Q4 2024 Petroleo Brasileiro SA Petrobras Earnings Call
Since 2008.
This is no surprise to us seeing as it's already been reported.
But we saw a loss of 17 billion Reais in Q4.
That's something you've probably read in newspaper headlines today.
But we'd like to tell you that it is very important to understand that this loss.
Involves no flaw in 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.
Our subsidiaries.
This 59 billion in.
Transactions in 2024 effect arc accounting result, but Lee.
Leaton in 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.
We paid about 102 billion reais in.
Yes.
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.
We began the operation of a N F P S O.
I'll move onto to Monterrey.
In the booze use field.
These operations.
Sure.
Capacity for 225.
Barrels of oil a day.
We must say that this is the largest.
Deep water operations.
Field in the world and that this too.
225 barrels a day.
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.
Yeah.
This is a production and production potential that's unprecedented that no other country shows or has shown.
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.
Thanks to the start of operations in this F. P. S O, which started earlier and I'm mean, all meranti.
F P S O as I mentioned earlier.
This is Petrobras is most productive.
Field.
Before that the most productive one would produce 150000.
Barrels a day.
So we're close to two P now with 800000.
And Booz yours, this would probably overcome.
Two P. Soon.
Two.
<unk> thousand 1.5 billion and even 2 billion barrels a day by 2030.
It's a high class asset and again.
The largest deepwater oilfield in the world.
This is excellent news.
Even better.
When we see.
Wells with production potential of as high as 70000 barrels of oil a day.
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.
Barrels of oil a day as I said.
Later this quarter, we should reach a thousand.
Or.
We expect this well to exceed.
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.
Production feel that pressure brush runs.
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.
Our investment which came to <unk>.
$16 $6 billion.
Slightly higher than what we established in our guidance was a recovery of our investments.
That we had plan for 2020 five in RF.
Organizational strategy.
Yeah.
And which we.
Fully executed in 'twenty 'twenty four.
Anticipating.
The operations and a platform such as this one just to give you an idea of what this means.
This means an increase in present net value for this platform.
By about 2.2.
Billions of dollars.
In a three year period.
So.
This is already solved and we do not expect to see the same level of Capex.
In.
The first quarter of 2025.
And it is very important that this is clear to everyone.
This investment was due to the anticipation of plant investments and also.
<unk> high potential.
A high potential oil operation.
Also important these investments.
That we.
Pushed from.
'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.
Meaning.
More oil.
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: Making advanced investments such as what we did in Booz uses with any investor might ever want.
Speaker Change: Increased production and a highly production.
Speaker Change: And a highly productive field.
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.
Speaker Change: If possible we.
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 2 billion.
Speaker Change: <unk> barrels a day and a single field.
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.
Speaker Change: We can.
Speaker Change: Advance something that will bring as much profit or even more.
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: 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.
We are focusing on.
Speaker Change: Bringing in being.
Speaker Change: Reductions investments and value earlier.
Speaker Change: And this is something we did deliberately.
Speaker Change: Another example was F.
Speaker Change: F P S O Maria Cataria.
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: To make it so that operation started in October 2024.
Speaker Change: Again, it was advanced cash spending.
Speaker Change: Yeah.
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: Which was accomplished thank too thanks to the very well fine tuned.
Speaker Change: Directories or secretary that's in the country in the company.
Speaker Change: We also established set new records in our pre Salt project, which now accounts for 80% of all of Petrobras is production. These are world class assets, which are highly productive and which currently as I said account for 80% of the company.
Speaker Change: <unk>.
Speaker Change: Full output.
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: Sealed.
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: Another very positive piece of news.
Speaker Change: Was the increase in our reserves in 'twenty 'twenty four.
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: And also.
Speaker Change: Replenished our inventory.
Speaker Change: Showing that the our reserves are a priority for us we face the production challenge.
Speaker Change: We produce.
Speaker Change: A 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: Reserve.
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: So we understand as Paramount.
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: In the southern side of Brazil.
Speaker Change: We are currently conducting exploratory results in that basin and also interpreting the Seesmic science and we expect this space in which.
Speaker Change: Already shows.
Speaker Change: Similarities to the Namibia basin.
Might also provide us a fruitful future when it comes to oil production.
Speaker Change: Yeah.
Speaker Change: Our actions took place not only in production and exploration and also not only in engineering and refining. We've also reported major breakthroughs are gasoline and S 10 diesel.
Speaker Change: Also deserve highlight.
Speaker Change: Bear in mind that S 10 diesel is our most profitable product.
Speaker Change: And we set record breaking production in S. T S 10 diesel production.
Speaker Change: Our refineries are.
Speaker Change: Operated with the highest Ah.
Speaker Change: Operating factor in the last 10 years and 70% of <unk>.
Speaker Change: The water oil.
Speaker Change: Reached its highest percentage in total produce meat.
Speaker Change: And as you know years ago.
Speaker Change: Our most important production came from the Campos basin 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: Meaning a lighter oil.
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: As much value as possible to you as a result of our most valuable asset, which is our deepwater prospecting and XP.
Speaker Change: Exploration. We also started operations at P. G N. The.
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: 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: Our operation, ladies and gentlemen, rest assured it is absolutely profitable.
Speaker Change: <unk> has had a cash operating cash generation, which is unprecedented for 2024.
Speaker Change: We're talking about no more no less than 204 billion BRL in.
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: And we concluded the year.
Speaker Change: With a lower financial debt the lowest level that we've seen in the last 10 years.
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.
Speaker Change: Two invest compensate our shareholders.
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: 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: <unk>.
Speaker Change: Just to give you an idea of what that means and how that translates into what an accounting amount. It was an impact of 59 billion BRL.
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 this negative value.
Speaker Change: Oh of the variation did not come from the company's cash and Furthermore, that is to say that as the dollar.
Speaker Change: Scales back part of this amount will be a profit in the first quarter of 2025.
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.
For example, if we were to do with simulation for the first quarter of 2025 closing at the current exchange rates.
Speaker Change: Of 570.
Speaker Change: All the way to 585 BRL per USD debt exchange variation would give us.
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: 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: 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 do a parenthesis here that decision by the way was recognized as a very.
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: Now I will discuss a little bit about the company's future I already mentioned the booth yields fields. 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: People power sources and the trend is a downward trend and what we are presenting to you ladies and gentlemen is that.
Speaker Change: Even though we are facing some declining trends.
Speaker Change: We intend to announce to all of you by the end of 'twenty 'twenty five that will have an increase in production in the order of 100000 barrels of oil per day.
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 and in fact this is a time that is very challenging.
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 Burnham Bucco.
Speaker Change: And the new H the team.
Those will be fully operational by the end of this year.
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: Our most prized possession, our most high value added product.
Speaker Change: We are also returning to the fertilizer business.
Speaker Change: 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: Additional <unk> vessels for coasting for those that are not familiar with range vessels. These are vessels that.
Speaker Change: Pick up fuel in the south of real and take it all the way north.
Speaker Change: 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: The Brazilian coast with these vessels. So once again all of that operation will be carried out to distribute this production.
Speaker Change: 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. 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: <unk> is in line with all of our governance.
Speaker Change: Procedures all of our economic analysis. So all of that is a positive prospect in all three scenarios and analysis that rebrand 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: 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: Fund and also a new red legislation in Brazil, which is also has been drafted by the federal government.
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: 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: Positive because besides having assets that compete on the international level.
Speaker Change: For the costs of replenishment. We also have some suppliers that are close to us and those are meeting.
Speaker Change: All of our demands in a timely fashion.
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 44000.
Speaker Change: <unk> thousand new jobs.
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 fuel throughout the country and with that we are going to be less financially exposed.
Speaker Change: From a Petrobras perspective to charters and freight we have our financial director our CFO.
Speaker Change: 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: 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.
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: Thanks to our efforts in the environmental social and governance areas.
Speaker Change: We have stacked prizes and awards in the area of governance.
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 leads.
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.
Speaker Change: Our sustained our investments sustained 250000 jobs and they accounted for 5% of the investment in Brazil.
Speaker Change: Our activities have generated 31% of all the primary energy consumed in Brazil.
Speaker Change: We paid for 270 billion BRL in taxes and other government.
Speaker Change: Expenses.
Speaker Change: As I had mentioned before.
Speaker Change: And we paid 102.6.
Speaker Change: Billion BRL.
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 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: Such as our income program, which will offer a 11000 physicians in professional training for the energy sector.
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: We do have a shortage of labor in Brazil Boy.
Speaker Change: Boiler operators welders and other professionals. This is an issue.
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 trainings.
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: 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: Labor to work in our operations and we mitigate risks therefore.
Speaker Change: And we are also meeting the demands of society at large in a timely fashion.
Speaker Change: We are working on our strategic plan, which is our guidance for 2025.
Speaker Change: And for the year.
Speaker Change: 2025, all the way to 2029.
Speaker Change: It's also.
Speaker Change: Important to say this is a concrete plan we move on.
Speaker Change: Looking for ethanol projects bioethanol and low carbon hydrogen.
Speaker Change: In addition to hover decarbonization initiatives.
Speaker Change: It's also important to say.
Speaker Change: Yeah.
Speaker Change: All of these projects.
Or based on the same governance criteria.
Speaker Change: And the same.
Speaker Change: 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 and in closing.
Speaker Change: I'd like to say we are.
Speaker Change: Absolutely determined to continue to derive value for society and our shareholders.
Speaker Change: Whether they're private on the private sector or the public sector 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: And.
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 Malaga radio who will dive a little bit deeper into our financials.
Speaker Change: Good afternoon, everyone. Thank.
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: 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: 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: No.
Speaker Change: This is as large as 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: Our financial debt decreased to $23 2 billion the lowest level since 2008.
Speaker Change: These indicators demonstrate Petrobras is financial health.
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: 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: 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: 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 that depreciation of Brent crude and the diesel crack spread.
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.
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: 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 $13 billion 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 six point 19, BRL per USD 28 up 28% depreciation of the Brazilian real this conversion is apply to that.
Between Petrobras and its foreign subsidiaries. These are intercompany transactions, which are very common among global current corporations like Petrobras.
Speaker Change: In other words these are funds circulating internally within the company.
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.
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. All remember it was positive now it's been negative.
Speaker Change: In Q2, we also discussed this at length.
Speaker Change: And again had the U S dollar had been around $5 75, right now ending the quarter at that level.
Speaker Change: Two our Q1 2025 results, we would add about two <unk>.
Speaker Change: $1 billion.
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.
Speaker Change: 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.
Speaker Change: It is important to emphasize that.
Speaker Change: This scenario affected all companies in the sector.
Speaker Change: As I said earlier.
Speaker Change: And not only Petrobras.
Speaker Change: This is an issue that specific to the oil and gas industry on slide nine reinforcing what we mentioned before that.
Speaker Change: The tax settlement agreement was a one time event in Q2, which impacted the company's earnings positively.
Speaker Change: And eliminated.
Speaker Change: Legal disputes to the tune of 45 billion Reais.
Speaker Change: And if you will remember at the time.
Speaker Change: When we reported this agreement.
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.
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.
Speaker Change: Most of it coming from our allocation.
Speaker Change: Which is precisely connected to cash generating assets.
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.
Speaker Change: Latin Finance award.
Speaker Change: Okay.
Speaker Change: Which also came with the issue of bonds all of which impacted 2024.
Speaker Change: Now on slide 11, let's talk a little bit about Capex, which is.
Speaker Change: Probably a point, we must discuss at length.
Speaker Change: Some items already having been advanced by our president it's important to say that.
Speaker Change: This 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: 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.
A year.
Speaker Change: Which is to say, we do not expect the.
Speaker Change: Q4, 'twenty 'twenty four investment to be the same as what we expect in 2025. Another important point here is.
Speaker Change: These investments that we moved from 2025 to 2024 were in Booz yours as our president as already said.
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.
Speaker Change: More oil sooner and more oil means higher revenue.
Speaker Change: If possible, we would actually make all our investments in Boozers earlier and start.
Speaker Change: Producing and all our F P S OS.
Speaker Change: At Tomorrow.
Speaker Change: Now the company gains and lower risks and potential increase in these advances. This line of incentives is decisive for.
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. Another thing that may come out is whether the capex timeline will be each alter.
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.
Speaker Change: Our forecasts for our Capex in 2025 through 2029 remains because we have major projects.
Speaker Change: Which involve uncertainties, which are mitigated by the process, we adopted so far and within our Capex. We also included.
Speaker Change: A.
Speaker Change: 10% more or less to a 10% variation you either up or down.
Speaker Change: On slide 10, we are still.
Speaker Change:
Committed to our.
Speaker Change: Disbursements and compensation for our.
Speaker Change: Stakeholders as you remember our result was mostly impacted by.
Results that have no impact on our cash flow. So we paid using our reserves and capital compensation as well as profit reduction.
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.
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.
Speaker Change: Wrap up by saying something 12.
Speaker Change: 2024 was a year, where we had a $90 billion capex dividends to the tune of 102 billion Reais.
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.
Speaker Change: The company's fundamentals are absolutely sound.
Speaker Change: 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.
Speaker Change: Okay.
Eduardo: Thank you Fernando Thank you Ms. Ms. President now, we're going to have our Q&A session.
Speaker Change: Yeah.
Speaker Change: Hello, Good afternoon, everyone.
Speaker Change: President.
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: 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.
Dr.: 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 anticipation.
Speaker Change: This advancement that you are doing now has a positive L. L. P T.
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 is positive and television in the project. So.
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: 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: Right so.
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.
Speaker Change: As you May remember.
Speaker Change: When we took on Petrobras.
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: Realization of the K bag, so to say for 'twenty four 'twenty eight.
Speaker Change: 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: Here's what happened from then on.
Speaker Change: What happened was the.
Speaker Change: These were investment there we're focused mainly on <unk> and that was the result of a lot of effort between the different departments.
Speaker Change: Okay.
Speaker Change: Our engineering, our finance Department work 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: 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: They were on the table and perhaps we were a little drastic in our expectation for the execution. When we first got to the company because we were looking at 14.5.
Speaker Change: But the fact is all be rented them on that Ed came to Brazil in 2024.
Speaker Change: And not in 'twenty 'twenty five.
Speaker Change: At ESO Maria Cataria started production and concluded in the third quarter actually late in the third quarter of 2024 as opposed to 2025.
Speaker Change: And thanks to that.
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: Yeah.
Speaker Change: 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: 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: One other matter, which is important is F. P. S O mediated area.
Speaker Change: Which is installed in those you Bart that field.
Speaker Change: In the south of the country.
Speaker Change: Like I said that platform was supposed to go operational in 2025.
Speaker Change: And it did go.
Speaker Change: In operation in the fourth quarter of 2024.
Speaker Change: Once again, giving us some new oil new oil in booz yields and new oil in park. It is my layers as well.
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 Miss alignment 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: So what we have here is a platform that should come to Brazil.
Speaker Change: In July.
That rig is going to start navigating at around July it should be maybe three months until it gets here.
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.
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 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: 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 assets to do that.
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: 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.
Speaker Change: Yes, absolutely can you hear me 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 use of close to two two point fiber now at four to $4 $5 billion now.
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 too.
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: Okay.
Speaker Change: I'll 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.
Speaker Change: Good afternoon Luis.
Speaker Change: As you all said we did see.
Speaker Change: A.
Speaker Change: 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.
Speaker Change: <unk>.
Speaker Change: One of the raw materials for our platforms has shot up in price and also complexity.
Speaker Change: Has also increased.
Speaker Change: In the case of these platforms. These rigs enthusiasts that are being produced in Singapore, They do not have.
Speaker Change: Gas imports, so I don't know where the information came from that.
Speaker Change: <unk> 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: Those rigs.
Speaker Change: Involve capacity of 225000 barrels the four last ones.
Speaker Change: Both in poses enter points Appia.
Speaker Change: These are units, which will bring high returns to Petrobras.
Speaker Change: So we're really trying to make those deadlines I just wanted to add something to the previous question.
Speaker Change: Yeah.
Speaker Change: Which is in 2024.
Speaker Change: We realized part or we accomplished part of what we expected to accomplish in 2025 now why is that.
Speaker Change: We were able to Inc.
Speaker Change: 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: Great effort by our team to really allow us to <unk>.
Speaker Change: Realized and delivered the expected oil results that we had planned for.
Speaker Change: Okay.
Fernando Malaga: Louis This is Fernando I, just wanted to add something else.
Louis: There's no new projects in addition to those.
Louis: 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.
Louis: Of these projects, but there's no new projects are in the pipeline as mentioned before I mean, we heard there there were rumors that there could be more projects, but.
Louis: The projects were talking about are all in our strategic plan.
Fernando Malaga: Thank you Magda Fernando and all of you for your answers.
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: We're here we can't hear you can you hear us.
Speaker Change: Well, let's move on to Bruno Montanari from Morgan Stanley's question Bruno. Please go ahead.
Speaker Change: Yeah.
Speaker Change: Thank you everyone.
Speaker Change: I just wanted to follow up on what's been said by to answering Louis' questions.
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: Ban and may be the deadline.
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 first answer that and I'll come back with my other question.
Speaker Change: Yeah, that's exactly right.
Speaker Change: Okay.
Speaker Change: We will continue to follow.
Speaker Change: Our production guidance and investment guidance.
Speaker Change: But as a renata mention.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: We understood we needed to protect that investment in project protect the project.
Speaker Change: Yeah.
Speaker Change: From any delays caused by the challenges there.
Speaker Change: Other players had been talking about and pointing us to.
Speaker Change: So I believe that this movement has everything to do with that this will ensure our deliveries and most importantly.
Speaker Change: In addition to everything else.
Speaker Change: Insure our deliveries at a lower risk.
Speaker Change: Perfect. Thank you Madam President.
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: There seem to have been a several impacts from maintenance.
Speaker Change: And now that we have the final results for 2024.
Can you pinpoint.
Speaker Change: The impacts of those.
Speaker Change: Yeah.
Speaker Change: Maintenance shutdowns and would you expect for 2025 seeing that.
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 or ask maybe renata.
Speaker Change: To talk about this.
Speaker Change: Change.
Speaker Change: Our reported by some outlets.
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: 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: That's the difference.
Speaker Change: Between our production in 2024.
Speaker Change: To all other years, where it not just for scheduled maintenance, but rather also because of our scheduled maintenance.
Speaker Change: Days in the first half of the year, we had an impact.
Speaker Change: That was caused which was the.
Speaker Change: Uh huh.
Speaker Change: Stoppage at Ibama.
Speaker Change: So.
Speaker Change: The authority to continue the licenses to continue prospecting.
Speaker Change: Prospecting.
Speaker Change: Actually stopped just to give you an idea because of the effect.
Speaker Change: Of that in the first quarter of 'twenty 'twenty four we.
Speaker Change: We had an impact of about 208 barrels a day.
Speaker Change: For a very long time in fact.
Speaker Change: This strike at the.
Speaker Change: Agency Ibama.
Speaker Change: Also had.
Speaker Change: An impact from a standard operation, which also impacted our production.
Speaker Change: Okay.
Speaker Change: So in addition to.
Speaker Change: Ah.
Speaker Change: Scheduled maintenance stoppages, which.
Speaker Change: We need to do.
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: 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: I will also turn over to Sylvia and with AIP and later to Renata.
To add to your to the answer to your question.
Speaker Change: Good afternoon, adding to what President Magnus said.
Speaker Change: We did have scheduled maintenance stoppages.
Speaker Change: Which are common and we just saw a larger number of them.
Speaker Change: And also.
Speaker Change: Facing the effects of the post Covid period.
Speaker Change: Yes.
Speaker Change: And the required 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.
Speaker Change: A N T C auditing agency that we deal with our orders as to do we also saw.
Speaker Change: Three.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Three rigs.
Speaker Change: With.
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: Yeah.
Speaker Change: When production stops who 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: 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: Okay.
Speaker Change: We had many of them stopped but every one of them causes the average impact of 20000 barrels a year.
Speaker Change: Okay.
Speaker Change: And this is just due to the slower.
Speaker Change: Slower.
Speaker Change: Pace of licenses to <unk>.
Speaker Change: Operator. These wells. So we wanted to underscore is the constant need as you well said.
Speaker Change: We are growing at.
Speaker Change: 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: Deploying our best efforts too.
Speaker Change: Make the next shutdowns as sparse as possible, but we will have an increase in production. We will continue to see maintenance shutdowns in every new platform there.
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 irregardless of every maintenance shutdown, which we do to increase efficiency and ensure that these rigs continue.
Speaker Change: Producing for a long time, yeah, I just wanted to add saying that these shutdowns.
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: Those figures already include our expectation for maintenance shutdowns along the way.
Speaker Change: Go ahead.
Speaker Change: Well, we had several impacts in the.
Speaker Change: 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: All of that to ensure.
Speaker Change: That there's maintenance and that we prevent interruptions, that's what we plan to do.
Hi, Jorge well.
Speaker Change: There really was a huge challenge for us to increase.
Speaker Change: The competitiveness of our I P C I.
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: The involvement of other players.
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: Yeah.
Speaker Change: We explain our plan and listen to them. So.
Speaker Change: We also adjusted a few of our 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: The auction I mean for companies.
Speaker Change: It brought there.
Speaker Change: Or tender offer. So this was a wonderful result for us when we compare to previous processes.
Speaker Change: In addition.
<unk> to that.
Speaker Change: And we always try to have a backup plan.
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'll operate.
Speaker Change: Yeah.
Speaker Change: So we would purchase are.
Speaker Change: Fixed our 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're looking into.
Speaker Change: We have sounded.
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: The size of our contracts.
Speaker Change: Thank you Renata Sylvia and Magda.
Speaker Change: Okay.
Speaker Change: We will now hear the questions from Gabriel Barra with city Gabriel. Please go ahead.
Gabriel Barra: Hello, everyone. Good morning, good morning, Presidente Margarita.
Gabriel Barra: Questions here I'll ask the first one and then we can get to the second one but the first one.
Gabriel Barra: Is that.
Speaker Change: We've been discussing about the margins of Petrobras.
Speaker Change: Just like you mentioned before you mentioned how important it is to maintain the company production.
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: 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: 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.
Speaker Change: The equatorial margin that's the first question.
Yes.
Speaker Change: Thank you for your question.
Speaker Change: I will respond and I will hand, it over to Clarissa.
Speaker Change: And Sylvia so that they can.
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: 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: So we do have a few wells that we are looking at.
In the state of Amapa in deep waters.
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: 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 the North Sea.
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: In the coast are the state of ammo path over 500 kilometers of the Marshall Islands, which is close to the where the Amazon outflows in the ocean.
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: 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: Is we believe we can say that there is no precedent in the world for that.
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: 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: That center.
Speaker Change: Our director 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: 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: Our commitment to read bomber 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: 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: 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: Okay.
Speaker Change: What.
Speaker Change: <unk> 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 salt to the Copacabana Beach and.
Speaker Change: Rio de Janeiro.
Speaker Change: So that is to say that we are absolutely confident.
Speaker Change: We are doing some monitoring.
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: 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: So.
Speaker Change: We are going to advance and move forward in the region of the load 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 base in the media is considered to be the new <unk>.
Speaker Change: <unk> in terms of the possibilities there is a lot of potential in the media, 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 will cost all of that amount and all of that.
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're doing in the <unk>.
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: Absolutely President Mr. Mrs President.
Gabriel Barra: 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.
Gabriel Barra: What comprises this emergency plan is the following first we are building the centre 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.
Gabriel Barra: Annually along with this rehabilitation center, we are also structuring and developing our center for environmental defense.
Gabriel Barra: Besides having the equipment.
Gabriel Barra: This center also has some barriers.
Gabriel Barra: To make sure.
Gabriel Barra: And that we can work and on the sand on the main roads as well as offshore.
Gabriel Barra: And also we have a whole string of necessary equipment. So here's what we put together for that region, we have some aircraft.
Gabriel Barra: We actually had three helicopters in that region.
Gabriel Barra: We're going to have.
Gabriel Barra: 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.
Gabriel Barra: Truly robust structure.
Gabriel Barra: 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.
Gabriel Barra: Tonight. So this is also part of our emergency response plan.
Gabriel Barra: Here's something else that is important to mention.
Speaker Change: We have this company that is working with US which is a company of the utmost quality in Brazil, we are contracting over 100 professionals between technicians biologists and vets.
Gabriel Barra: So.
Gabriel Barra: Everything every resource that Petrobras can throw at this project should there be an incident or an accident I mean.
Gabriel Barra: 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.
Gabriel Barra: We are waiting for an opinion on the project that we just presented.
Gabriel Barra: The final stage of the project, which is that basin in the state of I'm, a pump and that is going to be combined with our billing base.
Gabriel Barra: All of that is going to be serviced in that region right there.
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 a part of all the manuals. It's part of all the procedures of the environmental agency in Brazil and <unk>.
Gabriel Barra: 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. S 42, which is put together by our engineering department to do the drilling well.
Gabriel Barra: 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.
Gabriel Barra: Yeah.
Gabriel Barra: And we have a possibility also to receive from Ibama, an authorization to do the cleaning of that probe.
Gabriel Barra: 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.
Gabriel Barra: Okay.
Gabriel Barra: Thank you.
Gabriel Barra: Yeah.
Gabriel Barra: Right Gabriele if I may.
Gabriel Barra: 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.
Gabriel Barra: 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.
Gabriel Barra: First when there was the discovery in Ghana.
Gabriel Barra: The geology similar.
Gabriel Barra: 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.
Gabriel Barra: Of similar nature.
Gabriel Barra: 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.
Gabriel Barra: So the oil system is pointing to that direction.
Speaker Change: And so the first step is that 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 going to be in.
Speaker Change: 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.
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 run in parallel to the coast. So this is actually the greatest guaranteed that should there be any issues shoe.
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.
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.
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 army.
Speaker Change: For Biofuels 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 that dolphins, we protect our men.
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: Okay.
Gabriel Barra: 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.
Gabriel Barra: See less.
Gabriel Barra: Yes.
Gabriel Barra: Chartering even to make the most of your ships and your.
Gabriel Barra: Drill so I just wanted to follow up on that to understand if I.
Gabriel Barra: 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: 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.
Speaker Change: One change we made recently, which was actually included in that.
Speaker Change: The company's plan was R. F P S Soc.
Speaker Change: The company adopts a standard within the company, which is.
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.
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 charter.
Speaker Change: That was absolutely clear Renato thank you.
Speaker Change: Yeah.
Speaker Change: Thank you.
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.
Speaker Change: Hi, water, yes, I can hear you can you hear me.
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 like to insist a little bit on the capex issue, which might be the most important issue of the day.
Speaker Change: Got.
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 is this connected with the anticipation in Ammirati tomorrow at which.
Speaker Change: It's already concluded or is that connected to a potential anticipation with the project in boozers eight to 11 and.
Speaker Change: If that's the case, what's the magnitude of that in anticipation to rethink about new dates for the projects.
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.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Hi, Monique.
Speaker Change: Well as I explained.
Speaker Change: When we took over the board alongside President Magda and Dr. Silvio.
Speaker Change: We saw that all projects virtually all projects were delayed.
Speaker Change: 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 boutiques area. So that's one now number two.
Speaker Change: His presence.
Speaker Change: Matt 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.
Speaker Change: 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 guar when a bar Bay for so long and you really won't see because we really want.
Speaker Change: To.
Speaker Change: Make more time make the best use of our time and that's what we're doing.
Speaker Change: Okay.
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.
Speaker Change: Deadlines, where that the.
Speaker Change: The time frame that was in your original plan.
Speaker Change: Yeah. It really is to anticipate it's not just a.
Speaker Change: Prevent delays, but also trying to anticipate the start of production yeah I just wanted to remind you Monique.
Speaker Change: That a lot of this efforts.
Speaker Change: It.
Speaker Change: N L Merit to some other air came to Brazil late last year. When it was expected to come in this year. So we anticipated the startup operations in amarante. Some other air but also we also advanced.
Speaker Change: Because of those efforts are the operations then Maria Cataria, which was also expected to start operating in early 'twenty twenty-five, but actually started operations early in Q4 2024.
In addition to our efforts to mitigate delays at P 68, and P 69 as mentioned by Ronaldo.
Speaker Change: So theres actually both things there's delay the mitigation of delays and there's also anticipation.
Speaker Change: As well.
Speaker Change: Thank you Renata. Thank you Monique and thank you president marker.
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.
Speaker Change: To think.
Speaker Change: Everyone for joining us for this event.
Speaker Change: And I'd like to say that the presentation for this event has already available at our website and the audio for this webcast should be made available.
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