Q4 2024 Petroleo Brasileiro SA Petrobras Earnings Call
We've had we were able to overcome them.
And we were now begin.
Speaker Change: This event will be presented in Portuguese with simultaneous translation into English the links for both languages are available on our Investor Relations website, we'd like to inform you that all participants are currently connected to the webcast and Aetna Demoed.
Speaker Change: After our introductions, we will have our Q&A and you'll be able to send your questions via E mail to Petro invest at Petrobras Dotcom Dot BR.
Speaker Change: Joining us today are Petrobras as president magnet Schembri arc executive director of corporate Affairs Clarus competitor.
Speaker Change: Executive director of logistics logistics commercialization and markets Cloudier Schlosser.
Speaker Change: Executive director of Finance and Investor Relations Fernando more grip mugger radio.
Module Spinelli: Executive director of governance, and compliance module spinelli.
Module Spinelli: Executive director of energy transition stand ability Mauricio tumor skin executive director of Engineering technology and innovation, we're not a borocce executive director of exploration and production Sylvia design, Joe's and executive director of industrial processes and other.
Speaker Change: The product's William fronts them to begin I'll now hand over to our President magnet Chamber yard for her initial remarks. Please magnet you may proceed.
Speaker Change: Ladies and gentlemen, good afternoon.
Speaker Change: It is a great pleasure to join you today to talk a little bit about our performance in 2024.
Speaker Change: And to also.
Speaker Change: Place ourselves at your service and to answer any questions. You may have about said performance.
Speaker Change: As it was well said.
Speaker Change: We have the entire executive.
Speaker Change: Board here with us as well as a few directors and executives.
Speaker Change: Who are all open to this discussion about our.
Speaker Change: Results I'd like to thank everyone for joining us.
Speaker Change: And especially our investors who are watching us.
Speaker Change: Right now.
Speaker Change: I'm happy to be here and it is very important to have all of your connected with us today.
Speaker Change: It is always.
Speaker Change: A great joy to be able to join events like this where we can show you our vision and tell you face to face.
Speaker Change: Or looking into your eyes, where the company is and where we stand about its performance.
Speaker Change: I start by telling you that 'twenty 'twenty four was a very positive year for Petrobras.
Speaker Change: We also believe that 2025 will be even better.
Speaker Change: In 'twenty 'twenty four.
Speaker Change: We generated over 200 million reais in cash.
Speaker Change: And paid over 102 billion reais in dividends.
Speaker Change: All of that took place in a more challenging environment.
Speaker Change: With Brent and diesel crack prices lower.
Speaker Change: But even so alright.
Speaker Change: Alright.
Speaker Change: Investments went up by 31% to $16 billion and also reduced our financial debt to the lowest level since 2008.
Speaker Change: This is no surprise to us seeing as it's already been reported.
Speaker Change: But we saw a loss of 17 billion Reais in Q4.
That's something you've probably read in newspaper headlines today.
Speaker Change: But we'd like to tell you that it is very important to understand that this loss.
Speaker Change: Involves no floor and the company's cash situation. This was a result of the result of a an exclusively accounting event, which is the variation in exchange rate and its impact on Petrobras says debts as well as the debts of Petrobras has some.
Video Reis: Video Reis.
Video Reis: This 59 billion in <unk>.
Video Reis: Transactions in 2024 effect arc accounting result, but.
Video Reis: And in no way does it lead to out lace for by the company we've lowered.
Our debt level and pay dividends throughout the year.
Video Reis: We paid about 102 billion reais in.
Video Reis: Yes.
Video Reis: Petrobras is strong.
Video Reis: And extremely healthy in financial terms.
Video Reis: In operational terms and with regard to cash generation, we continue to move forward.
Video Reis: About 10 days ago.
Video Reis: We began the operation of a N F P S O.
Video Reis: I'll move onto to Monterrey.
Video Reis: In the booze use field.
Video Reis: These operations.
Video Reis: Brought.
It's a fact arc accounting result, but.
Video Reis: Capacity for 225.
Video Reis: Barrels of oil a day.
Lytton in in no way does it lead to out lace for by the company we've lowered.
Video Reis: We must say that this is the largest.
Video Reis: Deep water operations.
Our debt level and pay dividends throughout the year.
Video Reis: Sealed in the world and that this two.
We paid about 100 into billion Reais in.
Video Reis: 225 barrels a day.
Yes.
Video Reis: F. P. S. O is the first of four large rigs that will come into operation and will help this field produce about 200 million barrels a day by 2030.
Petrobras is strong.
And extremely healthy in financial terms.
In operational terms and with regard to cash generation, we continue to move forward.
About 10 days ago.
Video Reis: This is a production and production potential that's unprecedented that no other country shows or has shown.
We began the operation of a N F P S O.
I'll be around to command array.
In the booze use field.
Video Reis: And while it may take some time for this field to reach its full potential we've already managed to see 800000 barrels a day in <unk>.
These operations.
Brought.
Capacity for 225.
Barrels of oil a day.
We must say that this is the largest.
Video Reis: Thanks to the start of operations in this F. P S O, which started earlier and I'm mean amarante.
Deep water operations.
Field in the world and that this.
Video Reis: F P S O as I mentioned earlier.
225 barrels a day.
Video Reis: This is Petrobras is most productive.
F. P. S. O is the first of four large rigs that will come into operation and will help this field produce about 200 million barrels a day by 2030.
Video Reis: Field.
Video Reis: Before that the most productive one would produce 150000.
Video Reis: Barrels a day.
Video Reis: So we're close to two P now with 800000.
This is a production and production potential that's unprecedented that no other country shows or has shown.
Video Reis: And <unk> this will probably overcome.
Video Reis: Two P. Soon.
Video Reis: Two or three.
Video Reis: 1.5 billion, and even 2 billion barrels a day by 2030.
And while it may take some time for this feel to reach its full potential we've already managed to see 800000 barrels a day in booz use.
Video Reis: It's a high class asset and again.
Video Reis: The largest deepwater oilfield in the world.
Thanks to the start of operations in this F. P. S O, which started earlier and I'm mean, all meranti.
Video Reis: This is excellent news.
Video Reis: Even better.
Video Reis: When we see well.
Video Reis: Wells with production potential of as highest 70000 barrels of oil a day.
F P S. So as I mentioned earlier.
This is Petrobras is most productive.
Video Reis: A single well in this field.
Field.
Video Reis: Connected to this platform.
Before that the most productive one would produce 150000.
Video Reis: Whose production.
Video Reis: We opened earlier has potential to produce more than many oil fields around the world 70000.
Barrels a day.
So we're close to two P now with 800000.
A boozers this will probably overcome.
Video Reis: Barrels of oil a day as I said.
Two P. Soon.
Video Reis: Later this quarter, we should reach a thousand.
Two.
<unk> thousand one 5 billion and even 2 billion barrels a day by 2030.
Video Reis: Ora.
Video Reis: Yeah.
It's a high class asset and again.
Video Reis: We expect this well to exceed.
The largest deepwater oilfield in the world.
Video Reis: The production of many others in the world and for it to produce alone over 2 billion million barrels a day, becoming the most productive.
This is excellent news.
Even better.
When we see.
Video Reis: Production field that Petrobras runs.
Wells with production potential of as high as 70000 barrels of oil a day.
Video Reis: Needless to say Booz use is.
Video Reis: An invaluable asset for us, which is why I'd like to take this opportunity to speak a little bit more about our investments in 2024.
Yes.
A single well in this field.
Connected to this platform.
Whose production.
We opened earlier has potential to produce more than many oil fields around the world 70000.
Video Reis: Our investment which came to $16 $6 billion.
Barrels of oil a day as I said.
Video Reis: Slightly higher than what we established in our guidance was a recovery of our investments.
Later this quarter, we should reach a thousand.
Ora.
Video Reis: That we had plan for 2020 five in RF.
Yeah.
We expect this well to exceed.
Video Reis: Organizational strategy.
The production of many others in the world and for it to produce alone over 2 billion million barrels a day, becoming the most productive.
Video Reis: Yeah.
Video Reis: And which we.
Video Reis: Fully executed in 'twenty 'twenty four.
Video Reis: Anticipating.
Video Reis: The operations and a platform such as this one just to give you an idea of what this means.
Production feel that pressure bus runs.
Video Reis: This means an increase in present net value for this blood form.
Needless to say Booz use is.
An invaluable asset for us, which is why I'd like to take this opportunity to speak a little bit more about our investments in 2024.
Video Reis: By about 2.2.
Video Reis: $1 billion.
Video Reis: In a three year period.
Our investment which came to.
$16 $6 billion.
Video Reis: So.
Video Reis: This is already solved and we do not expect to see the same level of Capex.
Slightly higher than what we established in our guidance was a recovery of our investments.
Video Reis: In.
Video Reis: The first quarter of 'twenty 'twenty five.
That we had planned for 2025 in <unk>.
Video Reis: And it is very important that this is clear to everyone.
Organizational strategy.
Video Reis: This investment was due to the anticipation of plant investments and also.
Yeah.
And which we <unk>.
Fully executed in 'twenty 'twenty four.
Anticipating.
Video Reis: Of high potential.
The operations and a platform such as this one just to give you an idea of what this means.
Video Reis: A high potential oil operation.
Video Reis: Also important these investments.
This means an increase in present value for this platform.
Video Reis: That we.
Video Reis: Pushed from.
Video Reis: 'twenty 'twenty five to 'twenty 'twenty four in Booz yours, where again to start operations in the most productive deepwater oil rig in the world.
By about 2.2.
Billions of dollars.
In a three year period.
So.
Video Reis: Meaning.
This is already solved and we do not expect to see the same level of Capex.
Video Reis: More oil and.
Video Reis: In a field, that's highly with high potential and with also.
In.
The first quarter of 2025.
Video Reis: Hi financial return.
Our return.
And it is very important that this is clear to everyone.
Speaker Change: Something thats, absolutely an unquestionable, we understand how the market may be frustrated with the near term results, but wed like to remind you that.
This investment was due to the anticipation of plant investments and also.
Speaker Change: Making advanced investments such as what we did in Booz uses with any investor might ever want.
Of high potential.
A high potential oil operation.
Also important these investments.
Speaker Change: Increased production and a highly production.
That we.
Pushed from.
In a highly productive field.
'twenty 'twenty five to 'twenty 'twenty four in Booz yours, where again to start operations in the most productive deepwater oil rig in the world.
Speaker Change: Field.
Speaker Change: Is money in your pockets quicker. So ultimately we're what we're offering you.
Speaker Change: Is.
Speaker Change: Oil more quickly.
Meaning.
Speaker Change: If possible.
More oil.
Speaker Change: We would have advanced all the loses related capex to today and all of you would be very happy because we would start producing its full potential by tomorrow and most likely you would be able to rely on production levels of about two bill.
And a field, that's highly with high potential and with also high.
Hi financial.
Return.
Speaker Change: Something thats, absolutely an unquestionable, we understand how the market may be frustrated with the near term results, but wed like to remind you that.
Speaker Change: <unk> barrels a day and a single field.
Speaker Change: Making advanced investments such as what we did in Booz uses with any investor might ever want.
Speaker Change: This adds value.
Speaker Change: To Petrobras, but unfortunately, we cannot advance the investment that much we did what was possible to us and if in the future.
Increased production and a highly production.
Speaker Change: In a highly productive field.
Speaker Change: We can.
Speaker Change: Advance something that will bring as much profit or even more.
Speaker Change: Field.
Speaker Change: Is money in your pockets quicker. So ultimately we're what we're offering you.
Speaker Change: Rest assured this is what Petrobras will do well.
Speaker Change: We will always strive to advance investments in order to derive value for the company.
Speaker Change: Is.
Speaker Change: Oil more quickly.
Speaker Change: If possible.
Speaker Change: We would have advanced all the loses related capex to today and all of you would be very happy because we would start producing its full potential by tomorrow and most likely you would be able to rely on production levels of about two bill.
Speaker Change: And whenever that happens what we are advancing is cash generation with new oil coming in meaning.
Speaker Change: Meaning we are making.
Speaker Change: Any investors pipe dream come true.
Speaker Change: That's what we're focusing on.
Speaker Change: <unk> barrels a day in a single field.
Speaker Change: Yes.
Speaker Change: We are focusing on.
Speaker Change: This adds value.
Speaker Change: Bringing in.
Speaker Change: Being productions investments and value earlier.
Speaker Change: To Petrobras, but unfortunately, we cannot advance the investment that much we did what was possible to us and if in the future.
Speaker Change: And this is something we did.
Speaker Change: Deliberately.
Speaker Change: Another example was F.
Speaker Change: We can.
Speaker Change: Advance something that will bring as much profit or even more.
Speaker Change: F P S O Maria criteria.
Speaker Change: Whose operation operations, which was expected to take place later in the Campos basin.
Speaker Change: Rest assured this is what Petrobras will do well.
Speaker Change: We will always strive to advance investments in order to derive value for the company.
Speaker Change: This is a platform that was expected to start operating in 2025.
Speaker Change: And whenever that happens what we are advancing is cash generation with new oil coming in meaning we are making.
Speaker Change: And we were able.
Speaker Change: To make it so that operation started in October 2024.
Speaker Change: Again, it was advanced cash spending.
Speaker Change: Any investors pipe dream come true.
Speaker Change: That was made deliberately and it must be said that this was the result of a great effort by our team.
Speaker Change: That's what we're focusing on.
Speaker Change: We are focusing on.
Bringing in.
Speaker Change: Being productions investments and value earlier.
Speaker Change: Okay.
Speaker Change: Which was accomplished thank you thanks to the very well fine tuned.
Speaker Change: And this is something we did.
Speaker Change: Directories or secretary that's in the country in the company.
Speaker Change: Deliberately.
Speaker Change: Another example was F.
Speaker Change: F P S O Maria Cataria.
Speaker Change: We also established set new records in our pre Salt project, which now accounts for 80% of all of Petrobras. It's production. These are world class assets, which are highly productive and which currently as I said account for 80% of.
Speaker Change: Whose operation operations, which was expected to take place later in the Campos basin.
Speaker Change: This is a platform that was expected to start operating in 2025.
Speaker Change: And we were able.
Speaker Change: The companies.
Speaker Change: To make it so that operation started in October 2024.
Speaker Change: Full output.
Speaker Change: We started operating F. P. S O Marshalls dooket because she is in the mellow field. In addition to Maria Cataria in Juba.
Again, it was advanced cash spending.
Speaker Change: Field.
Speaker Change: That was made deliberately and it must be said that this was the result of a great effort by our team.
Speaker Change: That expanded our production capacity.
Speaker Change: Our production peaked in F. P. S O Sip of tea, but also in the mellow field.
Speaker Change: Okay.
Speaker Change: Which was accomplished thank too thanks to the very well fine tuned.
Speaker Change: Another very positive piece of news.
Speaker Change: Directories or secretary that's in the country in the company.
Speaker Change: Was the increase in our reserves in 'twenty 'twenty four.
Speaker Change: We also established set new records in our pre Salt project, which now accounts for 80% of all of Petrobras. It's production. These are world class assets, which are highly productive and which currently as I said account for 80% of.
Speaker Change: To give you an idea over the course of 'twenty 'twenty four.
Speaker Change: We produced 900 million barrels of oil.
Speaker Change: And we also replenished 1.2 billion barrels to our reserves.
Speaker Change: Meaning we produced 900 million.
Speaker Change: The companies.
Speaker Change: Full output.
Speaker Change: And also.
Speaker Change: Replenished our inventory.
Speaker Change: We started operating F. P. S O Marshalls do critical she is in the mellow field. In addition to Maria Cataria in Juba.
Speaker Change: Showing that the our reserves are a priority for us we face the production challenge.
Speaker Change: Sealed.
Speaker Change: That expanded our production capacity.
Speaker Change: We produce.
Speaker Change: Our production peaked in F. P. S O Sip of tea, but also in the mellow field.
Speaker Change: The type of energy that's nonrenewable.
Speaker Change: Which is to say production of this is expected to decline and we've been able to show greater production and a larger.
Speaker Change: Another very positive piece of news.
Speaker Change: Was the increase in our reserves in 'twenty 'twenty four.
Speaker Change: Reserve.
Speaker Change: Replenishing our reserves, it's absolutely critical for Petrobras to remain important.
Speaker Change: To give you an idea over the course of 'twenty 'twenty four.
Speaker Change: We produced 900 million barrels of oil.
Speaker Change: And relevant both in Brazil, and the world over the next few decades.
Speaker Change: Yeah.
Speaker Change: And we also replenished 1.2 billion barrels to our reserves.
Speaker Change: So we understand as Paramount.
Speaker Change: Meaning we produced $900 million.
Speaker Change: To responsibly explore.
Speaker Change: And also.
Speaker Change: Replenished our inventory.
Speaker Change: The equatorial shore, which is an area, we understand to be of high potential.
Speaker Change: Showing that the our reserves are a priority for us we face the production challenge.
Speaker Change: As well as other borders in Brazil, such as the Pelotas basin.
Speaker Change: In the southern side of Brazil.
Speaker Change: We produced.
Speaker Change: The type of energy that's nonrenewable.
Speaker Change: We are currently conducting exploratory results in that basin and also interpreting the seismic science and we expect this space in which.
Speaker Change: Which is to say production of this is expected to decline and we've been able to show greater production and a larger.
Speaker Change: Already shows.
Speaker Change: Reserve.
Speaker Change: Similarities to the Namibia basin.
Speaker Change: Replenishing our reserves, it's absolutely critical for Petrobras to remain important and relevant both in Brazil, and the world over the next few decades.
Speaker Change: Yeah.
Speaker Change: Might also provide us a fruitful.
Speaker Change: Future when it comes to oil production.
Speaker Change: So we understand as Paramount.
Speaker Change: Our actions took place not only in production and exploration and also not only in engineering and refining. We also reported major breakthroughs are gasoline and S 10 diesel.
Speaker Change: To responsibly explore.
Speaker Change: The equatorial shore, which is an area, we understand to be of high potential as well as other borders in Brazil, such as the Pelotas basin.
Speaker Change: Also deserve highlight.
Speaker Change: Bear in mind that S 10 diesel is our most profitable product.
Speaker Change: In the southern side of Brazil.
Speaker Change: We are currently conducting exploratory results in that basin and also interpreting the seismic science and we expect this space in which.
Speaker Change: And we set record breaking production in S. T S 10 diesel production.
Speaker Change: Our refineries.
Speaker Change: Already shows.
Speaker Change: Operator, with the highest Ah.
Speaker Change: Similarities to the Namibia basin.
Speaker Change: Operating factor in the last 10 years and 70% of.
Speaker Change: Deep water oil.
Speaker Change: Might also provide us a fruitful future when it comes to oil production.
Speaker Change: Reached its highest percentage in total produce meat.
Speaker Change: And as you know years ago.
Speaker Change: Yeah.
Speaker Change: Our actions took place not only in production and exploration and also not only in engineering and refining. We also reported major breakthroughs are gasoline and S 10 diesel.
Speaker Change: Our most important production came from the combo spacing and this was heavy oil.
Speaker Change: So to reach.
Speaker Change: 70% of deepwater oil share in the processed load in 'twenty 'twenty four.
Speaker Change: Also deserve highlight.
Speaker Change: Bear in mind that S 10 diesel is our most profitable product.
Speaker Change: Meaning a lighter oil.
Speaker Change: Yeah.
Speaker Change: <unk>.
Speaker Change: And we set record breaking production in S. T S 10 diesel production.
Speaker Change: All of this goes to show us how much work our teams have accomplished to change the level of processing of this oil to deliver.
Speaker Change: Our refineries.
Speaker Change: Operated with the highest Ah.
Speaker Change: As much value as possible to you as a result of our most valuable asset which is our deep water prospecting and.
Speaker Change: Operating factor in the last 10 years and 70% of <unk>.
Speaker Change: Water oil.
Speaker Change: Exploration. We also started operations at P. G N. The.
Speaker Change: Reached its highest percentage in total produce meat.
Speaker Change: Natural gas production in the state of Rio de Janeiro, as well as the Sulphur unit in the Pernambuco unit, which we call remiss.
Speaker Change: And as you know years ago.
Speaker Change: Our most important production came from the combo spacing and this was heavy oil.
Speaker Change: So to reach.
Speaker Change: Many accomplishments and breakthroughs have been.
Speaker Change: 70% of deepwater oil share in the processed load in 'twenty 'twenty four.
Speaker Change: Have come throughout the year.
Speaker Change: And because we do not have a lot of time with just slight just wanted to offer you a summary of what we've accomplished.
Speaker Change: Meaning a lighter oil.
Speaker Change: But once again we are here.
Speaker Change: All of this goes to show us how much work our teams have accomplished to change the level of processing of this oil to deliver.
Speaker Change: At your service and available to answer any question you might have.
Speaker Change: Our operation, ladies and gentlemen, rest assured it is absolutely profitable pet.
Speaker Change: As much value as possible to you as a result of our most valuable asset, which is our deep water prospecting and XP.
Speaker Change: Petrobras has had a cash operating cash generation, which is unprecedented for 2024.
Speaker Change: Exploration. We also started operations at P. G N. The.
Speaker Change: We're talking about no more no less than 204 billion BRL.
Speaker Change: Natural gas production in the state of Rio de Janeiro, as well as the Sulphur unit in the Pernambuco unit, which we call remiss.
Speaker Change: In operating cash generation.
Speaker Change: And as I had mentioned in the beginning of my speech.
Speaker Change: We had a reduction in our financial debt, which is now 23 billion. So in other words, we generated our operating cash flow to the tune or of 204 billion BRL, we paid off 270 billion in taxes.
Speaker Change: Yeah.
Speaker Change: Many accomplishments and breakthroughs have been.
Speaker Change: Have come throughout the year.
Speaker Change: And because we do not have a lot of time with just like just wanted to offer you a summary of what we've accomplished.
Speaker Change: But once again we are here.
Speaker Change: At your service and available to answer any question you might have.
Speaker Change: And we concluded a year.
Speaker Change: With a lower financial debt the lowest level that we've seen in the last 10 years.
Speaker Change: Our operation, ladies and gentlemen, rest assured it is absolutely profitable pet.
Speaker Change: So we had we had reached our lowest point in the debt since 2008 and that means ladies and gentlemen that we have generated enough resources Q.
Speaker Change: Petrobras has had a cash a operating cash generation, which is unprecedented for 2024.
Speaker Change: Q invest compensate our shareholders.
Speaker Change: We're talking about no more no less than 204 billion BRL.
Speaker Change: Meet our obligations and we did all of that with a debt level that is well under control.
Speaker Change: In operating cash generation.
Speaker Change: And as I have mentioned in the beginning of my speech.
Speaker Change: Which makes for an excellent financial health for the company.
Speaker Change: We had a reduction in our financial debt, which is now 23 billion. So in other words, we generated our operating cash flow to the tune or of 204 billion BRL, we paid off 270 billion in taxes.
Speaker Change: Yeah.
Speaker Change: I underscore that the accounting loss of the fourth quarter does not reflect operating soundness or the financial health of Petrobras, but rather it is the effect of the exchange rate variation and deaths of Petrobras with its own subsidiary companies abroad.
Speaker Change: And we concluded a year.
Speaker Change: With a lower financial debt the lowest level that we've seen in the last 10 years.
Speaker Change: <unk>.
Speaker Change: Just to give you an idea of what that means and how that translates into an accounting amount. It was an impact of 59 billion BRL.
Speaker Change: So we have we have reached our lowest point in the debt since 2008 and that means ladies and gentlemen that we have generated enough resources Q.
Speaker Change: Q invest compensate our shareholders.
Speaker Change: Which results once again this does not have any impact on our cash flow, but rather this is an effect of Petrobras says that with its subsidiaries abroad and again. This is not to say, it's very important to underscore and understand this fact.
Speaker Change: Meet our obligations and we did all of that with a debt level that is well under control.
Speaker Change: Which makes for an excellent financial health for the company.
Speaker Change: Yeah.
Speaker Change: This negative value of the variation did not come from the company's cash and Furthermore, that is to say that as the dollar.
Speaker Change: I underscore that the accounting loss of the fourth quarter does not reflect operating soundness or the financial health of Petrobras, but rather it is the effect of the exchange rate variation and deaths of Petrobras with its own subsidiary companies abroad.
Speaker Change: Scales back part of this amount will be a profit in the first quarter of 2025.
Speaker Change: In some years. This variation is positive and other years. This variation is negative.
Speaker Change: <unk>.
Speaker Change: Just to give you an idea of what that means and how that translates into an accounting amount. It was an impact of 59 billion BRL.
Speaker Change: This year and throughout 2024. This variation was negative to the tune of 59 billion BRL.
Speaker Change: For example, if we were to do with simulation for the first quarter of 2025 closing at the current exchange rates.
Speaker Change: Which results once again this does not have any impact on our cash flow, but rather this is an effect of Petrobras says that with its subsidiaries abroad and again. This is not to say, it's very important to underscore and understand this fact.
Speaker Change: Of 570.
Speaker Change: All the way to 585 BRL per USD debt exchange variation would give us.
Speaker Change: This negative value of the variation did not come from the company's cash and Furthermore, that is to say that as the dollar.
Speaker Change: Instantly a positive result in the order of $2 billion in the first quarter of 2025.
Speaker Change: Scales back part of this amount will be a profit in the first quarter of 2025.
Speaker Change: In BRL.
Speaker Change: North of 11 billion BRL, and that's only coming from the exchange rate variation and the accounting profit and again without any impact on our cash flow at the end of the day, we have some opposite effects that come to a balanced economically and that is because.
Speaker Change: In some years. This variation is positive and other years. This variation is negative.
Speaker Change: This year and throughout 2024. This variation was negative to the tune of 59 billion BRL.
Speaker Change: The exchange variation between the net result of the Brazilian holding as an impact on the profits a negative impact in this case for 2025. However at the same time this comes in positively.
Speaker Change: For example, if we were to do with simulation for the first quarter of 2025 closing at the current exchange rate.
Speaker Change: Of 570.
Speaker Change: All the way to 585 BRL per USD debt exchange variation would give us.
Speaker Change: Into our net worth.
Speaker Change: One theoretical example, if we were to exclude this exchange variation from different exclusive events as well as the tax transaction from the second semester and by the way I do a parenthesis here that decision by the way was recognized as a very.
Speaker Change: Instantly a positive result in the order of $2 billion in the first quarter of 2025.
Speaker Change: In BRL.
Speaker Change: North of 11 billion BRL, and that's only coming from the exchange rate variation and the accounting profit and again without any impact on our cash flow at the end of the day, we have some opposite effects that come to a balanced economically and that is because.
Speaker Change: Positive one in this case the Petrobras profit in 2024 would have been $19.4 billion.
Speaker Change: So.
Speaker Change: From that perspective, it's worthwhile to have this calculation in mind.
Speaker Change: The exchange variation between the net result of the Brazilian holding as an impact on the profits a negative impact in this case for 'twenty twenty-five. However at the same time this comes in positively.
Speaker Change: Now I will discuss a little bit about the company's future I already mentioned the booth yields field, so let's dig into Petrobras is future.
Speaker Change: When we come back to this call to talk about the results of 2025, we will be looking at a company that is producing more we are planning an increase of 100000 barrels per day for 2025 and by the way. We remind you that we are working with non renewed.
Speaker Change: Into our net worth.
Speaker Change: One theoretical example, if we were to exclude this exchange variation from different exclusive events as well as the tax transaction from the second semester and by the way a do a parenthesis here that decision by the way was recognized as a very.
Speaker Change: People power sources and the trend is a downward trend and what we are presenting to you ladies and gentlemen is that.
Speaker Change: Positive one in this case the Petrobras profit in 2024 would have been $19.4 billion. So.
Even though we are facing some declining trends.
Speaker Change: We intend to announce to all of you by the end of 2025 that will have an increase in production in the order of 100000 barrels of oil per day.
Speaker Change: From that perspective, it's worthwhile to have this calculation in mind.
Speaker Change: Now I will discuss a little bit about the company's future I already mentioned the booth yields field, so let's dig into Petrobras is future.
We will have three new producing units that are going fully operational throughout the year and once again, ladies and gentlemen. This is and in fact this is a time that is very challenging.
Speaker Change: When we come back to this call to talk about the results of 2025, we will be looking at a company that is producing more we are planning an increase of 100000 barrels per day for 2025 and by the way. We remind you that we are working with non renewed.
Speaker Change: But.
Speaker Change: Petrobras is adamant and ready to face up to the challenges and turn it into positive results. The revamp of the train one from the refinery of Pernambuco.
Speaker Change: People power sources and the trend is a downward trend and what we are presenting to you ladies and gentlemen is that.
Speaker Change: And the new H D T.
Speaker Change: Those will be fully operational by the end of this year.
Speaker Change: Even though we are facing some declining trends.
Speaker Change: Which also means more diesel out in the market and it means something extra as a matter of fact, it means more S 10 diesel in the market, which is <unk>.
Speaker Change: We intend to announce to all of you by the end of 2025 that will have an increase in production in the order of 100000 barrels of oil per day.
Speaker Change: Our most prized possession, our most high.
Speaker Change: <unk> value added product.
Speaker Change: We will have three new producing units that are going fully operational throughout the year and once again, ladies and gentlemen. This is an effect, but this is a time that is very challenging.
Speaker Change: We are also returning to the fertilizer business.
With the operation of Enzo, which is estimated for 2025 and we will also resume the works of U S and three which is the fertilizer units of the Midwest of Brazil, We are expanding our fleet by acquiring four range vessels and eight.
Speaker Change: But.
Speaker Change: Petrobras is adamant and ready to face up to the challenges and turn it into positive results. The revamp of the train one from the refinery of Pernambuco.
Speaker Change: Additional <unk> vessels for coasting for those that are not familiar with range vessels. These are vessels that.
Speaker Change: And the new H D T.
Speaker Change: Those will be fully operational by the end of this year.
Speaker Change: Pick up fuel in the south of Rio and take it all the way north.
Speaker Change: Which also means more diesel out in the market and it means something extra as a matter of fact, it means more S 10 diesel in the market, which is <unk>.
To the Iguazu ports.
Speaker Change: To replenish our vessel fleet, our supporting vessels and we are also expanding that with an additional eight vessels for coastal navigation and I'll tell you why because on route three we will produce more G. L. P and this G. L. P will actually be distributed throughout.
Speaker Change: Our most prized possession, our most high value added product.
Speaker Change: We are also returning to the fertilizer business.
With the operation of Enzo, which is estimated for 2025 and we will also resume the works of U F. N three which is the fertilizer units of the Midwest of Brazil, We are expanding our fleet by acquiring four range vessels and eight.
Speaker Change: The Brazilian coast with these vessels. So once again all of that operation will be carried out to distribute this production, which finds itself in a growing trend. We were growing this production more and more and again these are major opportunities for the national industry.
Speaker Change: Additional vote vessels for coasting for those that are not familiar with range vessels. These are vessels that.
Speaker Change: Three these are vessels that are going to be financed by the merchant Navy and they are going to be operational. So it's noteworthy to mention that is enlargement of our fleet.
Speaker Change: Pick up fuel in the south of Rio and take it all the way north to.
Speaker Change: The Iguazu ports.
Speaker Change: Is in line with all of our governance.
Speaker Change: To replenish our vessel fleet, our supporting vessels and we are also expanding that with an additional eight vessels for coastal navigation and I'll tell you why because on route three we will produce more G. L. P and this G. L. P will actually be distributed throughout.
Procedures all of our economic analysis. So all of that is a positive prospect in all three scenarios and analysis that we ran and this is a very promising an optimistic scenario now once again when we when it comes to the local content in this.
Speaker Change: The Brazilian coast with these vessels. So once again all of that operation will be carried out to distribute this production, which finds itself in a growing trend. We're growing this production more and more and again these are major opportunities for the national industry.
Speaker Change: Fleet, which will be our own fleet, we are talking about a major contribution from the federal government when it comes to the local content, which may reach.
Speaker Change: As high as 65% of supply from the National industry. It's it's worthy to say that this cost will not be paid for by Brazil. This will be paid rather by the federal government via some financing structures at a reduced cost from the merchant Navy.
Speaker Change: Read these are vessels that are going to be financed by the merchant Navy and they are going to be operational. So it's noteworthy to mention that is enlargement of our fleet.
Speaker Change: Is in line with all of our governance.
Speaker Change: Fund and also a new red legislation in Brazil, which is also has a it has been drafted by the federal government.
Speaker Change: Procedures all of our economic analysis. So all of that is a positive prospect in all three scenarios and analysis that we ran and this is a very promising an optimistic scenario now once again when we when it comes to the local content in this.
Speaker Change: It's a procedure related to the accelerated depreciation which is enabled as of 'twenty 'twenty four thanks to the efforts of the federal government.
Speaker Change: And once again with the support of the Federal government. These developments may reach as high as 65% local content generating jobs and expanding the the participation of the Brazilian industry and enable an offshore industries and to US This is rather.
Speaker Change: Fleet, which will be our own fleet, we are talking about a major contribution from the federal government when it comes to the local content, which may reach.
Speaker Change: As high as 65% of supply from the National industry. It's it's worthy to say that this cost will not be paid for by Brazil. This will be paid rather by the federal government via some financing structures at a reduced cost.
Speaker Change: Positive because besides having assets that compete on the international level.
Speaker Change: Are the costs of replenishment. We also have some suppliers that are close to us and those are meeting.
Speaker Change: From the merchant Navy fund and also a new red legislation in Brazil, which is also has has been drafted by the federal government.
Speaker Change: All of our demands in a timely fashion.
Speaker Change: Okay.
Speaker Change: Therefore.
Speaker Change: When you consider all of our projects to expand our fleet and to increase the number of vessels, we own we expect to generate 44.
Speaker Change: It's the procedure related to the accelerated depreciation which is enabled as of 'twenty 'twenty four thanks to the efforts of the federal government.
Speaker Change: New jobs.
Speaker Change: And once again with the support of the Federal government. These developments may reach as high as 65% local content generating jobs and expanding the the participation of the Brazilian industry and enable an offshore industries and to US This is rather.
Speaker Change: These are going to be very positive hiring processes that are going to increase our ability to respond.
Speaker Change: <unk> to our needs and to distribute few throughout the country and with that we are going to be less financially exposed.
Speaker Change: From a Petrobras perspective, two charters if rates, we have our financial director our CFO.
Positive because besides having assets that compete on the international level.
Speaker Change: Two our side he's going to tell you that in a second but what our finance Department has said is that reducing freight.
Speaker Change: The costs of replenishment. We also have some suppliers that are close to us and those are meeting.
Speaker Change: He is in line with a better possibility to manage our company company debt freights or deaths and managing our debt is one of the priorities as our CFO, we'll be happy to inform you later on.
Speaker Change: All of our demands in a timely fashion.
Speaker Change: Yeah.
Speaker Change: Therefore.
Speaker Change: When you consider all of our projects to expand our fleet and to increase the number of vessels, we own we expect to generate 44.
Speaker Change: New jobs.
Speaker Change: Again, we are elated as well.
Speaker Change: These are going to be very positive hiring processes that are going to increase our ability to respond swiftly to our needs and to distribute few throughout the country and with that we are going to be less financially exposed.
Speaker Change: With natural Brad's going back to the Dow Jones index of sustainability, which is one of the most important indexes in the world. We are recognized as a company. Thanks.
Speaker Change: Thanks to our efforts in the environmental social and governance areas.
Speaker Change: From a Petrobras perspective, two charters and freights, we have our financial director our CFO.
Speaker Change: We have stacked prizes and awards in the area of governance.
Speaker Change: Two our side he's going to tell you that in a second but what our finance Department has said is that reducing freight.
Speaker Change: We have garnered.
Speaker Change: Awards in the environmental and social sites as well Petrobras is one of the nine global energy businesses that are qualified.
Speaker Change: He is in line with a better possibility to manage our company to company that freights or deaths and managing our debt is one of the priorities as our CFO, we'll be happy to inform you later on.
Speaker Change: Between the over 50 companies that work in this sector and that have been assessed for the certification we recognize the multiplying effect of Petrobras activity in Brazilian society in 2024 hour sustained our investment in.
Speaker Change: Again, we are elated as well.
Speaker Change: With natural Brad's going back to the Dow Jones index of sustainability, which is one of the most important indexes in the world. We are recognized as a company. Thanks.
Speaker Change: <unk> 250000 jobs.
Speaker Change: And they accounted for 5% of the investment in Brazil.
Speaker Change: Thanks to our efforts in the environmental social and governance areas.
Speaker Change: Our activities have generated 31%.
Speaker Change: Of all the primary energy consumed in Brazil.
Speaker Change: We have stacked prizes and awards in the area of governance.
Speaker Change: We paid for 270 billion BRL in taxes and other government.
Speaker Change: We have garnered.
Speaker Change: Awards in the environmental and social sides as well Petrobras is one of the nine global energy businesses that are qualified.
Speaker Change: Expenses.
Speaker Change: As I had mentioned before.
Speaker Change: Yeah.
Speaker Change: Between the over 50 companies that work in this sector and that had been assessed for the certification we recognize the multiplying effect of Petrobras activity in Brazilian Society in 2024 hour sustained our investment in.
Speaker Change: And we paid 102.6 billion BRL.
Speaker Change: In dividends.
Speaker Change: As I mentioned before.
We had 37.9 billion BRL that were paid to the union and to the National Bank for development.
Speaker Change: <unk> 250000 jobs.
Speaker Change: And they accounted for 5% of the investment in Brazil.
Speaker Change: Our activities have generated 31%.
Speaker Change: We also dedicated over 1 billion rails in social environmental investment. This is a voluntary and mandatory effort. We also did sponsorships and donations with this amount and we have numerous impact impactful programs.
Speaker Change: All the primary energy consumed in Brazil.
Speaker Change: We paid for 270 billion BRL in taxes and other government.
Speaker Change: Such as our income program, which will offer a 11000 positions in professional training for the energy sector.
Speaker Change: Expenses.
Speaker Change: As I had mentioned before.
Speaker Change: Okay.
Speaker Change: And we paid 102.6 billion BRL.
Speaker Change: Developing skills that are essential to our industry.
Speaker Change: Ladies and gentlemen, I would like to make another parenthesis at this point because we are already observing the results of Petrobras activities.
Speaker Change: In dividends.
Speaker Change: As I mentioned before.
Speaker Change: We had 37.9 billion BRL that were paid to the union and to the National Bank for development.
Speaker Change: We do have a shortage of labor in Brazil Boyle.
Boiler operators welders and other professionals. This is an issue.
Speaker Change: We also dedicated over 1 billion rails in social environmental investment. This is a voluntary and mandatory effort. We also did sponsorships and donations with this amount and we have numerous impact impactful programs.
Speaker Change: And Petrobras has gotten involved in numerous programs along with the industry agency in Brazil to train numerous professionals.
Speaker Change: And then these and these trainees.
Speaker Change: Such as our income program, which will offer a 11000 positions in professional training for the energy sector.
Speaker Change: They comprehend a great deal of our income and autonomy program. You have people that are registered these are folks that are eligible.
Speaker Change: Developing skills that are essential to our industry.
Speaker Change: For the income assistance.
Speaker Change: So in that sense that is to say that what the company is doing is we are adding labor to the market. We are qualifying our labor in the country and at the same time, we are alleviating Brazilian society from a heavy burden. So it's a win win situation. It's good for Petrobras because we have qualified.
Speaker Change: Ladies and gentlemen, I would like to make another parenthesis at this point because we are already observing the results of Petrobras activities.
Speaker Change: We do have a shortage of labor in Brazil Boy.
Speaker Change: Boiler operators welders and other professionals. This is an issue.
Speaker Change: Labor to work in our operations and we mitigate risks therefore.
Speaker Change: And Petrobras has gotten involved in numerous programs along with the industry agency in Brazil to train numerous professionals.
Speaker Change: And we are also meeting the demands of society at large in a timely fashion.
Speaker Change: And then these and these trainings.
Speaker Change: We are working on our strategic plan, which is our guidance for 2025.
Speaker Change: They comprehend a great deal of our income and autonomy program. You have people that are registered these are folks that are eligible.
Speaker Change: And for the year.
Speaker Change: Year 2025, all the way to 2029.
Speaker Change: For the income assistance so in that sense that is to say that what the company is doing is we are adding labor to the market. We are qualifying our labor in the country and at the same time, we are alleviating Brazilian society from a heavy burden. So it's a win win situation. It's good.
Speaker Change: It's also important to say this is a concrete plan.
Speaker Change: We move on.
Speaker Change: Looking for ethanol projects bioethanol, and low carbon hydrogen and addition to hover decarbonization initiatives.
Speaker Change: It's also important to say.
Speaker Change: For Petrobras because we have qualified labor to work in our operations and we mitigate risks therefore.
Speaker Change: That all of these projects.
Speaker Change: Or based on the same governance criteria.
Speaker Change: And we are also meeting the demands of society at large in a timely fashion.
Speaker Change: And the same profitability analysis criteria as any other project for the company.
Speaker Change: They must be profitable.
Speaker Change: We are working on our strategic plan, which is our guidance for 2025.
Speaker Change: In every scenario.
Speaker Change: From the.
Brightest to the Gloomiest just as any other project. This company embraces made in closing.
And for the year.
Speaker Change: Year 2025, all the way to 202009.
Speaker Change: I'd like to say we are.
Speaker Change: It's also important to say this is a concrete plan.
Speaker Change: Absolutely determined to continue to derive value for society and our shareholders.
Speaker Change: We move on.
Speaker Change: Booking for ethanol projects bioethanol, and low carbon hydrogen and addition to hover decarbonization initiatives.
Speaker Change: Whether they're private on the private sector or the public sector. We will continue to invest in profitable projects with capital discipline and innovation together will continue to write a successful story for our company.
Speaker Change: It's also important to say.
Speaker Change: That all of these projects.
Speaker Change: Or based on the same governance criteria.
Speaker Change: And.
Speaker Change: We would very much like to have all of you beside us and I'd like to once again, thank everyone for joining us and turn it over to our CFO Fernando Mega radio, who will dive a bit deeper into our financials.
Speaker Change: And the same profitability analysis criteria as any other project for the company.
Speaker Change: They must be profitable.
Speaker Change: In every scenario.
Speaker Change: From the.
Speaker Change: Brightest to the Gloomiest just as any other project. This company embraces made in closing.
Speaker Change: Good afternoon, everyone.
Speaker Change: I'd like to say we are.
Speaker Change: Thank you all for joining another Petrobras earnings webcast will start by giving you. The main highlights for the company's 'twenty 'twenty four performance.
Speaker Change: Absolutely determined to continue to derive value for society and our shareholders.
Speaker Change: Whether they are private on the private sector or the public sector. We will continue to invest in profitable projects with capital discipline and innovation together will continue to ride a successful story for our company.
Speaker Change: After this presentation.
Speaker Change: Myself and all our other directors will be available to answer any questions you might have during our Q&A.
Speaker Change: So let's begin with slide five.
Speaker Change: And.
Talking about the main items in our financial results.
Speaker Change: We would very much like to have all of you beside us I'd like to once again, thank everyone for joining us and turn it over to our CFO Fernando Mega Radio, who will dive a little bit deeper into our financials.
Speaker Change: The first point I'd like to highlight is our strong cash generation with an operational cash flow of $38 billion for the year.
Speaker Change: Sure.
Speaker Change: This is as large as <unk>.
Speaker Change: The GDP of many large states in the country.
Speaker Change: Many of our states do not have a G D P as large as our operational cash flow.
Speaker Change: Good afternoon, everyone.
Speaker Change: Thank you all for joining another Petrobras earnings webcast will start by giving you. The main highlights for the company's 'twenty 'twenty four performance.
Speaker Change: Our financial debt decreased to $23 2 billion the lowest level since 2008.
Speaker Change: These indicators demonstrate Petrobras is financial health.
Speaker Change: After this presentation.
Speaker Change: Myself and all our other directors will be available to answer any questions you might have during our Q&A.
Speaker Change: I'd also like to highlight our investments, which came to $16 $6 billion in 2024.
Speaker Change: All of this has been mentioned already by our President and this accounted for a 31% increase over 2023 which we will discuss in further detail.
Speaker Change: Okay.
Speaker Change: So let's begin with slide five.
Speaker Change: Talking about the main items in our financial results.
Speaker Change: The first point I'd like to highlight is our strong cash generation with an operational cash flow of $38 billion for the year.
Speaker Change: Later on.
Speaker Change: Our adjusted EBITDA was $40.4 billion in net income was $7 5 billion for the year now moving on to slide six.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: This is as large as the GDP of many large states in the country.
Speaker Change: Despite our strong cash generation or in net income and 2024 was lower than in the previous year now why was that.
Speaker Change: Many of our states do not have a G D P as large as our operational cash flow.
Speaker Change: First of all it's important to understand that Petrobras as results were impacted by an accounting only item.
Speaker Change: Our financial debt decreased to $23 2 billion the lowest level since 2008.
Speaker Change: Being that being be foreign exchange variation.
Speaker Change: These indicators demonstrate Petrobras is financial health.
Speaker Change: Impact in that's between Petrobras and its subsidiaries abroad. This 10.9 billion dollar impact, which you see on the chart.
Speaker Change: I'd also like to highlight our investments, which came to $16 $6 billion in 2024.
Speaker Change: All of this has been mentioned already by our president.
Speaker Change: Does not involve any cash outflows, our president has mentioned and ox actually involves no actual disbursement, it's purely an accounting impact the second most significant impact came from external factors the depreciation of Brent crude and the diesel crack spread.
Speaker Change: And this accounted for a 31% increase over 2023 which we will discuss in further detail.
Speaker Change: Later on.
Speaker Change: Our adjusted EBITDA was $40.4 billion in net income was $7 5 billion for the year now moving on to slide six.
Speaker Change: These are external market conditions that affect all companies in the industry, both domestically and overseas lastly, the tax settlement agreement, which we recognized in Q2 was actually a highly positive measure for Petrobras. It was thanks to this agreement that Petrobras resolved billion dollar disputes that posed significant uncertainty.
Speaker Change: Despite our strong cash generation or in net income and 2024 was lower than in the previous year now why was that.
Speaker Change: First of all it's important to understand that Petrobras as results were impacted by an accounting only item.
Speaker Change: <unk> for the Companys cash flow.
Speaker Change: We also included the impact of oil production in the chart. So you can see that the lower production volume had minimal effect. The other items I mentioned were the key factors affecting Petrobras this accounting results.
Speaker Change: Being that being the foreign exchange variation.
Speaker Change: Impact in debts between Petrobras and its subsidiaries abroad. This 10.9 billion dollar impact, which you see on the chart.
Speaker Change: Does not involve any cash outflows, our president has mentioned and ox actually involves no actual disbursement, it's purely an accounting impact the second most significant impact came from external factors the depreciation of Brent crude and the diesel crack spread.
Speaker Change: And mostly because of the foreign exchange.
Speaker Change: Situation now where we conclude from the chart is that excluding these specific impacts Petrobras is net income would have been.
Speaker Change: $19 4 billion.
Speaker Change: Now if we were to look at it from a quarter over quarter perspective, excluding the exchange effect, which was we would have been $5 5 billion and the minus $18 2 billion would have been <unk>.
Speaker Change: These are external market conditions that affect all companies in the industry, both domestically and overseas Leslie the tax settlement agreement, which we recognized in Q2 was actually a highly positive measure for Petrobras. It was thanks to this agreement that Petrobras resolved billion dollar disputes that posed significant uncertainty.
Speaker Change: 13.
Speaker Change: Billions of dollars of positive $13 billion.
Speaker Change: Now on slide seven we will explain in more details the items that had the greatest impact on our results starting with the foreign exchange Foreign exchange variation at the end of Q4 exchange rate was $6 19, BRL per USD 28 of 28% depreciation of the Brazilian real this conversion is applied to that.
Speaker Change: <unk> for the Companys cash flow.
Speaker Change: We also included the impact of oil production in the chart. So you can see that the lower production volume had minimal effect. The other items I mentioned were the key factors affecting Petrobras this accounting results.
Speaker Change: And mostly because of the foreign exchange.
Speaker Change: Between Petrobras and its foreign subsidiaries.
Speaker Change: These are intercompany transactions, which are very common among global current corporations like Petrobras.
Speaker Change: Situation now where we conclude from the chart is that excluding these specific impacts Petrobras is net income would have been.
Speaker Change: In other words these are funds circulating internally within the company.
Speaker Change: $19 4 billion.
Speaker Change: This exchange rate effect, Anterus pretzel, Bryce holding's net income and negatively impact our impacted our profits in 2024 at the same time it positively impacted our equity visa.
Speaker Change: Now if we were to look at it from a quarter over quarter perspective, excluding the exchange effect, which was we would have been $5 5 billion and the minus $18 2 billion would have been $13 billion of positive $13 billion.
Speaker Change: These opposing effects ultimately balance each other out economically according to current accounting standards. One of these variations as recorded in earnings and can be either positive or negative in 2023 as you will remember it was positive now it's been negative.
Speaker Change: Now on slide seven we will explain in more details the items that had the greatest impact on our results starting with the foreign exchange Foreign exchange variation at the end of Q4 exchange rate was $6 19, BRL per USD 28 of 28% depreciation of the Brazilian real this conversion is applied to that.
Speaker Change: In Q2, we also discussed this at length.
Speaker Change: And again had the U S dollar had been around 575, right now ending the quarter at that level.
Speaker Change: Between Petrobras and its foreign subsidiaries.
Speaker Change: These are intercompany transactions, which are very common among global current corporations like Petrobras.
Speaker Change: Two our Q1 'twenty twenty-five results, we would add about two <unk>.
Speaker Change: In other words these are funds circulating internally within the company.
Speaker Change: Billions of dollars.
Anterus: This exchange rate effect, Anterus pretzel, Bryce holding's net income and negatively impact our impacted our profits in 2024 at the same time it positively impacted our equity visa.
Speaker Change: Incrementally to the expected results to the tune of 11 billion Reais.
Speaker Change: This is just for everyone to understand that this is an absolutely accounting effect, which has no impact on the company's cash situation now.
Anterus: These opposing effects ultimately balance each other out economically according to current accounting standards. One of these variations as recorded in earnings and can be either positive or negative in 2023 as you. All remember it was positive now it's been negative.
Now onto slide eight let's discuss the external factors that affected us in 2020 for Brent crude declined by 2% as you can see in the chart and diesel crack spread drug by nearly 40% the decline in diesel prices was influenced by global economic uncertainties and lower demand in the northern hemisphere.
Anterus: In Q2, we also discussed this at length.
Speaker Change: It is important to emphasize that.
Anterus: And again had the U S dollar had been around 575, right now ending the quarter at that level.
Speaker Change: This scenario affected all companies in the sector as I said earlier.
Speaker Change: And not only Petrobras.
Anterus: Two our Q1 'twenty twenty-five results, we would add about two <unk>.
Speaker Change: This is an issue that specific to the oil and gas industry on slide nine reinforcing what we mentioned before that.
Anterus: Billions of dollars.
Anterus: Incrementally to the expected results to the tune of 11 billion Reais.
Speaker Change: The tax settlement agreement was a one time event in Q2, which impacted the company's earnings positively.
Anterus: This is just for everyone to understand that this is an absolutely accounting effect, which has no impact on the company's cash situation now.
Speaker Change: And eliminated.
Legal disputes to the tune of 45 billion Reais.
Anterus: Now onto slide eight let's discuss the external factors that affected us in 2020 for Brent crude declined by 2% as you can see in the chart and diesel crack spread drug by nearly 40% the decline in diesel prices was influenced by global economic uncertainties and lower demand in the northern hemisphere.
And if you will remember at the time.
Speaker Change: When we reported this agreement the.
Speaker Change: The company reported a 3% increase in its stock.
Speaker Change: Now onto slide 10, let's discuss our debt management, which to US has been highly successful and also well regarded by the market.
Anterus: It is important to emphasize that.
Anterus: This scenario affected all companies in the sector as I said earlier.
Speaker Change: At the end of 'twenty 'twenty four our financial debt was the lowest since 2008 as you can see on the chart, our financial debt was $23 $2 billion.
Anterus: And not only Petrobras.
Anterus: This is an issue that specific to the oil and gas industry on slide nine reinforcing what we mentioned before that.
Speaker Change: Most of it coming from our allocation.
Anterus: The tax settlement agreement was a one time event in Q2, which impacted the company's earnings positively.
Speaker Change: Which is precisely connected to cash generating assets.
Speaker Change: We.
Speaker Change: We still have a very positive allocation and we continue to lengthen our debt maturity and shortening our spread and as we talked about the market I'd like to also mention our.
Anterus: And eliminated.
Anterus: Legal disputes to the tune of 45 billion Reais and if you will remember at the time.
Anterus: When we reported this agreement.
Latin Finance award.
Anterus: The company reported a 3% increase in its stock.
Speaker Change: Okay.
Speaker Change: Which also came with the issue of bonds all of which impacted 2024.
Anterus: Now onto slide 10, let's discuss our debt management, which to US has been highly successful and also well regarded by the market.
Speaker Change: Now on slide 11, let's talk a little bit about Capex, which is.
Anterus: At the end of 'twenty 'twenty four our financial debt was the lowest since 2008 as you can see on the chart, our financial debt was $23 $2 billion.
Speaker Change: Probably a point, we must discuss at length.
Speaker Change: Items already having been advanced by our president it's important to say that this.
Anterus: Most of it coming from our allocation.
Speaker Change: Was 16.6 billion higher than our guidance and it represent at no additional cost for the company. This was a recovery in our.
Anterus: Which is precisely connected to cash generating assets.
Anterus: We.
Anterus: Still have a very positive allocation and we continue to lengthen our debt maturity and shortening our spread and as we talked about the market I'd like to also mention our.
Speaker Change: Physical investment GAAP, which were expected by 2025, and which were advanced to 2024.
Speaker Change: Now the gap was absolutely.
Speaker Change: Bridged for it.
Speaker Change: For the year.
Latin Finance award.
Speaker Change: Which is to say, we do not expect the.
Anterus: Okay.
Anterus: Which also came with the issue of bonds all of which impacted 2024.
Speaker Change: Q4, 'twenty 'twenty four investment to be the same as what we expect in 2025. Another important point here is.
Anterus: Now on slide 11, let's talk a little bit about Capex, which is.
Booz: These investments that we moved from 2025 to 2024 were in Booz yours as our president as already said.
Anterus: Probably a point, we must discuss at length.
Anterus: Some items already having been advanced by our president it's important to say that this.
Speaker Change: And because of that.
Speaker Change: The best E B asset in the World as the President also said this is extremely positive because it also means.
Anterus: Was 16.6 billion higher than our guidance and it represent at no additional cost for the company. This was a recovery in our.
Speaker Change: More oil sooner and more oil means higher revenue.
Anterus: Physical investment GAAP, which were expected by 2025, and which were advanced to 2024.
Speaker Change: If possible, we would actually make all our investments in Booz yours earlier and start.
Speaker Change: Producing and all our F P S OS.
Anterus: Now the gap was absolutely.
Speaker Change: At Tomorrow.
Anterus: Bridged for it.
Now the company gains and lower risks and potential increase and these advances. This line of incentives is decisive for.
Anterus: The year.
Which is to say, we do not expect the.
Anterus: Q4, 'twenty 'twenty four investment to be the same as what we expect in 2025. Another important point here is.
Speaker Change: Our new production systems to go into operation and that's what we're focusing on executing our investment plan and a single portfolio, which will allow us to be profitable in our production.
Speaker Change: These investments that we moved from 2025 to 2024 were in Boozers as our president as already said.
Speaker Change: Another thing that May come out is whether the capex timeline will be each of.
Anterus: And because of that.
Anterus: The best E B asset in the World as the President also said this is extremely positive because it also means.
Speaker Change: Altered and the answer is in adamant no. It remains what we have in our strategic plan and that's what we'll be followed.
Anterus: More oil sooner and more oil means higher revenue.
Speaker Change: Our forecasts for our Capex in 2025 through 2029 remains because we have major projects.
Anterus: If possible, we would actually make all our investments in Booz yours earlier and starts.
Speaker Change: Which involve uncertainties, which are mitigated by the process, we adopted so far and within our Capex. We also included.
Anterus: Producing and all our F P S OS.
Anterus: Tomorrow.
Anterus: Now the company gains and lower risks and potential increase and these advances. This line of incentives is decisive for.
Speaker Change: A.
Speaker Change: 10% more or less to a 10% variation you either up or down.
Anterus: Our new production systems to go into operation and that's what we're focusing on executing our investment plan and a single portfolio, which will allow us to be profitable in our production.
Speaker Change: On slide 10, we are still.
Speaker Change:
Speaker Change: Committed to our.
Speaker Change: Disbursements and compensation for our.
Anterus: Another thing that May come up is whether the capex timeline will be.
Speaker Change: Stakeholders as you remember our result was mostly impacted by.
Anterus: Altered and the answer is in adamant no. It remains what we have in our strategic plan, that's what will be followed.
Speaker Change: Results that have no impact on our cash flow. So we paid using our reserves and capital compensation as well as profit reduction.
Anterus: Our forecasts for our Capex in 2025 through 2029 remains because we have major projects.
Speaker Change: Our reserves are in accounting.
Speaker Change: A feature to pay dividends, but the payment of dividends is still based on the same decision, making process cash flow investment level, the company's capital structure and most importantly, it's financial.
Anterus: Which involve uncertainties, which are mitigated by the process, we adopted so far and within our Capex. We also included.
Speaker Change: Situation now on behalf of time for questions I will not be presenting on the following slides our president has already addressed every issue, but I'd like to.
Anterus: A.
Anterus: 10% more or less to a 10% variation you either up or down.
Anterus: On slide 10, we are still.
Speaker Change: Wrap up by saying something.
Anterus:
Anterus: Committed to our disc.
Speaker Change: 2024 was a year, where we had a $90 billion capex dividends to the tune of 102 billion Reais.
Anterus: Disbursements and a compensation for our.
Anterus: Stakeholders as you remember our result was mostly.
Speaker Change: And extremely healthy level, we paid 270 billion reais in Texas and lowered our debt by about 11 billion Reais. What this means is the.
Anterus: Impacted by.
Anterus: Results that have no impact on our cash flow. So he paid using our reserves and capital compensation as well as profit reduction.
Anterus: Our reserves are in accounting.
Speaker Change: The company's fundamentals are absolutely sound.
Anterus: A feature to pay dividends, but the payment of dividends is still based on the same decision, making process cash flow investment level, the company's capital structure and most importantly, it's financial.
And they make us confident in our results in 2025.
Speaker Change: Which we expect to be.
Speaker Change: Significant and sustainable.
Speaker Change: Preserving the company's status as one that derives value to society and its shareholders I will now turn over to Eduardo who will mediate our question and answer session.
Anterus: Situation now on behalf of time for questions I will not be presenting on the following slides our president has already addressed every issue, but I'd like to.
Anterus: Wrap up by saying something.
Speaker Change: Yeah.
Anterus: 'twenty 'twenty four it was a year, where we had a $90 billion capex dividends to the tune of 102 billion Reais.
Eduardo: Thank you Fernando Thank you Ms. Ms. President now, we're going to have our Q&A session.
Anterus: And extremely healthy level, we paid 270 billion reais in Texas and lowered our debt by about 11 billion Reais. What this means is the.
Speaker Change: Hello, Good afternoon, everyone.
Speaker Change: President <unk>.
Speaker Change: Executives.
Anterus: The company's fundamentals are absolutely sound.
Speaker Change: Thank you so much for the opportunity of asking a few questions now I would like to focus my question on the investment side.
Anterus: And they make us confident in our results in 2025.
Anterus: Which we expect to be.
Anterus: Significant and sustainable.
Speaker Change: Can you hear me.
Anterus: Preserving the company's status as one that derives value to society and its shareholders I will now turn it over to Eduardo who will mediate our question and answer session.
Speaker Change: Yes, yes Luis.
Speaker Change: Right. So once again I would like to focus on the investment because I think that's the main discussion.
Speaker Change: Dr. <unk> do you have any emphasis on debt higher adherence of the planned versus executed Capex in 25 to 29, we understand the methodology changes such as the leasing aspect and it is quite clear in your initial speech that this.
Anterus: Yeah.
Eduardo: Thank you Fernando Thank you Ms. Smith, President now, we're going to have our Q&A session.
Speaker Change: Asian This advancement that you are doing now has a positive LTP.
Speaker Change: Hello, Good afternoon, everyone.
Eduardo: President <unk>.
Speaker Change: Perhaps what is not clear to me and maybe you can shed some light on it and some of the questions that I received are in that line is that we do not see and and additional efforts or some other variables for us to understand as positive NPV in the project. So.
Speaker Change: Executives.
Speaker Change: Thank you so much for the opportunity of asking a few questions now I would like to focus my question on the investment side.
Speaker Change: Can you hear me.
Speaker Change: Would that be an anticipation on the production curve as well or a reduction of the future Capex, which is not clear in the numbers. So my first question. If you can shape. If you can shed some light on which units will be advanced in four win.
Speaker Change: Yes, yes Luis.
Speaker Change: Right. So once again I would like to focus on the investment because I think that's the main discussion.
Speaker Change: Dr. <unk> do you have any emphasis on debt higher adherence of the planned versus executed Capex in 25 to 29, we understand that methodology changes such as the leasing aspect and it is quite clear in your initial speech that this.
Speaker Change: We can see the first oil and if you can give us some detail on what was the process of that decision.
Speaker Change: Now let me answer one at a time if I may.
Speaker Change: This advancement that you are doing now has a positive LTP.
Speaker Change: Perhaps what is not clear to me and maybe you can shed some light on it and some of the questions that I received are in that line is that we do not see and and additional efforts or some other variables for us to understand as positive NPV in the project. So.
Speaker Change: Right so.
Speaker Change: Before you move on to your second question Louise I would like to answer the first one if I may because that's a really important question and I want to word it correctly.
Speaker Change: As you May remember.
Speaker Change: When we took on Petrobras.
Speaker Change: Would that be an anticipation on the production curve as well or a reduction of the future Capex, which is not clear in the numbers. So my first question. If you can shape. If you can shed some light on which units will be advanced in Fort Wayne.
Speaker Change: We did a reassessment of our 'twenty or 'twenty eight strategic plan.
Speaker Change: And we realized.
Speaker Change: There was a non.
Speaker Change: We can see the first oil and if you can give us some detail on what was the process of that decision.
Speaker Change: Realization of the Capex, so to say or 24, 28, which had an impact on the Capex and what we said was well instead of $18 5 billion, which was estimated for the year. We are going to spend 14.5 tops and that became our new guidance at that point.
Speaker Change: Now let me answer one at a time if I may.
Speaker Change: Right so.
Speaker Change: Here's what happened from then on.
Speaker Change: Before you move on to your second question Luis I would like to answer the first one if I may because that's a really important question and I want to word it correctly.
What happened was.
Speaker Change: These were investments that were focused mainly on <unk> and that was the result of a lot of effort between the different departments.
Speaker Change: As you May remember.
Speaker Change: Okay.
Speaker Change: When we took on Petrobras.
Speaker Change: Our engineering, our finance Department worked quite closely and with that we are able to advance these investments and we were able to go back to that level of 16.5.
Speaker Change: We did a reassessment of our 'twenty or 'twenty eight strategic plan.
Speaker Change: And we realized.
Speaker Change: There was a non.
Speaker Change: So again these were investments that were absolutely considered in the strategic plan for 'twenty 'twenty four to 'twenty 28, as a matter of fact they were.
Speaker Change: Realization of the Capex, so to say for 'twenty, four 'twenty, eight which had an impact on the K packs and what we said was well instead of 18.5 billion, which was estimated for the year. We are going to spend 14.5 tops and that became our new guidance at that point.
Speaker Change: They were on the table and perhaps we were a little drastic and our expectation for the execution. When we first got to the company because we were looking at 14.5.
Speaker Change: Here's what happened from then on.
Speaker Change: What happened was.
But the fact is aldi rented among that Ed came to Brazil in 2024.
Speaker Change: These were investments that were focused mainly on <unk> and that was the result of a lot of effort between the different departments.
Speaker Change: And not in 'twenty 'twenty five.
Speaker Change: At ESO 'murica Terrier started production and concluded in the third quarter actually late in the third quarter of 2024 as opposed to 2025.
Speaker Change: Okay.
Speaker Change: Our engineering, our finance Department worked quite closely and with that we are able to advance these investments and we were able to go back to that level of 16.5.
Speaker Change: And thanks to that.
Speaker Change: So again these were investments that were absolutely considered in the strategic plan for 'twenty 'twenty four to 'twenty 28, as a matter of fact they were.
Speaker Change: <unk> is now reaching 800000 barrels a day we connected.
Speaker Change: The very first well of Omi rents at Amanda read.
Speaker Change: Okay.
Speaker Change: They were on the table and perhaps we were a little drastic and our expectation for the execution. When we first got to the company because we were looking at 14.5.
Which is a J.
Speaker Change: Gigantic one.
Speaker Change: It says it's a sequence of four wells that will be active enthusiasts. Besides the other ones, but the fact is that these wells are producing they're producing at around 30 to 40000 and the ramp up is still taking place.
Speaker Change: But the fact is aldi rented them under that came to Brazil in 2024.
Speaker Change: And our aim is to reach its full potential which is 70000 barrels per day, which was estimated to happen. Later later on later down the road, but we are anticipating that this is already a reality.
Speaker Change: And not in 'twenty 'twenty five.
Speaker Change: At ESO 'murica Terrier started production and concluded in the third quarter actually late in the third quarter of 2024 as opposed to 2025.
Speaker Change: One other matter, which is important is S. P S O mediated area.
Speaker Change: And thanks to that.
Speaker Change: <unk> is now reaching 800000 barrels a day we connected.
Speaker Change: Which is installed in those you Bart that field.
Speaker Change: The very first well of Omi rents at Amanda read.
Speaker Change: In the south of the country.
Speaker Change: Like I said that platform was supposed to go operational in 2025.
Speaker Change: Okay.
Speaker Change: Which is E G.
Speaker Change: Gigantic one.
Speaker Change: And it did go.
Speaker Change: It says it's a sequence of four wells there will be active in booz yields besides the other ones, but the fact is that these wells are producing they're producing at around 30 to 40000 and the ramp up is still taking place.
Speaker Change: In operation in the fourth quarter of 2024.
Once again, giving us some new oil new oil enthusiasm and new oil in pocket is my layers as well.
Speaker Change: Furthermore.
Speaker Change: That combination of our physical K backs with our budgeted capex.
Speaker Change: And our aim is to reach its full potential which is 70000 barrels per day, which was estimated to happen. Later later on later down the road, but we are anticipating that this is already a reality.
Speaker Change: This is having an effect, which is invaluable for the company, which is to mitigate it.
Speaker Change: Any type of misalignment that might have an impact on the conclusion and on the start of the operation of <unk> 78, which is another giant platform for the beauty for the booth views field.
Speaker Change: One other matter, which is important is F. P. S O mediated area.
Speaker Change: Which is installed in those you Bartlett field.
Speaker Change: In the south of the country.
Like I said that platform was supposed to go operational in 2025.
Speaker Change: So what we have here is a platform that should come to Brazil.
Speaker Change: And it did go.
Speaker Change: In July.
Speaker Change: In operation in the fourth quarter of 2024.
Speaker Change: That rig is going to start navigating at around July it should be maybe three months until it gets here.
Speaker Change: Once again, giving us some new oil new oil enthusiasts and new oil in pocket is my layers as well.
Speaker Change: And afterwards that rig will be placed in positions. So we can start its commissioning efforts and so yes. It's all of that all of that is involved and it's a part of this rearrangement show shall we say of our Capex and once again.
Speaker Change: Furthermore.
Speaker Change: That combination.
Speaker Change: Of our physical K backs with our budgeted capex.
Speaker Change: This is having an effect, which is invaluable for the company, which is to mitigate it.
Speaker Change: Any type of misalignment that might have an impact on the conclusion and on the start of the operation of <unk> 78, which is another giant platform for the beauty for the Booth Geos field.
Speaker Change: As opposed to an extra capex we had.
Speaker Change: Our capex there was a little below that 18.5 that we had estimated previously but it was actually a positive surprise because while we thought that we were we would be able to invest 14.5, we managed to get to 16.5 and investment and again.
Speaker Change: So what we have here is a platform that should come to Brazil.
Speaker Change: In July.
Speaker Change: This is everything that an oil company can aspire to.
Speaker Change: That rig is going to start navigating at around July it should be maybe three months until it gets here.
Speaker Change: In our eyes, because this means that we are advancing production in the most significant assets to do that.
Speaker Change: And afterwards that rig will be placed in a position. So we can start its commissioning efforts and so yes. It's all of that all of that is involved.
Speaker Change: And the assets that how can I put it in the asset that is of the highest value and the most productive. So I would say that the <unk> field is really a greenfield for any country and for any oil company and we had the good fortune of having found that.
Speaker Change: And it's a part of this rearrangement show shall we say of our Capex and once again.
Speaker Change: As opposed to earn extra Capex, we had.
Speaker Change: Our capex there was a little below that 18.5 that we had estimated previously but it was actually a positive surprise because while we thought that we were we would be able to invest 14.5, we managed to get to 16.5 and investment and again.
Speaker Change: Well and be able to develop it and we are developing it in the most timely fashion possible. This is the effort that Petrobras is focused on right now.
Speaker Change: I hope I have answered your question if you want to ask your second one maybe we can dive into this topic. If you desire yes, absolutely can you hear me okay.
Speaker Change: This is everything that an oil company can aspire to.
Speaker Change: In our eyes, because this means that we are advancing production in the most significant asset to do that.
Speaker Change: Good. So it is absolutely clear. Thank you. My second question is with regards to the new projects recently, we noticed a significant increase in the cost of these new units units that use of close to two two point fiber now at four to $4 $5 billion now.
Speaker Change: In the assets that how can I put it in the asset that is of the highest value and the most productive. So I would say that the <unk> field is really a greenfield for any country and for any oil company and we had the good fortune of having found that.
Speaker Change: Now that can be explained mainly by the inflation of the industry. Obviously the ability of those new units. Just like you said goes to 200, some thousand barrels which is very much superior to the other ones, but some of these suppliers are talking about higher complexity in dealing with gases.
Well and be able to develop it and we are developing it in the most timely fashion possible. This is the effort that Petrobras is focused on right now.
Speaker Change: Two.
Speaker Change: I hope I have answered your question if you want to ask your second one maybe we can dive into this topic if you desire.
Speaker Change: Two outflow these gases.
Speaker Change: So if you can maybe give us some color in terms of the economic rationale of that change and what does that mean.
Speaker Change: Yes, absolutely can you hear me okay.
Speaker Change: Okay.
Speaker Change: Good. So it is absolutely clear. Thank you. My second question is with regards to the new projects recently, we noticed a significant increase in the cost of these new units units that used to call. It two to two point fiber now at four to $4 $5 billion now.
Speaker Change: Ill hand, it over to Renata. She is the our executive engineer and this is under her umbrella. So I believe Dr. Renata is the best person to answer that.
Renata: Good afternoon Luis.
Renata: As you all said we did see.
Speaker Change: Now that can be explained mainly by the inflation of the industry. Obviously the ability of those new units just like you said.
Renata: Hey.
Renata: Very sharp increase in prices not only in Brazil, but around the world, especially after the Ukraine War, we saw a sharp increase in prices.
It goes to 200, some thousand barrels, which is very much superior to the other ones, but some of these suppliers are talking about higher complexity in dealing with gasses too.
Renata: <unk>.
Renata: One of the raw materials for our platforms has shot up in price and also complexity.
Speaker Change: Two outflow these gases.
Renata: Has also increased in.
Speaker Change: So if you can maybe give us some color in terms of the economic rationale of that change and what does that mean.
Renata: In the case of these platforms. These rigs enthusiasts that are being produced in Singapore, They do not have.
Speaker Change: Okay.
Renata: Gas imports, so I don't know where the information came from that it had become more complex to imported but we are doing our homework internally regardless of those rumors of mitigating and streamlining our projects as best we can.
Speaker Change: Ill hand, it over to Renata. She is the our executive engineer and this is under her umbrella. So I believe Dr. Renata is the best person to answer that.
Renata: Good afternoon Luis.
Speaker Change: As you all said we did see.
Renata: Those rigs.
Renata: A.
Renata: Involve capacity of 225000 barrels the four last ones.
Renata: Very sharp increase in prices not only in Brazil, but around the world, especially after in the Ukraine War, we saw a sharp increase in prices.
Renata: Both in our poses enter points Appia.
Renata: These are units, which will bring high returns to Petrobras.
Renata: <unk>.
Renata: One of the raw materials for our platforms has shot up in price and also complexity.
Renata: So we're really trying to make those deadlines I just wanted to add something to the previous question.
Renata: Has also increased in.
Renata: In the case of these platforms. These rigs enthusiasts that are being produced in Singapore, They do not have.
Renata: Yeah.
Renata: Which is in 2024.
Renata: We realized part or we accomplished part of what we expected to accomplish in 2025 now why is that.
Renata: Gas imports, so I don't know where the information came from that.
Renata: Become more complex to imported but we are doing our homework internally, regardless of those rumors of mitigating and streamlining our projects as best we can.
Renata: We were able to Inc.
Renata: Shorten the financial risk, we saw that some of our subsidiaries where are facing challenges because of the gap that we were seeing there. So what we did was to protect the deadline for delivery of these rigs. So that we would have them within the timeframe that we had established but this was the result of.
Renata: Those rigs.
Renata: Involve capacity of 225000 barrels the four last ones.
Renata: Both in our boutiques enter points up here.
Renata: Great effort by our team to really allow us to <unk>.
Renata: These are units, which will bring high returns to Petrobras.
Renata: Realized and delivered the expected oil results that we had planned for.
Renata: So we're really trying to make those deadlines I just wanted to add something to the previous question.
Renata: Okay.
Fernando Mega: Louis This is Fernando I, just wanted to add something else.
Renata: Yeah.
Renata: Which is in 2024.
Speaker Change: There's no new projects in addition to those.
Renata: We realized part or we accomplished part of what we expected to accomplish in 2025 now why is that.
Speaker Change: We reported in 2024 and for the period between 2025 and 29, there's been no increase in their value of the contracts are still the same what happened was a shift in time.
Renata: We were able to.
Renata: Our ink.
Renata: Shortened the financial risk, we saw that some of our subsidiaries where are facing challenges because of the gap that we were seeing there. So what we did was to protect the deadline for delivery of these rigs. So that we would have them within the timeframe that we had established but this was the result of.
Speaker Change: Of these projects, but there's no new project are in the pipeline as mentioned before I mean, we heard there there were rumors that there could be more projects, but.
The projects were talking about are all in our strategic plan.
Speaker Change: Thank you Magda Fernando and all of you for your answers.
Renata: Great effort by our team to really allow us to <unk>.
Speaker Change: Let's now move on to the questions by Georgia Cabrito from dispatch of Bam. Please give ritchie you may go ahead.
Renata: Realize and deliver the expected oil results that we had planned for.
Renata: Okay.
Fernando: Who is this is Fernando I, just wanted to add something else.
Fernando: There's no new projects in addition to those.
Fernando: We reported in 2024 and for the period between 2025 and 29, there's been no increase in their value of the contracts are still the same what happened was a shift in time.
We're here we can't hear you can you hear us.
Fernando: Of these projects, but there's no new project are in the pipeline.
Speaker Change: Well, let's move on to Bruno Montanari from Morgan Stanley's question Bruno. Please go ahead.
Fernando: And as mentioned before I mean, we heard there there were rumors that there could be more projects, but.
Fernando: The projects were talking about are all in our strategic plan.
Speaker Change: Yeah.
Speaker Change: Thank you everyone.
Speaker Change: Thank you Magda Fernando and all of you for your answers.
Speaker Change: I just wanted to follow up on what's been said by to answering Louis' questions.
Speaker Change: Let's now move on to the questions by Georgia Cabrito from dispatch of Bam. Please give ritchie you may go ahead.
Speaker Change: When we run all the numbers considering the anticipated capex in 'twenty 'twenty four when it makes sense to think that your production curve over the next four years could maybe move closer to the upper.
Ban and may be the deadline.
We're here we can't hear you can you hear us.
Speaker Change: Thinking about the near term and the lower.
Speaker Change: Bar, when we think about maybe capex at 10%.
Speaker Change: That would be my follow up and if you'd like you can.
Speaker Change: First answer that and I'll come back with my other question.
Speaker Change: Well, let's move on to Bruno Montanari from Morgan Stanley's question Bruno. Please go ahead.
Speaker Change: Yeah, that's exactly right.
Speaker Change: We will continue to follow.
Speaker Change: Yeah.
Speaker Change: Our production guidance and investment guidance.
Speaker Change: Thank you everyone.
Speaker Change: I just wanted to follow up on what's been said by to answering Louis' questions.
Renata: But as a renata mention.
Speaker Change: Yes.
Speaker Change: We understood we needed to protect that investment in project protect the project.
Speaker Change: When we run all the numbers considering the anticipated capex in 'twenty 'twenty four when it makes sense to think that your production curve over the next four years could maybe move closer to its upper band.
Speaker Change: From any delays caused by the challenges there.
Speaker Change: Other players had been talking about and pointing us to.
Speaker Change: Ban and may be the deadline.
Speaker Change: Thinking about the near term and the lower.
Speaker Change: So I believe that this movement has everything to do with that this will ensure our deliveries and most importantly.
Speaker Change: Bar, when we think about maybe capex at 10%.
Speaker Change: That would be my follow up and if you'd like you can first answer that and I'll come back with my other question.
Speaker Change: In addition to everything else.
Speaker Change: Insure our deliveries at a lower risk.
Speaker Change: Yeah, that's exactly right.
Speaker Change: Perfect. Thank you Madam President.
Speaker Change: We will continue to follow.
Speaker Change: Ah well my other question I'd like to focus on your production in 2025 over the course of 'twenty 'twenty four.
Speaker Change: Our production guidance and investment guidance.
Renata: But as a renata mention.
Speaker Change: They seem to have been a several.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: <unk> from maintenance and now that we have the final results for 2024 can.
Speaker Change: We understood we needed to protect that investment in project protect the project.
Speaker Change: Can you pinpoint.
Speaker Change: The impacts of those.
Speaker Change: From any delays caused by the challenges there.
Speaker Change: Okay.
Speaker Change: Maintenance shutdowns and what do you expect for 2025 seeing that.
Speaker Change: Other players had been talking about and pointing us to.
Speaker Change: What we had in 2024 and those terms are not expected to take place in 2020 five and I'd also like to add maybe a or ask maybe renata.
Speaker Change: So I believe that this movement has everything to do with that this will ensure our deliveries.
Speaker Change: To talk about this.
Speaker Change: And most importantly.
Change.
Speaker Change: In addition to everything else.
Speaker Change: Reported by some outlets.
Speaker Change: Insure our deliveries at a lower risk.
Speaker Change: In your strategy. So what adjustments are you doing to try to engage your investors a little bit more in a sure.
Speaker Change: Perfect. Thank you Madam President.
Speaker Change: Okay.
Speaker Change: Ah well my other question I'd like to focus on your production in 2025 over the course of 'twenty 'twenty four.
Speaker Change: The integrity of your delivery and every unit moving forward. Thank you.
Speaker Change: There seem to have been a several impacts from maintenance.
Speaker Change: Well I'd like to start by telling you.
Speaker Change: And now that we have the final results for 2024.
Speaker Change: That's the difference.
Speaker Change: Can you pinpoint.
Speaker Change: Between our production in 2024.
Speaker Change: The impacts of those.
Speaker Change: To all other years, where it not just for scheduled maintenance, but rather also because of our scheduled maintenance.
Speaker Change: Yeah.
Speaker Change: Maintenance shutdowns and would you expect for 2025 seeing that.
What we had in 2024 and those terms are not expected to take place in 2025, and I'd also like to add maybe a or ask maybe renata.
Speaker Change: Days in the first half of the year, we had an impact.
Speaker Change: That was caused which was the.
Renata: To talk about this.
Speaker Change: Uh huh.
Speaker Change: Change.
Speaker Change: Our reported by some outlets.
Speaker Change: Stoppage at Ibama.
Speaker Change: In your strategy. So what adjustments are you doing to try to engage your investors a little bit more N ashore.
Speaker Change: So the authority to continue this license is to continue our prospecting.
Speaker Change: Actually stopped just to give you an idea because of the effect.
Speaker Change: The integrity of your delivery and every unit moving forward. Thank you.
Speaker Change: Well I'd like to start by telling you.
Speaker Change: Of that in the first quarter of 'twenty 'twenty four.
Speaker Change: We had an impact of about 208 barrels a day.
Speaker Change: That's the difference.
Speaker Change: Between our production in 2024.
Speaker Change: For a very long time in fact.
Speaker Change: To all other years, where it not just for scheduled maintenance, but rather also because of our scheduled maintenance.
Speaker Change: This strike at the.
Speaker Change: Agency Ibama.
Speaker Change: Days in the first half of the year, we had an impact.
Speaker Change: Also had eh and.
Speaker Change: That was caused which was the.
Speaker Change: An impact from a standard operation, which also impacted our production.
Speaker Change: Uh huh.
Speaker Change: Stoppage at Ibama.
Speaker Change: So in addition to.
Speaker Change: <unk>.
Speaker Change: Scheduled maintenance stoppages, which.
Speaker Change: So.
Speaker Change: The authority to continue the licenses to continue prospecting.
Speaker Change: We need to do.
Speaker Change: Actually stopped just to give you an idea because of the effect.
Speaker Change: Not only do we have to to do them, but they also mitigate significant risks they are part of our operation but in 2024.
Speaker Change: Of that in the first quarter of 'twenty 'twenty four.
Speaker Change: We had an impact of about 208 barrels a day for.
Speaker Change: Not only did we have to deal with a larger number of them. We also had to deal with the lack of licenses and the sluggish in progress both because of the Obama strike and because of the national oil industry strike as well.
Speaker Change: For a very long time in fact.
Speaker Change: This strike at the.
Speaker Change: Agency Ibama.
Speaker Change: Also had an.
Speaker Change: I will also turn over to Sylvia and with AIP and later to Renata.
Speaker Change: An impact from a standard operation, which also impacted our production.
Speaker Change: To add to your to the answer to your question.
Speaker Change: So in addition.
Speaker Change: <unk> two.
Speaker Change: Scheduled maintenance stoppages, which.
Speaker Change: We need to do.
Speaker Change: Good afternoon, adding to what President Magnus said, we did have scheduled maintenance stoppages.
Speaker Change: Not only do we have to to do them, but they also mitigate significant risks they are part of our operation but in 2024.
Speaker Change: Which are common we just saw a larger number of them.
Speaker Change: And also.
Speaker Change: Not only did we have to deal with a larger number of them. We also had to deal with the lack of licenses and be sluggish in progress both because of the Obama strike and because of the national oil industry strike as well.
Speaker Change: Facing the effects of the post Covid period.
Speaker Change: And the require technical reviews, which piled up during this period. So in 2024, what we did was try to recover which we actually accomplished was reduce the number of these mandatory reviews, which are a N T B auditing agency.
Speaker Change: I will also turn over to Sylvia and with AIP and later to Renata.
Speaker Change: To add to your to the answer to your question.
Speaker Change: <unk> that we deal with our orders as to do we also saw a three.
Speaker Change: Three rigs.
Speaker Change: With.
Speaker Change: Good afternoon, adding to what.
Speaker Change: Maintenance shutdowns of over 100 days.
Speaker Change: President Magnus said, we did have scheduled maintenance stoppages.
Speaker Change: But most of them have been resolved what I tell most people is.
Speaker Change: Which are common and we just saw a larger number of them.
Speaker Change: When production stops who can recover that but the annual average remains the same now regardless of these shutdowns.
Speaker Change: And also.
Speaker Change: Facing the effects of the post Covid period.
Speaker Change: Our risk analysis model actually incorporated that and we did a huge effort to make up for them.
And the require technical reviews, which piled up during this period. So in 2024, what we did was try to recover which we actually accomplished was reduce the number of these mandatory reviews, which are a N T B auditing agency.
Speaker Change: Also the Obama issue as our President said.
Speaker Change: We were affected especially in the mellow field, which is a large field just to give you an idea a any 45000 barrel well.
Speaker Change: That we deal with our orders as to do we also saw.
Speaker Change: We had many of them stopped but every one of them causes the average impact of 20000 barrels a year.
Three.
Speaker Change: Okay.
Speaker Change: Three rigs.
Speaker Change: With.
Speaker Change: And this is just due to the slower.
Speaker Change: Maintenance shutdowns of over 100 days.
Speaker Change: But most of them have been resolved what I tell most people is.
Speaker Change: The pace of licenses to.
Speaker Change: Operate these wells. So we wanted to underscore is the constant need as you well said.
Speaker Change: When production stops we can recover that but the annual average remains the same now regardless of these shutdowns our risk analysis model actually incorporated that and we did a huge effort to make up for them.
Speaker Change: We are growing our platforms and rigs and we have to be very careful because as these grow to.
Speaker Change: To stop a 100000 barrel a day is one thing, but a 200000 barrels a day is another beast completely so we are.
Speaker Change: Also the Obama issue as our President said.
Speaker Change: We were affected especially in the mellow field, which is a large field just to give you an idea a any 45000 barrel well.
Speaker Change: Deploying our best efforts too.
Speaker Change: Make the next shutdowns as forest as possible, but we will have an increase in production. We will continue to see maintenance shutdowns in every new platform there.
Speaker Change: We had many of them stopped but every one of them causes the average impact of 20000 barrels a year.
Speaker Change: Have yet.
Speaker Change: <unk> had their mandatory stoppages in the mellow fuel for example, we have all three rigs that still need maintenance and the average is reached 2.8, which is the expected production for the end of the year, regardless of every maintenance shutdown, which we do to increase efficiency and ensure that these rigs continue.
And this is just due to the.
Speaker Change: Slower.
Speaker Change: Pace of licenses to <unk>.
Right. These wells. So we wanted to underscore is the constant need as you well said.
Speaker Change: We are growing our platforms and rigs and we have to be very careful because as these grow to.
Speaker Change: Producing for a long time, yeah, I just wanted to add saying that these shutdowns.
Speaker Change: To stop a 100000 barrel a day is one thing, but a 200000 barrels a day is another beast completely so we are.
Speaker Change: Are actually incorporated by our production expectation so when we talk about the strategic planning.
Speaker Change: Yeah.
Speaker Change: And point to an expected output level.
Speaker Change: Deploy our best efforts too.
Speaker Change: Make the next shutdowns as far as possible, but we will have an increase in production. We will continue to see maintenance shutdowns in every new platform there.
Speaker Change: Those figures already include our expectation for maintenance shutdowns along the way.
Speaker Change: Go ahead.
Speaker Change: Haven't yet.
Speaker Change: <unk> had their mandatory stoppages in the mellow fuel for example, we have all three rigs that still need maintenance and the average is reached 2.8, which is the expected production for the end of the year, regardless of every maintenance shutdown, which we do to increase efficiency and ensure that these rigs continue.
Speaker Change: Well, we had several impacts in the.
Speaker Change: The Santos basin.
Speaker Change: Also look at management.
Speaker Change: To eliminate that passed we also hired four.
Speaker Change: Maintenance maritime units for these platforms will have two more.
Speaker Change: Producing for a long time, yeah, I just wanted to add saying that these shutdowns.
Speaker Change: All of that to ensure.
Speaker Change: That there's maintenance and that we prevent interruptions, that's what we plan to do.
Are actually incorporated by our production expectation so when we talk about the strategic planning.
Jorge: Hi, Jorge well.
Speaker Change: There really was a huge challenge for us to increase.
Speaker Change: And point to an expected output level.
Speaker Change: The competitiveness of our I P C I.
Speaker Change: Yeah.
Speaker Change: Those figures already include our expectation for maintenance shutdowns along the way.
Speaker Change: In the past, we actually had one or two bidders only for every call for tenders, but we talk to the market and understood the issues that were limiting.
Speaker Change: Go ahead.
Speaker Change: Well, we had several impacts in the Santos basin.
Speaker Change: The involvement of other players.
Speaker Change: Also look at management.
Speaker Change: We conducted a road show overseas to try to bring in new companies, we held events here in Brazil with many of our suppliers.
Speaker Change: To eliminate that passed we also hired four.
Speaker Change: Maintenance maritime units for these platforms will have two more.
Speaker Change: We explain our plan and listen to them. So.
Speaker Change: All of that to ensure.
Speaker Change: That there's maintenance and that we prevent interruptions, that's what we plan to do.
Speaker Change: We also adjusted a few of our key.
Speaker Change: Contracts to allow more players to participate.
Speaker Change: And alongside all of that.
Speaker Change: Hi, Jorge well.
Speaker Change: There really was a huge challenge for us to increase.
Speaker Change: Actually just a side note in our last.
Speaker Change: The competitiveness of our I P C I.
Speaker Change: Call, we had four bidders interested in.
Speaker Change: On the auction I mean for companies.
Speaker Change: In the past, we actually had one or two bidders only for every call for tenders, but we talked to the market and understood the issues that were limiting.
Speaker Change: It brought up there.
Speaker Change: Or tender offer. So this was a wonderful result for us when we compare to previous processes.
Speaker Change: The involvement of other players.
Speaker Change: In addition to that.
Speaker Change: And we always try to have a backup plan.
Speaker Change: We conducted a road show overseas to try to bring in new companies, we held events here in Brazil with many of our suppliers.
Speaker Change: We are looking into.
Speaker Change: Hiring a what we call P O V.
Speaker Change: Yeah.
Speaker Change: So that Petrobras itself.
Speaker Change: We explain our plan and listen to them. So.
Speaker Change: Sure.
Speaker Change: We'll operate.
Speaker Change: We also adjusted a few of our.
Speaker Change: So we would purchase our fixed our pipelines, we would have our own vo and we would have our own launch regardless of any a P. C. I contracts. So these are things we are looking into.
Speaker Change: Contracts to allow more players to participate.
Speaker Change: And alongside all of that.
Speaker Change: Actually just a side note in our last.
Speaker Change: Call, we had four bidders interested in.
Speaker Change: We have sounded.
Speaker Change: The auction I mean for our companies.
Speaker Change: The markets are.
Speaker Change: Readout to understand so it's not just one step that we're taking we're taking several steps to really increase our competitiveness and lower.
Speaker Change: It brought there.
Speaker Change: Or tender offer. So this was a wonderful result for us when we compare to previous processes.
The size of our contracts.
Speaker Change: In addition to that.
Speaker Change: And we always try to have a backup plan.
Speaker Change: Thank you Renata Sylvia and Magda.
Speaker Change: We are looking into.
Speaker Change: Okay.
Speaker Change: We will now hear the questions from Gabriel Barra with city Gabriel. Please go ahead.
Speaker Change: Hiring a what we call P O V.
Speaker Change: Yeah.
Speaker Change: So that Petrobras itself.
Speaker Change: We'll operate.
Speaker Change: Hello, everyone. Good morning, good morning, Presidente Margarita.
Speaker Change: So we would purchase are fixed.
Speaker Change: Questions here I'll ask the first one and then we can get to the second one but the first one.
Speaker Change: Pipelines, we would have our own boat and we would have our own launch regardless of any a P. C. I contracts. So these are things we are looking into.
Speaker Change: Is that.
Speaker Change: We've been discussing about the margins of Petrobras.
Speaker Change: We have sounded.
Speaker Change: Just like you mentioned before you mentioned how important it is to maintain the company production.
Speaker Change: Have the markets are.
Speaker Change: Readout to understand so it's not just one step that we're taking we're taking several steps to really increase our competitiveness and lower.
Speaker Change: And.
Speaker Change: Of course, it's really important to focus on the equatorial margin in that regard we've seen a lot of discussion.
Speaker Change: The size of our contracts.
Speaker Change: With regards to the environmental agency Ibama in the region. So what I would like to hear from you first is with regards to the equatorial margin what are the discussions like.
Speaker Change: Thank you Renata Sylvia and Magda.
Speaker Change: We will now hear the question is from Gabriel Barra with city Gabriel. Please go ahead.
Speaker Change: And what about the licenses this year.
Speaker Change: As the licenses come out.
Speaker Change: What would be the impact of the Capex and in the long run what are some of the main challenges considering that conceptually, what we know about oil and gas in Brazil, a great deal is concentrated in the southeast the entire oil and gas industry really so what would be the major challenge in that region moving forward to develop.
Hello, everyone. Good morning, Good morning, President Mike It a couple.
Speaker Change: Couple of questions here I'll ask the first one and then we can get to the second one but the first one.
Speaker Change: Is that.
Speaker Change: We've been discussing about the margins of Petrobras.
Speaker Change: The equatorial margin that's the first question.
Speaker Change: Like you mentioned before you mentioned how important it is to maintain the company production.
Speaker Change: Yes.
Speaker Change: Thank you for your question.
Speaker Change: And.
Speaker Change: I will respond and I will hand, it over to Clarissa.
Speaker Change: Of course, it's really important to focus on the equatorial margin in that regard we've seen a lot of discussion.
Speaker Change: And Sylvia so that they can.
Speaker Change: With regards to the environmental agency Ibama in the region. So what I would like to hear from you first is with regards to the equatorial margin what are the discussions like.
Speaker Change: I mean about the equatorial margin as well.
Speaker Change: In terms of the equatorial margin what we have is.
Speaker Change: And and exploration expectation.
Speaker Change: And what about the licenses this year.
Speaker Change: To drill a pioneer well.
Speaker Change: As the licenses come out.
Speaker Change: So that we can confirm the potential in that area of course, one well is never enough.
Speaker Change: What would be the impact of the Capex and in the long run what are some of the main challenges considering that conceptually, what we know about oil and gas in Brazil, a great deal is concentrated in the southeast the entire oil and gas industry really so what would be the major challenge in that region moving forward to develop.
Speaker Change: So we do have a few wells that we are looking at.
Speaker Change: In the state of Amapa in deep waters.
Speaker Change: We also have something in our strategic planning.
Speaker Change: The equatorial margin that's the first question.
Speaker Change: In the order of a little more than 30 wells to be drilled.
Speaker Change: Thank you for your question.
Speaker Change: In the fifth year to explore the equatorial margin that goes from the state of them about all the way to the Brazilian state of Rio Grande minority.
Clarissa: I will respond and I will hand, it over to Clarissa <unk>.
Speaker Change: And Sylvia so that they can.
Speaker Change: Chime in about the equatorial margin as well.
Speaker Change: So what we have at hand.
Speaker Change: In terms of the equatorial margin what we have is.
Speaker Change: Is the request to waive license.
Speaker Change: To drill the first well.
Speaker Change: And and exploration expectation.
Speaker Change: In the coast are the state of our BOP over 500 kilometers of the Marshall Islands, which is close to the where the Amazon outflows in the ocean.
Speaker Change: To drill a pioneer well.
Speaker Change: So that we can confirm the potential in that area of course, one well is never enough.
Speaker Change: The environmental agency has had many comments about this license.
Speaker Change: So we do have a few wells that we are looking at.
Speaker Change: In the state of Amapa in deep waters.
Speaker Change: The environmental agency considers that region to be extremely sensitive and we do understand that we are absolutely ready in a position.
Speaker Change: We also have something in our strategic planning.
Speaker Change: In the order of a little more than 30 wells to be drilled.
Speaker Change: To deal with that sensitive aspect.
Speaker Change: Our director of Clarice is going to explain you more but what we have in terms of precautions for the drilling activities in ultra deep waters.
Speaker Change: In the fifth year to explore the equatorial margin that goes from the state of I'm about all the way to the Brazilian state of Rio Grande the north it.
Speaker Change: Is we believe we can say that there is no precedent in the world for that.
Speaker Change: So what we have at hand.
Speaker Change: Is the request to waive license.
Speaker Change: To drill the first well.
Speaker Change: We have numerous equipment, we have different methods and we have cutting edge techniques that claris will explain to you a little more.
Speaker Change: In the coast of this state of Amapa over 500 kilometers of the Marshall Islands, which is close to the where the Amazon outflows in the ocean.
Speaker Change: But again, what we have is a strong commitment with the environmental agency to deliver yet another foreigner rehabilitation center should there be any adverse event.
Speaker Change: The environmental agency has had many comments about this license.
Speaker Change: The environmental agency considers that region to be extremely sensitive and we do understand that we are absolutely ready in a position.
Speaker Change: That center.
Speaker Change: Our director of chlorine came from it I think she was there yesterday or the day before she was overseeing the activities.
Speaker Change: To deal with that sensitive aspect, our director of Clarice is going to explain you more but what we have in terms of precautions for the drilling activities in ultra deep waters.
Speaker Change: She went there to supervise the works that are being done.
Speaker Change: She did not introduce herself as the director or the person in charge for that area because she really wanted to get a feel for what was happening in the field.
Speaker Change: Is we believe we can say that there is no precedent in the world for that.
Speaker Change: Our commitment to re bomber is to deliver that by the by late March the construction is.
Speaker Change: We have numerous equipment, we have different methods and we have cutting edge techniques that claris will explain to you a little more.
Speaker Change: All the deadline and we believe this will be the last demand from the environmental agency because all the other ones were met and we met those demands in a timely fashion.
Speaker Change: But again, what we have is a strong commitment with the environmental agency to deliver yet another foner rehabilitation center should there be any adverse event.
Speaker Change: Once again as far as the equatorial margin.
Speaker Change: We have a new frontier and we have a strong necessity to replenish our reserves and you know that we are ramping up our production until roughly to the 2013 or 2032.
Speaker Change: That center.
Speaker Change: Our director of Clarice came from it I think she was there yesterday or the day before she was overseeing the activities.
Speaker Change: She went there to supervise the works that are being done.
Speaker Change: And from then on as a company that produces nonrenewable energy, we have to replenish our reserves and that reserve replenishment.
Speaker Change: She did not introduce herself as the director or the person in charge for that area because she really wanted to get a feel for what was happening in the field.
Those through the exploration of new frontiers, namely the equatorial margin being one of them that are many other basins out there and personally I do believe strongly on the potential of the falls the Amazonas basin.
Speaker Change: Our commitment to we BOMA is to deliver that by the by late March the construction is.
Speaker Change: All the deadline and we believe this will be the last demand from the environmental agency because all the other ones were met and we met those demands in a timely fashion.
Speaker Change: Once again as far as the equatorial margin.
Speaker Change: Okay.
Speaker Change: What happens is that people believe that we are going to have a negative impact on pause do amazonas, but we are talking about a distance of over 500 kilometers from falls, the Amazonas, which is roughly twice the distance from the pre salts to.
Speaker Change: We have a new frontier and we have a strong necessity to replenish our reserves and you know that we are ramping up our production until roughly to the 2030 or 2032.
Speaker Change: And from then on as a company that produces nonrenewable energy, we have to replenish our reserves and that reserve replenishment.
Speaker Change: <unk>, the Copacabana Beach in Rio de Janeiro.
Speaker Change: So that is to say that we are absolutely confident.
Speaker Change: We are doing some monitoring.
Those through the exploration of new frontiers, namely the equatorial margin being one of them that are many other basins out there and personally I do believe strongly on the potential of the false dorm ozone is basin.
Speaker Change: We are keeping a close watch for potential skills, we have centers for a rehabilitation of bone in Florida, we have all sorts of equipment.
Speaker Change: As a matter of fact, we have one of those campaigns.
Speaker Change: That were used in the Gulf of Mexico, and that BP incidents one of those pieces of equipment is here in Brazil, and it's in Petrobras has possession and I believe that we have made there are maybe four or five pieces of equipment like that around the world one of them one of them is here.
Speaker Change: Okay.
Speaker Change: What happens is that people believe that we are going to have a negative impact on or do amazonas, but we're talking about a distance of over 500 kilometers from falls, the Amazonas, which is roughly twice the distance from the pre salt.
Speaker Change: So that's what we are offering to ibama in our eyes. This is settled there is nothing else to demand I've been in this industry for 45 years and never have I ever seen an effort of this magnitude to be able to mitigate any sort of impact.
Speaker Change: Two the Copacabana Beach in Rio de Janeiro.
Speaker Change: So that is to say that we are absolutely confident.
Speaker Change: We are doing some monitoring.
We are keeping a close watch for potential spills, we have centers for rehabilitation of Kona in Florida, we have all sorts of equipment.
Speaker Change: So.
Speaker Change: We are going to advance and move forward in the region of the low tests Rio Grande do Sul. The payload is basi has a a geological aspect that is very specific which play reached will explain it's similar to the new media base in the media is considered to be the new <unk>.
Speaker Change: As a matter of fact, we have one of those campaigns.
Speaker Change: That were used in the Gulf of Mexico in that B P incidents one of those pieces of equipment is here in Brazil, and it's in Petrobras has possession and I believe that we have made there are maybe four or five pieces of equipment like that around the world one of them one of them is here so.
Speaker Change: <unk> in terms of the possibilities there is a lot of potential in EMEA, especially in its deep waters in the sense that.
Speaker Change: All of that is definitely on our radar as far as our strategic planning. If you ask me how much this'll cost all of that amount and all of that.
Speaker Change: That's what we are offering to ibama in our eyes. This is a settled there is nothing else to demand I've been in this industry for 45 years and never have I ever seen an effort of this magnitude to be able to mitigate any sort of impact.
Speaker Change: Shall we say all of that exploratory activity is completely considered here is completely within the guidelines of our 'twenty 'twenty five 'twenty 'twenty nine strategic planning. So director of Clarice is now going to explain and shed some light about what we are doing in the <unk>.
Speaker Change: So.
Speaker Change: We are going to advance and move forward in the region of Belo tests, Rio Grande do Sul. The Pelotas Basie has a a geological aspect that is very specific which play reached will explain it's similar to the new media basin. The media is considered to be the new.
Speaker Change: Yield as far as the environmental license for the equatorial margin and more specifically.
Speaker Change: That spot in the coast of Amapa.
Speaker Change: Guiana in terms of the possibilities there is a lot of potential in Namibia, especially in its deep waters in the sense that all of that is definitely on our radar as far as our strategic planning. If you ask me how much this will cost all of that amount and all of that.
Speaker Change: Absolutely President Mr. Mrs President.
Speaker Change: Just like Madam President said, we have structured a emergency response plan in the state of Amapa, which is unprecedented around the world and in the industry.
Speaker Change: What comprises this emergency plan as the following first we are building. This center for formal rehabilitation that Madam President said. This is actually a center that has a surgery room as a matter of if that besides all the other necessary structure that is part of the ibama.
Speaker Change: Shall we say all of that exploratory activity is completely considered here is completely within the guidelines of our 'twenty 'twenty five 'twenty 'twenty nine strategic planning So director of Clarice is now going to explain and shed some light about what we are doing.
Speaker Change: Annually along with this rehabilitation center, we are also structuring and developing our center for environmental defense.
Clarice: In the field as far as the environmental license for the equatorial margin and more specifically.
Speaker Change: Besides having the equipment.
Speaker Change: This center also has some barriers.
Clarice: That spot in the coast of ABA.
Speaker Change: To make sure.
Speaker Change: Absolutely President Mr. Mrs President.
Speaker Change: And that we can work and on the sand on the main roads as well as offshore.
Speaker Change: Just like Madam President said, we have structured a emergency response plan in the state of Amapa, which is unprecedented around the world and in the industry.
Speaker Change: And also we have a whole string of necessary equipment. So here's what we put together for that region, we have some aircraft.
Speaker Change: What comprises this emergency plan as the following first we are building. This center for formal rehabilitation bed Madam President said this is actually a center that has a surgery room as a matter of that besides all the other necessary structure that is part of the Ibama manual.
Speaker Change: We actually have three helicopters and that region.
Speaker Change: We're going to have.
Speaker Change: Two additional vessels that are going to be on standby toward offshore as a matter of fact, they will work closely to the area, where we will do the first study the first exploratory campaign and four additional vessels that will be on standby to cater to any environmental and phone or demands close to the coast. So this is an X.
Speaker Change: Ah.
Speaker Change: Along with this rehabilitation center, we are also structuring and developing our center for environmental defense disc.
Speaker Change: Truly robust structure.
Speaker Change: Besides having the equipment.
This center also has some barriers.
Speaker Change: All of the reform all the preparation of the bulky airports all of that was done by Petrobras itself as a matter of fact, it is possible that that municipality received something that not a lot of municipalities have which is ninth planes planes that operate during.
Speaker Change: To make sure.
And that we can work and on the sand on the main roads as well as offshore.
Speaker Change: And also we have a whole string of necessary equipment. So here's what we put together for that region, we have some aircraft.
Speaker Change: The night. So this is also part of our emergency response plan.
Speaker Change: We actually had three helicopters and that region.
Speaker Change: Here's something else that is important to mention.
Speaker Change: We're going to have.
Speaker Change: We had this company that is working with us.
Speaker Change: Two additional vessels that are going to be on standby toward offshore as a matter of fact, they will work closely to the area, where we will do the first study the first exploratory campaign and four additional vessels that will be on standby to cater to any environmental and phone or demands close to the coast. So this is an X.
Speaker Change: Which is a company of the utmost quality in Brazil, we are contracting over 100 professionals between technicians biologists and that's so.
Speaker Change: Everything every resource that Petrobras can throw at this project should there be an incident or an accident I mean.
Speaker Change: Truly robust structure.
Speaker Change: All of the reform all the preparation of the bulky airports all of that was done by Petrobras itself as a matter of fact, it is possible that that municipality received something that not a lot of municipalities have which is ninth planes planes that operate during.
Speaker Change: There's never been a readiness like this one we are investing to the tune of 150 million or BRL and dad goes into all of those resources that I mentioned and now what is going to happen is this we are constantly in communication, we have technical meetings with the environmental agency.
Speaker Change: The night. So this is also part of our emergency response plan.
Speaker Change: We are waiting for an opinion on the project that we just presented.
Speaker Change: Here's something else that is important to mention.
Speaker Change: The final stage of the project, which is that basin in the state of our path and that is going to be combined with our bay land base.
Speaker Change: We had this company that is working with us.
Speaker Change: Which is a company of the utmost quality in Brazil, we are contracting over 100 professionals between technicians biologists and that's so.
Speaker Change: All of that is going to be serviced in that region right there.
Speaker Change: So as we get the Green light for this project, we will be able to move on to the next stage, which will be to do the all the pre operational assessment. If this is a necessary condition and this is the part of all the manuals. It's part of all the procedures of the environmental agency in Brazil and in.
Everything every resource that Petrobras can throw at this project should there be an incident or an accident I mean.
There's never been a readiness like this one we are investing to the tune of 150 million or BRL and dad goes into all of those resources that I mentioned and now what is going to happen is this we are constantly in communication, we have technical meetings with the environmental agency.
Speaker Change: From then on Petrobras would be of course in a position to start its exploratory campaign and I would like to point something out which is a very important issue as well the probe. The N F 42, which is put together by our engineering department to do the drilling well.
Speaker Change: We are waiting for an opinion on the project that we just presented.
Speaker Change: The final stage of the project, which is that basin in the state of our path and that is going to be combined with our bay land base.
Speaker Change: That's one of the most cutting edge state of the art probes that we have today for that specific area for that type of operation.
Speaker Change: All of that is going to be serviced in that region right there.
Speaker Change: Yeah.
Speaker Change: And we have a possibility also to receive from Ibama, an authorization to do the cleaning of that probe.
Speaker Change: So as we get the Green light for this project, we will be able to move on to the next stage, which will be to do the all the pre operational assessment is this is a necessary condition and this is a part of all the manuals. It's part of all the procedures of the environmental agency in Brazil and <unk>.
Speaker Change: Of that rig here in the southeast so make sure that that rig can navigate all the way to the state of I'm a parcel that we can conduct our studies that have been on on the table for a long time.
Speaker Change: From then on Petrobras would be of course in a position to start its exploratory campaign and I would like to point something out which is a very important issue as well the probe. The N F 42, which is put together by our engineering department to do the drilling well.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: Right Gabriele if I may.
Gabriele: About the importance of the equatorial margin for US we started our discoveries here in Brazil in the Campos basin and the Santos spacing, we started with a carbonate.
Speaker Change: That's one of the most cutting edge state of the art probes that we have today for that specific area for that type of operation.
Gabriele: And what we are expecting in this major frontier, which is the equatorial margin is some similar systems to what we what we have in the basin of samples, which is a system that we see also in Guyana, and Suriname and also in Ghana as a matter of fact, we acquired these blocks in 2013.
Speaker Change: Yeah.
Speaker Change: And we have a possibility also to receive from Ibama, an authorization to do the cleaning of that probe.
Speaker Change: Of that rig here in the southeast to make sure that that rig can navigate all the way to the state of I'm a parcel that we can conduct our studies that have been on on the table for a long time.
Gabriele: First when there was the discovery in Ghana.
Gabriele: The geology similar.
Gabriele: So we put it all together and so there are there are a lot of similarities there are some similar generators that we see in Venezuela and other areas that are of similar nature.
Okay.
Speaker Change: Thank you.
Speaker Change: Yeah.
Gabriele: So why should we tackle this area well because there is a significant oil potential there there is a potential which is only discovered after you drill the well.
Speaker Change: Right Gabriele if I may.
Gabriele: About the importance of the equatorial margin for US we started our discoveries here in Brazil in the Campos Basin and the Santos Basin, we started with a carbonate.
Gabriele: So the oil system is pointing to that direction.
Gabriele: And so the first step is the is a well that we're drilling but we have six blocks and we are estimating a number of eight wells like President said, you cannot just do one well and call. It a day, if we find oil in the first well great. If it's not in the first one is gone.
Gabriele: And what we are expecting in this major frontier, which is the equatorial margin is some similar systems to what we what we have in the basin of centers, which is a system that we see also in Guyana, and Suriname and also in Ghana as a matter of fact, we acquired these blocks in 2013.
Gabriele: And to be in the second or the third one because we're going to do a proper exploratory evaluation and we're going to really undertake these efforts that we've been waiting to do for a long time and I just want to make very clear that we are very confident we have all the guarantees as far as the technical department all the.
Gabriele: First when there was the discovery in Ghana.
Gabriele: The geology similar.
Gabriele: So we put it all together and so there are there are a lot of similarities there are some similar generators that we see in Venezuela and other areas of <unk> of.
Gabriele: Of similar nature.
Gabriele: So why should we tackle this area well because there is a significant oil potential there there is a potential which is only discovered after you drilled the well.
Gabriele: Shipment all the safeguards, we have supporting vessels and it's really important that geologically we are assured that the ocean currents in though in that region. They run in parallel to the coast. So this is actually the greatest guaranteed that should there be any issues.
Gabriele: So the oil system is pointing to that direction.
Speaker Change: And so the first step is the is a well that we're drilling but we have six blocks and we are estimating a number of eight wells like President said, you cannot just do one well and call. It a day, if we find oil in the first well great. If it's not in the first one it's going to be in.
Gabriele: Should there be any oils steel that oil is not going to go to the coast, it's not going to reach our mangroves, it's not going to reach our shallow waters. One other aspect. This is not the first time, we are drilling this well that margin of Amapa has had.
Speaker Change: The second or the third one because we're going to do a proper exploratory evaluation and we're going to really undertake these efforts that we've been waiting to do for a long time and I just want to make very clear that we are very confident we have all the guarantees as far as the technical department all the equipment.
Gabriele: More than 100 wells drilled in the shallow waters that deepwater format, we already drilled over 3000 wells in that format right. Now we are drilling 10 or 11 wells throughout that margin on the eastern side.
Speaker Change: All the safeguards, we have supporting vessels and it's really important that geologically we are assured that the ocean currents in though in that region. They were unparalleled to the coast. So this is actually the greatest guaranteed that should there be any issues shoe.
Gabriele: No issues at all so the drilling of that well, we'll just be business as usual there will be no issues at all and I can tell you folks that there is no conflict with the environmental aspect as far as the emissions and the climate because our emissions in Brazil are quite low the Ami.
Speaker Change: Would there be any oils steel that oil is not going to go to the coast, it's not going to reach our mangroves, it's not going to reach our shallow waters. One other aspect. This is not the first time, we are drilling this well that margin of Amapa has had.
Gabriele: For Biofuels that accounts for only 1%. So we can naturally do that our admissions are quite low. So there is no conflict between taken care of the environment and drilling oil wells. This is a company that invests heavily on the environment, we protect the whales dolphins, we protect our.
Speaker Change: More than 100 wells drilled in the shallow waters that deepwater format, we already drilled over 3000 wells in that format right. Now we are drilling 10 or 11 wells throughout that margin on the eastern side no.
Gabriele: Manatees, so that puts us in a nice position that gives us a guarantee that that oil that well drilling will not impact the environment and it will ensure energy security to our country and our great quality of life for the peoples of that region.
Speaker Change: No issues at all so the drilling of that well, we'll just be business as usual there will be no issues at all and I can tell you folks that there is no conflict with the environmental aspect as far as the emissions and the climate because our emissions in Brazil are quite low the yummy.
Gabriele: Okay.
Gabriel: You had another question Gabriel Yeah, if I could quickly ask a second question.
Speaker Change: I just wanted to go back to the Capex issue Renato touched on something that really stood out to me, which was you could may be capitalized more N S.
Speaker Change: Sapphire fuels of accounts were only 1%. So we can naturally do that our emissions are quite low. So there is no conflict between taken care of the environment and drilling oil wells. This is a company that invests heavily on the environment, we protect the whales dolphins, we protect our men.
Gabriel: See less.
Gabriel: Yes.
Gabriel: Chartering even to make the most of your ships and your.
Speaker Change: Drills I just wanted to follow up on that to understand if I.
Speaker Change: Saw this correctly so moving forward could could we expect the company to capitalize a little bit more on it's a S. R V's and drills and so on and so forth and invest less in chartering is that which we should expect moving forward. When it comes to the Companys investment did I understood it correctly.
Speaker Change: Manatees, so that puts us in a nice position that gives us a guarantee that that oil that well drilling will not impact the environment and it will ensure energy security to our country and our great quality of life for the peoples of that region.
Speaker Change: No I don't think you understood. It correctly, we thought of chartering a U L V not in purchasing one.
Speaker Change: Okay.
Gabriel: You had another question Gabriel Yeah, if I could quickly ask a second question.
Speaker Change: Our drills are all chartered at this point and we do not plan to change that model.
Gabriel: I just wanted to go back to the Capex issue Renata touched on something that really stood out to me, which was you could may be capitalized more and.
Speaker Change: One change we made recently, which was actually included in.
Speaker Change: The company's plan was R. F P S Soc.
Gabriel: See less.
Speaker Change: The company adopted a standard within the company, which is.
Gabriel: Yes.
Gabriel: Chartering.
Gabriel: Even to make the most of your ships and your.
Speaker Change: We assess the market liquidity in the market our debt situation and competitive situation in the market before we establish what will be the model will adopt to higher N. F. P. S O. So it might be a leasing.
Gabriel: Drills I just wanted to follow up on that to understand if I.
Gabriel: Saw this correctly so moving forward could could we expect the company to capitalize a little bit more on it's a S. R V's and drills and so on and so forth and invest less in chartering is that which we should expect moving forward. When it comes to the Companys investment did I understood it correctly.
Speaker Change: It might be what we have just done so far which is built operation and transfer so for F. P. S. O. We have these options and now for our support vessels launch vessels and drills our model is still charter.
Speaker Change: No I don't think you understood. It correctly, we thought of chartering a U L V not in purchasing one.
Speaker Change: Our drills are all chartered at this point and we do not plan to change that model.
Renato: That was absolutely clear Renato thank you.
Speaker Change: Yes.
Speaker Change: Thank you and.
Speaker Change: One change we made recently, which was actually included in.
Speaker Change: Unfortunately, because of the issues we faced earlier, we will now have our last question.
Speaker Change: The company's plan was R. F P S Soc.
Speaker Change: <unk> Malik from BBA can you hear us.
Speaker Change: The.
Speaker Change: Any adopts a standard within the company, which is.
Malik: Hi, water, yes, Sir I can hear you can you hear me.
Speaker Change: We assess the market liquidity in the market our debt situation and competitive situation in the market before we establish what will be the model will adopt to higher N. F. P. S. So so it might be a leasing.
Speaker Change: Yes, we can hear you.
Speaker Change: Perfect. Thank you and thank you for taking this last question good afternoon, everyone.
Speaker Change: I'd like to insist a little bit on the capex issue, which might be the most important issue of the day.
Speaker Change: It might be what we have just done so far which is built operation and transfer so for F. P. S. O. We have these options and now four support vessels launch vessels and drills our model is still charterer.
Speaker Change: It's still not.
Speaker Change: Totally clear to me the connection between anticipating these additional $2 billion and advancing your production in the Booze Yoss area. My question is this additional 2 billion in Q4.
Renato: That was absolutely clear Renato thank you.
Speaker Change: Is this connected with the anticipation in Ammirati tomorrow at which is already concluded or is that connected to a potential anticipation with the project in bucyrus eight to 11 and.
Speaker Change: Thank you and.
Speaker Change: Unfortunately, because of the issues we faced earlier, we will now have our last question.
Speaker Change: So monarch from BBA can you hear us.
Monarch: Hi, water, yes, Sir I can hear you can you hear me.
Speaker Change: If that's the case, what's the magnitude of that in anticipation to rethink about new dates for the projects.
Monarch: Yes, we can hear you.
Monarch: Perfect. Thank you and thank you for taking this last question good afternoon, everyone.
Speaker Change: Bucyrus eight through 11 and could maybe.
Speaker Change: <unk> be the case that that led to the situation that maag dimension earlier in the call.
Monarch: I like to insist a little bit on the capex issue, which might be the most important issue of the day.
Speaker Change: Yes.
Monarch: Yeah.
Monarch: It's still not.
Monique: Hi, Monique.
Monarch: Totally clear to me the connection between anticipating these additional $2 billion and advancing your production in the Booze Yours area. My question is this additional 2 billion in Q4 is this connected with the anticipation in Ammirati Tomorrow average.
Monique: Well as I explained.
Speaker Change: When we took over the board alongside President Magda and director Silvio.
Speaker Change: We saw that all projects virtually all projects were delayed.
Speaker Change: And what we did was <unk>.
Monarch: It's already concluded or is that connected to a potential anticipation with the project in booz use eight to 11 and.
Speaker Change: Really a herculean effort to recover, especially P 78, and P 79.
Speaker Change: Which are the first projects that will be delivered in the booth use area. So that's one.
Monarch: If that's the case, what's the magnitude of that in anticipation to rethink about new dates for the projects.
Speaker Change: Now number two.
Speaker Change: His presence.
Fernando Mega: Mega usually saves US says every drop counts and for me the saying is everyday counts. So we've been working with different strategies to maybe.
Monarch: Bucyrus eight through 11 and could maybe.
Monarch: <unk> be the case that that led to the situation that mark dimension earlier in the call.
Speaker Change:
Speaker Change: <unk> production one day earlier, so whether it is thinking of a manned mission to R. F. P. S. So to maybe going in person to the field as opposed to bringing it to go out of Bara. The Guanabara Bay and people May say, Oh I saw no vessels in the guar when a bar Bay for so long and you really won't see because we really want to.
Monarch: Yeah.
Monique: Hi, Monique.
Monique: Well as I explained.
Monique: When we took over the board alongside President Magda and director Silvio.
Monique: We saw that all projects virtually all projects were delayed.
Speaker Change:
Speaker Change: Make more time make the best use of our time and that's what we're doing.
Monique: And what we did was really a herculean effort to recover, especially P 78, and P 79, which are the first projects that will be delivered in the booths use area. So that's one now number two.
Speaker Change: I just wanted to make sure if I understood Renato So in fact, what you're calling anticipation is actually a maintenance of the <unk>.
Speaker Change: Ted lines, where that the.
Monique: His presence.
The time frame that was in your original plan.
Speaker Change: Matt Mega usually saves US says is every drop counts and for me the saying is everyday counts. So we've been working with different strategies to maybe.
Speaker Change: Yeah. It really is to anticipate it's not just <unk>.
Speaker Change: Prevent delays, but also trying to anticipate the startup production yeah I just wanted to remind you Monique.
Monique: <unk>.
Monique: Get production one day earlier, so whether it is thinking of a manned mission to R. F. P. S. So to maybe going in person to the field as opposed to bringing it to go out of Bara. The Guanabara Bay and people May say, Oh I saw no vessels in the GOR when a bar Bay for so long and you really won't see because we really want.
Speaker Change: A lot of this efforts.
It.
Speaker Change: And al Merit to some other air came to Brazil late last year. When it was expected to come in this year. So we anticipated the start of operations in Amarante come on the Rev. But also we also advanced.
Monique: To.
Monique: Make more time make the best use of our time and that's what we're doing.
Speaker Change: Because of those efforts are the operations then Maria carrier, which was also expected to start operating in early 'twenty twenty-five, but actually started operations.
Monique: I just wanted to make sure if I understood Renato So in fact, what you're calling anticipation is actually a maintenance of the.
Speaker Change: Early in Q4 2024 in.
Monique: Deadlines, where that the.
Speaker Change: In addition to our effort to mitigate delays at P 68, and P 69 as mentioned by Ronaldo.
Monique: The time frame that was in your original plan.
Monique: Yeah. It really is to anticipate it's not just a <unk>.
Speaker Change: So theres actually both things there's delay the mitigation of delays and there's also anticipation.
Monique: Prevent delays, but also trying to anticipate the start of production yeah I just wanted to remind you Monique.
Speaker Change: As well.
Speaker Change: Thank you Renata. Thank you Monique and thank you President Magda.
Monique: That a lot of this efforts.
Monique: Okay.
Speaker Change: With that we conclude our question and answer answer session. If you have any additional question or.
Monique: N L mirror some of the rack came to Brazil late last year. When it was expected to come in this year. So we anticipated the start of operations in Amarante come on the Rev. But also we also advanced.
Speaker Change: So relations department will be more than happy to assist you.
Speaker Change: To think.
Speaker Change: Everyone for joining us for this event.
Monique: Because of those efforts are the operations then Maria carrier, which is also expected to start operating in early 'twenty 'twenty five but actually started operations.
Speaker Change: And I'd like to say that the presentation for this event is already available at our website and the audio for this webcast should be made available for replay soon as well. Thank you and have a great day everyone.
Monique: Early in Q4 2024 in.
Monique: In addition to our effort to mitigate delays at P 68, and P 69 as mentioned by Ronaldo.
Monique: So theres actually both things there's delay the mitigation of delays and there is also anticipation.
Monique: As well.
Monique: Okay.
Speaker Change: Thank you Renata. Thank you Monique and thank you President Magda.
Speaker Change: With that we conclude our question and answer answer session. If you have any additional question or.
Speaker Change: So relations department will be more than happy to assist you and I'd like to thank <unk>.
Speaker Change: Everyone for joining us for this event.
Speaker Change: And I'd like to say that the presentation for this event is already available at our website and the audio for this webcast should be made available.
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