing carbon capture services for other industries like refining. We're going to run a pilot in Rio de Janeiro. We also want to highlight the low carbon product area. We have, for example, a partnership with the logistics area launching Podium Gasoline, a carbon neutral gasoline that has a certain market niche.

Speaker Change: So we have 45 business opportunities that are being analyzed.

Speaker Change: And this doesn't mean that we're going to take all of them.

Speaker Change: Actually it will be much smaller percentage than this total number but.

Speaker Change: It's important to have.

Speaker Change: This number of possibilities because this allows us to select.

Speaker Change: Things better.

Speaker Change: And carbon capture.

Speaker Change: We're looking at a new business, which is providing carbon capture and serve this excuse me carbon capture services or other industries life refinement.

Speaker Change: So we're going to run a pilot in Rio de Janeiro, and we also want to highlight the low carbon product area.

Speaker Change: We have for example, a partnership with the <unk>.

Speaker Change: Our logistics area launching <unk>.

Speaker Change: Podium gasoline.

Speaker Change: Carbon neutral gasoline that has a certain market niche.

Speaker Change: The refinement office is also working on diesel or which is also very important to ensure that our refineries even after the age of oil still.

Operator: The refining office is also working on Diesel R, which is also very important to ensure that our refineries, even after the age of oil, still have a use, still can add value. We also can produce, for example, low emission asphalt. I'd just like to conclude by showing this graph, which was created

Mauricio Tolmasquim: The refining office is also working on Diesel R, which is also very important to ensure that our refineries, even after the age of oil, still have a use, still can add value. We also can produce, for example, low emission asphalt. I'd just like to conclude by showing this graph, which was created

Speaker Change: Still have a use still can add value.

Speaker Change: We also can produce for example, low emission asphalt.

Speaker Change: And I'd just like to conclude by showing this graph which was created.

Speaker Change: By D C G.

Speaker Change: Very interesting slides the first graph shows that really it.

[Company Representative] (Petrobras): By BCG. It's a very interesting slide. The first graph shows that if you look at that green curve, it shows low carbon companies, and in blue, a selection of oil and gas companies. We can see that on the short term, the returns of oil and gas companies cannot be denied. In general, they're much higher on average than the returns paid by the selection of companies that have low carbon emissions. What properties do we see here? Oil and gas companies have a variable ROCE. They can go to quite low values, while the average ROCE for low carbon companies is stable. We can see that investments into these activities and businesses, the low carbon ones, I mean, mitigate risks and generate value while you're still protecting and gaining market share. A good example is Diesel R.

Mauricio Tolmasquim: By BCG. It's a very interesting slide. The first graph shows that if you look at that green curve, it shows low carbon companies, and in blue, a selection of oil and gas companies. We can see that on the short term, the returns of oil and gas companies cannot be denied. In general, they're much higher on average than the returns paid by the selection of companies that have low carbon emissions. What properties do we see here? Oil and gas companies have a variable ROCE. They can go to quite low values, while the average ROCE for low carbon companies is stable. We can see that investments into these activities and businesses, the low carbon ones, I mean, mitigate risks and generate value while you're still protecting and gaining market share. A good example is Diesel R.

Speaker Change: Yeah.

Speaker Change: If you look at that.

Speaker Change: Green curve it shows low carbon.

Speaker Change: Companies and in Blue our selection of oil and gas companies, we can see that on the short term the returns.

Speaker Change: Oil and gas companies cannot be denied.

Speaker Change: In general they are much higher.

On average than the returns paid by these the selection of companies that have low carbon.

Speaker Change: Emissions.

Speaker Change: But what properties do we see here oil and gas companies.

Half of variable R O C E.

Speaker Change: They can go to quite low values.

Speaker Change: While the average <unk> for low carbon companies stable.

Speaker Change: So we can see that investments into these activities and businesses the low carbon ones I mean.

Speaker Change: Mitigate.

Speaker Change: Ah risks and generate value.

Speaker Change: Yeah.

Speaker Change: While you're still protecting and gaining market share.

Speaker Change: A good example is diesel or if you don't have diesel are.

[Company Representative] (Petrobras): If you don't have Diesel R, your biodiesel mandates would little by little lose market. Diesel R is a way of fighting for this space with our products as well. Podium Gasoline is an example of how you can gain market share in a special niche. This can be done at the same time. The strategy allows you to mitigate risks of having, for example, rising CO2 costs. Over the long term, and this is shown by the last graph, investors who have invested $1 in a pool of companies in the oil and gas industry versus an investor who invested $1 in a low carbon company in 2022, they would have about the same returns in total, for that investment. This shows the importance of this strategy in the long term. If you have any questions, please let me know.

Mauricio Tolmasquim: If you don't have Diesel R, your biodiesel mandates would little by little lose market. Diesel R is a way of fighting for this space with our products as well. Podium Gasoline is an example of how you can gain market share in a special niche. This can be done at the same time. The strategy allows you to mitigate risks of having, for example, rising CO₂ costs. Over the long term, and this is shown by the last graph, investors who have invested $1 in a pool of companies in the oil and gas industry versus an investor who invested $1 in a low carbon company in 2022, they would have about the same returns in total, for that investment. This shows the importance of this strategy in the long term. If you have any questions, please let me know. With that, I'd like to give the floor to our colleague, Joelson Mendes, Exploration and Production Director.

Speaker Change: Your biodiesel mandates would little by little lose market. So diesel are.

Speaker Change: As a way of.

Speaker Change: Fighting for this space with our products as well.

Speaker Change: Podium gasoline as an example of how you can gain market share and a special niche.

Speaker Change: And this can be done at the same time the strategy allows you to mitigate risks.

Speaker Change: Of having for example, a rising cotwo costs.

Speaker Change: So over the long term and this is shown by the last graph.

Speaker Change: Investors, who have invested one dollar.

Speaker Change: In a poll of companies in the oil gas and gas industry.

Speaker Change: First as an investor who invested one dollar and a low carbon company.

Speaker Change: <unk>.

Speaker Change: 2022, they would have about.

Speaker Change: The same rich.

Speaker Change: The returns.

Speaker Change: In total.

Speaker Change: For that investment.

Speaker Change: This shows the importance of this strategy in the long term if you have any questions. Please let me know.

Speaker Change: And with that I'd like to give the floor to our colleague Charlson men Gees director of exploration and production.

Joelson Mendes: With that, I'd like to give the floor to our colleague, Joelson Mendes, Exploration and Production Director. Good morning to all of you who are watching us. I wanna start out by showing the numbers of our operated production last year. There was a significant increase vis-a-vis the previous year. That was due to the fact that many projects started production phase. Our operated production grows less because many of these projects that started to operate, we are operating. So part of the production goes to the partners. We also had very significant numbers, and the pre-salt production in our mix has been growing from 2022 to 2023. It grew from 73% to 78%. We had important records last year.

Speaker Change: Good morning to all of you who are watching us.

Joelson Mendes: Good morning to all of you who are watching us. I wanna start out by showing the numbers of our operated production last year. There was a significant increase vis-a-vis the previous year. That was due to the fact that many projects started production phase. Our operated production grows less because many of these projects that started to operate, we are operating. So part of the production goes to the partners. We also had very significant numbers, and the pre-salt production in our mix has been growing from 2022 to 2023. It grew from 73% to 78%. We had important records last year.

Speaker Change: I want to start out by showing the numbers of our operated production last year. There was a significant increase visit.

Speaker Change: Previous here that was due to the fact that many projects started production prediction phase our.

Speaker Change: Operated production grows less because many of these projects that.

Speaker Change: Started to operate we are operating so part of the production goes to the partners. We also had very significant numbers and the pre salt production and our mix has been growing.

Speaker Change: From a 'twenty two to 'twenty three it grew from 73% to 78%.

Speaker Change: E.

Speaker Change: Had important records last year the operated production.

Speaker Change: Surpassed a 4.05 barrels of oil per day, which is compared to the majors.

[Company Representative] (Petrobras): The operated production surpassed 4.05 barrels of oil per day, which is compared to the majors, and that is a very robust operation. Our pre-salt production also broke records last year. Also very important is the IUGA index. In Q4, it reached 98%. Very good numbers. Our production last year surpassed our initial forecast, but staying within what we call the risk tunnel. We've been working very hard to analyze all of the factors that can influence the production up or down over the course of the year, and this level of accuracy of our projection has been around 96% over the course of the last few years, which is very reassuring in terms of what we forecast for the current year.

Joelson Mendes: The operated production surpassed 4.05 barrels of oil per day, which is compared to the majors, and that is a very robust operation. Our pre-salt production also broke records last year. Also very important is the IUGA index. In Q4, it reached 98%. Very good numbers. Our production last year surpassed our initial forecast, but staying within what we call the risk tunnel. We've been working very hard to analyze all of the factors that can influence the production up or down over the course of the year, and this level of accuracy of our projection has been around 96% over the course of the last few years, which is very reassuring in terms of what we forecast for the current year.

Speaker Change: And that is a very robust operation our pre salt production also broke records last year and also vary.

Speaker Change: Important is the <unk> index and the fourth Q.

Speaker Change: It reached 98% very good numbers.

Speaker Change: Our production last year.

Speaker Change: Surpassed our initial forecast.

Speaker Change: But staying within what we call the risk tunnel, we've been working very hard to analyze all of the factors that can influence the production up or down.

Speaker Change: Over the course of the year and the.

Speaker Change: This level of accuracy of our projection has been around 96% over the course of last few years, which is very reassuring in terms of what we forecast for the current year the highlights in production.

Speaker Change: And I'll repeat myself we.

[Company Representative] (Petrobras): The highlights in production, and I'll repeat myself, we started to operate major production projects starting with the renovation of the Marlim field, which is something that we worked very hard on. The environmental licensing of these projects were very complex, but we won, and we were able to get involved in projects that will recover almost 1 billion barrels of oil equivalent. Our fifth unit in Búzios field is now operating at maximum production. The FPSO Sepetiba also started production in the Mero fields with the large capacity of 180 KBPD. Petrobras accounts for 40% of that production. In 2023, two projects that had started in the previous year, Guanabara and 31, they have reached a peak production in a very short time frame.

Joelson Mendes: The highlights in production, and I'll repeat myself, we started to operate major production projects starting with the renovation of the Marlim field, which is something that we worked very hard on. The environmental licensing of these projects were very complex, but we won, and we were able to get involved in projects that will recover almost 1 billion barrels of oil equivalent. Our fifth unit in Búzios field is now operating at maximum production. The FPSO Sepetiba also started production in the Mero fields with the large capacity of 180 KBPD. Petrobras accounts for 40% of that production. In 2023, two projects that had started in the previous year, Guanabara and 31, they have reached a peak production in a very short time frame.

Speaker Change: We started to operate major production projects, starting with the renovation of the Mar Limn field, which is something that we worked very hard on the environmental licensing of these projects were very complex, but we won and we were able.

Speaker Change: To recover almost want to get involved in projects that will recover almost 1 billion barrels of oil equivalent.

Speaker Change: Our fifth CNS and Boozier field is now operating at maximum production.

Speaker Change: The Fps so separate Chiba also started production production in the marrow fields with the large capacity of a 180 K B P D and Petrobras.

For 40% of that protection and in 2023 or two projects that had started in the previous year, when our Barra and 71 and they have reached a peak production in a very short timeframe.

Speaker Change: So this is our lifting cost and total cost of produce produce soil lifting cost went down.

[Company Representative] (Petrobras): This is our lifting cost and total cost of produced oil. The lifting cost went down from 5.8 to 5.6 barrels of oil equivalent produced, very significant amounts. The presence of the pre-salt from 73 to 78, as I said before, largely accounts for this decrease in the total production costs in deep waters and shallow waters, a little more than 20 percent of our production with very attractive numbers. Even though we're talking about mature fields, they're still very important numbers. Our total cost of produced oil has gone down largely due to the decrease in the price of the oil barrel abroad, which allows us to pay our governmental participations based on the oil price.

Joelson Mendes: This is our lifting cost and total cost of produced oil. The lifting cost went down from 5.8 to 5.6 barrels of oil equivalent produced, very significant amounts. The presence of the pre-salt from 73 to 78, as I said before, largely accounts for this decrease in the total production costs in deep waters and shallow waters, a little more than 20 percent of our production with very attractive numbers. Even though we're talking about mature fields, they're still very important numbers. Our total cost of produced oil has gone down largely due to the decrease in the price of the oil barrel abroad, which allows us to pay our governmental participations based on the oil price.

Speaker Change: From $5 eight to 5.6 barrels of oil equivalents produced very significant amounts.

Speaker Change: The presence of the pre salts from 73 to 78 as I said before.

Speaker Change: Largely accounts for this decrease in the total production cost in deep waters, and shallow waters, a little more than 20% of our production with very attractive numbers, even though we're talking about mature fields. There is still very important numbers and our total cost.

Speaker Change: Produced oil has gone down largely due to the decrease in the price of the oil barrel abroad.

Speaker Change: Which.

Speaker Change: Allows us to pay our governmental participations are based on the oil price so with this decrease.

Speaker Change: We see this important impact on brand and $35 per barrel is a very robust.

[Company Representative] (Petrobras): With this decrease, we see this important impact on Brent, and $35 per barrel is a very robust price. This is one of the most relevant news to us. Director Sergio had already talked about this. We closed the reserves of 2023 with an organic recomposition of more than 150%, which is extremely significant if you consider the universe of majors in the world. Over the course of the last few years, we've been achieving 200% in reserve replacement, which shows the consistency of our production curve for the future. This is the reserve that we've been achieving. We've been managing to increase year after year.

Joelson Mendes: With this decrease, we see this important impact on Brent, and $35 per barrel is a very robust price. This is one of the most relevant news to us. Director Sergio had already talked about this. We closed the reserves of 2023 with an organic recomposition of more than 150%, which is extremely significant if you consider the universe of majors in the world. Over the course of the last few years, we've been achieving 200% in reserve replacement, which shows the consistency of our production curve for the future. This is the reserve that we've been achieving. We've been managing to increase year after year.

Speaker Change: Rice.

Speaker Change: This is one of the most relevant news to us.

Speaker Change: Director Sergio had already talked about this week.

Speaker Change: Closed the reserves of 2023 with an organic re composition of more than 150%, which is extremely significant if you consider the universe of majors and the world and over the course of the last few years, we've been achieving 200% in reserve.

Speaker Change: Replacement at which shows the consistency of our production curves for the future. This is the reserve that we have been.

Speaker Change: Yeah.

Speaker Change: Achieving.

Speaker Change: We've been managing to increase year after year, and we were able to.

Speaker Change: Replace these reserves after a lot of hard work and Boozers two P. A auto pool, hi, I'm on to higher Pintado fields with and the approval of new complementary projects, especially in the campus space and so this a work around reserves involves costs projects.

[Company Representative] (Petrobras): We were able to replace these reserves after a lot of hard work in Búzios, Tupi, Atapu, Itapu, Sapinhoá fields with and the approval of new complementary projects, especially in the Campos Basin. This work around reserves involves costs, projects, and lots of simulations, and a very hard technical work by the team that coordinates this segment. Lastly, these are some highlights in the production area, with our operations in Africa, and also in the Pelotas Basin. We are also exploring Latin America as a whole and West Africa. These are areas that we know very well, and we're always looking for opportunities. I also have to mention that we will continue to explore the equatorial margin, and now we're drilling a well in the Potiguar Basin.

Joelson Mendes: We were able to replace these reserves after a lot of hard work in Búzios, Tupi, Atapu, Itapu, Sapinhoá fields with and the approval of new complementary projects, especially in the Campos Basin. This work around reserves involves costs, projects, and lots of simulations, and a very hard technical work by the team that coordinates this segment. Lastly, these are some highlights in the production area, with our operations in Africa, and also in the Pelotas Basin. We are also exploring Latin America as a whole and West Africa. These are areas that we know very well, and we're always looking for opportunities. I also have to mention that we will continue to explore the equatorial margin, and now we're drilling a well in the Potiguar Basin.

Speaker Change: And.

Speaker Change: Lots of simulations.

Speaker Change: And.

Speaker Change: A very hard technical work by the team that Cortlandt and coordinates this segment.

Speaker Change: Lastly, these are some highlights in the production area.

Speaker Change: With our operations in off in Africa and.

Speaker Change: The and also in the Palatis Basin, we are also exploring.

Speaker Change: Latin America as a whole and West Africa. These are areas that we know very well very well and were always looking for opportunities.

Speaker Change: And I also have to mention that we will continue to explore the equatorial margin and now we're drilling a well in the Portugal, our basin and in the future hopefully you are going to be able to drill new wells.

William França: In the future, hopefully, we're gonna be able to drill new wells. We're also exploring new wells in the Campos and Santos Basins as a routine. That's what I had. If you have any questions, please let me know. Director William, you have the floor. Thank you, Director Joelson. Good morning. I will talk about the RTC segment with possibly the best results in history, both from an operational and financial standpoint, as well as from a sustainability perspective with HSE results and also with a very good progress in energy efficiency. The utilization factor has to be highlighted.

Joelson Mendes: In the future, hopefully, we're gonna be able to drill new wells. We're also exploring new wells in the Campos and Santos Basins as a routine. That's what I had. If you have any questions, please let me know. Director William, you have the floor.

Speaker Change: Wells, we're also exploring new wells in the Campos and Santos basins.

Speaker Change: The routine so that's what I had if.

Speaker Change: If you have any questions. Please let me know.

Speaker Change: Director William you have the floor.

Speaker Change: Thank you directors, who Allison good morning.

William França: Thank you, Director Joelson. Good morning. I will talk about the RTC segment with possibly the best results in history, both from an operational and financial standpoint, as well as from a sustainability perspective with HSE results and also with a very good progress in energy efficiency. The utilization factor has to be highlighted.

Yeah.

I will talk about the R. A T C segment with possibly the best results in history, both from an operational and financial standpoint, as well as from a sustainability perspective with HFC results and also with it.

Speaker Change: Very good progress in energy efficiency the utilization factor.

It has to be highlighted we reached 92% on average.

[Company Representative] (Petrobras): We reached 92% on average, and in some months we reached more than 97% in the utilization factor due to the integration across the entire RTC division and also with the E&P division achieving very good results for the company, which has certainly contributed to us reaching the financial earning results with a pre-salt load of 65% in the processing of the pre-salt oil across all refineries. This utilization factor comes along with an increase in the value reaching 68%. We're talking about diesel and aviation kerosene. We're using our refineries with better yields. Our current CapEx BRL 3.1 billion in 2023, with very important stops for our refinery system, with the longest downtime in Cubatão, with very important projects to optimize the refinery.

William França: We reached 92% on average, and in some months we reached more than 97% in the utilization factor due to the integration across the entire RTC division and also with the E&P division achieving very good results for the company, which has certainly contributed to us reaching the financial earning results with a pre-salt load of 65% in the processing of the pre-salt oil across all refineries. This utilization factor comes along with an increase in the value reaching 68%. We're talking about diesel and aviation kerosene. We're using our refineries with better yields. Our current CapEx BRL 3.1 billion in 2023, with very important stops for our refinery system, with the longest downtime in Cubatão, with very important projects to optimize the refinery.

Speaker Change: And in some months, we reached more than 97% and the utilization factor due to the.

Speaker Change: The integration across the entire RTC Division and also with the RP.

Speaker Change: Division achieving very good results for the company.

Speaker Change: <unk> has certainly contributed.

Speaker Change: To us, reaching the financial earning results with the pre salt load of 65%.

Speaker Change: And the processing of the pre salt oil across all our refineries in this utilization factor.

Speaker Change: Comes along with an increase in the value reaching 68%.

Speaker Change: We're talking about diesel and.

Speaker Change: Aviation kerosene.

Speaker Change: So we're using our refineries are with better yields.

Speaker Change: Our current Capex 3.1 billion. He is in 'twenty to 'twenty three with a very important issue.

Stops for our refinery system with the longest downtime and Cobra town with very important projects to optimize the refinery.

Speaker Change: Three fob with important downtime and recap.

[Company Representative] (Petrobras): REFAP with important downtimes and REDUC in our Duque de Caxias refinery, including the downtime of one of the lube trains. For 2024, we predict a BRL 3.8 billion in current CapEx. We'll move forward with the maintenance of our units, leading to high availability of our units to refine oil, especially pre-salt oil. We ended the year at 60% of participation from Diesel S-10. You can see on the left-hand side a few important production numbers in several of our production units, with our refineries having contributed to these fantastic operational results in 2023. Best historical results in energy efficiency with our RefTOP program, with reduction in carbon intensity and also with an increased energy intensity in the refineries, leading to a lower consumption of fuel, natural gas, with very significant results.

William França: REFAP with important downtimes and REDUC in our Duque de Caxias refinery, including the downtime of one of the lube trains. For 2024, we predict a BRL 3.8 billion in current CapEx. We'll move forward with the maintenance of our units, leading to high availability of our units to refine oil, especially pre-salt oil. We ended the year at 60% of participation from Diesel S-10. You can see on the left-hand side a few important production numbers in several of our production units, with our refineries having contributed to these fantastic operational results in 2023. Best historical results in energy efficiency with our RefTOP program, with reduction in carbon intensity and also with an increased energy intensity in the refineries, leading to a lower consumption of fuel, natural gas, with very significant results.

Speaker Change: Our <unk> she is refinery, including the downtime of one of the lube trains.

Speaker Change: For 2024, we predict at three 8 billion and a turn.

Speaker Change: <unk> Capex will.

Speaker Change: We will move forward with the maintenance of our.

Speaker Change: Units.

Speaker Change: Leading to high availability of our units to refine oil, especially pre salt oil.

Speaker Change: We ended the year at 60%.

Speaker Change: Of participation from diesel S 10, and you can see on the left hand side.

Speaker Change: A few.

Speaker Change: Important production numbers in several of our production units with our refineries having contributed to these fantastic operational results in 2023.

Speaker Change: Best historical results in energy efficiency with our rooftop program.

Speaker Change: With reduction in <unk>.

Speaker Change: Carbon intensity and also with an increased energy intensity in the refineries leading to a lower consumption of fuel natural gas with a very significant results.

Speaker Change: Putting us on the path to even faster energy transition.

[Company Representative] (Petrobras): Putting us on the path to even faster energy transition. We also reached our lowest historical level of gas flaring rate and a record in pre-salt gas processed in our UPGNs. In 2023, we saw the return of investments in fertilizers and petrochemical sectors. In fertilizers, we're working towards achieving a definitive solution for Bahia and Sergipe plants. We also closed studies for the Araucária plants, Paraná, and UFN 3 in Três Lagoas. We soon will return to being a strong player in the fertilizer sector, and not only a plant. For that, we've been engaging in discussions with several partners and also with the strategic partnerships involving biomethane, green ammonia, and other interesting by-products that will lead to a carbon footprint reduction.

William França: Putting us on the path to even faster energy transition. We also reached our lowest historical level of gas flaring rate and a record in pre-salt gas processed in our UPGNs. In 2023, we saw the return of investments in fertilizers and petrochemical sectors. In fertilizers, we're working towards achieving a definitive solution for Bahia and Sergipe plants. We also closed studies for the Araucária plants, Paraná, and UFN 3 in Três Lagoas. We soon will return to being a strong player in the fertilizer sector, and not only a plant. For that, we've been engaging in discussions with several partners and also with the strategic partnerships involving biomethane, green ammonia, and other interesting by-products that will lead to a carbon footprint reduction.

Speaker Change: Also reached our lowest historical level of gas flaring rate and a record in pre salt gas processed in our P. James.

Speaker Change: And turning 23.

We saw.

Speaker Change: The return of.

Speaker Change: <unk> investments in fertilizers, and petrochemical sectors and fertilizers.

Speaker Change: We're working towards achieving a definitive.

Speaker Change: Definitive solution for by year in Sergipe plants, we also.

Speaker Change: Closed studies.

Speaker Change: For the adult cardio plants, R&R and U F N three interests like ours.

Speaker Change: So we soon will.

Speaker Change: We turned to being a strong player and the fertilizer sector and not only are planned and for that we've been engaging in discussions with several partners and.

Speaker Change: Also with the strategic partnerships involving Biomethane green ammonia and other interesting byproducts that will lead to a carbon footprint reduction.

Speaker Change: As I said, we're focusing on high value low carbon products and with that we're working.

Claudio Schlosser: As I said, we're focusing on high-value, low-carbon products, and with that, we're working in Cubatão and GasLub plants. In Cubatão when we're entering phase three this year, as well as in GasLub. Travassos will talk about RNEST Train Two and UPGN with the UPGNs three being completed by the beginning of H2 this year. We have very good results that give us strength to face the challenges involved in expanding our downstream in line with our strategic planning, as I said. It's a year of achievements, and we'll continue to work strongly in that direction to achieve these goals. With that, I'd like to give the floor to our Director of Logistics, Trade, and Markets, Claudio Schlosser. Thanks to William. Good afternoon, everybody.

William França: As I said, we're focusing on high-value, low-carbon products, and with that, we're working in Cubatão and GasLub plants. In Cubatão when we're entering phase three this year, as well as in GasLub. Travassos will talk about RNEST Train Two and UPGN with the UPGNs three being completed by the beginning of H2 this year. We have very good results that give us strength to face the challenges involved in expanding our downstream in line with our strategic planning, as I said. It's a year of achievements, and we'll continue to work strongly in that direction to achieve these goals. With that, I'd like to give the floor to our Director of Logistics, Trade, and Markets, Claudio Schlosser.

Speaker Change: In Cooperstown.

Speaker Change: And gas lube plants in Cuba talent when and.

Speaker Change: Phase three this year as well as in gas lube and.

Speaker Change: <unk> will talk about the.

Speaker Change: Greenough string to an E G M with the routes three.

Speaker Change: Being completed by the beginning of the second half of this year and.

Speaker Change: We have a very good results that give us strength to.

Speaker Change: To face the challenges involved in expanding our downstream in line with our strategic planning as I said, so it's a year of achievements and we will continue to work strongly in that direction to achieve these goals with that I'd like to give the floor to our director.

Logistics are trained and markets I'll just schlosser.

Speaker Change: Thanks William.

Good afternoon, everybody, it's a pleasure to be with you today.

Claudio Schlosser: Thanks to William. Good afternoon, everybody. It's a pleasure to be with you today to talk about our 2023 results. I'd like to take the opportunity to greet all women, both in person and online. The first slide covers the selling of by-products, both in Brazil and abroad. The sales of gas grew, and they were powered by a greater competitiveness of gas versus ethanol. If you look at diesel, you see a reduction of 1% as compared to 2022, basically because of two factors. REMAN had been considered up until the end of 2023, and also because of the mandatory mix with biodiesel that went from 10% to 12% in April.

Speaker Change: To talk about our 2023 results.

[Company Representative] (Petrobras): It's a pleasure to be with you today to talk about our 2023 results. I'd like to take the opportunity to greet all women, both in person and online. The first slide covers the selling of by-products, both in Brazil and abroad. The sales of gas grew, and they were powered by a greater competitiveness of gas versus ethanol. If you look at diesel, you see a reduction of 1% as compared to 2022, basically because of two factors. REMAN had been considered up until the end of 2023, and also because of the mandatory mix with biodiesel that went from 10% to 12% in April.

I'd like to take the opportunity to Green all women.

Both in person and online.

Speaker Change: The first slide covers the selling of by products, both in Brazil and abroad.

Speaker Change: The sales of gas.

Speaker Change: Through <unk>.

Speaker Change: Underwear.

Speaker Change: Powered by accretive competitiveness of gas versus ethanol. If you look at diesel you see a reduction of 1%.

Speaker Change: As compared to 2022.

Speaker Change: Basically because of two factors reman.

Speaker Change:

Speaker Change: Had been considered up until the end of 2023 and also because of the mandatory mixed with biodiesel that went from 10% to 12% in April concerning the experts of byproducts. There was an increase of 5% and I'd like to highlight that the increase in the exports of gas because of.

[Company Representative] (Petrobras): Concerning the exports of by-products, there was an increase of 5%, and I'd like to highlight the increase in the exports of gas because of the change in quality, which is quite positive for the operation. Concerning the oil sales, we had an increase resulting from an increased production in Exploration and Production as Director Joelson Mendes mentioned. What I'd like to highlight in 2023 is that we added 3 new refineries as clients in addition to expanding the purchasing of our oil by other refineries, which resulted in a significant increase in the refining of oil. Now we have 26 new players in our customer portfolio, which allows us to capture and diversify in new destinations for our oil.

Claudio Schlosser: Concerning the exports of by-products, there was an increase of 5%, and I'd like to highlight the increase in the exports of gas because of the change in quality, which is quite positive for the operation. Concerning the oil sales, we had an increase resulting from an increased production in Exploration and Production as Director Joelson Mendes mentioned. What I'd like to highlight in 2023 is that we added 3 new refineries as clients in addition to expanding the purchasing of our oil by other refineries, which resulted in a significant increase in the refining of oil. Now we have 26 new players in our customer portfolio, which allows us to capture and diversify in new destinations for our oil.

Speaker Change: The change in quality, which is quite positive for the operation.

Concerning the oil sales.

Speaker Change: Had an increase.

Resulting from an increased production and exploration and production.

Speaker Change: As director show Alison mentioned.

Speaker Change: What I'd like to highlight in 'twenty to 'twenty three is that's at we.

Speaker Change: Added three new refineries us clients. In addition to expanding the purchasing of our oil by other refineries, which resulted in a significant increase in the.

Speaker Change: Refining of oil.

Speaker Change: And now we have 26, new purse and our customer portfolio, which allows us to capture.

Speaker Change: And diversify in new <unk>.

Destinations for our oil we're constantly trying to expand our customer database to maximize the.

[Company Representative] (Petrobras): We're constantly trying to expand our customer database to maximize the value of our oil, which is extremely valuable in terms of quality and also carbon footprint.

Claudio Schlosser: We're constantly trying to expand our customer database to maximize the value of our oil, which is extremely valuable in terms of quality and also carbon footprint.

Speaker Change: By Valley of our oil.

Speaker Change: Which is extremely valuable in terms of quality and also carbon foot brand.

Speaker Change: Talking about the market share.

Speaker Change: Our share of the market is stable in comparison to 2022 and as you can see here by adding up.

Claudio Schlosser: Talking about market share, our share of the market is stable in comparison to 2022. As you can see here by adding up the blue parts of the graph, the share of gasoline imported and produced is a consequence of optimizing production and the change in quality with the foreign market. We're capturing more value for Petrobras. The diesel market grew. Overall, we were able to maintain our share. The diesel produced by the company increased due to higher level of refinement. This higher availability of refineries and our logistics park utilization in 2023 was mentioned by William, and it contributed to reducing diesel imports and capturing margins from the Brazilian market, which is a better destination to monetize our reserves. Here, Director Tolmasquim has also made a point of mentioning each topic here.

Speaker Change: The blue parts of the graph the share of.

Speaker Change: Gasoline imported and produced is a consequence of optimizing production and.

Speaker Change: Change in quality with the foreign market. So we're capturing more value for Petrobras. The diesel market grew overall, we were able to maintain our share.

Speaker Change: And the diesel produced by.

Speaker Change: The company increased due to higher level of.

Speaker Change: [noise] refinement.

Speaker Change: And this higher availability of refined <unk> and our logistics Park utilization in 2023 was mentioned by William and it contributed to reducing diesel imports and capturing margins from the Brazilian market, which is a better destination to monetize our reserve.

Speaker Change: Here Director Thomas skiing has also made.

Speaker Change: You made a point of mentioning each.

Speaker Change: Topic here, we talked about our commitment to low carbon products. So the Petrobras podium gasoline diesel are.

Operator: We talked about our commitment to low carbon products, so the Petrobras Podium Gasoline, Diesel R, CAP Pro, our asphalt line. I would add as a highlight that we started selling our diesel in São Paulo. That's a significant market for us, and it was a milestone. We're able to advance in that area. Also related to Diesel R, this is voluntary consumption. We don't have any mandates for it. We're working through partnerships with national and regional distributors, especially SIM and Ipiranga. SIM, if you don't know it, is a regional distributor in the state of Rio Grande do Sul, and it has values related to reducing a carbon footprint, and it's the only company that has a specific contract to buy Diesel R. Some other highlights that we have for you are on the next slide.

Claudio Schlosser: We talked about our commitment to low carbon products, so the Petrobras Podium Gasoline, Diesel R, CAP Pro, our asphalt line. I would add as a highlight that we started selling our diesel in São Paulo. That's a significant market for us, and it was a milestone. We're able to advance in that area. Also related to Diesel R, this is voluntary consumption. We don't have any mandates for it. We're working through partnerships with national and regional distributors, especially SIM and Ipiranga. SIM, if you don't know it, is a regional distributor in the state of Rio Grande do Sul, and it has values related to reducing a carbon footprint, and it's the only company that has a specific contract to buy Diesel R. Some other highlights that we have for you are on the next slide.

Speaker Change: Cap pro our asphalt line.

Speaker Change: And I would add as a highlight that we started selling our diesel and so Paulo, that's a significant market for us and it was a milestone we're able to advance in that area also related to diesel or this is a voluntary consumption. We don't have any mandates for.

Speaker Change: Alright.

Speaker Change: So we're working through partnerships with national and regional distributors.

Especially siem and.

Speaker Change: <unk> simply if you don't know it is a regional distributor in the state of Rio Grande do Sul, and it has values related to reducing our carbon footprint and it's the only company that has a specific contract to buy diesel or.

Speaker Change: Some other highlights that we have for you on the next slide.

Speaker Change: Okay.

Speaker Change: They are related to how we execute our commercial strategy. This was mentioned by the President we were very successful throughout the year.

Operator: They're related to how we execute our commercial strategy. This was mentioned by the president. We were very successful throughout the year, considering the best logistics and refining conditions we have. We're offering to our clients a very competitive price, maximizing how we optimize our assets, and we're capturing good margins from the Brazilian market, as we said before. Considering sales hubs, we created two of them in line with our strategy to improve access in different markets of the country. It's a way of improving our logistics chain and also to be in communication with our clients. In 2023, we expanded our operations in Rondonópolis in the state of Mato Grosso, and recently we started selling diesel and gasoline in Rio Verde. One final highlight is platform recycling.

Claudio Schlosser: They're related to how we execute our commercial strategy. This was mentioned by the president. We were very successful throughout the year, considering the best logistics and refining conditions we have. We're offering to our clients a very competitive price, maximizing how we optimize our assets, and we're capturing good margins from the Brazilian market, as we said before. Considering sales hubs, we created two of them in line with our strategy to improve access in different markets of the country. It's a way of improving our logistics chain and also to be in communication with our clients. In 2023, we expanded our operations in Rondonópolis in the state of Mato Grosso, and recently we started selling diesel and gasoline in Rio Verde. One final highlight is platform recycling.

Speaker Change: Considering the best logistics and refinement conditions, we have we're offering to our clients a very competitive price maximizing how we optimize our assets and we're capturing.

Speaker Change: Good margins from the Brazilian market as we said before.

Speaker Change: Considering sales hubs, we created two of them.

Speaker Change: In line with our strategy to improve.

Speaker Change: Improve access in different markets of the country, It's a way of improving our logistics chain and also to be in communication with our clients in 2023.

Speaker Change: We expanded our operations in the Rhondda Nope lives in the state of Mato Grosso and recently, we started <unk>.

Speaker Change: Selling diesel and gasoline in Rio Fair day.

Speaker Change: One final highlight is platform recycling.

Speaker Change: We are decommissioning are.

Operator: We are decommissioning some of our vessels, and this is making Petrobras a reference company through the NGO Shipbreaking Platform in responsible vessel disposal. This is a very important milestone for us. Those were our main highlights in this area, and I'll pass it over to Travassos. Thank you, Schlosser. Good morning. I'd also like to greet everyone, especially any women watching us. I'm going to continue talking about technology with the OTC award, the highest award in the oil and gas industry. In 2023, we received 7 awards by OTC, 2 from OTC Brasil and 5 from OTC International. In Brazil, this was about our technology that allows us to use dynamic wells in stable waters, and this gives us a higher decommissioning capacity.

Claudio Schlosser: We are decommissioning some of our vessels, and this is making Petrobras a reference company through the NGO Shipbreaking Platform in responsible vessel disposal. This is a very important milestone for us. Those were our main highlights in this area, and I'll pass it over to Travassos.

Speaker Change: Some of our vessels.

Speaker Change: This is making Petrobras a reference company.

Speaker Change: Through the ship breaking platform NGO in responsible vessel disposal.

Speaker Change: And this is a very important milestone for us.

Speaker Change: So those were our main highlights in this area and I'll pass it over to professors.

Speaker Change: Yeah.

Carlos José do Nascimento Travassos: Thank you, Schlosser. Good morning. I'd also like to greet everyone, especially any women watching us. I'm going to continue talking about technology with the OTC award, the highest award in the oil and gas industry. In 2023, we received 7 awards by OTC, 2 from OTC Brasil and 5 from OTC International. In Brazil, this was about our technology that allows us to use dynamic wells in stable waters, and this gives us a higher decommissioning capacity.

Speaker Change: Thank you schlosser that morning.

Speaker Change: And I'd also like to greet everyone, especially.

Speaker Change: The women watching us.

Speaker Change: Okay.

Speaker Change: I'm going to continue talking about technology.

Speaker Change: With the OTC Award the highest award in the oil and gas industry.

Speaker Change: Okay.

Speaker Change: In 2023, we received.

Speaker Change: Seven awards by OTC.

Speaker Change:

Speaker Change: Two from OTC, Brazil, and five from OTC International in Brazil. This was about our technology that allows us to use a dime.

Dynamic.

Speaker Change: Our wells in stable waters, and this gives us a higher decommissioning capacity. The OTC Award we received.

Speaker Change: And me.

Carlos Travassos: The OTC award we received in May refers to the innovations and technologies that were used in our revitalization process in Marlim and other areas of the Campos Basin. We're celebrating the 50th anniversary of its discovery. We are now receiving another award for its revitalization. It's a very current approach for the oil and gas industry, because this is a very resilient process from an environmental standpoint, because we reduced greenhouse gas emissions by 55%, and also makes it more economically viable because we are increasing production capacity by replacing nine units with two new ones. This is a peculiar project because not only are we installing new lines, but we're also removing active lines, decommissioning old wells, and building new wells. We have about 60 wells that will be connected.

Carlos José do Nascimento Travassos: The OTC award we received in May refers to the innovations and technologies that were used in our revitalization process in Marlim and other areas of the Campos Basin. We're celebrating the 50th anniversary of its discovery. We are now receiving another award for its revitalization. It's a very current approach for the oil and gas industry, because this is a very resilient process from an environmental standpoint, because we reduced greenhouse gas emissions by 55%, and also makes it more economically viable because we are increasing production capacity by replacing nine units with two new ones. This is a peculiar project because not only are we installing new lines, but we're also removing active lines, decommissioning old wells, and building new wells. We have about 60 wells that will be connected.

Speaker Change: One two the innovations and technologies that were used in our revitalization process and Marley in other areas of the.

Speaker Change: <unk> spacer, we're celebrating the 15th anniversary of its discovery so.

Speaker Change: We are now receiving another award for its revitalization, it's a very current approach for the oil and gas industry.

Speaker Change: Because this is a very resilient process from an environmental standpoint, because we've reduced greenhouse gas emissions by 55% and also makes it more economically viable because we are increasing production capacity by replacing nine units with two new ones.

Speaker Change: This is a peculiar projects because not only are we are installing new lines, but we're also removing active lines.

Speaker Change: Decommissioning old wells and building new wells.

Speaker Change: We have about 60 wells that will be connected.

Speaker Change: And I highlighted three of the nine pioneering technologies, we have been developing.

Operator: I highlighted three of the nine pioneering technologies we have been developing. Top 3P, a well design that accelerates the construction of post-salt wells, reducing 110 days to 56 days on average. This is in the Campos Basin. We also have flexible pipe envelopes that reduce engineering processes and allow us to reuse lines, and that even reduces our inventory. The last technology I'd like to highlight is a new methodology and extension tools that allowed us to extend the life of wet Christmas trees and pipelines. This will all add to how economic our projects are. The next slide refers to another milestone that we had in the last 12 months.

Carlos José do Nascimento Travassos: I highlighted three of the nine pioneering technologies we have been developing. Top 3P, a well design that accelerates the construction of post-salt wells, reducing 110 days to 56 days on average. This is in the Campos Basin. We also have flexible pipe envelopes that reduce engineering processes and allow us to reuse lines, and that even reduces our inventory. The last technology I'd like to highlight is a new methodology and extension tools that allowed us to extend the life of wet Christmas trees and pipelines. This will all add to how economic our projects are. The next slide refers to another milestone that we had in the last 12 months.

Todd <unk>, a well design that accelerates the construction of post salt wells reducing.

Speaker Change: 110 days to 56 days on average this is in the Campos basin.

Speaker Change: We also have a flexible pipe envelope that reduce engineering processes and allow us to reuse lines and that even reduces our inventory.

Speaker Change: And the glass technology I'd like to highlight is a new methodology and Ah <unk>.

Speaker Change: Extension tools that allowed us to extend.

Speaker Change: Life of what Christmas trees and pipeline.

Speaker Change: So.

Speaker Change: This will all add to how economic our projects are.

The next slide refers to another milestone that we had in the last 12 months, we were the only company that.

Speaker Change: Installed five <unk>.

Operator: We were the only company that installed 5 production systems in 12 months, from December 2022, when the P-71 unit started, to December 2023, when FPSO Sepetiba was started. We're highlighting FPSOs, but we actually started 5 production systems with 1,300km of lines and 106 wells. So that gives the company an installed capacity to produce 630,000 barrels in 12 months. We'd also like to highlight FPSO Almirante Barroso, the fifth unit in Búzios, that started its production in less than 5 months. Another record for the company. This used to be P-76 that reached this production level in 8 months. This is due to a joint effort with the company, but we're also delivering units at a very high reliability and safety level. This is a benchmark for the entire world.

Carlos José do Nascimento Travassos: We were the only company that installed 5 production systems in 12 months, from December 2022, when the P-71 unit started, to December 2023, when FPSO Sepetiba was started. We're highlighting FPSOs, but we actually started 5 production systems with 1,300km of lines and 106 wells. So that gives the company an installed capacity to produce 630,000 barrels in 12 months. We'd also like to highlight FPSO Almirante Barroso, the fifth unit in Búzios, that started its production in less than 5 months. Another record for the company. This used to be P-76 that reached this production level in 8 months. This is due to a joint effort with the company, but we're also delivering units at a very high reliability and safety level. This is a benchmark for the entire world.

Speaker Change: Production systems in 12 months from December 2022, when the P. 71 units started to December 2023, when F BSO separate T bar.

Speaker Change: <unk> started.

Speaker Change: We're highlighting fpl's seuss, but we actually started five production systems with 1300 kilometers of lines and 106 wells.

Speaker Change: So that gives the company an installed capacity to produce 630000 barrels in 12 months.

Speaker Change: We'd also like to highlight Fps, So I'll move onto a Rosa the fifth unit in Booz yours.

Speaker Change: And it started its production in less than five months another record for the company.

Speaker Change: This used to be P 76 debt.

Speaker Change: This production level in eight months. This is due to a joint effort.

Speaker Change: With the company, but.

Speaker Change: We're also delivering units at a very high reliability.

Speaker Change: Ability and safety level and this is a benchmark for the entire world.

Speaker Change: The next slide also highlights how we are decommissioning some platforms.

Operator: The next slide also highlights how we are decommissioning some platforms. This was an effort that's started with our exploration and production companies. We were prepared for decommissioning the unit, and it's a significant highlight for the submarine teams that deconnect and unmoor the unit and also the wells team. This is a very important portfolio for Petrobras. In our strategic plan, we will decommission 23 units, and after 2028, we will have an additional 40 units to decommission. It's a circular economy market. We're building opportunities for Brazilian companies. Schlosser has mentioned that we were recognized by a Belgian NGO called Shipbreaking Platform for establishing a new green disposal policy. This is an organization that represents several environmental agencies that monitor how maritime units are being decommissioned.

Carlos José do Nascimento Travassos: The next slide also highlights how we are decommissioning some platforms. This was an effort that's started with our exploration and production companies. We were prepared for decommissioning the unit, and it's a significant highlight for the submarine teams that deconnect and unmoor the unit and also the wells team. This is a very important portfolio for Petrobras. In our strategic plan, we will decommission 23 units, and after 2028, we will have an additional 40 units to decommission. It's a circular economy market. We're building opportunities for Brazilian companies. Schlosser has mentioned that we were recognized by a Belgian NGO called Shipbreaking Platform for establishing a new green disposal policy. This is an organization that represents several environmental agencies that monitor how maritime units are being decommissioned.

Speaker Change: This was an effort that's started.

With our exploration and production companies, we were prepared for decommissioning the unit and.

Speaker Change: It's a significant highlight.

Speaker Change: For the submarine teams.

Speaker Change: D connect and earn more.

Speaker Change: The unit.

Speaker Change: And also the wells team.

This is a very important portfolio for Petrobras and our strategic plan, we will decommission 23 units and after 2028, we will have an additional 40 units to decommission. So it's a circular economy market, we're building opportunities for Brazilian companies.

Speaker Change: Schlosser has mentioned that we were recognized by a Belgian NGO called Shipbreaking platform for establishing a new green disposal policy.

Speaker Change: This is an organization that represents several environmental agencies that.

Speaker Change: Monitor.

Speaker Change: Maritime units are being decommissioned and we were recognized by them.

Speaker Change: And this is very relevant for our practices and how aligned they are to sustainability and governance.

Operator: We were recognized by them, and this is very relevant for our practices and how aligned they are to sustainability and governance. Let's continue with the next slide. Here we have some of our highlights, downstream. Some of the advances we've had in the Duque de Caxias Refinery, adapting our hydrotreatments, Diesel S-10. We also have a hydrotreatment area for Diesel S-10 being built by Replan and also Revap. We're also increasing our diesel capacity. We heard about RNEST. This is not on the screen, but we are also conducting some works there. In the next weeks, possibly next week, we will receive proposals for the second adaptation, and that would allow it to process 260,000 barrels of oil a day.

Carlos José do Nascimento Travassos: We were recognized by them, and this is very relevant for our practices and how aligned they are to sustainability and governance. Let's continue with the next slide. Here we have some of our highlights, downstream. Some of the advances we've had in the Duque de Caxias Refinery, adapting our hydrotreatments, Diesel S-10. We also have a hydrotreatment area for Diesel S-10 being built by Replan and also Revap. We're also increasing our diesel capacity. We heard about RNEST. This is not on the screen, but we are also conducting some works there. In the next weeks, possibly next week, we will receive proposals for the second adaptation, and that would allow it to process 260,000 barrels of oil a day.

Speaker Change: Let's continue with the next slide here, we have some.

Speaker Change: Our highlights.

Speaker Change: Downstream some of the advances we've had in the <unk> refinery.

Speaker Change: Adapting our hydro treatments.

Speaker Change: Diesel F 10.

Speaker Change: We also have a hydro treatment area for diesel a stead being built by re plan and also re FAP.

Speaker Change: We're also increasing our diesel capacity we heard about.

Speaker Change: <unk>. This is not on the screen, but we are also conducting.

Speaker Change: Conducting some works there.

Speaker Change: And in the next weeks, possibly next week.

Speaker Change: We will receive proposals for.

Speaker Change:

Speaker Change: The second adapt a shut in and that would allow it to process 260000 barrels of oil a day.

Speaker Change: We signed a contract to acquire heifer technology, which will be adopted in our PBC is dedicated plant.

Operator: We signed a contract to acquire HEFA technology, which will be adopted in our RPBC's dedicated plant. Another significant milestone was that we are completing our natural gas unit in Itaboraí. That will be UPGN gas loop, which will increase our capacity. This is forecast to be concluded in H2 2024. The next slide will be my last. Another thing I'd like to highlight about our technology is that we started lab tests and a pilot plant. In November last year, we concluded industrial scale tests to produce bioaromatics. Products that can be used for the petrochemical industry based on vegetable inputs, in this case, soybean oil. This was also developed by our research center, and we just wanted to highlight how we are adapting our products to find new markets. We're not concluding with me this time.

Carlos José do Nascimento Travassos: We signed a contract to acquire HEFA technology, which will be adopted in our RPBC's dedicated plant. Another significant milestone was that we are completing our natural gas unit in Itaboraí. That will be UPGN gas loop, which will increase our capacity. This is forecast to be concluded in H2 2024. The next slide will be my last. Another thing I'd like to highlight about our technology is that we started lab tests and a pilot plant. In November last year, we concluded industrial scale tests to produce bioaromatics. Products that can be used for the petrochemical industry based on vegetable inputs, in this case, soybean oil. This was also developed by our research center, and we just wanted to highlight how we are adapting our products to find new markets. We're not concluding with me this time.

Speaker Change: Yes.

And another significant milestone was that we are completing our natural gas unit in February.

Speaker Change: That will be PGN, Ub Gen gas loop, which will increase.

Speaker Change: Increase our capacity.

Speaker Change: This is forecast to be concluded in the second half of 2024.

The next slide will be my last.

Speaker Change: Another thing I'd like to highlight about our technology is that we started a lab tests.

Speaker Change: And a pilot plant.

Speaker Change: And in November last year, we concluded industrial scale test to produce bio are romantics. Some products that can be used for the petrochemical industry based on a festival inputs in this case, Australia bean oil.

Speaker Change: This was also developed by our research Center and.

Speaker Change: We just wanted to highlight how we are adapting our products to find new markets.

So we're not concluding with me this time.

Speaker Change: We're still going to talk a little bit about <unk>, but I'd like to invite a young executive my user Golar to do that she has been in the company for 20 years. She's worked offshore she's a released our platforms She's led Fps sows.

Operator: We're still going to talk a little bit about CENPES, but I'd like to invite a young executive, Maísa Goulart, to do that. She's been in the company for 20 years. She's worked offshore. She's released our platforms. She's led FPSOs. Our production development area has been led by her, and now she is a leader for the biggest research center in Latin America, CENPES. I'll pass it over to her.

Carlos José do Nascimento Travassos: We're still going to talk a little bit about CENPES, but I'd like to invite a young executive, Maíza Goulart, to do that. She's been in the company for 20 years. She's worked offshore. She's released our platforms. She's led FPSOs. Our production development area has been led by her, and now she is a leader for the biggest research center in Latin America, CENPES. I'll pass it over to her.

Speaker Change: Our production development area.

Speaker Change: Uh huh.

Speaker Change: Has been led by her.

Speaker Change: And now she is a leader for the biggest research center in Latin America.

Speaker Change: So I'll pass it over to her.

Speaker Change: Thank you for vessels for that introduction.

Speaker Change: Pleasure to be here on.

Maísa Goulart: Thank you, Travassos, for that introduction. It's a pleasure to be here on International Women's Day, and it will be an opportunity to talk about some of the achievements by some female researchers at CENPES. Before I mention them, I'd just like to say that we are the biggest applied research center in Latin America. We have over 1,000 employees, nearly 1,000 researchers, and we invested BRL 3.6 billion in RDI last year. Of course, we're very proud of the results we had in implementing our technologies at Petrobras, the industry for which we work, and we're also celebrating the different awards that we've received. Travassos and our CEO have mentioned our OTC award, but I'd also like to highlight that we were finalists for 5 categories in ANP Awards, and we won 4 of them.

Maíza Pimenta Goulart: Thank you, Travassos, for that introduction. It's a pleasure to be here on International Women's Day, and it will be an opportunity to talk about some of the achievements by some female researchers at CENPES. Before I mention them, I'd just like to say that we are the biggest applied research center in Latin America. We have over 1,000 employees, nearly 1,000 researchers, and we invested BRL 3.6 billion in RDI last year. Of course, we're very proud of the results we had in implementing our technologies at Petrobras, the industry for which we work, and we're also celebrating the different awards that we've received. Travassos and our CEO have mentioned our OTC award, but I'd also like to highlight that we were finalists for 5 categories in ANP Awards, and we won 4 of them.

This international Women's day.

Speaker Change: And it will be an opportunity to talk about.

Speaker Change: Some of the achievements by some female researchers at ships.

Speaker Change: Before I mentioned them I'd, just like to say that we are the biggest applied research center at Latin America, we have over 1000 employees nearly 1000, researchers and we invested $3 6 billion of Brazilian Reals and RTI last year.

Speaker Change: Of course, we're very proud of the results we had in implementing our technologies at Petrobras the industry for which we work and we're also celebrating the different awards that we've received <unk> and our CEO has mentioned our OTC award, but I'd also like to highlight that we were finalists were fine.

Speaker Change: <unk> category in N P Awards, and we won four of them we were among the top 20, most innovative companies in Brazil. According to the MIT Technology review we were.

[Company Representative] (Petrobras): We were among the top 20 most innovative companies in Brazil according to the MIT Technology Review. We were the second place holders for Follower in Brazil, an award for companies that work across several industries. Being in second place was our highest position. It was the highest for oil and gas. We also had a very good placement in the top 100 corps ranking on innovation with startups. Last year, we also celebrated a national record of partnerships in our Connections for Innovation program. For the third year in a row, we had the national record of registered patents. I'm here to talk a bit about women. If we can go back just one slide. No, excuse me. Go ahead.

Maíza Pimenta Goulart: We were among the top 20 most innovative companies in Brazil according to the MIT Technology Review. We were the second place holders for Follower in Brazil, an award for companies that work across several industries. Being in second place was our highest position. It was the highest for oil and gas. We also had a very good placement in the top 100 corps ranking on innovation with startups. Last year, we also celebrated a national record of partnerships in our Connections for Innovation program. For the third year in a row, we had the national record of registered patents. I'm here to talk a bit about women. If we can go back just one slide. No, excuse me. Go ahead.

Speaker Change: The second place holders portfolio are in Brazil.

Speaker Change: A an award for companies that work across several industries so being.

Speaker Change: In second place was our highest position.

Speaker Change: It was the highest for oil and gas and we also had a very good placement in.

Speaker Change: The top 100 Corp's franking on innovation, what's startups last year, we also celebrated a national record of.

Speaker Change: Partnerships in our connections for innovation program.

Speaker Change: And for the third year in neuro, we had the national record of registered patents, but I'm here to talk a bit about.

Speaker Change: Women.

Speaker Change: If we can go back just one slide.

Speaker Change: No excuse me go ahead.

Speaker Change: We used to have a picture.

Speaker Change: And the picture you see behind the slide was a picture that we took.

[Company Representative] (Petrobras): We used to have a picture, and the picture you see behind the slide was a picture that we took this week at CENPES. It doesn't include all women in our research center, but I'm very happy to see every smile and every story there. We have brilliant women in our research center. 25% of our employees are women, 32% of our leaders are women, and 21% of our researchers are women. I could say something about each one of them out of these 270, but we, of course, have to select a few of them. I'd like to start out by talking about Aline Machado, who was awarded the Brazilian Women in Chemistry award last year.

Maíza Pimenta Goulart: We used to have a picture, and the picture you see behind the slide was a picture that we took this week at CENPES. It doesn't include all women in our research center, but I'm very happy to see every smile and every story there. We have brilliant women in our research center. 25% of our employees are women, 32% of our leaders are women, and 21% of our researchers are women. I could say something about each one of them out of these 270, but we, of course, have to select a few of them. I'd like to start out by talking about Aline Machado, who was awarded the Brazilian Women in Chemistry award last year.

Speaker Change: This week at Sam's. It doesn't include all women and our research center, but I'm very happy to see every smile and every story there we have brilliant women and our research center.

Speaker Change: 5% of our researchers are excuse me, 25% of our employees are women, 32% of our leaders are women and 21% of our researchers are equipment.

Speaker Change: I could say something about each one of them out of these 270, but we of course they have to select a few of them I'd like to start out by talking about leaning my shadow.

Speaker Change: Who was awarded the Brazilian in women and Chemistry Award last year.

Speaker Change: Marcia Calil.

Speaker Change: Very experienced consultant.

[Company Representative] (Petrobras): Marcia Khalil, a very experienced consultant, a leader in one of the research lines at CENPES. In 2023, we would like to highlight her digital monitoring of guarantee of flow occurrences project that avoids many losses due to hydrate formation. Director Travassos talked about the test at the Rio Grande Refinery. Behind that, there's a brilliant advisor, Andrea Pinho Tamires. She's one of the youngest researchers in a brand-new sector, the search for geological hydrogen with remote sensing, use of AI and satellite data to find what the industry calls the fairy circles, where there is indication of geological hydrogen formation. Kátia Moniz, she worked in the development of carbon-neutral gasoline that started at the CENPES labs, and behind that, there's this brilliant researcher, Kátia Moniz. Teresa Villano, she developed an anti-corrosion adhesive made from 100% recycled PET.

Maíza Pimenta Goulart: Marcia Khalil, a very experienced consultant, a leader in one of the research lines at CENPES. In 2023, we would like to highlight her digital monitoring of guarantee of flow occurrences project that avoids many losses due to hydrate formation. Director Travassos talked about the test at the Rio Grande Refinery. Behind that, there's a brilliant advisor, Andrea Pinho Tamires. She's one of the youngest researchers in a brand-new sector, the search for geological hydrogen with remote sensing, use of AI and satellite data to find what the industry calls the fairy circles, where there is indication of geological hydrogen formation. Kátia Moniz, she worked in the development of carbon-neutral gasoline that started at the CENPES labs, and behind that, there's this brilliant researcher, Kátia Moniz. Teresa Villano, she developed an anti-corrosion adhesive made from 100% recycled PET.

Speaker Change: The leader.

Speaker Change: And one of the research lines at Sam Peace.

Speaker Change: In 2023, we would like to highlight for digital monitoring of guarantee of low <unk>.

Speaker Change: Currently <unk> projects that avoids many losses due to heidrick formation.

Speaker Change: Director of traverse has talked about the test at the Rio Grande and say a refinery behind that there is a brilliant adviser entering a P O to Mary's she's one of the youngest researchers.

Speaker Change: In a brand new sector, the search for a geological hydrogen with remote sensing use of AI and satellite data.

Speaker Change: To find.

Speaker Change: What the industry calls these very circles.

Where there is indication of geological hydrogen information.

Speaker Change: Gotcha monies.

Speaker Change: She worked on the developments of carbon neutral gasoline that started at the sympathies labs and behind that there is this brilliant researcher Katja moonies Teresa Villano. She developed an anti corrosion adhesive made from 100% recycled pet.

Speaker Change: Pets, you can use that in certain surfaces that are starting to corrode and that's oh.

[Company Representative] (Petrobras): It can use that on surfaces that are starting to corrode, and that's going through the development phase with the market. Ana Moos, she also leads the research line for the capture of CO2. Helga and Priscila for the implementation of something that resulted in one of the highest VPRs, the implementation and scope of magnetic devices and topside systems to reduce fouling. As I said, I could talk about the achievements of each one of these 270 women, but through these few women, I'd like to pay this tribute to every woman at CENPES. I'd like to convey this message to each woman watching us. I think that our biggest achievement is to be what we wanna be and be respected for that. Thank you, Maiza. Now we will start the Q&A session.

Maíza Pimenta Goulart: It can use that on surfaces that are starting to corrode, and that's going through the development phase with the market. Ana Moos, she also leads the research line for the capture of CO2. Helga and Priscila for the implementation of something that resulted in one of the highest VPRs, the implementation and scope of magnetic devices and topside systems to reduce fouling. As I said, I could talk about the achievements of each one of these 270 women, but through these few women, I'd like to pay this tribute to every woman at CENPES. I'd like to convey this message to each woman watching us. I think that our biggest achievement is to be what we wanna be and be respected for that.

Speaker Change: Going through the development phase with the market on our moves. She also leads the research line.

Speaker Change: For the capture of C O two.

Speaker Change: And Helga and Priscilla for the implementation of something that resulted in the one of the highest cheap P. R V Prs implementation and scope of magnetic devices and topside systems to reduce falling.

Speaker Change: As I said I could talk about the achievements of each one of these 270 women, but through these few women I'd like to pay distribute to every woman at Sam Peace.

Speaker Change: And I'd like to convey this message to each woman watching us I think that our biggest achievement is to be what we want to be and be respected for that.

Speaker Change: Thank you my user.

Operator: Thank you, Maíza. Now we will start the Q&A session. I'd like to ask each participants to please ask up to two questions. The first question comes from Mr. Rodolfo Angele. Go ahead, Rodolfo.

Speaker Change: Now we will start.

Speaker Change: The Q&A session.

Speaker Change: I'd like to ask each participants to please ask up to two questions. The first question goes comes from Mr. Rodolfo unduly.

Rodolfo Angele: I'd like to ask each participants to please ask up to two questions. The first question comes from Mr. Rodolfo Angele. Go ahead, Rodolfo. Good afternoon, everybody. Thanks for the opportunity to talk to the board. I've just one question about the dividends. Till the beginning of last year, Petrobras would pay minimum and extraordinary dividends each quarter. One of the changes for this year is that the extraordinaries are no longer paid on a quarterly basis. With that, the investors created the expectation of us seeing that after the publication of the fourth quarter results. The board decided to pay only the minimum dividends and did not approve any extraordinary dividends, which is kind of opposed to what the market expected.

Speaker Change: Go ahead Rodolfo.

Rodolfo: Good afternoon everybody.

Rodolfo Angele: Good afternoon, everybody. Thanks for the opportunity to talk to the board. I've just one question about the dividends. Till the beginning of last year, Petrobras would pay minimum and extraordinary dividends each quarter. One of the changes for this year is that the extraordinaries are no longer paid on a quarterly basis. With that, the investors created the expectation of us seeing that after the publication of the fourth quarter results. The board decided to pay only the minimum dividends and did not approve any extraordinary dividends, which is kind of opposed to what the market expected.

Thanks for the opportunity to talk to the board.

Rodolfo: I have just one question about the dividends.

Speaker Change: Until the beginning of last year natural gas would pay minimum and extraordinary dividends each quarter are one of the changes for this year is that the extraordinary oh.

No wonder paid on a quarterly basis and with that.

Speaker Change: The investors.

Speaker Change: Sure that the expectation.

Speaker Change: <unk> seen that after the publication of the one SKU results, but the board decided to pay only the minimum dividends and did not approve any extraordinary dividends, which.

Speaker Change: Is kind of opposed to what the market expected.

Speaker Change: So as discussed on the call are Petrobras had very significant results last year with very low leveraging and it seems that there is a leeway.

[Company Representative] (Petrobras): As discussed on the call, Petrobras had very significant results last year with very low leveraging, and it seems that there's a leeway. Still, the board decided not to pay the extraordinary dividends, and it's approximately $9 billion that were allocated in the capital reserve accounts. My question is, we'd really like you to help investors to understand how to see the extraordinary dividends moving forwards, taking into account four aspects. First, maybe the most important one, what's the rationale behind not paying more if apparently there was some leeway to do so? Secondly, the periodicity. For the extraordinary dividends, should we expect them to be paid only at the end of 2024, or do we have a different possibility? The third one is about the reserves, how they work.

Rodolfo Angele: As discussed on the call, Petrobras had very significant results last year with very low leveraging, and it seems that there's a leeway. Still, the board decided not to pay the extraordinary dividends, and it's approximately $9 billion that were allocated in the capital reserve accounts. My question is, we'd really like you to help investors to understand how to see the extraordinary dividends moving forwards, taking into account four aspects. First, maybe the most important one, what's the rationale behind not paying more if apparently there was some leeway to do so? Secondly, the periodicity. For the extraordinary dividends, should we expect them to be paid only at the end of 2024, or do we have a different possibility? The third one is about the reserves, how they work.

Speaker Change: But.

Speaker Change: Still the board decided not to pay the extraordinary dividends and it's.

Speaker Change: Approximately $9 billion that were allocated in the capsule reserve accounts.

Speaker Change: My question is.

Speaker Change: We really like you to help investors to understand.

Speaker Change: Now to see the extraordinary dividends moving forwards taken into account four aspects.

Speaker Change: First maybe the most important one what's the rationale behind not paying more.

Speaker Change: If apparently as there was some leeway to do so.

Speaker Change: Secondly, the peer Disney so for the extraordinary dividends should we expect them to repaint only at the end of 'twenty 'twenty four or do we have a different possibility. The third one is about the reserves how their work.

Speaker Change: I understand that cannot be used for investments, but can they be reverted and capitalized and if so.

[Company Representative] (Petrobras): I understand they cannot be used for investments, but can they be reverted and capitalized, and if so, when will it start being used to pay dividends? And lastly, if that affects the repurchase program in any way. Thank you. Thanks for your question, Rodolfo. This gives us the possibility to go over this subject that will certainly be questioned about. As you said, we had significant results and low indebtedness, and this leads to your question about this leeway to pay extraordinary dividends. In fact, that was true, but the board decided to allocate that to the reserves accounts based on what was published in the strategic plan of the search for a robust balance and a commitment to be careful in using capital in years, especially 2025 and 2024, that require huge investment efforts from Petrobras.

Rodolfo Angele: I understand they cannot be used for investments, but can they be reverted and capitalized, and if so, when will it start being used to pay dividends? And lastly, if that affects the repurchase program in any way. Thank you.

Speaker Change: When will it start being used to pay dividends and lastly, if that affects the repurchase program.

Speaker Change: And anyway. Thank you.

Speaker Change: Thanks for your question Rodolfo.

Sérgio Caetano Leite: Thanks for your question, Rodolfo. This gives us the possibility to go over this subject that will certainly be questioned about. As you said, we had significant results and low indebtedness, and this leads to your question about this leeway to pay extraordinary dividends. In fact, that was true, but the board decided to allocate that to the reserves accounts based on what was published in the strategic plan of the search for a robust balance and a commitment to be careful in using capital in years, especially 2025 and 2024, that require huge investment efforts from Petrobras.

Speaker Change: This gives us the possibility to.

Speaker Change: Go over.

Speaker Change: The subjects that will certainly be questioned about.

As you said, we had significant results and low indebtedness and this leads to your question about this leeway to pay extraordinary dividends in fact that was true, but the board decided to allocate that to the reserves accounts based on what was pumped.

Speaker Change: <unk> and the strategic plan of the search for a robust balance and a commitment to be careful in using capital in a year's especially 25 and 24 that require huge investment efforts from Petrobras the rationale behind it is base.

[Company Representative] (Petrobras): The rationale behind it is basically that the years 2024 and 2025 will require significant investments and a portfolio that's already been considered. That in turn leads us to having to manage the cash flow differently, and that may lead to misunderstandings. This resource that's allocated to the reserve, can it be used for investments? The answer is no. The resources allocated to that reserve are to be used to pay dividends. From the BRL 43 billion or $9 billion of surplus, which are the net profit minus what was paid in 2023, they were allocated to the payment of dividends and not investments. That is important.

Sérgio Caetano Leite: The rationale behind it is basically that the years 2024 and 2025 will require significant investments and a portfolio that's already been considered. That in turn leads us to having to manage the cash flow differently, and that may lead to misunderstandings. This resource that's allocated to the reserve, can it be used for investments? The answer is no. The resources allocated to that reserve are to be used to pay dividends. From the BRL 43 billion or $9 billion of surplus, which are the net profit minus what was paid in 2023, they were allocated to the payment of dividends and not investments. That is important.

Speaker Change: With that.

Speaker Change: The years 'twenty, four and 'twenty five.

Speaker Change: Well require.

Speaker Change: Significant investments.

Speaker Change: And a portfolio that has already been considered.

Speaker Change: And that in turn leads us to having to manage the cash flow differently and that mainly to misunderstandings.

Speaker Change: So this resource that's allocated to the reserve can it be used for investments and the answer is no the resources allocated to that reserve or to be used to pay dividends.

Speaker Change: So.

Speaker Change: From the.

Speaker Change: 43 billion, he is or at 9 billion.

Speaker Change: Dollars of surplus.

Speaker Change: Which are the net.

Speaker Change: Our profit minus what was paid in 2023, they were allocated to the payment of the dividends.

Speaker Change: Dividends and not investments that is important I know that's not part of your question, but I'm using your question to answer other questions that we received in the chat concerning dividends.

[Company Representative] (Petrobras): I know that's not part of your question, but I'm using your question to answer other questions that we received in the chat concerning dividends. Concerning the periodicity, you compared it to the change that was made to the remuneration of shareholders. We'll keep waiting for the results of extraordinary results at the end of each period, not every quarter. That's according to what the policy says. As for the timeframe, we have no indication of a timeframe right now. What we do have is a study of the variables that led to the decision to allocate this to the capital remuneration reserve. Behind this decision of the board, there's this preservation of capital and this careful cash flow control, and we are still monitoring. We keep monitoring these issues. As of now, we have no idea of a timeframe. Thank you, Sergio, and thank you, Rodolfo.

Sérgio Caetano Leite: I know that's not part of your question, but I'm using your question to answer other questions that we received in the chat concerning dividends. Concerning the periodicity, you compared it to the change that was made to the remuneration of shareholders. We'll keep waiting for the results of extraordinary results at the end of each period, not every quarter. That's according to what the policy says. As for the timeframe, we have no indication of a timeframe right now. What we do have is a study of the variables that led to the decision to allocate this to the capital remuneration reserve. Behind this decision of the board, there's this preservation of capital and this careful cash flow control, and we are still monitoring. We keep monitoring these issues. As of now, we have no idea of a timeframe.

Speaker Change: Turning the periodicity.

Speaker Change: Yeah.

Speaker Change: Compared it to the change that was made to the remuneration of shareholders we will.

Speaker Change: Keep waiting for the.

Speaker Change: Our results of extraordinary results at the end.

Speaker Change: Of each period and not every quarter that's according to what the policy says.

Speaker Change: As for the timeframe, we have no indication of a timeframe right now.

Speaker Change: What we do have is a study of the variables that led to the decision.

Speaker Change: To allocate this.

Speaker Change: To the right.

Speaker Change: Capital Remuneration reserve so behind this decision of the board.

Speaker Change: <unk> this is preservation of capital.

Speaker Change: And this careful cash flow control and we are still monitoring and we keep monitoring these issues. So as of now we have no idea of the timeframe.

Operator: Thank you, Sergio and thank you, Rodolfo. The next question is from Monique Greco from Itaú BBA. Monique, go ahead, please. In the meantime, let's move to the next question from Bruno Montanari from Morgan Stanley. Bruno, you have the floor. Go ahead, Bruno.

Speaker Change: Thank you Sergio and thank you Rodolfo.

Speaker Change: Next question is from when he key granular from Ito barbell.

Bruno Montanari: The next question is from Monique Greco from Itaú BBA. Monique, go ahead, please. In the meantime, let's move to the next question from Bruno Montanari from Morgan Stanley. Bruno, you have the floor. Go ahead, Bruno. Thank you. So in line with Rodolfo Angeli's question, I have three questions. I'll try to be quick since he only asked one. About the extraordinary dividends, maybe you could share with us the process that took place during the board meeting and the proposal by the administration, and how this decision to retain 100% of the amount was made. Was it a unanimous decision or not? That could help us understand the process. Also about the dividends.

Nicky.

Speaker Change: Go ahead please.

Speaker Change: In the meantime.

Speaker Change: Let's move to the next question from Bruno Montanari from Morgan Stanley Bruno.

Bruno Montanari: You have the floor.

Bruno Montanari: Go ahead Bruno.

Bruno Montanari: Thank you.

Bruno Montanari: Thank you. So in line with Rodolfo Angeli's question, I have three questions. I'll try to be quick since he only asked one. About the extraordinary dividends, maybe you could share with us the process that took place during the board meeting and the proposal by the administration, and how this decision to retain 100% of the amount was made. Was it a unanimous decision or not? That could help us understand the process. Also about the dividends.

Speaker Change: So in line with Rudolph pose a question I have three questions I'll try to be quick since he only asked one about the extraordinary dividends, but maybe you could share with us your.

Speaker Change: The process that took place during the board meeting and the proposal by the administration.

Speaker Change: And how this decision to retain a 100% of the amount was made was it a unanimous decision or not that can help us understand the process.

Speaker Change: And also about the dividends. So does it makes sense for us to think that during the 'twenty 'twenty four.

[Company Representative] (Petrobras): Does it make sense for us to think that during the 2024 quarters, in a hypothetical scenario where the CapEx is lower, which was the case of 2023, that we could expect that the reserve could be reallocated, the capital remuneration reserve could be reallocated? Also about the dividends, in what hypothetical scenario would you make the decision to add this reserve to the capital of the company, which according to the Articles of Association is a possibility. My second question is about production. I know it's still early in the year, but the last few months were quite solid.

Bruno Montanari: Does it make sense for us to think that during the 2024 quarters, in a hypothetical scenario where the CapEx is lower, which was the case of 2023, that we could expect that the reserve could be reallocated, the capital remuneration reserve could be reallocated? Also about the dividends, in what hypothetical scenario would you make the decision to add this reserve to the capital of the company, which according to the Articles of Association is a possibility. My second question is about production. I know it's still early in the year, but the last few months were quite solid.

Speaker Change: Orders in a hypothetical scenario, where the Capex is lower which was the case of 2023.

Speaker Change: That we could expect.

Speaker Change: That the reserve could be reallocated the capital remuneration, a reserve could be reallocated and also about the dividends and want hypothetical scenario, which can make the decision to add.

Speaker Change: This reserve two of the capital of the company, which according to the articles of Association.

Speaker Change: <unk> is a possibility my second question is about production I know, it's still early in the year, but the last few months were quite solid. So maybe you could talk about your perspectives for production for this year, if theres any downtime.

[Company Representative] (Petrobras): Maybe you could talk about your perspectives for production for this year, if there's any downtime that's been scheduled in the short term, and maybe if we could expect the production to occupy the upper range of more or less 4%. The third one is that the company was very transparent in its communication to the market about the contract with Unigel, and congratulations on that. Since the subject led to anxiety in the market, maybe you could explain to us the decision-making process that led you to choose the tooling. Please correct me if I'm wrong. I understand that that's the least damaging solution for the company among all options. Thank you, Bruno, for your questions.

Bruno Montanari: Maybe you could talk about your perspectives for production for this year, if there's any downtime that's been scheduled in the short term, and maybe if we could expect the production to occupy the upper range of more or less 4%. The third one is that the company was very transparent in its communication to the market about the contract with Unigel, and congratulations on that. Since the subject led to anxiety in the market, maybe you could explain to us the decision-making process that led you to choose the tooling. Please correct me if I'm wrong. I understand that that's the least damaging solution for the company among all options.

Speaker Change: Downtime, that's been scheduled and the short term.

Speaker Change: And maybe.

Speaker Change: If we could expect the production to occupy the upper range of more or less 4% and the third one is that the company was very transparent in its communication to the market about the.

Speaker Change: Market the contract with shell and congratulations on that since the subjects led to anxiety.

Speaker Change: The market, maybe you could explain to us the decision making process that led you to choose the tolling and please correct me if I'm wrong I understand that that's the least damaging solution for the company among all options.

Bruno Montanari: Thank you Bruno for your questions.

William França: Thank you, Bruno, for your questions. Even though I might want to, I cannot make any comments on the meetings that take place with the board. Governance does not allow us to. The minutes are public, though, and of course, you can download them and read them, so I cannot answer that question. Very briefly, Bruno. Since the minutes are public, of course, if you do research, you're gonna see that the government counselors voted for 100% of the reserve. The private counselors voted for 100% of exclusion. As the president, I abstained from voting because it would make no difference, and was together with my board of directors, so they proposed 50-50. That was our proposal. The discussions were normal, and those were the results. We're gonna work on those results.

Bruno Montanari: Even though I am.

Bruno Montanari: I want to I cannot make any comments on.

[Company Representative] (Petrobras): Even though I might want to, I cannot make any comments on the meetings that take place with the board. Governance does not allow us to. The minutes are public, though, and of course, you can download them and read them, so I cannot answer that question. Very briefly, Bruno. Since the minutes are public, of course, if you do research, you're gonna see that the government counselors voted for 100% of the reserve. The private counselors voted for 100% of exclusion. As the president, I abstained from voting because it would make no difference, and was together with my board of directors, so they proposed 50-50. That was our proposal. The discussions were normal, and those were the results. We're gonna work on those results.

Bruno Montanari: The meetings that take place.

Bruno Montanari: What the board governance does not allow us to the minutes are public though.

Bruno Montanari: And of course.

Bruno Montanari: You can download them and read them. So I cannot answer that question.

Rafal Bruno: Very briefly Rafal Bruno.

Since the minutes are public.

Rafal Bruno: Of course.

Rafal Bruno: If you do research you are going to see that the government councillors voted for a 100% of the reserve the private counsels voted for 100% of exclusion and as the President's I abstained from voting because it would make no difference and al was together with my board of direct.

Rafal Bruno: There is so they proposed 50 50 that was our proposed proposal the discussions are where.

Rafal Bruno: Normal and those were the results we're going to work on those results. We'll respect the sovereign decision of the council and of course as a reminder, it could change we could go back to doing a dividend distribution at any moment. So the story goes on it.

[Company Representative] (Petrobras): We'll respect the sovereign decision of the council. Of course, as a reminder, it could change. We could go back to doing a dividend distribution at any moment. The story goes on. About the allocation, I'll give the mic back to Sergio. About internalization of capital, that's allowed by law, and it's also provided for by law that the company uses any reserves to pay for its losses. We do not forecast these situations for the next few months. It was allocated for dividends and must be used as such. Speaking about transparency, thank you for your comments. Thank you for the acknowledgments. We've been really making every effort to give transparency to the market.

William França: We'll respect the sovereign decision of the council. Of course, as a reminder, it could change. We could go back to doing a dividend distribution at any moment. The story goes on. About the allocation, I'll give the mic back to Sergio.

Rafal Bruno: And about the.

Rafal Bruno: Allocation al.

Rafal Bruno: Give the mic back to Sergio.

Rafal Bruno: Our balance.

Sergio Caetano: Utilization of capital that's allowed by law and its also provided for by law that the company uses any reserves to.

Sérgio Caetano Leite: About internalization of capital, that's allowed by law, and it's also provided for by law that the company uses any reserves to pay for its losses. We do not forecast these situations for the next few months. It was allocated for dividends and must be used as such. Speaking about transparency, thank you for your comments. Thank you for the acknowledgments. We've been really making every effort to give transparency to the market. I'll talk about Unigel, a very short answer, and then I'll give the floor to Joelson Mendes, the Director of Exploration and Production, to talk about production.

Sergio Caetano: PE.

Sergio Caetano: For its losses, we do not forecast these situations for the next few months it was allocated for dividends and must be used as such.

Speaking about transparency of thank you for your comments and thank you for the acknowledgment that we have been really making every effort to give transparency to the market I'll talk about in a channel a very short answer and then I'll give the floor to shall soon the director of exploration and production to talk about production.

[Company Representative] (Petrobras): I'll talk about Unigel, a very short answer, and then I'll give the floor to Joelson Mendes, the Director of Exploration and Production, to talk about production.

Speaker Change: So union gel since we had those two meetings with Brazilians and foreigners, we talked about the companies.

Operator: Unigel, since we had those two meetings with Brazilians and foreigners, we talked about the company's governance and their role in the decision. You asked about the process, right? If I'm not mistaken, we had over 70 people looking at this contract throughout months. The situation is, last year, the board allowed Petrobras to continue to invest in petrochemicals and fertilizers. We've been looking at processes, and Unigel was started. Seventy people started working on that, and the process carried on normally. We signed, certified it, and recognized it according to the different powers in Petrobras, and you're right. The director and the managers involved chose the best solution in the existing scenario. It was a normal process with the entire company's governance. I'll pass it over to Joelson Mendes.

Sérgio Caetano Leite: Unigel, since we had those two meetings with Brazilians and foreigners, we talked about the company's governance and their role in the decision. You asked about the process, right? If I'm not mistaken, we had over 70 people looking at this contract throughout months. The situation is, last year, the board allowed Petrobras to continue to invest in petrochemicals and fertilizers. We've been looking at processes, and Unigel was started. Seventy people started working on that, and the process carried on normally. We signed, certified it, and recognized it according to the different powers in Petrobras, and you're right. The director and the managers involved chose the best solution in the existing scenario. It was a normal process with the entire company's governance. I'll pass it over to Joelson Mendes.

Speaker Change: Governments and their role in the decision you asked about the process right. So if I'm not mistaken we had over 70 people looking at this contract throughout months.

Speaker Change: So.

Speaker Change: The situation is last year, the board allowed Petrobras to continue to invest in petrochemicals and fertilizers.

Speaker Change: So we've been looking at our processes and unit jaw was started so 70 people started working on that and the process carried on normally.

Speaker Change: We signed certified it and recognize that according to <unk>.

Speaker Change: The different powers in Petrobras and Youre right.

Speaker Change: Okay.

Speaker Change: The director and the managers.

Speaker Change: Involved chose the best solution in the existing scenario. So it was a normal process with.

Speaker Change: With the entire company's governance.

Speaker Change: I'll pass it over to Joe <unk>.

Speaker Change: Yes, if you'll allow me.

Speaker Change: I'd, just like to emphasize that and say it to William and to you. This episode.

Operator: Yes, if you'll allow me, I'd just like to emphasize it and say it to William and to you. This episode does not affect our management at all. This is not a standalone project. It's not a new project. We're not buying assets. In the governance process, it shouldn't even be taken to the board. It's a service contract to maintain 2 of our plants at Petrobras. This refers to our own assets with an operation that doesn't imply on selling gas. We're delivering raw materials and receiving industrialized products, and it's for 18 months, which is the time we need to think of a solution and implement it for these plants that were not sold well or were not rented well to correct the ongoing process. As Sergio said, this appeared in the end of the strategic decision-making process.

Joelson Mendes: Yes, if you'll allow me, I'd just like to emphasize it and say it to William and to you. This episode does not affect our management at all. This is not a standalone project. It's not a new project. We're not buying assets. In the governance process, it shouldn't even be taken to the board. It's a service contract to maintain 2 of our plants at Petrobras. This refers to our own assets with an operation that doesn't imply on selling gas. We're delivering raw materials and receiving industrialized products, and it's for 18 months, which is the time we need to think of a solution and implement it for these plants that were not sold well or were not rented well to correct the ongoing process. As Sergio said, this appeared in the end of the strategic decision-making process.

Yeah.

Speaker Change: Does not.

Speaker Change: Affect our management at all.

This is not a standalone project, that's not a new project, we're not buying assets. So in the governance process. It shouldn't even be taken to the board. It's a service contract to maintain two of our plants at Petrobras. So for example, this refers to.

Speaker Change: Our own assets.

With an operation that doesn't.

Speaker Change: Hum imply on selling gas.

We're delivering raw materials and receiving industrialized.

Speaker Change: Products and it's for 18 months, which is the time, we need to think of our solution and implemented for these plants that were not sold well or were not rented well to correct the ongoing process.

As Sergio said disappeared in the end of the strategic decision making process.

Speaker Change: We couldn't work on fertilizers before it was approved so.

Operator: We couldn't work on fertilizers before it was approved, so these 18 months started then. We're going to submit this activation to the different levels of decision-makers. This was perfect. The process was perfect. We feel free to deliberate on this process if this is what the directors vote on. Hi, everyone. Good afternoon. Yes, the decision-making process for this industrialization process was passed, as Sergio said, through the company's leaders. The risk group worked with many areas of the company, generating a report, and with that, we made the decisions we had to, according to the governance, to sign our contract. We voluntarily, as soon as we signed the contract, contacted TCU, and we voluntarily had a meeting with them in Q1 in January.

Joelson Mendes: We couldn't work on fertilizers before it was approved, so these 18 months started then. We're going to submit this activation to the different levels of decision-makers. This was perfect. The process was perfect. We feel free to deliberate on this process if this is what the directors vote on.

Speaker Change: These 18 months started then.

Speaker Change: And we're going to submit.

Speaker Change: This activation to the different levels of decision makers.

Speaker Change: This was perfect. So we feel the process was perfect. So we feel.

Speaker Change: Free to deliberate on this process. If this is what.

Speaker Change: The directors vote on.

Speaker Change: Hi, everyone. Good afternoon, yes, the decision making process for this.

Joelson Mendes: Hi, everyone. Good afternoon. Yes, the decision-making process for this industrialization process was passed, as Sergio said, through the company's leaders. The risk group worked with many areas of the company, generating a report, and with that, we made the decisions we had to, according to the governance, to sign our contract. We voluntarily, as soon as we signed the contract, contacted TCU, and we voluntarily had a meeting with them in Q1 in January.

Speaker Change: This industrialization process.

Speaker Change: Was passed as Sergio said.

Speaker Change: Through the company's leaders.

Speaker Change: The risk group worked with many areas of the company generating a report.

And with that we made the decisions we had to.

Speaker Change: According to the governance to sign a contract.

And we voluntarily as soon as we sign the contract.

Speaker Change: Contacted TCU when we voluntarily had a meeting with them.

Speaker Change: In the first quarter in January.

Speaker Change: So we decided to go to the court of accounts and to inform them under their request about the different things related to the contract itself as a highlight this contract has several possibilities and we understood that this was the best one.

Operator: We decided to go to the Court of Accounts and to inform them under their request about the different things related to the contract itself. As a highlight, this contract has several possibilities, and we understood that this was the best one for the group. We understood this was the most advantageous for the company because these are our plants, although they are rented, so they have to be cared for. They are Petrobras plants, and we're continuing the approved process to do it in the most strategic way possible. This contract will give us some leeway to analyze what's happening. This group is working in the company to find a definitive solution for it according to our interests, according to the country's interests, and our strategy to reduce our dependence on fertilizers, imported fertilizers. Good afternoon, Bruno. Thank you for that question.

Joelson Mendes: We decided to go to the Court of Accounts and to inform them under their request about the different things related to the contract itself. As a highlight, this contract has several possibilities, and we understood that this was the best one for the group. We understood this was the most advantageous for the company because these are our plants, although they are rented, so they have to be cared for. They are Petrobras plants, and we're continuing the approved process to do it in the most strategic way possible. This contract will give us some leeway to analyze what's happening. This group is working in the company to find a definitive solution for it according to our interests, according to the country's interests, and our strategy to reduce our dependence on fertilizers, imported fertilizers.

Speaker Change: For the group.

We understood that this was the most advantageous for the company because these are our plants. Although they are rented so they have to be cared for.

Speaker Change: They are Petrobras plants, and we're continuing the approved process to do.

Speaker Change: Do it in the most strategic way possible. So this contract will give us some leeway to analyze.

Speaker Change: What's.

Speaker Change: <unk> happening in this group is working in the company to find a definitive solution for it.

Speaker Change: According to our interests according to the country's interests.

Speaker Change: And our strategy to reduce our dependence on fertilizers imported fertilisers.

Bruno Montanari: Good afternoon, Bruno Thank you for that question.

Operator: Good afternoon, Bruno. Thank you for that question. About the downtimes you mentioned, they're all in line with what had been foreseen. Nothing new. The production from Q1 is in line with what we've forecasted. Last year, we had 4 new production systems and 2 that were ramping up. We were a bit above the production levels that we had foreseen last year, but still within that range. We have some forecasts that fortunately did not materialize in terms of possible delays and so on. This year we have fewer foreseen problems, right? We have one FPSO that's ramping up and some areas in decline.

Speaker Change: About the downtime as you mentioned they are all in line with what had been foreseen nothing new.

Operator: About the downtimes you mentioned, they're all in line with what had been foreseen. Nothing new. The production from Q1 is in line with what we've forecasted. Last year, we had 4 new production systems and 2 that were ramping up. We were a bit above the production levels that we had foreseen last year, but still within that range. We have some forecasts that fortunately did not materialize in terms of possible delays and so on. This year we have fewer foreseen problems, right? We have one FPSO that's ramping up and some areas in decline.

The production from the first quarter.

Speaker Change: Is inline with what we forecasted.

Speaker Change: Last year, we had.

Speaker Change: For new production systems, and two that were ramping up.

Speaker Change: So we were a bit above the production levels that we had foreseen last year, but still within that range.

Speaker Change: We have some forecast that Fortunately did not materialize in terms of a possible delays and so on.

Speaker Change: This year, we have fewer foreseen.

Speaker Change: Sure.

Speaker Change: Problems right, we have one F. P. S. So that's ramping up in some areas and decline. So I would say that well you asked if we could be above the range and I'd say that our best bet is oh.

Monique Greco: Well, you asked if we could be above the range, and I'd say that our best bet is 12.8 equivalent barrels per day, and we're going to announce a certain range, but I would bet that we would be about on that average, in the middle of that average. Thank you, Bruno, for your question. Monique, we'll pass it over to you for the next question. How do you do? Can you hear me? Yes, we can hear you. Good afternoon, everyone. I apologize for the technical issue before. I'd like to thank you for this opportunity to ask questions. This is very important for us on the other side. I have two questions here for you. The first one is a follow-up question about two points that Jean and Sergio mentioned.

12 point aid equivalent barrels per day, and we're going to announce a certain range, but I would bet that we would be about.

Speaker Change: On that average in the middle of that average.

Okay.

Operator: Thank you, Bruno, for your question. Monique, we'll pass it over to you for the next question. How do you do? Can you hear me? Yes, we can hear you.

Speaker Change: Okay.

Speaker Change: Thank you Bruno for your question Mani key.

Speaker Change: We'll pass it over to you for the next question.

Mani key: I do can you hear me.

Speaker Change: Yes, we can hear you.

Speaker Change: Good afternoon, everyone I apologize for the technical issue before.

Monique Greco: Good afternoon, everyone. I apologize for the technical issue before. I'd like to thank you for this opportunity to ask questions. This is very important for us on the other side. I have two questions here for you. The first one is a follow-up question about two points that Jean and Sergio mentioned.

Speaker Change: I'd like to think.

Speaker Change: You for this opportunity to ask questions. This is very important for us on the other side.

Speaker Change: So I have two questions here for you.

Speaker Change: The first one is a follow up question.

About two points that you own and Sergio mentioned, Jim mentioned during his speech that.

Operator: Jean mentioned during his speech that as the reserve was constituted, it would continue to be a possibility for us to pay extraordinary dividends. But Sergio mentioned that this would only be inspected at the end of the year. My first question is, if we can expect any other decisions throughout the year, or would it only be at the end of the year? And my second question is about your investment intentions in integrating downstream. This was in the release and in your strategic arguments. Jean mentioned that you expected to invest in logistics and refinement. My question is, how you believe that this integration will happen, how it will integrate downstream? Besides that partnership that you mentioned with Raízen, what other investments are in this strategy?

Monique Greco: Jean mentioned during his speech that as the reserve was constituted, it would continue to be a possibility for us to pay extraordinary dividends. But Sergio mentioned that this would only be inspected at the end of the year. My first question is, if we can expect any other decisions throughout the year, or would it only be at the end of the year? And my second question is about your investment intentions in integrating downstream. This was in the release and in your strategic arguments. Jean mentioned that you expected to invest in logistics and refinement. My question is, how you believe that this integration will happen, how it will integrate downstream? Besides that partnership that you mentioned with Raízen, what other investments are in this strategy? Returning to distribution, would that be in the scope? That's my question. Thank you.

Speaker Change: As the reserve was constituted.

Speaker Change: This will.

Speaker Change: Continue to.

Speaker Change: You know.

Speaker Change: That will continue to be a possibility for us to pay extraordinary.

Speaker Change: Dividends, but Sergio mentioned that this would only be inspected at the end of the year. So my first question is.

Speaker Change: Yeah.

Speaker Change: If we can expect any other decisions throughout the year or would it only be at the end of the year.

Speaker Change: And my second question is about your investment intentions and integrating downstream.

Speaker Change: This was in the release and in your strategic.

Speaker Change: Arguments.

Speaker Change: Jim mentioned that they are.

Speaker Change: You expect it to invest in logistics and refinement.

Speaker Change: So my question is how you believe that this integration will happen how it will integrate downstream. Besides that partnership that you mentioned with relearn what other investments are in this strategy.

Speaker Change: Returning to distribution would that be in the scope. So that's my question. Thank you.

Operator: Returning to distribution, would that be in the scope? That's my question. Thank you. Good morning, Monique. Congratulations for International Women's Day. You asked about two different things, I think. Since there was a comment about extraordinary dividends being inspected quarterly, and since there was a change at the end of the year, I was referring to that question. It will still be at the end of the year with every fiscal year. The other question is about what is being analyzed, the resources that are being analyzed that can be redistributed at any point. Before I pass it over to William, who's going to answer your question about the downstream integration, I'll ask if Jean wants to say anything.

Monique Greco: Good morning, Monique. Congratulations for International Women's Day. You asked about two different things, I think. Since there was a comment about extraordinary dividends being inspected quarterly, and since there was a change at the end of the year, I was referring to that question. It will still be at the end of the year with every fiscal year. The other question is about what is being analyzed, the resources that are being analyzed that can be redistributed at any point. Before I pass it over to William, who's going to answer your question about the downstream integration, I'll ask if Jean wants to say anything.

Good morning Monique.

Congratulations for international Women's day.

Speaker Change: Okay.

Speaker Change: So.

Speaker Change: You asked about two different things I think.

Speaker Change: Since there was a comment about extraordinary dividends being inspected quarterly.

Speaker Change: And since there was a change at the end of the year I was referring to that question.

Speaker Change: So it will still be at the end of the year with every.

Speaker Change: Fiscal year.

Speaker Change: And the other question is about.

Speaker Change: What.

Speaker Change: Is being analyzed our resources that are being analyzed that can be redistributed at any point.

Before I pass it over to William Who's going to answer your question about the downstream integration I'll ask if Joe wants to say anything.

William: Well in terms of the downstream integration there are many dimensions of course, but.

Operator: Well, in terms of the downstream integration, there are many dimensions, of course, but you have to look at least two dimensions. The first is logistics assets that might be lost, and we also need to adapt, modernize, and update some of our logistics processes. We need to adapt, for example, to biofuels. We'll need to adapt to new fuels, not just the ones that are a part of the mix right now. Other types of fuel are joining and will need to be a part of the process. These two dimensions need to be analyzed. It's not only. You know, people might think that it's all about buying refineries and APRs. We're not doing the same old thing. We're looking at the future.

Jean Paul Prates: Well, in terms of the downstream integration, there are many dimensions, of course, but you have to look at least two dimensions. The first is logistics assets that might be lost, and we also need to adapt, modernize, and update some of our logistics processes. We need to adapt, for example, to biofuels. We'll need to adapt to new fuels, not just the ones that are a part of the mix right now. Other types of fuel are joining and will need to be a part of the process. These two dimensions need to be analyzed. It's not only. You know, people might think that it's all about buying refineries and APRs. We're not doing the same old thing. We're looking at the future.

Speaker Change: You have to look at at least two dimensions.

Speaker Change: The first is.

Speaker Change: Logistics assets that might be lost and.

Speaker Change: We also need to adapt modernize and update some of our logistics processes.

Speaker Change: So we need to adapt for example to Biofuels will need to adapt to.

Speaker Change: New fuels not just the ones that are a part of the mix right now.

Speaker Change: So other <unk>.

Types of fuel are joining and will need to be a part of the process.

So these two dimensions need to be analyzed it's not only you know people might think that it's all about buying refineries in a be ours.

So we're not doing the same old thing, we're looking at the future.

Speaker Change: Yeah.

Speaker Change: So.

Speaker Change: We spent nearly 10 years.

Operator: We spent nearly 10 years looking at assets and selling them, and we need to do that again, but it will be responsible according to our perspective and according to what we know how to do. Thank you for your question. I think it's important to mention that integration for the company, especially downstream, is permanent in its execution. Last year, we had a great example, where we saw our refinery park working. We processed more national oil in Brazil, we processed more pre-salt oil. We can see this happening in a scenario of high inflation, strong pressure on shipping. When we integrate or process our oil, we can capture the freight costs from Europe and China, and we are capturing a margin and still gaining the shipping costs. Integration for itself is an exercise on that.

Speaker Change: Looking at assets and selling them and we need to do that again, but it will be irresponsible.

Jean Paul Prates: We spent nearly 10 years looking at assets and selling them, and we need to do that again, but it will be responsible according to our perspective and according to what we know how to do.

Speaker Change: According to our perspective and according to what we knew how to do.

Speaker Change: Yeah.

William França: Thank you for your question. I think it's important to mention that integration for the company, especially downstream, is permanent in its execution. Last year, we had a great example, where we saw our refinery park working. We processed more national oil in Brazil, we processed more pre-salt oil. We can see this happening in a scenario of high inflation, strong pressure on shipping. When we integrate or process our oil, we can capture the freight costs from Europe and China, and we are capturing a margin and still gaining the shipping costs. Integration for itself is an exercise on that.

Speaker Change: Thank you for your question.

Speaker Change: And I think it's important to mention that integration.

Speaker Change: Or the company, especially downstream.

Speaker Change: Is permanent and it's execution last year, we had a great example.

Speaker Change: Where we.

Speaker Change: Saum.

Speaker Change: Our refinery park.

Speaker Change: A word king we processed more national oil in Brazil.

Speaker Change: We processed more pre salt oil.

Speaker Change: And we can see this happening in a scenario of high inflation.

Speaker Change: Strong pressure on shipping and when we integrate our process our oil we can capture.

Speaker Change:

Speaker Change: Freight costs from Europe, and China, and we are capturing a margin and still.

Speaker Change: Gaining the shipping costs. So integration for itself is an exercise on that.

Okay.

Speaker Change: So our integration is based on that because it will allow us to compete.

Operator: Our integration is based on that because it will allow us to compete for the different markets, and that's essential. The future of oil will be based on the market, and that's how we're positioning ourselves. We're looking at integration. If we look towards the future, we can see opportunities in energy transition and what's ahead. Integration is a very relevant factor in that. Major consumers, like Mauricio Tolmasquim mentioned, the renewable energy generated will probably be based on the assets we already have, and their integration is extremely relevant. When we talk about hydrogen, the Petrobras part is the biggest user of hydrogen in the country or the biggest producer of hydrogen, and that's very important.

William França: Our integration is based on that because it will allow us to compete for the different markets, and that's essential. The future of oil will be based on the market, and that's how we're positioning ourselves. We're looking at integration. If we look towards the future, we can see opportunities in energy transition and what's ahead. Integration is a very relevant factor in that. Major consumers, like Mauricio Tolmasquim mentioned, the renewable energy generated will probably be based on the assets we already have, and their integration is extremely relevant. When we talk about hydrogen, the Petrobras part is the biggest user of hydrogen in the country or the biggest producer of hydrogen, and that's very important.

For the different markets and that's essential.

Speaker Change: So the future of Oh, it will be based on the market and that's how we're positioning ourselves.

Speaker Change: We're looking at integration.

Speaker Change: And if we look towards the future we can see opportunities in energy transition and what's ahead and integration is a very relevant factor at that.

Speaker Change: Major consumers like Joe MS scheme, I mentioned, the renewable energy generated will probably be based on the assets, we already have and their integration is extremely relevant so when we talk about hydrogen.

Speaker Change: The Petrobras a park has the biggest user of hydrogen on the country or the biggest producer of hydrogen and that's very important when we talk about energy transition.

Speaker Change: The transformation of our refineries.

Operator: When we talk about energy transition, the transformation of our refineries, and at the end of the day, in the future, when we move away from the age of oil and switch to renewables, we will need to use all of this transition that I'm mentioning. HVO units, processing renewable cargo. This integration has a lot of value. It's very simple. We captured margins, we captured results for the company as a result of this integration, and in the future, we will have even more than that. That's the value of integration right now. That's a very strong competitive advantage. Thank you for your question.

William França: When we talk about energy transition, the transformation of our refineries, and at the end of the day, in the future, when we move away from the age of oil and switch to renewables, we will need to use all of this transition that I'm mentioning. HVO units, processing renewable cargo. This integration has a lot of value. It's very simple. We captured margins, we captured results for the company as a result of this integration, and in the future, we will have even more than that. That's the value of integration right now. That's a very strong competitive advantage. Thank you for your question.

And at the end of the day in the future when we move away from the age of oil and switch to renewables, we will need to use all of this transition that I've mentioned, so HVO units processed in renewable a cargo.

Speaker Change: This integration.

Has.

Speaker Change: A lot of value so it's very simple.

We captured margins we.

Captured results for the company as a result of this integration and in the future we will have even more than that.

Speaker Change: So that's the value of integration right now that's a very strong competitive advantage and thank you for your question.

Speaker Change: Thank you. The next question comes from Louise <unk> from UBS Bank.

Luiz Carvalho: Thank you. The next question comes from Luiz Carvalho from UBS. Hello, good afternoon. Can you hear me? Yes. I have two questions, and my apologies on insisting on the subject, but I'd like to take advantage of President Jean Paul Prates's experience as an experienced politician to understand the importance of Petrobras in the process of construction of the law of the federal government, and how that conversation between the company and the governmental agencies happen based on their forecasts. If the forecasts are not met, the government must provide explanations and etc.

Operator: Thank you. The next question comes from Luiz Carvalho from UBS.

Luiz Carvalho: Hello, good afternoon. Can you hear me?

Speaker Change: Hello, Good afternoon can you hear me.

Speaker Change: Yes.

Operator: Yes.

Luiz Carvalho: I have two questions, and my apologies on insisting on the subject, but I'd like to take advantage of President Jean Paul Prates's experience as an experienced politician to understand the importance of Petrobras in the process of construction of the law of the federal government, and how that conversation between the company and the governmental agencies happen based on their forecasts. If the forecasts are not met, the government must provide explanations and etc.

Speaker Change: Well I have two questions.

Speaker Change: And I apologize on.

Speaker Change: Insisting.

Speaker Change: And the subjects, but I'd like to thank them.

Speaker Change: Advantage of present, Sean Paul's experience as a.

Speaker Change: An experienced politician to understand the importance of Petrobras and the process of construction of the law of the federal government and how that conversation between the company and the governmental agencies happen.

Speaker Change: Based on.

Speaker Change: You know their forecasts and are if the forecasts are not met.

Speaker Change: The government must provide explanations and et cetera, and along the same lines and based on news published in the media.

[Company Representative] (Petrobras): Along the same lines, and based on news published in the media, how an agreement with Coffee could have had an impact or guided the decision of the council in terms of retained a little more cash, even though that's allocated to dividends. Also the second question, could you shed some light on the allocation of capital? The president has been vocal in terms of Acelen, and this week there was news about Vibra. Maybe you could talk about Braskem as well.

Luiz Carvalho: Along the same lines, and based on news published in the media, how an agreement with Coffee could have had an impact or guided the decision of the council in terms of retained a little more cash, even though that's allocated to dividends. Also the second question, could you shed some light on the allocation of capital? The president has been vocal in terms of Acelen, and this week there was news about Vibra. Maybe you could talk about Braskem as well.

Speaker Change: How.

Speaker Change: In agreement with coffee.

Speaker Change: Could have had an impact.

Speaker Change: Or guided the decision of the council in terms of retained.

Speaker Change: A little more cash even though that's allocated to dividends and also the second question could you shed some light on the allocation of capital. The President has been a vocal in terms of Astle M and this week, there where a new there was news about.

Speaker Change: Febrile, maybe you could talk about breast cancer as well.

Yeah.

Speaker Change: Lewis.

[Company Representative] (Petrobras): Luiz, when it comes to the law, at the end of the third quarter, we usually submit an earnings forecast, which is not a detailed forecast, and that is a result of this process whereby state-owned companies send their forecast to the government without any detailed information. From then onwards, we do what we can in terms of the dividends, and the discussion about dividends is not related to that. It didn't appear to me that that had a direct relationship with the returns for the federal government, which is also reflected in taxes and royalties. In this case, the dividends to majority shareholders, and 37%, goes to the government. In that regard, there is a certain balance in that process. It's just a matter of defining the timing.

Jean Paul Prates: Luiz, when it comes to the law, at the end of the third quarter, we usually submit an earnings forecast, which is not a detailed forecast, and that is a result of this process whereby state-owned companies send their forecast to the government without any detailed information. From then onwards, we do what we can in terms of the dividends, and the discussion about dividends is not related to that. It didn't appear to me that that had a direct relationship with the returns for the federal government, which is also reflected in taxes and royalties. In this case, the dividends to majority shareholders, and 37%, goes to the government. In that regard, there is a certain balance in that process. It's just a matter of defining the timing.

Speaker Change: When it comes to the law.

Speaker Change: We.

Speaker Change: At the end of the third quarter.

Speaker Change: We usually cement a an earnings forecast, which is not a detailed forecast.

Speaker Change: And that is a result of that.

Speaker Change: This.

Speaker Change: Process of.

State owned whereby state owned companies has sand, they're forecast to the government without any detailed.

Speaker Change: Detailed information but.

Speaker Change: From then onwards.

Speaker Change: We do what we can in terms of the dividends and the discussion about dividends is not related to that it didnt appear.

Speaker Change: Appear to me that.

Speaker Change: That had a direct relationship with the returns for the federal government.

Speaker Change: Which is also reflected in our taxes and royalties.

Speaker Change: And in this case.

Speaker Change: The dividends to majority shareholders.

Speaker Change: And at 37%.

So the government. So in that regard there is a certain balance on that process. It's just a matter of defining the timing.

Speaker Change: And I understand that that was the case its basically related to timing the reserve is allocated to dividends in anyway.

[Company Representative] (Petrobras): I understand that was the case. It's basically related to timing. The reserve is allocated to dividends in any way. We should not propagate the incorrect information that that dividend specifically can be used to pay debts or to invest. That was already discussed, if that could be invested, but this is profit. Having said that, I think that this issue goes away because we know that these reserves are allocated the dividends in any case. I'll leave Coffee with you. Also in terms of where we're going, in terms of acquisitions, all that, Luiz, is related to governance and the processes that we must undergo. BR is not on our radar, as I always say. We have no ongoing studies related to reacquiring our Vibra like that.

Jean Paul Prates: I understand that was the case. It's basically related to timing. The reserve is allocated to dividends in any way. We should not propagate the incorrect information that that dividend specifically can be used to pay debts or to invest. That was already discussed, if that could be invested, but this is profit. Having said that, I think that this issue goes away because we know that these reserves are allocated the dividends in any case. I'll leave Coffee with you. Also in terms of where we're going, in terms of acquisitions, all that, Luiz, is related to governance and the processes that we must undergo. BR is not on our radar, as I always say. We have no ongoing studies related to reacquiring our Vibra like that.

Speaker Change: When should not propagate the incorrect information that that dividend, specifically can be used to pay debts or to invest.

Speaker Change: That was already discussed if that could be invested but this is profit so having said that.

Speaker Change: I think that.

Speaker Change: This issue goes away because we know that these reserves are allocated to.

The dividends in any case.

Speaker Change: And I'll leave coffee with here.

Lewis: And also in terms of where we're going in terms of acquisitions all that Lewis.

Lewis: And it's related to governance and the processes that we must undergo a PNR is not on our radar as I always say and we have no ongoing studies related.

Lewis: Related to re acquiring a RFP bra like that we have a relationship with the main clients and we have regular conversations with libra, especially because they.

[Company Representative] (Petrobras): We have a relationship with the main clients, and we have regular conversations with Vibra, especially because they have the usage concession of our brand. We can have joint plans on some projects. All of that is covered by the umbrella of our confidentiality and the governance stages that we have to and do respect. Braskem involves a process of selling and acquisition that's conducted by Novonor, not us. Of course, we're involved because we have the right of preference, and also because we wanna know and engage in preliminary conversations with the potential proponents that may become partners along with us in the co-management of that company.

Jean Paul Prates: We have a relationship with the main clients, and we have regular conversations with Vibra, especially because they have the usage concession of our brand. We can have joint plans on some projects. All of that is covered by the umbrella of our confidentiality and the governance stages that we have to and do respect. Braskem involves a process of selling and acquisition that's conducted by Novonor, not us. Of course, we're involved because we have the right of preference, and also because we wanna know and engage in preliminary conversations with the potential proponents that may become partners along with us in the co-management of that company.

Lewis: Have the usage concession of or a brand out so we can have joint plans.

Lewis: On some projects, but all of that is covered by the umbrella of our confidentiality and the governance stages that we have to and do respect at Braskem.

Speaker Change: Involves a process of selling.

Speaker Change: And acquisition, that's conducted by Nova nor not us and of course, we're involved because we have the right of preference and also because we want to know and <unk>.

Speaker Change: Engage in preliminary conversations with the potential.

Speaker Change: Potential proponents that may become partners, along with us and the co management of that company concerning asset limb.

Speaker Change: We have.

[Company Representative] (Petrobras): Concerning Acelen, we have a process that's been openly published, where we're combining projects for biofuels for the future and also for the present, from the perspective of reintegrating the refinery of Bahia to the Petrobras refinery system, to bring about the advantages that it lost and to see how the group works. This entire process is ongoing and is being disclosed as per the norms that we have to follow. Sergio, maybe you can talk about taxation. Thanks for the opportunity, Luis, to shed some light on the off subjects. Since last year, we've been seeing news being published, I don't know where they came from, talking about agreements between Petrobras and CARF.

Jean Paul Prates: Concerning Acelen, we have a process that's been openly published, where we're combining projects for biofuels for the future and also for the present, from the perspective of reintegrating the refinery of Bahia to the Petrobras refinery system, to bring about the advantages that it lost and to see how the group works. This entire process is ongoing and is being disclosed as per the norms that we have to follow. Sergio, maybe you can talk about taxation.

Process, that's been openly published where we're combining projects for biofuels for the future and also for the present.

Speaker Change: From the perspective of Reintegrating, the refinery of buyer to the Petrobras refinery system.

Speaker Change: To bring about the advantages that it lost and to see how the group works in this entire process is ongoing and is being disclosed.

Speaker Change: As per the norms that we have to follow and so Joe maybe you can talk about taxation.

Joe MS: Thanks for the opportunity Lewis to shed some light on the off subjects since last year, we've been seeing news being published I don't know where they came from.

Sérgio Caetano Leite: Thanks for the opportunity, Luiz, to shed some light on the off subjects. Since last year, we've been seeing news being published, I don't know where they came from, talking about agreements between Petrobras and CARF.

Speaker Change: Talking about agreements between Petrobras and cough.

Speaker Change: Petrobras.

Speaker Change: Has always <unk>.

[Company Representative] (Petrobras): Petrobras has always engaged in conversations with the fiscal areas of the several different governmental agencies across all governmental levels: state, municipal, and federal. Whenever an operation produces a positive VPL and is financially advantageous for Petrobras and is approved across all levels, there is no discretionary involved in this type of operation. If it is beneficial for Petrobras, if we have cash in hand and that we've done, we do that with the states, with the municipalities. We've engaged in several of those with the federal government. It was a routine procedure in Petrobras that already existed and will probably continue to exist before and after this current administration. There is no specific agreements with the CARF. Other people from the media and analysts have asked us about that, more specifically about retention of dividends for payment.

Sérgio Caetano Leite: Petrobras has always engaged in conversations with the fiscal areas of the several different governmental agencies across all governmental levels: state, municipal, and federal. Whenever an operation produces a positive VPL and is financially advantageous for Petrobras and is approved across all levels, there is no discretionary involved in this type of operation. If it is beneficial for Petrobras, if we have cash in hand and that we've done, we do that with the states, with the municipalities. We've engaged in several of those with the federal government. It was a routine procedure in Petrobras that already existed and will probably continue to exist before and after this current administration. There is no specific agreements with the CARF. Other people from the media and analysts have asked us about that, more specifically about retention of dividends for payment.

Speaker Change: Engaged in conversations with the physical areas.

Speaker Change: The several different governmental agencies.

Speaker Change: Ross all governmental levels state municipal and federal and whenever an operation produces.

Speaker Change: Produces positive a V P L and is financially advantageous for Petrobras and its approved across all levels. There is no discretionary involved in this type of operation.

Speaker Change: If it is beneficial for Petrobras, if we have cash in our hand and.

Speaker Change: That will be done we do that with the states with the municipalities are we've we've engaged in several dose with the federal government. It was a routine procedure and Petrobras that already existed and it will probably continue to exist before and after this current administration. So there is no specific grew minutes or with a cat.

Speaker Change: Yes.

Speaker Change: Or there are people from the media and analysts have asked us about that.

Speaker Change: As more specifically about our retention of dividends for payment.

Speaker Change: That's even less possible.

[Company Representative] (Petrobras): That's even less possible, as the president said. If there is one subject to where there's an agreement between public and private, it is receiving dividends. Everybody wants to receive dividends, both private and public shareholders, so we're aligned. There wasn't any impact on the decision in terms of moving the extraordinary dividends to the reserve. It's also worth mentioning that at any point, the administrative board of Petrobras can redefine that the resources that are in the reserve and allocate them to the payment of dividends. We have the support of legal with that, but it's for the payment of dividends. It can happen at any time, not for any fiscal agreements or investments, only for the payment of dividends. Thank you. Thank you, Sergio. Thank you, Luiz.

Sérgio Caetano Leite: That's even less possible, as the president said. If there is one subject to where there's an agreement between public and private, it is receiving dividends. Everybody wants to receive dividends, both private and public shareholders, so we're aligned. There wasn't any impact on the decision in terms of moving the extraordinary dividends to the reserve. It's also worth mentioning that at any point, the administrative board of Petrobras can redefine that the resources that are in the reserve and allocate them to the payment of dividends. We have the support of legal with that, but it's for the payment of dividends. It can happen at any time, not for any fiscal agreements or investments, only for the payment of dividends.

Speaker Change: As the President said.

Speaker Change: If there's a one subject to where there is an agreement between public and private it is.

Speaker Change: Receiving dividends everybody wants to receive dividends, both private and public shareholders severe alliance. So there wasn't any impacts on the decision.

Speaker Change: In terms of.

Speaker Change: Moving the extraordinary dividend to the reserve.

Speaker Change: And it's.

Speaker Change: Also worth mentioning that at any point the administrative board of Petrobras can redefine that the resources that are in the reserve and allocate them to the payment of dividends and we have the support of legal with that but it's for the payment of dividends at <unk>.

Speaker Change: Can happen at any time not for any fiscal agreements or investments only for the payment of dividends. Thank you.

Operator: Thank you. Thank you, Sergio. Thank you, Luiz. Next question comes from Caio Ribeiro from Bank of America Merrill Lynch. Caio, your microphone is open. Please proceed.

Speaker Change: Thank you Sergio Thank you Louis and next question.

Speaker Change: It comes from Cairo Ribeiro from Bank of America Merrill Lynch.

Caio Ribeiro: Next question comes from Caio Ribeiro from Bank of America Merrill Lynch. Caio, your microphone is open. Please proceed. Good morning, and thanks for the opportunity. Given the decision to not pay extraordinary dividends, this half, and also that you said that this is related to a decision to preserve the balance given the investments that must be made in the future, maybe you could give us a bit more detail about this decision and an expectation around M&As happening in the short term. Is it only related to a greenfield and brownfield investments in the short term?

Speaker Change: Kyle your microphone is open.

Speaker Change: Please proceed.

Caio Ribeiro: Good morning, and thanks for the opportunity. Given the decision to not pay extraordinary dividends, this half, and also that you said that this is related to a decision to preserve the balance given the investments that must be made in the future, maybe you could give us a bit more detail about this decision and an expectation around M&As happening in the short term. Is it only related to a greenfield and brownfield investments in the short term?

Speaker Change: Good morning, and thanks for the opportunity.

Speaker Change: Given the decision to not pay extraordinary dividends. This half and also that you said that this Ah ha is related to a decision to preserve the balance given the.

Speaker Change: Investments that must be made in the future maybe you could give us a bit more details a bit more detail about this decision and and.

Speaker Change: Patient around M&A is happening in the short term or is it only related to our greenfield and brownfield investments in the short term and also about releasing the resources allocated to the reserve. This half maybe can we assume that if an M&A transaction does not happen this year.

[Company Representative] (Petrobras): Also about releasing the resources allocated to the reserve this half, maybe, can we assume that if an M&A transaction does not happen this year, could that be a trigger to announce that these amounts will be paid? Thanks for your question. That's related to the previous question. I understand the approach, but that's not actually related to M&A or acquisition projects. The projects under analysis by Petrobras today are the projects that were disclosed in the strategic plan. It's 2 portfolios, implementation and analysis. The new governance was implemented so that the projects in the portfolio under analysis will migrate to the confirmed CapEx. The PE in Petrobras is funded by the operational cash flow, preferably.

Caio Ribeiro: Also about releasing the resources allocated to the reserve this half, maybe, can we assume that if an M&A transaction does not happen this year, could that be a trigger to announce that these amounts will be paid?

Speaker Change: Could that be a trigger to announce that these amounts will be paid.

Sérgio Caetano Leite: Thanks for your question. That's related to the previous question. I understand the approach, but that's not actually related to M&A or acquisition projects. The projects under analysis by Petrobras today are the projects that were disclosed in the strategic plan. It's 2 portfolios, implementation and analysis. The new governance was implemented so that the projects in the portfolio under analysis will migrate to the confirmed CapEx. The PE in Petrobras is funded by the operational cash flow, preferably.

Speaker Change: Thanks for your question that's related to the previous question I understand the approach, but that's not actually related to.

Speaker Change: M&A or acquisition projects the projects under analysis by Petrobras today are the projects that were disclosed in the strategic plan. It's two portfolios implementation and analysis and the new governance was implemented so that the projects in the portfolio under analysis.

So migrate to the confirmed capex, the Pea and Petrobras is funded by the operational cash flow.

Speaker Change: Preferably.

Speaker Change: And this year, we introduced this term preferably because in some M&A projects other types of operations can be involved such as of finance.

[Company Representative] (Petrobras): This year we introduced this term, preferably because in some M&A projects, other types of operations can be involved, such as a financing project. The administration of the company always works with a very conservative perspective in terms of cash flow. What is in the plan that was published involves the cash generation. If you look at the plan and the Strategic Plan, there is a provision for the payment of extraordinary dividends. It's already there in the tower that indicates the use of sources. In the E&P, we have this provision for investments for all projects under analysis and the confirmed projects, and also for the payment of dividends.

Sérgio Caetano Leite: This year we introduced this term, preferably because in some M&A projects, other types of operations can be involved, such as a financing project. The administration of the company always works with a very conservative perspective in terms of cash flow. What is in the plan that was published involves the cash generation. If you look at the plan and the Strategic Plan, there is a provision for the payment of extraordinary dividends. It's already there in the tower that indicates the use of sources. In the E&P, we have this provision for investments for all projects under analysis and the confirmed projects, and also for the payment of dividends.

Speaker Change: Financing for our project, but the administration of the company.

Speaker Change: Always a works with a very conservative perspective in terms of cash flow. So what is in the plan that was published.

Speaker Change: Involves the cash generation if you look at the plan.

Speaker Change: And the strategic plan there is.

Speaker Change: A provision for the payment of extraordinary dividends, it's already there and the a tower that indicates the use of sources. So in the <unk> T. We have this provision for investments for all projects under analysis and the confirmed projects and also for the <unk>.

Speaker Change: Of dividends, what the administration board justifies by making this decision is to better understand the criteria.

[Company Representative] (Petrobras): What the administration board justifies by making this decision is to better understand the criteria, external criteria included, that may have an impact on the 2024 and 2025 year. I believe that this is a process where, as the board sees this more clearly, it will make a decision. Thank you, Sergio. The next question comes from Pedro Soares, from BTG Pactual. Pedro, probably your microphone is already open. Please proceed. Good afternoon. Thank you.

Sérgio Caetano Leite: What the administration board justifies by making this decision is to better understand the criteria, external criteria included, that may have an impact on the 2024 and 2025 year. I believe that this is a process where, as the board sees this more clearly, it will make a decision.

Speaker Change: External criteria included that May have an impact on us.

Speaker Change: The 'twenty 'twenty, four and 'twenty 'twenty five a year.

Speaker Change: So I believe that this is a process where as the board sees this more clearly.

Speaker Change: We'll make a decision.

Thank you Sergio and the next question comes from Pedro Suarez from BTG Pactual.

Operator: Thank you, Sergio. The next question comes from Pedro Soares, from BTG Pactual. Pedro, probably your microphone is already open. Please proceed.

Pedro probably your microphone is already.

Speaker Change: Open. Please proceed good.

Speaker Change #100: Good afternoon. Thank you my first question.

Pedro Soares: Good afternoon. Thank you. My first question is to try to understand the capital structure of the company in the context of these investments that will occur, given that the leverage of Petrobras is at extremely healthy levels. Would it make sense for us to think that the company may work with more leverage to leverage investments and maybe M&As in the future? If that is a possibility, would you be willing to change the dividends policy? My question is because currently in the current remuneration policy, 45% of cash flow less CapEx, that only happens if the gross debt is also below the maximum debt established by the business plan of $65 billion.

Pedro Soares: My first question is to try to understand the capital structure of the company in the context of these investments that will occur, given that the leverage of Petrobras is at extremely healthy levels. Would it make sense for us to think that the company may work with more leverage to leverage investments and maybe M&As in the future? If that is a possibility, would you be willing to change the dividends policy? My question is because currently in the current remuneration policy, 45% of cash flow less CapEx, that only happens if the gross debt is also below the maximum debt established by the business plan of $65 billion.

Speaker Change #101: Is to try to understand the capital structure of the company and the context of these investments that will occur.

Speaker Change #101: Given that the leverage of Petrobras at six is a extremely healthy levels.

Speaker Change #101: When it makes sense for us to think that the company may.

Speaker Change #101: Work with more leverage.

Speaker Change #101: To leverage investments and maybe M&A is in the future and if that is a possibility would you be willing to change the dividend policy.

Speaker Change #102: And my question.

Speaker Change #102: Is because currently in the current Ramiro.

Speaker Change #102: The remuneration policy and.

Speaker Change #102: 45% of cash flow less capex that only happens if the gross debt is also below the maximum debt established by the business plan $65 billion. So since the current debt is not too far from that amount may.

[Company Representative] (Petrobras): Since the current debt is not too far from that amount, maybe it would be good to understand if you're going to prioritize maintaining the level of indebtedness below that level, or if it will be possible to reduce the dividends to something closer to the minimum mandatory levels, as per the law. Also about M&As, I think that several recent messages from the company and the directors, they say that, yes, more inorganic investments will be made, but that will not reinvolve the renationalization, as you said, of any asset. Is that still valid for investments under evaluation, or is there any possibility of Petrobras having stakes higher than 50%? Thank you. Well, I can answer the last question first, and then I'll give the floor to you, Sergio.

Pedro Soares: Since the current debt is not too far from that amount, maybe it would be good to understand if you're going to prioritize maintaining the level of indebtedness below that level, or if it will be possible to reduce the dividends to something closer to the minimum mandatory levels, as per the law. Also about M&As, I think that several recent messages from the company and the directors, they say that, yes, more inorganic investments will be made, but that will not reinvolve the renationalization, as you said, of any asset. Is that still valid for investments under evaluation, or is there any possibility of Petrobras having stakes higher than 50%? Thank you.

Speaker Change #102: Maybe it.

Speaker Change #103: It would be good to understand if you're going to prioritize maintaining the level of indebtedness below that level or if it will be possible to reduce the dividend to something closer to the minimum mandatory levels.

Speaker Change #103: As per the law and also about M&A. So I think that several recent messages from the company and the directors are they say that yes, a more inorganic investments will be made but that will not.

Speaker Change #104: Re involve the re nationalization as you said of any asset is that still valid.

Speaker Change #104: Hmm.

Speaker Change #104: For investments under evaluation or is there any possibility of Petrobras, having stinks higher than 50%.

Speaker Change #105: Thank you.

Speaker Change #105: Well.

Jean Paul Prates: Well, I can answer the last question first, and then I'll give the floor to you, Sergio. Concerning the renationalization, this is not only part of our vocabulary. We look at any of these assets as a business asset. If we need a majority to have control for strategic reasons, we will. If not, we won't. If it's an asset that's important for us, we'll analyze it. If it's not that important, if it's part of the past, and it's not worth looking into it, we'll not submit a proposal or approach it. When I say that there will be no renationalization, it's because there's no reason for us to use this term. We're not here to renationalize or bring something back to the state or privatize anything.

Speaker Change #105: I can answer the last question first and then ill.

Sergio Caetano: Give the four tiered Sergio concerning the Renationalization. This is not only part of our vocabulary. We look at any of these assets as a business asset if we need a majority to have control for strategic reasons, we will if not we won't if it's an asset that's important for us will end.

[Company Representative] (Petrobras): Concerning the renationalization, this is not only part of our vocabulary. We look at any of these assets as a business asset. If we need a majority to have control for strategic reasons, we will. If not, we won't. If it's an asset that's important for us, we'll analyze it. If it's not that important, if it's part of the past, and it's not worth looking into it, we'll not submit a proposal or approach it. When I say that there will be no renationalization, it's because there's no reason for us to use this term. We're not here to renationalize or bring something back to the state or privatize anything.

Is it if it's not that important if it's part of the past.

Sergio Caetano: And it's not worth looking into it at will not submit a proposal or approach. It. So when I say that there will be no regionalization, it's because.

Sergio Caetano: There is no reason for us to use this term we're not here to recent nationalize or.

Sergio Caetano: And bring something back to the state.

Or re.

Sergio Caetano: Privatize anything in the case of by year that was we're talking to them because we got an invitation.

[Company Representative] (Petrobras): In the case of Bahia, we're talking to them because we got an invitation to combine the entire process that was ongoing, and we thought it would be positive, so we're analyzing it. I just think that we have to rule out this old-fashioned terminology. Thank you. Pedro, thanks for your question. There is no indication, and I believe that will remain like that for a while, predicted to change the remuneration to investors. What is behind the policy that we approved? There was a policy of 65% on the free cash flow in the past, with several details that you're familiar with, but there was an important detail. That was 65% less investments. Interestingly enough, it was not CapEx as we see in literature.

Jean Paul Prates: In the case of Bahia, we're talking to them because we got an invitation to combine the entire process that was ongoing, and we thought it would be positive, so we're analyzing it. I just think that we have to rule out this old-fashioned terminology. Thank you.

Sergio Caetano: Okay.

Sergio Caetano: Combine the entire process that was ongoing and we thought it would be positive. So we're analyzing it. So I just think that we have to rollout this old fashion terminology.

Sergio Caetano: Pedro.

Speaker Change #106: Thanks for your question.

Sérgio Caetano Leite: Pedro, thanks for your question. There is no indication, and I believe that will remain like that for a while, predicted to change the remuneration to investors. What is behind the policy that we approved? There was a policy of 65% on the free cash flow in the past, with several details that you're familiar with, but there was an important detail. That was 65% less investments. Interestingly enough, it was not CapEx as we see in literature.

Speaker Change #106: And.

Speaker Change #106: There is.

Speaker Change #106: No indication and I believe that it will remain like that for a while.

Predicted for.

Speaker Change #106: But to change the remuneration to investors and one is behind the policy that we approved a there was a policy of 65% on the free cash flow in the past now but.

Speaker Change #106: Several details that you are familiar with but there was an important detail that was 65% or less investments, but interestingly enough. It was non cash.

Speaker Change #106: Capex.

Speaker Change #106: As we see in literature, if there was an acquisition it would not be deducted from the 65% on the other hand.

[Company Representative] (Petrobras): If there was an acquisition, it would not be deducted from the 65%. On the other hand, it did not make clear which CapEx was under analysis. Now, in this more transparent process, we started to highlight the CapEx that's under analysis, that there might be mergers in this amount. On the other hand, we started to include a CapEx as litigated, but set in terms of what's deducted in the policy, and we reduced it to 45%. If you compare the two towers that indicate the use of sources, you're gonna clearly see a migration from close to 20% of the CapEx moving from dividends and going to investments. Why was that decision made? First, because the future is more challenging, like President Jean Paul Prates said. This is not considered a transition, but rather a transformation.

Sérgio Caetano Leite: If there was an acquisition, it would not be deducted from the 65%. On the other hand, it did not make clear which CapEx was under analysis. Now, in this more transparent process, we started to highlight the CapEx that's under analysis, that there might be mergers in this amount. On the other hand, we started to include a CapEx as litigated, but set in terms of what's deducted in the policy, and we reduced it to 45%. If you compare the two towers that indicate the use of sources, you're gonna clearly see a migration from close to 20% of the CapEx moving from dividends and going to investments. Why was that decision made? First, because the future is more challenging, like President Jean Paul Prates said. This is not considered a transition, but rather a transformation.

Speaker Change #106: It did not make clear, our which capex was under analysis. So now.

In this more transparent process have we started to highlight the capex. That's under analysis that there might be mergers and this amount on the other hand, we started to include a capex as literature, but said in terms of once deducted in the policy Ambry.

Speaker Change #106: We have reduced it to 45% if you compare the two towers that indicate the use of sources youre going to clearly see a migration from close to 20% of the capex moving from dividends and going to investments and why was that decision made at first because the future is more challenging.

Speaker Change #106: President John Paul said this is not considered a transition, but rather a transformation and second because Petrobras wants to continue to generate profit in remuneration for the next 100 years and thirdly, because Petrobras has a world cast class company.

[Company Representative] (Petrobras): Second, because Petrobras wants to continue to generate profit and remuneration for the next 100 years. Third, because Petrobras is a world-class company, and as approved, it will resume its internationalization process. It made no sense for assets like Petrobras' quality assets to pay such a different dividend than the majors. We looked at the majors, we checked the average, it was at 39-40%. Since this is a new administration, we decided to add a small risk premium, and we added to this reserve another practice, which is the purchase of shares. With that, we are now leveling with the majors. There's no reason for us to change the dividend policy. There is no indication that there's any willingness to change that. The policy will be maintained.

Sérgio Caetano Leite: Second, because Petrobras wants to continue to generate profit and remuneration for the next 100 years. Third, because Petrobras is a world-class company, and as approved, it will resume its internationalization process. It made no sense for assets like Petrobras' quality assets to pay such a different dividend than the majors. We looked at the majors, we checked the average, it was at 39-40%. Since this is a new administration, we decided to add a small risk premium, and we added to this reserve another practice, which is the purchase of shares. With that, we are now leveling with the majors. There's no reason for us to change the dividend policy. There is no indication that there's any willingness to change that. The policy will be maintained.

Speaker Change #106: And as proved it will.

Speaker Change #106: Resume its internationalization process, so it make no sense for assets.

Speaker Change #106: Yeah.

Speaker Change #106: Like Petrobras quality assets to pay.

Speaker Change #106: Such a different a dividend then the majors. So we looked at the majors are we check to the average it was at 39 and 40% and since this is a new administration, we decided to add a small risk premium Andrew.

Speaker Change #106: And we added to this reserve another Pratt.

Speaker Change #106: Practice, which is the purchase of shares and that that we are now.

Speaker Change #106: Leveling with the majors. So there is no reason for us to change the dividend policy. There is no indication that's.

Speaker Change #106: There is any willingness to change that.

Speaker Change #106: The policy will be maintained leveraging has a direct connection the connection with the policy as you mentioned very well Petrobras works.

[Company Representative] (Petrobras): Leveraging has a direct connection with the policy, as you mentioned very well. Petrobras works between the $55, 65 billion dollar range. If there's any change to the range, that requires a new policy and changes in the company. Now we're close to 62 or 63 billion. At the end of 5 years, the leverage forecast is of around 57, lower than 59, considering the regular amortization and additional investments that we're gonna make over the course of the plan. In addition to a robust balance and a commitment to capital management, the maintenance of the leveraging level is one of the pillars of this administration. Not going over this level of leveraging is one of the prominent features of Petrobras right now.

Sérgio Caetano Leite: Leveraging has a direct connection with the policy, as you mentioned very well. Petrobras works between the $55, 65 billion dollar range. If there's any change to the range, that requires a new policy and changes in the company. Now we're close to 62 or 63 billion. At the end of 5 years, the leverage forecast is of around 57, lower than 59, considering the regular amortization and additional investments that we're gonna make over the course of the plan. In addition to a robust balance and a commitment to capital management, the maintenance of the leveraging level is one of the pillars of this administration. Not going over this level of leveraging is one of the prominent features of Petrobras right now.

Speaker Change #106: And between the 50 $565 billion range, if theres any change to the range that requires a new policy and changes.

Speaker Change #106: And the company now we're at close to 62 or 63 billion at the end of five years. The leverage forecast is of around 57 lower than 59, considering the regular amortization and additional investments that we're gonna mate or make over the course of the plan.

Speaker Change #106: So in addition to a robust balance and a commitment to a cap.

Speaker Change #106: Capital management to the maintenance of the leveraging level is one of the pillars of this administration and not going over this level of leveraging is one of the prominent features of Petrobras right now the M&A that you see in the P. A P consider that we'll maintain the indebtedness level.

[Company Representative] (Petrobras): The M&As that you see in the PE consider that will maintain the indebtedness level. Right now, we don't see any need to think about additional leveraging or an M&A. We are working with the idea of maintaining the range. Okay, we cannot go over this range. What can we do within the what's outlined in the plan and not the other way around? That's very important. Maintaining the leveraging level, capital management is almost like a mantra internally at Petrobras. I'd like to picking up on your question, I'd like to once again reiterate, we're looking at the chat, and there's an indication that there's still some confusion about the reserves. The reserve was created to balance out the payment of dividends, period. There is a possibility, which is provided for in law.

Sérgio Caetano Leite: The M&As that you see in the PE consider that will maintain the indebtedness level. Right now, we don't see any need to think about additional leveraging or an M&A. We are working with the idea of maintaining the range. Okay, we cannot go over this range. What can we do within the what's outlined in the plan and not the other way around? That's very important. Maintaining the leveraging level, capital management is almost like a mantra internally at Petrobras. I'd like to picking up on your question, I'd like to once again reiterate, we're looking at the chat, and there's an indication that there's still some confusion about the reserves. The reserve was created to balance out the payment of dividends, period. There is a possibility, which is provided for in law.

Speaker Change #106: So right now we don't see any need to think about additional leveraging.

Or an M&A, we're working with them.

The idea of maintaining the range. Okay. We cannot go over this range what can we do.

Speaker Change #106: Within the what's outlined in the plan and not the other way around that is very important.

Speaker Change #106: Maintaining the leveraging level capital management is almost like a mantra internally at Petrobras, so I'd like to pick.

Speaker Change #106: Picking up on your question I'd like to once again.

Speaker Change #106: Reiterate.

Speaker Change #106: We're looking at the chat and there is an indication.

Speaker Change #106: That there are still some confusion about the reserves. The reserve was created to balance out the payment of dividends period, there is a possibility.

As provided for in law any reserve has that possibility of being incorporated into the capital but for that to happen as it requires certain triggers that are far from happening at Petrobras and this needs to be decided by the at high administration of the company and there is another possibility that's equally.

[Company Representative] (Petrobras): Any reserve has that possibility of being incorporated into the capital. For that to happen, it requires certain triggers that are far from happening at Petrobras, and this needs to be decided by the high administration of the company. There's another possibility that's equally remote. If Petrobras has losses in 24 months, the possibilities of Petrobras to generate cash with its capital structure and considering how it manages its finance of generating loss in 2034 is a very small possibility. These two cases are provided for in law, but they're not even a remote possibility in any scenario that we're working with. This reserve is gonna be allocated to dividends. The money that's there is for the payment of dividends.

Sérgio Caetano Leite: Any reserve has that possibility of being incorporated into the capital. For that to happen, it requires certain triggers that are far from happening at Petrobras, and this needs to be decided by the high administration of the company. There's another possibility that's equally remote. If Petrobras has losses in 24 months, the possibilities of Petrobras to generate cash with its capital structure and considering how it manages its finance of generating loss in 2034 is a very small possibility. These two cases are provided for in law, but they're not even a remote possibility in any scenario that we're working with. This reserve is gonna be allocated to dividends. The money that's there is for the payment of dividends.

Remote if Petrobras has losses in 24 months, the possibilities of Petrobras to generate cash with its capital structure and considering how it manages its its finance of generating lots in 'twenty 'twenty four is a very small possibility in these two cases are.

Speaker Change #106: At four in la but they're not even a remote possibility in any scenario that we're working with so this reserve is going to be allocated to dividends. The money. That's there is for the payment of dividends The administration board.

Speaker Change #106: Looking at 25 24 with our current strategic plan.

[Company Representative] (Petrobras): The administration board looking at 2025, 2024 with our current strategic plan and with the appetite for investments and with the plan of half a trillion BRL, if it's not the biggest, it's one of the biggest plans. It's a clear bet in the future. Petrobras will continue to grow for more than a century. Whatever it sells in the future, electricity, liquid energy, or if it will continue to sell oil, the future is gonna show us. This reserve, again, is not to be used for investments or fiscal agreements. There is no indication that it will be incorporated into the capital. It is not gonna be used to fill any gaps or losses. This is for the payment of dividends. What I cannot tell you is the timeframe. It's gonna be paid like this or like that.

Sérgio Caetano Leite: The administration board looking at 2025, 2024 with our current strategic plan and with the appetite for investments and with the plan of half a trillion BRL, if it's not the biggest, it's one of the biggest plans. It's a clear bet in the future. Petrobras will continue to grow for more than a century. Whatever it sells in the future, electricity, liquid energy, or if it will continue to sell oil, the future is gonna show us. This reserve, again, is not to be used for investments or fiscal agreements. There is no indication that it will be incorporated into the capital. It is not gonna be used to fill any gaps or losses. This is for the payment of dividends. What I cannot tell you is the timeframe. It's gonna be paid like this or like that.

Speaker Change #106: And with the appetite for investments and with the plan of half a trillion re is if it's not the biggest is one of the biggest plants. It's a clear bet in the future. So Petrobras will continue to grow for more than a century whatever itself in the future electricity liquid energy or.

Speaker Change #106: If it will continue to sell oil the future is going to show us, but this reserve again is not to be used for investments or a physical agreements. There is no indication that it will be incorporated into the capital is not going to be used to fill any gaps or losses. So this is for the payment of dividends.

And what I cannot tell you is the timeframe, it's going to be paid like this or like that the council is now analyzing this subject it's concerned with the global scenario and tonnage four and 25, that's the highest Ah <unk>.

[Company Representative] (Petrobras): The council is now analyzing this subject. It's concerned with the global scenario in 2024 and 2025. That's the highest management level of the company. Whenever they feel comfortable, they're going to decide, and that can happen next week, next month, in 45 days, in six months. It may happen at any time. Unfortunately today, we have no indication of that.

Sérgio Caetano Leite: The council is now analyzing this subject. It's concerned with the global scenario in 2024 and 2025. That's the highest management level of the company. Whenever they feel comfortable, they're going to decide, and that can happen next week, next month, in 45 days, in six months. It may happen at any time. Unfortunately today, we have no indication of that. Just to repeat, it will not be used for investments or any deals or M&As. This is in the plan. It's to pay dividends.

Management's level of the company whenever they feel comfortable they're going to decide and that can happen next week next months in 45 days and six months. It may happen at any time, but unfortunately today, we have no indication of that.

Speaker Change #106: But just to repeat it will not be used for investments or any deals or.

Operator: just to repeat, it will not be used for investments or any deals or M&As. This is in the plan. It's to pay dividends. Thank you, Pedro. Thank you, Sergio. That was very clear. The next question will be asked by Gabriel Barra from Citi. Go ahead, Gabriel. Hi, everyone. Good morning. Thank you for taking my questions. First, thank you for your initiative. This is going to make our discussion much better for the time that we have here after the results. You talked a lot about dividends and M&As, and I'd just like to ask about CIM again. I have a couple of points here. First, we've been seeing a challenging scenario in services. The company has been discussing discounts. We know how much inflation can impact the future.

Speaker Change #106: M&A Ames this is in the plan.

Speaker Change #106: Planets to pay dividends. Thank you Pedro.

Pedro: Thank you Sasha that was very clear. So the next question will be asked by Gabriel Barra from Citi Go ahead Gabrielle.

Sérgio Caetano Leite: Thank you, Pedro.

Pedro Soares: Thank you, Sergio. That was very clear.

Operator: The next question will be asked by Gabriel Barra from Citi. Go ahead, Gabriel.

Pedro: Okay.

Gabriel Barra: Hi, everyone. Good morning. Thank you for taking my questions. First, thank you for your initiative. This is going to make our discussion much better for the time that we have here after the results. You talked a lot about dividends and M&As, and I'd just like to ask about CIM again. I have a couple of points here. First, we've been seeing a challenging scenario in services. The company has been discussing discounts. We know how much inflation can impact the future.

Gabriel Barra: Hi, everyone. Good morning, Thank you for taking my questions.

First thank you for your initiative.

Gabriel Barra: This.

Gabriel Barra: Is.

Gabriel Barra: Going to make our discussion much better for us.

Gabriel Barra: The time that we have here after the results.

Gabriel Barra: You talked a lot about dividends and M&A is and.

Speaker Change #109: I'd just like to ask about <unk> again, I have a couple of points here first we've been seeing a challenging scenario.

Speaker Change #109: And services.

Speaker Change #109: The company has been discussing discounts.

Speaker Change #109: We know how much inflation can impact.

Speaker Change #109:

Speaker Change #109: The future.

Speaker Change #109: Yeah.

Speaker Change #110: So I'd just like to understand how we can mitigate the risk.

Gabriel Barra: I'd just like to understand how we can mitigate the risk. In the past, we saw some movements to capitalize assets, and I'm referring to building platforms, building vessels. Considering future contracts and the company's strong growth pipeline, I'd just like to understand what your strategy is. Not only in platforms and vessels, but also at FPSOs and so on. We've also heard a strong discussion about the strike in IBAMA. We've talked about Equatorial Margin, how much it's impacted the company, the future of the company, and future value generation. I'd just like to understand how that impacts the company currently, projects, the timeline for this year and for the next years. Is there anything that we should pay attention to on the short term?

Speaker Change #110: In the past, we saw some movement to capitalized assets.

Speaker Change #110: And I'm, referring to building probes building.

Speaker Change #110: Building vessels.

Speaker Change #110: Yeah.

Okay.

Speaker Change #110: Yes.

So considering future contracts and the company's strong growth pipeline.

Speaker Change #111: I'd just like to understand what your strategy is.

Not only improves and vessels, but also.

Speaker Change #111: Hum.

F piece associate so off.

Speaker Change #111: We've also heard a strong discussion about.

Speaker Change #112: The strike.

Speaker Change #112: In Ibama.

Speaker Change #112: Okay.

Speaker Change #112: We've talked about it Vittorio margin how much it's impacted the company the future of the company.

And future value generation, so I'd, just like to understand how that impacts the company currently.

Speaker Change #112: Project timeline for this year and for the next year is there anything that we should pay attention to on the short term.

Speaker Change #112: Yeah.

Speaker Change #112: And my third question is we saw relevant growth.

Operator: My third question is, we saw relevant growth in the company's production in the last years, especially led by the pre-salt layer. We've also heard a special, an important discussion in Brazil about consolidating the industry. We see that the company is removing investments in the last years. Could there be contrary movement, maybe future acquisitions, not only in Brazil but abroad? Not only looking at organic growth, but also inorganic growth, if that would be a part of the company's growth strategy. That's all. Thank you. Thank you for your question, Gabriel. I think you addressed at least one to Travassos and a couple of them to Joelson. I'll pass it over to Travassos, who is our Engineering Director at Petrobras. Thank you, Sergio. Thank you, Gabriel. Thanks for that question. Your perception is correct.

Gabriel Barra: My third question is, we saw relevant growth in the company's production in the last years, especially led by the pre-salt layer. We've also heard a special, an important discussion in Brazil about consolidating the industry. We see that the company is removing investments in the last years. Could there be contrary movement, maybe future acquisitions, not only in Brazil but abroad? Not only looking at organic growth, but also inorganic growth, if that would be a part of the company's growth strategy. That's all. Thank you.

Speaker Change #113: The Companys production in the last year's especially led by the pre salt layer.

Speaker Change #113: And we've also heard a special us an important discussion in.

In Brazil about consolidating the industry, we see that the company is.

Investments in the last years so.

Speaker Change #114: Could there be a contrary move that maybe future acquisitions, not only in Brazil, but abroad and not only looking at organic growth, but also inorganic growth.

Speaker Change #114: If that would be a part of the company's outgrowth strategy.

Speaker Change #115: That's all thank you.

Speaker Change #116: Thank you for your question Brito I. Thank you.

Sérgio Caetano Leite: Thank you for your question, Gabriel. I think you addressed at least one to Travassos and a couple of them to Joelson. I'll pass it over to Travassos, who is our Engineering Director at Petrobras.

Speaker Change #117: Addressed at least one two <unk>. So a couple of thumb Touche also so I'll pass it over to trough also school is our engineering our director at Petrobras.

Thank you Sergio Thank you Gabrielle.

Carlos José do Nascimento Travassos: Thank you, Sergio. Thank you, Gabriel. Thanks for that question. Your perception is correct.

Speaker Change #118: Thanks for that question.

Speaker Change #118: So your perception is correct we are looking at the supplier market.

Operator: We are looking at the supplier market, and we see an atypical movement from what we had in the last years. It was a movement that was much more aligned to benchmark prices, the prices of our inputs and equipment. In the last 18 to 24 months, we saw that it was detaching itself to that, and it was a bit random. Of course, this is caused by the COVID pandemic and by the ongoing conflicts. You mentioned capitalizing assets. To answer that, clearly, that's not on our radar. We're not looking at capitalizing assets. What we are doing is a constant reading of the market. We're establishing a system for each of these processes, building a collaboration room where we're going to, little by little, look at the market, understand its needs, and adjust our processes to ensure its competitiveness.

Carlos José do Nascimento Travassos: We are looking at the supplier market, and we see an atypical movement from what we had in the last years. It was a movement that was much more aligned to benchmark prices, the prices of our inputs and equipment. In the last 18 to 24 months, we saw that it was detaching itself to that, and it was a bit random. Of course, this is caused by the COVID pandemic and by the ongoing conflicts. You mentioned capitalizing assets. To answer that, clearly, that's not on our radar. We're not looking at capitalizing assets. What we are doing is a constant reading of the market. We're establishing a system for each of these processes, building a collaboration room where we're going to, little by little, look at the market, understand its needs, and adjust our processes to ensure its competitiveness.

Speaker Change #118: And we see an atypical movement from what we had in the last years.

Speaker Change #118: It was a movement that was much more aligned to our bench prices the prices of our inputs and equipment.

Okay.

Speaker Change #118: In the last 18 to 24 months with Saab that it was DISA.

Speaker Change #118: This attachment is after that and it was a bit random and of course. This is caused by the COVID-19 pandemic and by the ongoing conflict.

Speaker Change #118: You mentioned capitalizing assets so to answer that clearly that's not on our radar we're not looking at capitalizing assets, what we are doing.

Speaker Change #118: Is a constant reading out the market, we're establishing a system for each of these processes.

Speaker Change #118: Building, a collaboration room, where we're going to little by little look at the market understand its needs and adjust our processes too.

Speaker Change #118: Ensure its competitiveness.

Speaker Change #118: So this doesn't only happen in the U S. P. S. So market, we had a significant oscillation in the probes market.

Operator: This doesn't only happen in the FPSO market. We had a significant oscillation in the probes market. We've had over 50% of probes contracted, so we will possibly not have the same impact as we had in 2023. Similarly to that, we also see changing behaviors caused by the demand of Petrobras. We're the biggest users of the marine system in the world, so we're establishing a way of analyzing the market and adjusting our internal products so that we can capture the market and reduce its impact. I'll pass it over to Joel, who will answer your next two questions. Thank you for the question. Yes, you're right. It is concerning to see that IBAMA strike. We renew many licenses every day. Besides that, well, for example, license for Marajó, for example.

Carlos José do Nascimento Travassos: This doesn't only happen in the FPSO market. We had a significant oscillation in the probes market. We've had over 50% of probes contracted, so we will possibly not have the same impact as we had in 2023. Similarly to that, we also see changing behaviors caused by the demand of Petrobras. We're the biggest users of the marine system in the world, so we're establishing a way of analyzing the market and adjusting our internal products so that we can capture the market and reduce its impact. I'll pass it over to Joel, who will answer your next two questions.

Speaker Change #118: We've had over 50% of probes contracted so we will possibly not have the same impact as we had in 2023.

Speaker Change #118: And similar lead to that.

Speaker Change #118: We also see a changing behaviors.

Speaker Change #118: Caused by the demand of Petrobras, where the biggest users of the marine system in the world. So we're establishing.

Speaker Change #118: Oh, we have a staff of analyzing the market and adjusting our internal products.

Speaker Change #118: So that we can capture the market and.

Speaker Change #118: Reduced its impact.

Speaker Change #118: So I'll pass it over to withdraw also.

We will answer your next two questions.

Speaker Change #119: Thank you for the question, yes, you're right. It is concerning to see that E bonds strike.

Joelson Mendes: Thank you for the question. Yes, you're right. It is concerning to see that IBAMA strike. We renew many licenses every day. Besides that, well, for example, license for Marajó, for example.

Speaker Change #118: Yeah.

Speaker Change #118: We renew many licenses every day so besides that.

Speaker Change #118: Is while for example license for <unk> with the Rial for example.

Speaker Change #118: We don't have a license for the third well.

Operator: We don't have a license for the third well. It may have an impact. We also have licenses to drill some blocks in the southeast of Brazil. That's not our forecast, but we might need to change our portfolio. It is concerning. We've been talking to IBAMA consultants, but this is also in our risk analysis. Our exploration team with the data it has is trying to acquire more data from Latin America and West Africa especially. We have been talking to the governments, to peer companies, and we're also looking at opportunities to acquire producing assets as well. It's not very common, but it is a part of what we do. We have people who are always looking at that. We might have more concrete studies to acquire exploration blocks and also to analyze production.

Joelson Mendes: We don't have a license for the third well. It may have an impact. We also have licenses to drill some blocks in the southeast of Brazil. That's not our forecast, but we might need to change our portfolio. It is concerning. We've been talking to IBAMA consultants, but this is also in our risk analysis. Our exploration team with the data it has is trying to acquire more data from Latin America and West Africa especially. We have been talking to the governments, to peer companies, and we're also looking at opportunities to acquire producing assets as well. It's not very common, but it is a part of what we do. We have people who are always looking at that. We might have more concrete studies to acquire exploration blocks and also to analyze production.

Speaker Change #118: So it may have an impact we also have licenses to drill some blocks in the southeast of Brazil.

Speaker Change #118: That's not our forecast, but we might need to change our portfolio.

Speaker Change #118: So it is concerning.

Speaker Change #118: We've been talking to eat bomber consultants, but.

This is also in our risk analysis.

Speaker Change #118: So.

Speaker Change #118: Our exploration team.

Speaker Change #118: With the data. It has is trying to acquire more data from Latin America, and West Africa, especially so we have been talking to the two governments to peer companies.

Speaker Change #118: And we're also looking at opportunities to acquire producing assets as well.

Speaker Change #118: It's not very common but it is a part of what we do we have people who are always looking at that so.

Speaker Change #118: We might have more concrete studies to acquire.

Speaker Change #118: Our exploration blocks and also to.

Speaker Change #118: Analyze production.

Speaker Change #118: So if a new if you have a negotiation for that we have a lot of governance, we have many steps so going into a new country would require.

Operator: If we have a negotiation for that, we have a lot of governance. We have many steps. Going into a new country would require authorization by a board. We have been working in that direction. Thank you. The next question will be from Vicente Falanga from Bradesco. Go ahead, Vicente. Thank you. Thank you, João Paulo and Sergio. I have a couple of questions. I'd just like to understand if what was said in the board yesterday, if you've added any metrics to what would be the drivers for you to pay the extraordinary, right? Maybe gross increase or something like that. I'd also like to know if this reserve has been used by Webex for the buyback program. No metrics, just looking deeper into some analysis, and we'll define that later on.

Joelson Mendes: If we have a negotiation for that, we have a lot of governance. We have many steps. Going into a new country would require authorization by a board. We have been working in that direction.

Speaker Change #118: <unk> by eight or so.

Speaker Change #118: We have been working in that direction.

Operator: Thank you. The next question will be from Vicente Falanga from Bradesco. Go ahead, Vicente. Thank you. Thank you, João Paulo and Sergio. I have a couple of questions. I'd just like to understand if what was said in the board yesterday, if you've added any metrics to what would be the drivers for you to pay the extraordinary, right? Maybe gross increase or something like that. I'd also like to know if this reserve has been used by Webex for the buyback program. No metrics, just looking deeper into some analysis, and we'll define that later on.

Thank you and the next question will be from NUCYNTA for longer from Bradesco go ahead <unk>.

Thank you. Thank you for all and Sergio.

Speaker Change #120: I have a couple of questions.

Speaker Change #120: I'd just like to understand if what was said in the board yesterday.

Speaker Change #121: If you.

Speaker Change #121: Added any metrics to what would be the drivers for.

Speaker Change #121: You have to pay the extraordinary right may be.

Speaker Change #121: Gross increase or something like that.

And I'd also like to know if this reserves.

Speaker Change #121: <unk> been used by Webex.

Speaker Change #121: For the buyback program.

Speaker Change #121: So new metrics just.

Speaker Change #121: Look now just looking deeper into some analysis of multiple <unk> find that later on.

Speaker Change #122: Thank you for your since you Havent seen you for some time.

Vicente Falanga: Thank you, Vicente. I haven't seen you for some time. Good to hear from you. Buyback is considered, and it's a pilot. We have some goals. We're delivering monthly reports to CVM on how it's doing. It's at 80% or close to 80% execution, 157 million in preferential shares. We use a bank rotation system so that we don't get any criticism that we're being discretionary. We don't. We're always looking at daily operations. Whenever we have an important event, like in this process, we suspend purchases. It's been working very well. The difference, one of the biggest drivers of EBITDA, has reduced even if we count the cost of doing business in Brazil and exchange variations.

Speaker Change #123: Good to see you to hear from you.

So.

Speaker Change #123: Buyback is considered.

And.

Speaker Change #123: And that's a pilot we have some goals.

Speaker Change #123: Yeah.

Speaker Change #123: We're delivering bunkley reports to CGM on how it's doing its at 80% or close to 80% execution.

Speaker Change #124: $157 million.

Speaker Change #124: In preferential shares.

Speaker Change #124: And we use a bank rotation system, so that we.

Speaker Change #124: You'll get any criticism.

Speaker Change #124: That were being discretionary.

Speaker Change #124: So we don't.

Speaker Change #124:

Speaker Change #124: We're always looking at daily operations whenever we have an important event.

Speaker Change #124: Like in this process, we suspend purchases.

Speaker Change #124: And it's been working very well.

Speaker Change #124: The difference one of the biggest drivers.

Speaker Change #124:

Speaker Change #124: Of EBITA.

Speaker Change #124: Has reduced even if we.

Speaker Change #124: Count the cost of doing business in Brazil and exchange variations.

This is another parameter that Petrobras may overcome in the future. So.

Operator: This is another parameter that Petrobras may overcome in the future, so we're doing well. The buyback processes around the world have an average of 70% to 80%, so we can still complement it later on. We'll see if we can take this forward. It is the intention of the company to continue with this program. You can call De Nardi, ask him, but we are preparing a new program to be proposed and to analyze it. This is an attribution of the board to approve a proposal from our management. It's a way of redistributing value for our investors as well. It's a part of our remuneration policy, so it makes sense. Thank you. Thank you, Sergio. The last question will be asked by Rodrigo Almeida from Santander. Good afternoon. Can you hear me? Yes, we can hear you. Thank you.

Speaker Change #124: We're doing well.

Speaker Change #124: The buyback.

Speaker Change #124: Processes and around the world have a.

Speaker Change #124: Of an average of 70% to 80%. So we can still complemented later on we'll see if we can take this forward. It is the intention of the company to continue with this program.

Speaker Change #125: So you can call it 90 ask him.

Speaker Change #125: But.

We are preparing a new program to be proposed and to analyze it.

Speaker Change #125: This is an attribution of the board to approve.

Speaker Change #125:

A proposal from our management.

Speaker Change #125: It's a way of redistributing value for our investors as well, it's a part of our remuneration policies. So it makes sense. Thank you.

Speaker Change #126: Thank you Sergio.

Speaker Change #127: The last question will be asked by Rodrigo Almeida from Santander.

Rodrigo Almeida: Good afternoon can you hear me.

Yes, we can hear you.

Rodrigo Almeida: Yeah.

Rodrigo Almeida: Thank you.

Rodrigo Almeida: Yeah.

Rodrigo Almeida: I actually have a question and a follow up.

Rodrigo Almeida: I actually have a question and a follow-up. We see net debt close to BRL 73 billion. Considering the amount of rent values that will still come in, is there any liability that might require your cash to be above the reference value? Looking at the plan, maybe the most CapEx-heavy moment will be between 2024 and 2025 because of the number of platforms. I'd just like to understand that. It would be important to have that for the next quarters. With the different spreads, it might help us to imagine that the valuation would be higher than before. How is Petrobras working with the TCU to justify it? Those are my questions. Thank you. Thank you, Rodrigo, for your question. Starting with liability management.

Rodrigo Almeida: So.

Speaker Change #129: We see net debt close to 73 billion. So considering the amount of rent values that will still come in.

Speaker Change #130: Is there any liability that might require your cash to be above the reference value.

Speaker Change #130: So looking at the plan and maybe the most capex heavy moment will be between 2024.

Speaker Change #131: And 25.

Speaker Change #132: Because of the number of platforms. So I just like to understand that.

Speaker Change #132: It would be important to have that for the next quarters.

Speaker Change #132: Yeah.

Speaker Change #132: Right.

Speaker Change #133: So with the different spreads it might help us to imagine that the valuation will be higher than before.

Speaker Change #134: So how is Petrobras working with the Ah trial of accounts to justify it.

Those are my questions. Thank you.

Speaker Change #135: Thank you Rodrigo for your question.

Speaker Change #136: Starting with liability management.

Speaker Change #136: The peak in the debt.

Operator: The peak in the debt was especially due to anticipating a receivable from one of our FPSOs. Usually, it would not reach 62. We would have amortization for it, and then that would create the curve. We presented a slide for the debt amortization process, even what we call the productive debt. That is a good debt from the rental, so it's under control because it allows you to create a forecast for the oil curve. That shows a reduction versus the beginning of that period. What I'm saying here is that it's under control. It's close to 65, yes. But considering the receivables from FPSOs and the amortizations calendar, it's going down and regressing according to our projections. This was discussed, this was something that we analyzed.

Speaker Change #136: Was especially due to.

Speaker Change #136: Anticipating.

Our receivable from one R. F. P. S dose usually it would not outreach sixty-two would more than we would have amortization for it.

Speaker Change #136: And then that would create the curve.

Speaker Change #136: We presented a slide four.

The debt amortization process.

Speaker Change #136: Even what we call the productive debt.

Speaker Change #136: That is a good dad from the rental so it's under control because it allows you to create a forecast for the oil curve.

Speaker Change #136: And that.

Speaker Change #136: Shows a reduction.

Speaker Change #136:

Speaker Change #136: Versus the beginning of that period, what I'm seeing here is that it's under control. It's under control. It's close to 65, yes, but considering the receivables from F. P S soes and the Amortizations calendar.

Speaker Change #136: It's going down and regressing according to our projections.

Speaker Change #136: This was discussed this was something that we analyzed.

Speaker Change #136: We looked at the different risk scenarios and finance impact to cash.

Operator: We looked at the different risk scenarios and financial impact to cash. There are dozens, if not hundreds, of analyses that we run before we decide on that, but the curve is under control. I understand your question, but it's under control. Considering liability management, Petrobras has won awards and issued a global bond of $1.25 billion, and it used these resources for liability management. The difference in rates and other things, the spread of those rates and other things, allow us to reduce the debt to a similar amount, $1.2 billion, from a financial debt. It's important to say that we got the lowest rate compressions in this operation and the highest rates for the period.

So there are dozens if not hundreds of analyses that we run before we decide on that but the curve is under control.

Speaker Change #136: And.

Speaker Change #136: Yeah.

Speaker Change #136: The I.

Speaker Change #136: Send your question, but it's under control.

Speaker Change #136: Answering liability management Petrobras.

Speaker Change #136: Has won awards and issued a global bond of $1 $25000.

Speaker Change #136: And it used these resources for liability management, the difference in rates and other things a spread of Joe's rates and other things allow us to reduce the debt.

Speaker Change #136: To a similar amount $1 2 billion from a financial debt.

Speaker Change #136: It's important to say that we got the lowest rate compressions in this operation.

Speaker Change #136: And the highest.

Speaker Change #136: Rates for the period so.

Speaker Change #136: Okay.

Speaker Change #136: We looked at our cash we saw if we needed to do it and <unk>.

Operator: We looked at our cash, we saw if we needed to do it, and Petrobras was outside of the issuance market for a number of years, and we decided to test it. It was a very successful operation. We even received awards as the best in Latin America and one of the best in the world. It really was an operation that we studied. The BRL 1.25 billion was used for liability management, and whenever the market presents a favorable spread for VPL for Petrobras may go to the market for an LP. There's no need because our financial debt is very low. If you look at a company like ours, our debt is nearly negligible. The 0.8 that we present is less than one, and that's much more related to our productive debt than a financial debt.

Speaker Change #136: Sure Bras was outside of the issuance market for a number of years and we decided to test it.

Speaker Change #136: Okay.

Speaker Change #136: It was a very successful operation, we even received awards.

Speaker Change #136: As the best in Latin America, one of the best in the World. So it really was an operation that we studied.

Speaker Change #136: The $1 25 billion was used for liability management and whenever the market presents.

Speaker Change #136: A favorable spread for V P L for Petrobras.

Speaker Change #136: Petrobras may go to the market for an L. P.

Speaker Change #136: Okay.

Speaker Change #137: Theres no need because our financial debt is very low if you look at a company like ours are dead is.

Speaker Change #137: Nearly negligible.

Speaker Change #137: 0.8 that we present is less than one and that's much more related to our productive debt than a financial debt. So the answer is yes, we are looking at liability management.

Operator: The answer is yes, we are looking at liability management so that we can manage this. Whenever the spread presents itself, we extend our debt. This is an ongoing process at Petrobras. Thank you for your question. Oh, we forgot to answer one of them on M&A processes. As Jean Paul said, there's an example that we always use. If you're on a conveyor belt and you try to go back, even if you jump, you're not going to go back to the same point. What we're analyzing is the whole. Green fuel for aviation, there's a growing demand for that. People who call us ask about biorefineries, this is a new horizon, right? We don't need to buy 100%, but this is all being analyzed right now.

Speaker Change #137: So that we can manage this whenever the spread.

Speaker Change #137: Presents itself, we extend our debt. This is an ongoing process at Petrobras. So thank you for your question.

Oh, we forgot to answer one of them on M&A processes.

Speaker Change #137: As John Paul said.

Speaker Change #137: There is an example that we always use if you're on a conveyor belt and you try to go back even if you jump you're not going to go back to the same point.

Speaker Change #137: What we're analyzing is the hole.

Speaker Change #137: Green fuel for aviation.

Speaker Change #137: There's a growing demand for that.

Speaker Change #137: People, who call us who.

Speaker Change #137: Asked about by a refined or is this is a new horizon right, we don't need to buy 100%.

Speaker Change #137: But this is all being analyzed right now.

Speaker Change #137: But we're not considering a getting that.

Operator: We're not considering getting debt for this acquisition, as I explained before. We were invited for an analysis. We are constantly in talks with others. It's a normal Petrobras process. It's not light. It's a heavy governance process, so it takes some time. Thank you. Thank you, Sergio. This concludes our Q&A. If you have any additional questions, they can be sent to our investor relations team. We'll be happy to answer them. I'll now pass it over to Jean Paul's closing remarks. Thank you. I just have a very positive and upbeat note to say goodbye. This is something that we mentioned to our employees, but we want to highlight how good of a result this was. We don't want to be influenced by asset sales bonuses or refinery bonuses or anything else.

Speaker Change #137: For this.

Speaker Change #137: Acquisition.

Speaker Change #137: As I explained before.

So we invited we were invited front and analysis, we are constantly and talks with.

Speaker Change #137: Others, it's the normal Petrobras process, it's not light, it's a heavy governance process would take some time. Thank you.

Sergio Caetano: Thank you Sergio.

Speaker Change #138: This concludes our Q&A.

Speaker Change #139: If you have any additional questions. They can be sent to our investor relations team.

Speaker Change #139: We'll be happy to answer them.

Speaker Change #140: I'll now pass it over to shelves in remarks.

Speaker Change #140: Yeah.

Speaker Change #140: Thank you so I just have a very positive and upbeat note.

Speaker Change #140: To.

Speaker Change #140: Say goodbye. This is something that we mentioned to our employees, but we want to.

Highlight how good of a results this was.

Speaker Change #140: And we don't want to be influenced by our asset.

Speaker Change #140: Asset sales bonuses or a refinery bonuses are.

Speaker Change #140: Anything else.

Speaker Change #140: As Brent is going down.

Speaker Change #140: As diesel cracking is going down.

Jean Paul Prates: As Brent is going down, as diesel crack spread is going down, we are still achieving the second-best results in our history in EBITDA and operational cash flow, the highest profits among publicly traded Brazilian companies, the third highest in global companies, below Exxon and Shell, but above Chevron and Total. 13 operational records. Gas processing, refining, logistics, patents, engineering, reducing financial debt. I think we're showing that despite going through challenges, this first year was extremely satisfactory and rewarding. This is something that we've been trying to do, and I think any company like ours would need to do that. We need to do it every day. It's not something special. This is our mission. Our mission is to match the interests of our stakeholders, and we've clearly been able to do it. Our returns were the highest in the industry.

Speaker Change #140: We are still achieving the second best results in our history.

Speaker Change #140: EBITDA and operational cash flow.

Speaker Change #140: The highest profits among publicly traded Brazilian companies the third highest.

Speaker Change #140: In our global companies.

Speaker Change #140: Below Exxon and shell, but above.

Speaker Change #140: Trevor on and hotel.

Speaker Change #140: 13 operational records.

Speaker Change #140: Yes.

Speaker Change #140: Gas processing refining logistics patents engineering, reducing financial debt.

Speaker Change #140: I think we're showing that despite going through challenges. This first year was extremely.

Speaker Change #140: Satisfactory and.

Speaker Change #140: Rewarded.

Speaker Change #140: This is something that we've been trying to.

Speaker Change #140: Due in I think.

Any company like ours would need to do that we.

Speaker Change #140: We need to do it every day its not.

Something special.

Speaker Change #140: This is our mission.

Speaker Change #140: Our mission is to.

Speaker Change #140: Our match the interests of our stakeholders and we've clearly been able to do it.

Speaker Change #140: Our returns were the highest in the industry.

Speaker Change #140: We made a rationality.

Operator: We made rationality prevail by being insistent and by being respectful. I'd like to ask you to stick around and to trust us. We're doing serious ethical, transparent work, and we're being efficient. We're going to show you that. You know, for you who are investing in us, we're trying to be a source of development. There's only one way of making it consistent and perennial. It's making that happen as often as we can. There might be some noise, but if we can do that, this is the winning formula for Petrobras and for any company that has our capital composition. Thank you, everyone. Thank you, João. Thank you, everyone, for listening to this webcast. Have a great day.

Prevail.

Speaker Change #140: I being insistent and by being respectful.

Speaker Change #140: So I'd like to ask you to stick around it to trust us.

Speaker Change #140: We're doing serious ethical transparent work and we're being efficient.

Speaker Change #140: Going to show you that.

You know for you who are investing in us.

Speaker Change #140: We're trying to be.

Speaker Change #140: A source of development.

Speaker Change #140: And there's only one way of making it consistent and perennial.

It's making that happen.

Speaker Change #140: As often as we can there.

Speaker Change #140: There might be some noise.

Speaker Change #140: But.

Speaker Change #140: If we can do that this is a winning formula for Petrobras and for any company that has our capital composition. Thank you everyone.

Speaker Change #141: Thank you Sheng. Thank you everyone for listening to this webcast have a great day.

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