Q3 2025 Petroleo Brasileiro SA Petrobras Earnings Call

November 7, 2025

Speaker #1: Your questions through our email Patreon at Petrobras .

Speaker #2: This meeting is being recorded .

Speaker #1: And here with us today we have Angelica Laureano , the executive Director of Energy Transition and Sustainability . Clarice Perpetua , the executive director of corporate affairs affairs .

Speaker #1: Clarice Losser , the executive director of trade and Markets . Fernando Melgarejo , the executive director of investor Relations . Renata Baruzzi , executive director of engineering , technology and innovation Ricardo Wagner , executive director of governance and compliance Silvia Angius , executive director of E&P .

Speaker #1: And William Franco , executive director of industrial processes and Products . To get started , I'll give the floor to Fernando . Fernando , you have the floor .

Speaker #1: Good morning to our investors , stakeholders , shareholders and analysts who always join us in this webcast , as well as journalists . Petrobras employees and everyone else following us today .

Speaker #1: Thank you for joining us . In another Petrobras earnings webcast . The scenario has been challenging , especially due to the drop in Brent prices , which impacts not only Petrobras but the entire industry , both domestically and internationally .

Speaker #1: This context demands continuous efforts to improve our efficiency . It would have been focusing on these efforts , which is why we had a very positive third quarter , especially with the strong increase in oil production .

Operator: Send your questions through our email, petroinvest@petrobras.com.br.

Operator: This meeting is being recorded.

Speaker #1: This strong operational performance was fundamental this quarter , as you will see in the results that will be presented next . And we're disclosed yesterday .

Operator: Here with us today we have Angélica Laureano, the Executive Director of Energy Transition and Sustainability, Clarice Coppetti, the Executive Director of Corporate Affairs, Claudio Schlosser, the Executive Director of Trade and Markets, Fernando Melgarejo, the Executive Director of Investor Relations, Renata Baruzzi, Executive Director of Engineering, Technology, and Innovation, Ricardo Wagner, Executive Director of Governance and Compliance, Sylvia Anjos, Executive Director of E&P, and William França, Executive Director of Industrial Processes and Products. To get us started, I'll give the floor to Fernando. Fernando, you have the floor. Good morning to our investors, stakeholders, shareholders, and analysts who always join us in this webcast, as well as journalists, Petrobras employees, and everyone else following us today. Thank you for joining us in another Petrobras Earnings webcast.

Speaker #1: We'll start with slides three . I want to highlight especially a new record breaking oil and gas production in the third 2:45 point 14 million barrels of oil equivalent , 76% above the second quarter of 2025 .

Speaker #1: And almost 17% above the third quarter of 2024 . Total operated production also set a record at 4.54 million barrels of oil equivalent , and once again , we set a new record for our own Pre-salt production , reaching 2.5 million barrels of oil equivalent .

Speaker #1: This is due to a 4% efficiency increase in 2025 across operating field and in the start up of new systems . Our Eep and P pace is intense , as well as the entire company .

Operator: The scenario has been challenging, especially due to the drop in Brent prices, which impacts not only Petrobras but the entire industry, both domestically and internationally. This context demands continuous efforts to improve our efficiency. It had been focusing on these efforts, which is why we had a very positive Q3, especially with a strong increase in oil production. This strong operational performance was fundamental this quarter, as you will see in the results that will be presented next and were disclosed yesterday. We'll start with slide 3. I want to highlight especially a new record-breaking oil and gas production in Q3: 3.14 million barrels of oil equivalent, 76% above the Q2 2025, and almost 17% above the Q3 2024.

Speaker #1: FPSo Omnia , which is part of the Buzios seven project , reached a plateau with only five producing wells and three months ahead of schedule .

Speaker #1: I'll come back to this project later. It has brought about excellent results. P78 has arrived at its location in the Búzios fields and will start operating by the end of the year.

Speaker #1: P79 will also leave the origin this month and come to Brazil and also when we arrived , our visibility was quite foggy in terms of .

Speaker #1: The schedule of the delivery of these production systems . Ever since we arrived , this has being this is being adjusted . The physical and financial schedule is , has also been adjusted .

Speaker #1: We had a CapEx that was slightly higher , but we're currently really comfortable with the deadlines and we're sure that we'll meet the deadlines or even stay ahead of them .

Operator: Total operated production also set a record at 4.54 million barrels of oil equivalent, and once again we set a new record for our own pre-salt production, reaching 2.56 million barrels of oil equivalent. This is due to a 4% efficiency increase in 2025 across operating fields and the startup of new systems. Our E&P pace is intense, as well as the entire company. FPSO Almirante Tamandaré, which is part of the Búzios 7 project, reached a plateau with only five producing wells and three months ahead of its schedule. I'll come back to this project later. It has brought about excellent results. P-78 has arrived at its location in the Búzios fields, and it will start operating by the end of the year. P-79 will also leave the origin this month and come to Brazil.

Speaker #1: Here we highlight several milestones in the refining segment . Our key projects to increase as diesel supply are advancing . We signed five contracts for the construction of units at the Boaventura complex , which will expand as diesel and jet fuel production , and also enable Group two lubricants production .

Speaker #1: We also signed all nine contracts for the completion of train two at our next . These are generated savings of more than 1 billion reais compared to the reference budgets .

Speaker #1: By 2029 , the refinery will reach a processing capacity of 260,000 barrels per day . These investments are aligned with increased oil production , and they improve the Brazilian self-sufficiency , contributing to energy security , economic development and emission reduction .

Speaker #1: In the third quarter , domestic sales of oil products increased 5% , especially diesel , which grew 12% compared to the second quarter of 2025 .

Operator: When we arrived, our visibility was quite foggy in terms of the schedule of the delivery of these production systems. Ever since we arrived, this is being adjusted. The physical and financial schedule has also been adjusted. We had a capex that was slightly higher, but we're currently really comfortable with the deadlines and we're sure that we'll meet the deadlines or even stay ahead of them. Here we highlight several milestones in the refining segment. Our key projects to increase S-10 Diesel supply are advancing. We signed 5 contracts for the construction of units at the Boaventura Complex, which will expand S-10 Diesel and jet fuel production and also enable Group 2 lubricants production. We also signed all 9 contracts for the completion of train 2 at RNEST.

Speaker #1: We exported around 800,000 barrels of oil per day when combined with byproducts , exports surpass 1 million barrels per day . Reinforcing oil as Brazil's main export commodity .

Speaker #1: The refinery fuck closed the quarter at 94% , producing high value added derivatives . We also obtained a relevant environmental licenses , such as the preliminary license for the biochar and Renewable Diesel plant at our PBC .

Speaker #3: The next slide shows our record set by the Caraguatatuba Itaberai and gas processing plants , which reached for 44,000,000m³ per day of gas specified for sale in August of 2025 .

Speaker #3: This is equivalent to approximately 80% of the total volume consumed in Brazil's integrated network . We made progress in the free market for natural gas , reaching the milestone of six point 5,000,000m³ per day of volume contracted in this modality , which reaffirms the competitiveness of our portfolio .

Operator: These generated savings of more than BRL 1 billion compared to the reference budgets. By 2029, the refinery will reach a processing capacity of 260,000 barrels per day. These investments are aligned with an increased oil production, they improve the Brazilian self-sufficiency, contributing to energy security, economic development, and emission reduction. In Q3, domestic sales of oil products increased 5%, especially diesel, which grew 12% compared to Q2 2025. We exported around 800,000 barrels of oil per day. When combined with byproducts, exports surpassed 1 million barrels per day, reinforcing oil as Brazil's main export commodity. The refinery FUT closed the quarter at 94% producing high-value-added derivatives. We also obtained relevant environmental licenses, such as the preliminary license for the BioQAV and renewable diesel plant at RPBC.

Speaker #3: Another important milestone was the construction of the Sao Tomé Pilot Project in Macau , a pioneering project in Brazil for the capture , transportation and geological storage of up to 100,000 tons .

Speaker #3: Of CO2 per year . Finally , we celebrated the hiring of 850 technical employees and approximately 570 new employees who graduated from the training courses and will work to expand our operations .

Speaker #3: This was a brief summary of the various deliveries made in recent months . Now let's continue with the next slide . On slide seven , we see our financial highlights .

Speaker #3: We achieved an adjusted EBITDA excluding one time items of 12 billion USD . Net income excluding one time items reached 5.2 billion , a 28% increase over the second quarter of 2025 .

Fernando Melgarejo: The next slide shows our record set by the Cabiunas, Caraguatatuba, Itaboraí, and Cacimbas gas processing plants, which reached 44 million cubic meters per day of gas specified for sale in August 2025. This is equivalent to approximately 80% of the total volume consumed in Brazil's integrated network. We made progress in the free market for natural gas, reaching the milestone of 6.5 million cubic meters per day of volume contracted in this modality, which reaffirms the competitiveness of our portfolio. Another important milestone was the construction of the São Tomé CCS pilot project in Macaé, a pioneering project in Brazil for the capture, transportation, and geological storage of up to 100,000 tonnes of CO2 per year. Finally, we celebrated the hiring of 850 technical employees and approximately 570 new employees who graduated from the training courses and will work to expand our operations.

Speaker #3: Operating cash flow closed the quarter at 9.9 billion USD , up 31% from the second quarter of the year . Free cash flow was $5 billion , up 44% from the second quarter , with these results , we were able to approve a payment of 12.2 billion reais in dividends .

Speaker #3: These figures demonstrate our ability to generate consistent and positive financial results , ensuring returns to shareholders even in a scenario of lower oil prices .

Speaker #3: Next slide . Here on slide eight , we detail the progress of operating results . Note that oil and gas production increased by 8% in the quarter .

Speaker #3: And We increased efficiency , reduced production downtimes and reached peak production at the FPSo , exceeding its nominal capacity . With this increase in production , we also managed to increase oil sales by around 14% .

Speaker #3: considering the last 12 months growth was 17% in the oil segment in the green range of the first chart , we increased production to more than 2.5 million barrels of oil per day , setting several operational records .

Fernando Melgarejo: This was a brief summary of the various deliveries made in recent months. Let's continue with the next slide. On slide 7, we see our financial highlights. We achieved an adjusted EBITDA excluding one-time items of $12 billion. Net income excluding one-time items reached $5.2 billion, a 28% increase over Q2 2025. Operating cash flow closed the quarter at $9.9 billion, up 31% from Q2 of the year. Free cash flow was $5 billion, up 44% from Q2. With these results, we were able to approve a payment of BRL 12.2 billion in dividends. These figures demonstrate our ability to generate consistent and positive financial results, ensuring returns to shareholders even in a scenario of lower oil prices. Next slide. Here on slide 8, we detail the progress of operating results.

Speaker #3: Sale of sales of oil byproducts grew 5% compared to the second quarter , with diesel standing out . This operational performance supported solid financial results and robust cash generation , which we will see in detail on the next slide .

Speaker #3: In the third quarter , Brent rose 2% , contributing to the period's results , but it's also important to analyze the last 12 months .

Speaker #3: In one year , Brent fell by 11 USD per barrel and we were able to offset this impact with higher production and improved operational efficiency .

Speaker #3: The charts show that we were in line with the results for the third quarter of 2020 . For when Brent was at $80 per barrel .

Speaker #3: In fact, adjusted EBITDA excluding one-off events reached $12 billion in the third quarter of 2025, surpassing the EBITDA recorded in the third quarter of 2020.

Fernando Melgarejo: Note that oil and gas production increased by 8% in the quarter. Considering the last 12 months, growth was 17%. In the oil segment, in the green range of the first chart, we increased production to more than 2.5 million barrels of oil per day, setting several operational records. We increased efficiency, reduced production downtimes, and reached peak production at the Almirante Tamandaré FPSO, exceeding its nominal capacity. With this increase in production, we also managed to increase oil sales by around 14%. Sale of oil byproducts grew 5% compared to Q2, with diesel standing out. This operational performance supported solid financial results and robust cash generation, which we will see in detail on the next slide. In Q3, Brent rose 2%, contributing to the period's results. It's also important to analyze the last 12 months.

Speaker #3: For . This reflects the excellent work of our teams who have transformed their efforts into more oil , more gas and more derivatives .

Speaker #3: Next slide . On slide ten , we will detail the distribution of CapEx , which totaled 5.5 billion USD in the third quarter of 2025 , 85% of this investment is concentrated in exploration and production .

Speaker #3: 11% were allocated to refining projects and 2% to the gas and low carbon energy segment . In E&P , where CapEx is concentrated , we observed that the investment growth occurred mainly in more subsea activities and platform construction and platforms .

Speaker #3: We had a greater concentration of contractual milestones in the third quarter , notably the sail away of P78 and starting construction of the sepia two hull , both in line with plans in subsea activities .

Fernando Melgarejo: In one year, Brent fell by $11 per barrel, we were able to offset this impact with higher production and improved operational efficiency. The charts show that we were in line with the results for Q3 2024 when Brent was at $80 per barrel. In fact, adjusted EBITDA excluding one-off events reached $12 billion in Q3 2025, surpassing the EBITDA recorded in Q3 2024. This reflects the excellent work of our teams who have transformed their efforts into more oil, more gas, and more derivatives. Next slide. On slide 10, we will detail the distribution of capex, which totaled $5.5 billion in Q3 2025. 85% of this investment is concentrated in exploration and production. 11% were allocated to refining projects and 2% to the gas and low-carbon energy segment.

Speaker #3: We began the pre-launch of lines for Buzios six , which increased our investments in the quarter . This unit should start producing and generating returns later this year .

Speaker #3: Also in the third quarter , we drilled 20 wells , completed ten and interconnected 23 . These activities contributed to increase our production .

Speaker #3: In the end of October . A total of 65 wells were interconnected , 41% more than the whole of last year . This is why our investments are in production , development , especially in Buzios field .

Speaker #3: Buzios is truly an exceptional asset . Asset . There are six platforms and operation and last week the field reached a record daily production of 1 million barrels per day .

Speaker #3: I want to emphasize that we have a unique portfolio , especially in the ENP segment , where almost 90% of the company's investments are concentrated .

Speaker #3: Our strategy for delivering these investments has already begun to bear fruit , with significant growth in production , but we still have much to reap with the entry of new systems , which over the next two years will add 900,000 barrels per day .

Fernando Melgarejo: In E&P, where CapEx is constantly created, we observed that the investment growth occurred mainly in more subsea activities and platform construction. In platforms, we had a greater concentration of contractual milestones in Q3, notably the sail-away of P-78 and starting construction of the Sepia 2 hole, both in line with plans. In subsea activities, we began the pre-launch of lines for Búzios 6, which increased our investments in Q3. This unit should start producing and generating returns later this year. Also, in Q3, we drilled 20 wells, completed 10, and interconnected 23. These activities contributed to increase our production. In the end of October, a total of 65 wells were interconnected, 41% more than the whole of last year. This is why our investments are in production development, especially in the Búzios field. Búzios is truly an exceptional asset.

Speaker #3: Of capacity . Delivering these projects on time or even ahead of schedule . As I said , while maintaining the projected cost means generating value for our shareholders above and beyond short term dividends , we have a much more long term perspective now than short term .

Speaker #3: Let's move on to the next slide . On slide 11 , we will present the reconciliation between accrual based CapEx and cash investment .

Speaker #3: For the first nine months of the year . We reached 14 billion USD in CapEx from January to September . I want to emphasize that we are on track to meet our guidance at the end of the year .

Speaker #3: We will be between the midpoint and the upper end of the projection. Before we talk about cash investment, I want to make it clear that we will be above the midpoint of the range because our pace of investment execution is above that which was projected in the current business plan.

Fernando Melgarejo: There are 6 platforms in operation, and last week the field reached a record daily production of 1 million barrels per day. I want to emphasize that we have a unique portfolio, especially in the E&P segment, where almost 90% of the company's investments are concentrated. Our strategy for delivering these investments has already begun to bear fruit with significant growth in production, but we still have much to reap with the entry of new systems, which over the next 2 years will add 900,000 barrels per day of capacity. Delivering these projects on time or even ahead of schedule, as I said, while maintaining the projected cost, means generating value for our shareholders above and beyond short-term dividends. We have a much more long-term perspective now than short-term. Let's move on to the next slide.

Speaker #3: This is not and it is important that this is clear to all of you due to higher project execution costs . All the projects remain the same .

Speaker #3: I will repeat this delivering projects on time or even ahead of schedule . While maintaining the projected cost means generating value for our shareholders .

Speaker #3: Now let's explain this cash investment to get the cash investment value , you must exclude certain expenses that have no effect on cash investments , such as leases , which are classified as financing under IFRS 16 and Geology and Geophysics expenses , which are classified as expenses in corporate accounting .

Speaker #3: On the other hand , we must add payments for contracts that were measured in other periods , but left the cash flow in this period due to a lag between the measurement and their payment , especially those related to measurements made at the end of 2024 , when we readjusted the financial and physical balance of our projects .

Fernando Melgarejo: On slide 11, we will present the reconciliation between accrual-based capex and cash investment for the first nine months of the year. We reached $14 billion in capex from January to September. I want to emphasize that we are on track to meet our guidance at the end of the year. We will be between the midpoint and the upper end of the projection. Before we talk about cash investment, I want to make it clear that we will be above the midpoint of the range because our pace of investment execution is above the one that was projected in the current business plan. This is not, and it is important that this is clear to all of you, due to higher project execution costs. All the projects remain the same.

Speaker #3: There's also the inclusion of payments for contract milestones related to the mobilization of services , especially EPC for subsea activities and the formation of inventories of materials and equipment that will only be used in the future .

Speaker #3: That will lead to savings then . So the cash investment for the first nine months of the year came to a total of $12.9 billion , excluding carryover , especially from last year .

Speaker #3: The CapEx and cash investment ratio was 89% before moving on to the next slide , I'd like to emphasize that our CapEx is heavily concentrated in the production curve , and the results are already evident , as we were able to see in our record production on slide 12 , we present the company's debt history .

Fernando Melgarejo: I will repeat this: delivering projects on time or even ahead of schedule while maintaining the projected cost means generating value for our shareholders. Now let's explain this cash investment. To get the cash investment value, you must exclude certain expenses that have no effect on cash investment, such as leases, which are classified as financing under IFRS 16, and geology and geophysics expenses, which are classified as expenses in corporate accounting. On the other hand, we must add payments for contracts that were measured in other periods but left the cash flow in this period due to a lag between the measurement and their payment, especially those related to measurements made at the end of 2024 when we readjusted the financial and physical balance of our projects.

Speaker #3: We issued two new bonds in September , maturing in 2030 and 2036 to the amount of 1 billion USD each . It was a very successful operation with small spreads relative to sovereign bonds , demonstrating investor confidence in Petrobras .

Speaker #3: Gross debt reached 70.7 billion USD , slightly above the previous quarters . Due to these fundings , which strengthened our cash position in the period .

Speaker #3: Note that our net debt is stable, so the funding we raised, taking advantage of an opportunity window like other companies, remained in cash.

Fernando Melgarejo: There's also the inclusion of payments for contract milestones related to the mobilization of services, especially EPCIs for subsea activities, and the formation of inventories of materials and equipment that will only be used in the future, that will lead to savings debt. The cash investment for the first nine months of the year came to a total of $12.9 billion, excluding carryover, especially from last year. The capex and cash investment ratio was 89%. Before moving on to the next slide, I'd like to emphasize that our capex is heavily concentrated in the production curve, and the results are already evident, as we were able to see in our record production. On slide 12, we present the company's debt history. We issued two new bonds in September, maturing in 2030 and 2036 to the amount of $1 billion US dollars each.

Speaker #3: It's important to underscore that we remain within the debt ceiling set out by the business plan , and that more than 60% of the total debt corresponds to leases of platforms , boats and drills , which , according to accounting standards , must be included in the debt .

Speaker #3: We should also remember that this portion of leases is associated with assets that generate production and consequently , revenue . Next slide . On slide 13 , we present the traditional slide on the company's shareholder remuneration policy .

Speaker #3: Our policy is flexible and ensures dividends compatible with different oil price scenarios . Without compromising the company's financial strength . We apply the formula set forth in the policy and will distribute 45% of the quarter's free cash flow .

Speaker #3: So the board of directors approved the distribution of 12.2 billion Brazilian reais as an advance payment on shareholder remuneration for the 2025 fiscal year to be paid in two equal installments .

Fernando Melgarejo: It was a very successful operation with small spreads, relative to sovereign bonds, demonstrating investor confidence in Petrobras. Gross debt reached $70.7 billion, slightly above the previous quarters due to these fundings, which strengthened our cash position in the period. Note that our net debt is stable. The funding we raised, taking advantage of an opportunity window like other companies, remained in cash. It's important to underscore that we remain within the debt ceiling set out by the business plan and that more than 60% of the total debt corresponds to leases of platforms, boats, and drills, which, according to accounting standards, must be included in the debt. We should also remember that this portion of leases is associated with assets that generate production and consequently revenue. Next slide. On slide 13, we present the traditional slide on the company's shareholder remuneration policy.

Speaker #3: In February and March 2026 . Next slide . All the companies work fronts translate into more synergy , higher revenues and concrete results for the company .

Speaker #3: Its shareholders and Brazilian society . In addition to Petrobras investments in the country and its social and environmental projects , we contribute to economic development through the payment of taxes .

Speaker #3: We are the company that invests the most in Brazil from January to September 2025 , our activities resulted in almost 200 billion Brazilian reais in taxes for society , and the third quarter alone , we paid 68 billion in taxes .

Speaker #3: This concludes our presentation with two major recent developments on slide 15 , we highlight the operating license from Ibama , received on October 20th for the drilling of the Morpho exploratory well off the coast of Amapa .

Fernando Melgarejo: Our policy is flexible and ensures dividends compatible with different oil price scenarios without compromising the company's financial strength. We apply the formula set forth in the policy and will distribute 45% of the quarter's free cash flow. The board of directors approved the distribution of BRL 12.2 billion as an advance payment on shareholder remuneration for the 2025 fiscal year to be paid in two equal installments in February and March 2026. Next slide. All the company's work fronts translate into more synergy, higher revenues, and concrete results for the company, its shareholders, and Brazilian society. In addition to Petrobras's investments in the country and its social and environmental projects, we contribute to economic development through the payment of taxes. We are the company that invests the most in Brazil.

Speaker #3: On the same day , we began drilling the well . This achievement was the result of an extensive and rigorous discussion process with Ibama .

Speaker #3: We fully complied with the licensing process and demonstrated the robustness of the company's structure for environmental protection with the highest safety standards . The estimated total depth of the morpho well is over 7000m , which places it among the deepest wells ever drilled by Petrobras .

Speaker #3: This technical complexity reinforces our technological and operational capabilities . We will operate in the equatorial margin safely and responsibly . The next slide shows a second piece of good news .

Speaker #3: The FPSo amundaray . Excuse me Tamandaré , which operates in the Buzios field , reached a record instantaneous flow rate equivalent to 270,000 barrels of oil per day .

Fernando Melgarejo: From January to September 2025, our activities resulted in almost BRL 200 billion in taxes for society. In the Q3 alone, we paid BRL 68 billion in taxes. This concludes our presentation with two major recent developments. On slide 15, we highlight the operating license from IBAMA received on 20 October 2025 for the drilling of the Morpho exploratory well off the coast of Amapá. On the same day, we began drilling the well. This achievement was the result of an extensive and rigorous discussion process with IBAMA. We fully complied with the licensing process and demonstrated the robustness of the company's structure for environmental protection with the highest safety standards. The estimated total depth of the Morpho well is over 7,000 meters, which places it among the deepest wells ever drilled by Petrobras. This technical complexity reinforces our technological and operational capabilities.

Speaker #3: On October 25th , the unit's nominal capacity is 225,000 barrels , so this increases significant and was achieved without the need for new investments .

Speaker #3: This is a major achievement for Petrobras engineering and exploration and production areas . These teams are working on a series of actions to increase production through efficiency gains .

Speaker #3: Currently , we already have five more production units in addition to all Tamandaré which have received a favorable opinion from Ibama for capacity expansion .

Speaker #3: In total , these expansions , without adding CapEx , add up to an increase of 115,000 barrels per day . Strengthening our production capacity around 90,000 barrels per day .

Speaker #3: Of this capacity correspond to Petrobras share . It's worth noting that for every 100,000 barrels of oil per day that we produce , we have an average of more than 2 billion USD in additional revenue per year .

Speaker #3: All of these initiatives that were implementing follow strict safety protocols in are preceded by careful engineering analyses . In addition to the necessary authorizations from regulatory agencies .

Fernando Melgarejo: We will operate in the equatorial margin safely and responsibly. The next slide shows a second piece of good news. The FPSO Tamandaré, excuse me, Almirante Tamandaré, which operates in the Búzios field, reached a record instantaneous flow rate equivalent to 270,000 barrels of oil per day on October 25. The unit's nominal capacity is 225,000 barrels. This increase is significant and was achieved without the need for new investments. This is a major achievement for Petrobras's engineering and Exploration and Production areas. These teams are working on a series of actions to increase production through efficiency gains. Currently, we already have five more production units in addition to Almirante Tamandaré, which have received a favorable opinion from IBAMA for capacity expansion. In total, these expansions without adding capex add up to an increase of 115,000 barrels per day, strengthening our production capacity.

Speaker #3: This concludes my presentation . All of the results presented here are the result of the collective effort of our teams . And I'd like to thank each director , especially Magda , for her leadership .

Speaker #3: We will now available . We will now be available to answer questions from analysts . Thank you . Thank you Fernando . Thank you for this presentation .

Speaker #3: We will now begin the question and answer session . The first question will be by Avi Falanga from Bradesco . Go ahead sir .

Speaker #3: Thank you Magda Fernando and the entire Petrobras team . I have two questions . First , you explained it very well during your presentation that there was a an acceleration in developing IP , but I'd like to understand from your efforts what has been the contribution of inflation in our industry to the results from FPSo .

Fernando Melgarejo: Around 90,000 barrels per day of this capacity correspond to PETROBRAS's share. It's worth noting that for every 100,000 barrels of oil per day that we produce, we have an average of more than $2 billion in additional revenue per year. All of these initiatives that we're implementing follow strict safety protocols and are preceded by careful engineering analyses in addition to the necessary authorizations from regulatory agencies. This concludes my presentation. All of the results presented here are the result of the collective effort of our teams, and I'd like to thank each director, especially Magda, for her leadership. We will now be available to answer questions from analysts. Thank you. Thank you, Fernando. Thank you for this presentation. We will now begin the question and answer session. The first question will be by Vicente Falanga from Bradesco. Go ahead, sir.

Speaker #3: Also , this acceleration in CapEx in 2025 , will it remove any constraints for the CapEx in 2026 , or will it offset anything for 2026 ?

Speaker #3: One of the second question is one of our main clients is Braskem . And there accelerating their cash burn in a very concerning way , we see poor trends for petrochemical margins with unsustainable capital structures .

Speaker #3: We recently read on the press that this is being discussed at the level of Petrobras board . So I'd like to understand a bit more about that , since this is becoming an urgent matter , what options does Petrobras have on the table to prevent a drastic situation with the biggest petrochemical company in Latin America , which is one of your main clients ?

Speaker #3: Thank you . I'll hand it over to Fernando and then Renata can add to that answer . Go ahead . Fernando . Good morning .

Fernando Melgarejo: Thank you, Magda, Fernando, and the entire PETROBRAS team. I have two questions. First, you explained it very well during your presentation that there was an acceleration in developing IPE, but I'd like to understand from your efforts what has been the contribution of inflation in our industry to the results from FPSO. Also, this acceleration in capex in 2025, will it remove any constraints for the capex in 2026, or will it offset anything for 2026? The second question is one of our main clients is Braschem, they're accelerating their cash burn in a very concerning way. We see poor trends for petrochemical margins with unsustainable capital structures. We recently read on the press that this is being discussed at the level of PETROBRAS's board. I'd like to understand a bit more about that.

Speaker #3: So let's start by talking about the Brazilian petrochemical industry . This is still a strategic area for us . That is very important .

Speaker #3: Petrobras sees it as very relevant for our ecosystem around oil . So it is still very interesting when it comes to breast cancer , specifically in the situation .

Speaker #3: It's going through . It has its own governance that . Is definitely looking at their societal and cash issue . And we don't currently have anything on the table to discuss with them .

Speaker #3: We've got no proposals to discuss with them about among shareholders and we're waiting for this moment . We hope that it is soon , but they have their own governance and we cannot say anything if we don't have any proposals on the table for discussion , for assessment .

Fernando Melgarejo: Since this is becoming an urgent matter, what options does PETROBRAS have on the table to prevent, you know, a drastic situation with the biggest petrochemical company in Latin America, which is one of your main clients? Thank you. I'll hand it over to Fernando, and then Renata can add to that answer. Go ahead, Fernando. Good morning. Let's start by talking about, the Brazilian petrochemical industry. This is still a strategic area for us that is very important. PETROBRAS sees it as very relevant for our ecosystem around oil. It is still very interesting. When it comes to Braschem specifically and the situation it's through, it has its own governance that is definitely looking at their societal and cash issue. We don't currently have anything on the table to discuss with them.

Speaker #3: And this . Will need to be an investment that makes sense and brings value for Petrobras shareholders . Concerning CapEx . I'll hand it over to Renata .

Speaker #3: But I can say that our CapEx has no increase due to inflation , meaning that we are accelerating investments . As I said earlier .

Speaker #3: Investments are being accelerated in the company and projects remain the same . So if I take a project that has a certain budget allocated , this is not going to go up .

Speaker #3: But we are advancing some of these things . Renata will add to that .

Speaker #1: Have you seen chief ? Thank you for the question . As Fernando said , there is no inflation . It's quite the opposite .

Speaker #1: We are looking at a stabilization and actually price reduction , especially in the subsea area . We reached high levels in 2024 , but we undertook several actions , bringing several players to Brazil .

Speaker #1: And with that we were able to get more competitive prices . When it comes , for instance , to the Fpsos cap one and two received three proposals , and the only reason it did not receive the fourth proposal was that one company missed the deadline .

Fernando Melgarejo: We've gotten no proposals to discuss with them about among shareholders. We are waiting for this moment. We hope that it is soon. They have their own governance, and we cannot say anything if we do not have any proposals on the table for discussion, for assessment. This will need to be an investment that makes sense and brings value for Petrobras's shareholders. Concerning capex, I will hand it over to Renata, but I can say that our capex has no increase due to inflation, meaning that we are accelerating investments. As I said earlier, investments are being accelerated in the company, and projects remain the same. If I take a project that has a certain budget allocated, this is not going to go up, but we are advancing some of these things. Renata will add to that. Vicente, thank you for the question.

Speaker #1: But we can't even remember the last time we had for new proposals from companies proposing to us . So competitiveness is back and we're really speeding up investments .

Speaker #1: As you can see from the results of E&P production , most of it , it's not only about FSO , just a reminder , we also had new interconnections between wells and rigs .

Speaker #1: We're also interconnecting in additional 40% vis a vis what we did last year . Up until October . And we still have two more months for new interconnections .

Speaker #1: And all of that is bringing more oil to the company . And all of that means investment in CapEx . We have no expectations of reducing that next year , we'll still keep up the investment so that we can anticipate the projects more and more .

Fernando Melgarejo: As Fernando said, there is no inflation. It's quite the opposite. We're looking at a stabilization and actually price reduction, especially in the subsea area. We reached high levels in 2024, but we undertook several actions bringing several players to Brazil. With that, we were able to get more competitive prices. When it comes, for instance, to the FPSOs, SEAP 1 and 2 received 3 proposals. The only reason it did not receive the 4th proposal was that 1 company missed the deadline. We can't even remember the last time we had 4 new proposals from companies proposing to us. Competitiveness is back, and we're really speeding up investments, as you can see from the results of E&P production. Most of it's not only about FPSO, just a reminder. We also had new interconnections, between wells and rigs.

Speaker #1: One very important example to us is P79 . When we took office , we had no expectations as to when a P 79 was going to leave the shipyard and people were talking about August 20th , 26 and it will come out of the shipyard next Monday , November 10th .

Speaker #1: It will leave the Korean shipyard . So it's all about management . This is what we're doing . There's no additional money . It's all about management and monitoring so that we can deliver the projects within the expected costs , quality deadlines and safety levels .

Speaker #1: Thanks , Renata and Fernando . Now I'll give the floor to Monique Natal from Itau . You have the floor . Nikki . Hello , everybody .

Speaker #1: Good morning. Thank you for the opportunity to ask questions. First, I want to congratulate you on the operational performance in the quarter.

Speaker #1: It was really solid . So congratulations to the teams involved . I'll pick up on the CapEx question . Maybe changing perspectives a little bit .

Fernando Melgarejo: We're also interconnecting an additional 40% vis-à-vis what we did last year up until October, and we still have two more months for new interconnections. All of that is bringing more oil to the company, and all of that means investment and capex. We have no expectations of reducing that next year. We'll still keep up the investment so that we can anticipate the projects more and more. One very important example to us is P-79. When we took office, we had no expectations as to when P-79 was going to leave the shipyard. People were talking about August 2026, and it will come out of the shipyard next Monday, 10 November. It will leave the Korean shipyard. It's all about management. This is what we're doing. There's no additional money.

Speaker #1: And that goes to Renata picking up on on what she said with this acceleration that we're currently seeing . Should we see a reduction in CapEx in the mid-term , maybe you said that not for next year , but maybe 2027 , 2028 .

Speaker #1: Should we see a reduction , given the fact that you're able to anticipate the CapEx a bit and still the same question , how how does the company intend to balance out in the short term this CapEx with the need to maybe tighten the seat belts , so to speak , in a context of lower oil prices ?

Speaker #1: And the second question that may also go to Renata is that considering your big feet in with Olmert , Tamandaré , and given the fact that you were able to increase capacity with no additional costs , what do you see in terms of total incremental capacity in Buzios with similar measures ?

Fernando Melgarejo: it's all about management and monitoring so that we can deliver the projects, within the expected costs, quality, deadlines, and safety levels. Thanks, Renata and Fernando. Now I'll give the floor to Monique Natal from Itaú. You had the floor, Monique. Hello, everybody. Good morning. Thanks for the opportunity to ask questions. First, I want to congratulate you on the operational performance of the quarter. It was really solid. Congratulations to the teams involved. I'll pick up on the capex question, maybe changing perspectives a little bit. That goes to Renata, picking up on what she said. With this acceleration that we're currently seeing, should we see a reduction in capex in the midterm, maybe? you said that not for next year, but maybe 2027, 2028. Should we see a reduction given the fact that you're able to anticipate the capex a bit?

Speaker #1: From the perspective of engineering , can you increase capacity by 20% in other buzios rigs , which are more complex ? Peas 7883 would that also be possible ?

Speaker #1: And if that is possible , I mean , if you're able to add additional capacity with no CapEx to the other rigs as well , would that allow the Buzios project to be reconsidered about its need ?

Speaker #1: Thank you . Renata , you have a lot of work to do today . I know . Hi , Nikki , I actually joked about this in an interview , you know , at the end of the day , what you're trying to understand is what ?

Speaker #1: Our strategic plan looks like it's set for the next five years. It's all about who's the murderer, right? Everybody wants to know who the murderer is. But we are going to publish our new strategic plan on November 27th, and you will have the possibility of seeing what it looks like for the upcoming years regarding the potential for us to increase the capacity of other rigs.

Fernando Melgarejo: Still the same question. How does the company intend to balance out in the short term this capex with the need to, maybe, tighten the seat belts, so to speak, in a context of lower oil prices? The second question that may also go to Renata is that considering your big feat in, with Almirante Tamandaré, and given the fact that you were able to increase capacity with no additional costs, what do you see in terms of total increment capacity in Búzios with similar measures from the perspective of engineering? Can you increase capacity by 20% in other Búzios rigs, which are more complex, P-78, P-83? Would that also be possible?

Speaker #1: I'll give the floor to Sylvia , but before that , I can tell you upfront that for our own platforms or rigs , the engineering department has been analyzing up to one point we can take our production .

Speaker #1: We have P71 and P70 into P . It's producing a bit more . The capacity is 150 . It produces at 159 . So we have requested a study for P78 that will start production next month .

Fernando Melgarejo: And if that is possible, I mean, if you're able to add additional capacity with no capex to the other rigs as well, would that allow the Búzios project to be reconsidered about its need? Thank you. Renata, you have a lot of work to do today. I know. Hi, Monique. I actually joked about this in an interview. you know, at the end of the day, what you're trying to understand is what our strategic plan looks like for the next five years. it's all about who's the murderer, right? Everybody wants to know who the murderer is. We are going to publish our new strategic plan on 27 November, and you will have the possibility of seeing what it looks like for the upcoming years about the possibility of us increasing the capacity of other rigs.

Speaker #1: And P79 as well . But we don't have an answer yet . Sylvia . Hello . Good morning . This process , you know , to increase capacity was a very well thought out process .

Speaker #1: We talked to the manufacturer to discuss the potential we are talking about extremely productive reservoirs . Almirante . And five wells . And we heard from the manufacturer and from the engineering department and the regulator , the classifying society .

Speaker #1: I mean , we did a very thorough technical work to check the possibility we saw . It's possible and that it applies to other areas .

Speaker #1: And we'll do that for every unit that can be applied . As Renato said , we're applying it to our own platforms . And in some cases , such as P71 , we had done that last year with the with the installation of a valve that allowed us to increase the production by 10,000 barrels per day .

Fernando Melgarejo: I'll give the floor to Sylvia, but before that, I can tell you upfront that for our own platforms or rigs, the engineering department has been analyzing up to what point we can take our production. We have P-71 and P-70 into P. It's producing a bit more. The capacity is 150. It produces at 159. We have requested a study for P-78 that will stop production next month and P-79 as well, but we don't have an answer yet. Sylvia? Hello, Monique. Good morning. This process, you know, to increase capacity was a very well-thought-out process. We talked to the manufacturer to discuss the potential. We are talking about extremely productive reservoirs, Almirante Tamandaré, and 5 wells. We heard from the manufacturer and from the engineering department and the regulator, the classifying society. I mean, we did a very thorough technical work to check the possibility.

Speaker #1: So it's a technical adjustment , but any such type of adjustment is made on an individual basis for each unit . After rigorous technical assessment and discussions with the classifying society and other stakeholders , and then also makes the reality in Buzios , it's a spectacular reservoir , a huge field , each well is producing great results .

Speaker #1: There's a rock and cavity structure that often produces even more than we initially expected , and that's why we received almost 1 million barrels that we celebrated .

Speaker #1: And it's awesome . Good to remind everybody that we were awarded awarded the OPC award due to the production that was last week .

Speaker #1: So each unit will be reviewed whenever there is an opportunity . We will let the market know about that . It's very positive piece of information for everybody .

Speaker #1: Thank you . Sylvia and Renato . Now we'll hear from Tiago Cascada from Morgan Stanley . Thank you . Ado and good morning .

Fernando Melgarejo: We saw it's possible and that it applies to other areas. We'll do that for every unit where that can be applied. As Renata said, we're applying it to our own platforms, and in some cases such as P-71, we had done that last year with the installation of a valve that allowed us to increase the production by 10,000 barrels per day. It's a technical adjustment. Any such type of adjustment is made on an individual basis for each unit, after rigorous technical assessment and discussions with the classifying society and other stakeholders. That also makes a reality. In Búzios, it's a spectacular reservoir, a huge field. Each well is producing great results. There's a rock and cavity structure that often produces even more than we initially expected. That's why we received almost 1 million barrels that we celebrated.

Speaker #1: Petrobras team . I have a quick follow up to Monique's question and two more questions . The follow up is that when it comes to increasing capacity above a nominal capacity , how bureaucratic would it be to get an approval , let's say , for instance , that you find opportunities in other projects .

Speaker #1: How bureaucratic would that process be ? I mean , for you to get an approval , would it be quick or would it take longer ?

Speaker #1: In my two other questions ? I know that we'll discuss that further in the business plan , but going back to optimization and simplification of projects .

Speaker #1: So what are the main discussions currently about Buzios 12 and what could be done there ? How does it fit that perspective and the second question is about the provisional measure from last week .

Speaker #1: What's your initial initial take on it about the potential impacts of the provisional measure ? And also I'd like to understand how it could could affect the decisions to invest in refit projects .

Fernando Melgarejo: It's also good to remind everybody that we were awarded the OTC award due to the Búzios production that was last week. Each unit will be reviewed whenever there's an opportunity. We will let the market know about that. It's a very positive piece of information for everybody. Thank you, Sylvia and Renata. Now, we'll hear from Chayo Cascada from Morgan Stanley. Thank you, Edu. Good morning, Petrobras team. I have a quick follow-up to Monique's question and 2 more questions. The follow-up is that when it comes to increasing capacity above nominal capacity, how bureaucratic would it be to get an approval, let's say, for instance, that you find opportunities in other projects? How bureaucratic would that process be, I mean, for you to get an approval? Would it be quick or would it take longer?

Speaker #1: Thank you . Good morning . Bruno . Well , capacity expansion is a very technical process , but it does not take too long .

Speaker #1: Term on that . We started the process in February and the entire process was initially discussed and we got an approval from Ibama .

Speaker #1: So it is not a bureaucratic or extremely long process . The entire technical team is involved , associated with the classifying body and the agencies for Bouzas 12 , I think Bouzas will be yet another project that we will review and well , the the fact that there is now we are in the bidding process now and not Pato can give us more information about that and what we're trying to do for all of these units is to really simplify the projects and to have leaner projects that allow us to achieve more competitiveness and seeking out new players so that we can have a competition level that allows us to reach amounts that give us technical and economic competitiveness .

Fernando Melgarejo: My two other questions are, I know that we'll discuss that further in the business plan, going back to optimization and simplification of projects. What are the main discussions currently about Búzios 12 and what could be done there? How does it fit that perspective? The second question is about the provisional measure from last week. What's your initial take on it about the potential impacts of the provisional measure? Also, I'd like to understand how it could affect the decisions to invest in refit projects. Thank you. Good morning, Bruno. Well, capacity expansion is a very technical process, but it does not take too long. Almirante Tamandaré, we started the process in February, the entire process was initially discussed, and we got an approval from Obama. It is not a bureaucratic or extremely long process.

Speaker #1: Before we started the bidding process for Buzios 12 , we . Asked the market to send us a simplification . Suggestions for the technical specifications we received many suggestions , many of which were implemented , and with that we were able to bring down the weight of the topside by 20% .

Speaker #1: So it was a highly integrated process , and the joint effort with the market and for Bouzas 12 , we allow for even greater flexibility for companies to suggest even more simplifications .

Speaker #1: So, our expectations for Bouzas 12 are big. To give you an idea in terms of pre-qualified companies for the 12 bid, we have 12 companies for BOT and 12 EPC companies, and they have to be combined.

Fernando Melgarejo: The entire technical team is involved, associated with the classifying body and the agencies. For Búzios 12, I think Búzios will be yet another project that we will review. Well, the fact that there is, now we're in the bidding process now. Renato can give us more information about that. What we're trying to do for all of these units is to really simplify the projects and to have leaner projects that allow us to achieve more competitiveness and seeking out new players so that we can have a competition level that allows us to reach amounts that give us technical and economic competitiveness. Before we started the bidding process for Búzios 12, we asked the market to send us simplification suggestions for the technical specifications.

Speaker #1: So theoretically we could have even we could come to the point of having 12 proposals with simplification suggestions . Thank you . Renata .

Speaker #1: Well , about the provisional measure , it's not yet final or approved . So let's wait for it . But in any case , there are a few things we can say in terms of oil re-injection .

Speaker #1: Well , re-injection is fundamentally decided based on our fluid , our reservoir and our volume . For instance , areas with an extremely high amount of CO2 , it's they're basically impossible to work with if you do not reinject .

Speaker #1: So it is connected directly to the project . So we need to be careful about that . And the second thing is the reference price .

Speaker #1: Obviously , when we're talking about a huge supergiants , everything gets adjusted . But if you talk about the campus basin that has a big number of mature fields and we're now in the middle of a a renovation process and that requires , I mean , margins are smaller .

Fernando Melgarejo: We received many suggestions, many of which were implemented, with that, we were able to bring down the weight of the topsides by 20%. It was a highly integrated process and a joint effort with the market. For Búzios 12, we allow for even greater flexibility for companies to suggest even more simplifications. Our expectations for Búzios 12 are big. To give you an idea, in terms of pre-qualified companies for the Búzios 12 bid, we have 12 companies for BOT and 12 EPC companies. They have to be combined. Theoretically, we could have even, we could come to the point of adding 12 proposals with simplification suggestions. Thank you, Renata. What about the provisional measure? It's not yet final or approved. Let's wait for it. In any case, there are a few things we can say.

Speaker #1: So any additions in the values may render it unfeasible . So it's a big risk for each step of project in the specific case of the campus basin , which is very mature .

Speaker #1: Like I said , the risk of . Increasing a collection may render the renovation unfeasible , and I think the renovation is going really well .

Speaker #1: We have a very good goals for the campus . Basin . We'll not forget it . Once again , we want to go back to producing 1 million barrels at the Campos Basin and an increase may lead to the possibility of that happening .

Fernando Melgarejo: in terms of oil reinjection, well, reinjection is fundamentally decided based on our fluid, our reservoir, and our volume. For instance, areas with an extremely high amount of CO2, it's they're basically impossible to work with if you do not reinject. It is connected directly to the project. We need to be careful about that. The second thing is the reference price. Obviously, when we're talking about a huge, super giant, everything gets adjusted. If you talk about the Campos Basin, that has a big number of mature fields, and we're, now, in the middle of a renovation process, and that requires, I mean, margins are smaller. Any addition in the values may render it unfeasible. It's a big risk for each type of project.

Speaker #1: Or an impossibility of that happening . Now , a question from Georgie , from Scotiabank . Thank you for taking my questions . First , congratulations on the operational results .

Speaker #1: I have two questions . One , about refining and the second about the decision making process for the CapEx . First , about refining .

Speaker #1: We've been seeing a very high level of utilization, even with the downtimes. Do you consider that this level is sustainable? Do you have any comments?

Speaker #1: I mean , what's the operational security cap that we could think about ? And the second question is , I'd like to understand .

Speaker #1: What the decision making process is like between leasing and owning the FPSo . What's the capital benchmarking that you use in your decision making process to define whether you're going to adopt one strategy or the other ?

Fernando Melgarejo: In this specific case of the Campos Basin, which is very mature, like I said, the risk of increasing a collection may render the renovation unfeasible. I think the renovation is going really well. We have very good goals for the Campos Basin. We'll not forget it. Once again, we want to go back to producing 1 million barrels at the Campos Basin. An increase may lead to the possibility of that happening. An impossibility of that happening. Now, a question from Jorge Gabrich from Scotiabank. Thank you for taking my questions. First, congratulations on the operational results. I have two questions. One about refining, and the second about the decision-making process for the CapEx. First, about refining. We've been seeing a very high level of utilization even with the downtimes. Would you consider that this level is sustainable? Do you have any comments?

Speaker #1: Thank you . I'll give it to William . First , we'll talk about refining . Good morning everybody . Good morning George . Thanks for the question .

Speaker #1: Well , the use of refinery is considers the processed loads versus the reference load of units . A reference load is obviously authorized by the regulator .

Speaker #1: The Brazilian oil agency and the capacity of projects and equipment guaranteeing reliability , security and sustainability of that load . Over the course of the entire campaign of that unit .

Speaker #1: So the efforts are aligned with the reference load, and they're required. It's a requirement from the logistics sector of the company under Director Claudio.

Speaker #1: And he defines the logistic capacity for the period . And I'd like to highlight that for this period in August , we had a an foot of 98% .

Fernando Melgarejo: I mean, what's the operational, security or cap that we could think about? The second question is, I'd like to understand what the decision-making process is like between leasing and owning the FPSO. What's the capital benchmarking that you use in your decision-making process to define whether you're going to adopt one strategy or the other? Thank you. I'll give the floor to William first. He'll talk about refining. Good morning, everybody. Good morning, George. Thanks for the question. Well, the use of refineries considers the process loads versus the reference load of units. A reference load is obviously authorized by the regulator, the Brazilian oil agency, and the capacity of projects and equipment guaranteeing reliability, security, and sustainability of that load over the course of the entire campaign of that unit.

Speaker #1: It's an average foot because it considers some scheduled downtimes that units have to go through to guarantee equipment integrity and to perform maintenance .

Speaker #1: That occurs periodically , usually every three , 4 or 5 years . So that's analyzed . But in August it was at 98% .

Speaker #1: So yes , for close to the limit of reaching the cap at the units . And this is a number that is planned once again by the logistics and trade area .

Speaker #1: I'd like to say that we are working with a reliability scenario , working in integration , and we expect even better results for the last quarter , highlighting that for the last quarter , we'll have a long downtime for the Paraiba refinery desolation .

Speaker #1: It's a . Large unit of 240 000 barrels per day in terms of processing power . So it is undergoing a scheduled downtime and going back to operation in the beginning of December .

Fernando Melgarejo: The FUTs are aligned with the reference load, and they're required, it's a requirement, from the logistics sector of the company under Director Cláudio. He defines the logistic capacity for the period. I'd like to highlight that for this period in August, we had an FUT of 98%. It's an average FUT because it considers some scheduled downtimes that units have to go through to guarantee equipment integrity and to perform maintenance that occurs, periodically, usually every 3, 4, or 5 years. That's analyzed. In August, it was at 98%. Yes, for close to the limit of reaching the cap at the units. This is a number that is planned, once again, by the logistics and trade area.

Speaker #1: The results will , of course , this downtime will have to be accounted for in the foot . Thank you . Well , George , there's no benchmarking for the contracting models at Petrobras .

Speaker #1: The . We have a standard defined by Silva as department that based on Petrobras internal technical capacity , for instance , sometimes our engineering department is overburdened with a too much work .

Speaker #1: And we do not have enough headcount, or depending on the supplier market, the company's financial capabilities. I mean, there's a series of factors that are taken into account in a risk analysis, based on which we consider the best alternative for the company.

Speaker #1: For that specific moment in time . And that specific project . So there is no preference for one model versus the other . It's all about a technical decision .

Fernando Melgarejo: I'd like to say that we are working with a high reliability scenario, working in integration, and we expect even better results for Q4. Highlighting that for Q4, we'll have a long downtime for the Vale do Paraíba refinery distillation. It's a large unit of 240,000 barrels per day in terms of processing power. It is undergoing a scheduled downtime and going back to operation in the beginning of December. The results will, of course, this downtime will have to be accounted for in the FUT. Thank you. Well, George, there's no benchmarking for the contracting models. At Petrobras, we have a standard defined by Sylvia's department that, based on Petrobras's internal technical capacity, for instance, sometimes our engineering department is overburdened with too much work, and we do not have enough headcount, or, depending on the supplier market, the company's financial capabilities.

Speaker #1: After looking at the market and the company's internal conditions . Thank you . Renata . Thanks for your questions , George . Now let's give the floor to Guilherme Costa from Goldman Sachs .

Speaker #1: Guilherme , you have the floor . Thank you . Eduardo . Good afternoon . Congratulations , Renata . Sylvia and the entire Petrobras team on the great results .

Speaker #1: My first question is a follow up to my to the previous questions . The platforms that are running with production above nominal capacity , how sustainable is this level of production ?

Speaker #1: Could we say that this is a new plateau for the production of these rigs ? And my second question is about capital allocation .

Speaker #1: You've been very vocal when it comes to being careful with opex and thinking about remuneration to shareholders . Are there any discussions about a potential changes to the company's internal policies , given the scenario for next year , and about M&A in last year's strategic plan ?

Speaker #1: We talked extensively about the ethanol market . Do you have any updates about the discussions since then , and also about the return to liquid natural gas ?

Fernando Melgarejo: I mean, there's a series of factors that are taken into account in a risk analysis based on which we consider the best alternative for the company for that specific moment in time and that specific project. There's no preference for one model versus the other. It's all about a technical decision after looking at the market and the company's internal conditions. Thank you, Renata. Thanks for your questions, George. Now, let's give the floor to Guilherme Costa from Goldman Sachs. Guilherme, you have the floor. Thank you, Eduardo. Good afternoon. Congratulations, Renata, Sylvia, and the entire Petrobras team on the great results. My first question is a follow-up to the previous questions. The platforms that are running with production above nominal capacity, how sustainable is this level of production? Could we say that this is a new plateau for the production of these regs?

Speaker #1: Was there any change or progress or approval by the board ? And lastly , one last question about M&A . What's the company's appetite for the reserve capacity auction for next year ?

Speaker #1: Thank you . Thank you . That's a lot of questions . Well , I'll give the floor to Renata . Good morning . About the production peak .

Speaker #1: So basically whenever we outline a development plan for a field , there's ramp up in production . It reaches a plateau , and then it decreases .

Speaker #1: So the production expectations are based mainly on the reservoirs characteristics . The availability and all that . So we always try to reach a to use a rig where the highest VPL is achieved .

Fernando Melgarejo: My second question is about capital allocation. You've been very vocal when it comes to being careful with OPEX and thinking about remuneration to shareholders. Are there any discussions about potential changes to the company's internal policies, given the scenario for next year? About M&A. In last year's strategic plan, we talked extensively about the ethanol market. Do you have any updates about the discussions since then? Also about the return to liquefied natural gas. Was there any change, or progress or approval by the board? Lastly, one last question about M&A. What's the company's appetite for the reserve capacity auction for next year? Thank you. Thank you, Guilherme. That's a lot of questions. Well, I'll give the floor to Renata. Good morning. About the production peak, basically. Whenever we outline a development plan for fields, there's ramp-up in production.

Speaker #1: We usually design a rig for a production peak and given the response of the reservoir with a higher productivity , the peak was augmented .

Speaker #1: But the production peak is a restricted period . During the operations of the field . After that , it will go down in production , as is usually the case , so this increase in production is temporary .

Speaker #1: In the production curve , so it will always try to reach it , but it is in , in within the fields development plan .

Speaker #1: Basically based on the capacity of the reservoir . Thank you Silvia I'll give the floor to Fernando and Angelica if she has any comments .

Speaker #3: Okay . So about all of this that we are discussing , I think the right word here is caution . Considering that there .

Speaker #3: Are no changes in policy , we intend to continue holding it . We believe that it's sustainable and there are other things that we can do before we change the dividend policy and M&A .

Speaker #3: Everything we do goes through several scenarios . You need to be positive across all of them . So create value with shareholders , whether they are in the government or private .

Fernando Melgarejo: It reaches a plateau, then it decreases. The production expectations are based mainly on the reservoir's characteristics and availability and all that. We always try to reach a rig where the highest VPL is achieved. We usually design a rig for a production peak. Given the response of the reservoir with higher productivity, the peak was augmented. The production peak is a restricted period during the operations of the fields. After that, it will go down in production as is usually the case. This increase in production is temporary in the production curve. We will always try to reach it, but it is within the fields development plan, basically based on the capacity of the reservoir. Thank you, Sylvia. I'll give the floor to Fernando and Angélica if she has any comments.

Speaker #3: And the second point is that you need to have cash or sustainable cash long term . That will in which it will make sense to allocate capital to this investment .

Speaker #3: So nothing will be done if these conditions are not met . And obviously , if there's a lot of pressure on Brent , we have the possibility of postponing .

Speaker #3: Any investments that have been contracted . Thank you . Fernando . Angelica . Good morning Guillermo . So about ethanol , we still strongly believe that ethanol is the strategic driver to achieve low carbon in our strategic plan .

Fernando Melgarejo: Okay, about all of this that we are discussing, I think the right word here is caution. Considering that there are no changes in policy, we intend to continue holding it. We believe that it's sustainable, and there are other things that we can do before we change the dividend policy. M&A, everything we do goes through several scenarios. You need to be positive across all of them. Create value with shareholders, whether they are in the government or private. The second point is that you need to have cash or sustainable cash long-term that will, in which it will make sense to allocate capital to this investment. Nothing will be done if these conditions are not met. Obviously, if there's a lot of pressure on Brent, we have the possibility of postponing any investments that have been contracted. Thank you, Fernando. Angelica.

Speaker #3: We foresee the addition of a renewables by 2050 . Around 8 to 11% renewables in our primary energy matrix . And so we're negotiating with partners about the possibility of going into this market through a minority stake .

Speaker #3: Considering our our El cap , which is your next question . We have about three . Gigawatts of energy to sell in this auction .

Speaker #3: We think it will be difficult when it comes to the to allocating the transportation tariff . But we're speaking with the government to find some alternatives to allocate this transportation tariff .

Speaker #3: Thank you Angelica . Thank you Fernando . We're going to continue with questions from Hedges Cardoso from XP . Thank you , Eduardo .

Speaker #3: Thank you for the space and the entire Petrobras team for these excellent results . Referring back to CapEx . And also the equatorial margin , I'm wondering if you found new evidence that reinforced the potential of the equatorial margin .

Fernando Melgarejo: Good morning, Guilherme. About ethanol, we still strongly believe that ethanol is the strategic driver to achieve low carbon. In our strategic plan, we foresee the addition of renewables by 2050, around 8 to 11% renewables in our primary energy matrix. We're negotiating with partners about the possibility of going into this market through a minority stake. Considering our LCAP, which is your next question, we have about 3 gigawatts of energy to sell in this auction. We think it will be difficult when it comes to allocating the transportation tariff, but we're speaking with the government to find some alternatives to allocate this transportation tariff. Thank you, Angélica. Thank you, Fernando. We're going to continue with questions from Regis Cardoso from XP. Thank you, Eduardo. Thank you for the space and the entire PETROBRAS team for these excellent results.

Speaker #3: If we understand how long it will take to develop it . And on a broader sense , if you have a plan B for the equatorial margin basin .

Speaker #3: You I don't know how if you have any evidence that will confirm or not not confirm your previous assumptions . So when you accelerate CapEx , that has a short term effect .

Speaker #3: In bread prices and this coincides with oil prices dropping . So I don't know if this is something that you'd figure into your calculation .

Speaker #3: But still on acceleration . Another question I have is that when I see the number of wells , especially in Bouzas , there seems to be more wells per platform than we would need to meet this capacity , given the productivity of the well itself .

Speaker #3: So does that make sense to drill these wells beforehand , or would it make sense to reduce the number of drills ? So that's my question .

Fernando Melgarejo: Referring back to capex and also the Equatorial Margin, I'm wondering if you found new evidence that reinforced the potential of the Equatorial Margin, if we understand how long it will take to develop it. On a broader sense, if you have a plan B for the Equatorial Margin Basin. I don't know if you have any evidence that will confirm or not confirm your previous assumptions. When you accelerate capex, that has a short-term effect in Brent prices. This coincides with oil prices dropping. I don't know if this is something that you'd figure into your calculation, but still, on acceleration. Another question I have is that when I see the number of wells, especially in Búzios, there seems to be more wells per platform than we would need to meet this capacity given the productivity of the well itself.

Speaker #3: Thank you . Thank you . Silvia and Renato will answer your question . So first about the equatorial margin . First of all , we're very happy with the environmental license .

Speaker #3: And I'll explain the potential we see for it . We started 95 million years ago when the sea close to Brazil and , well , when Brazil was closer to Africa .

Speaker #3: And you had a small sea there that created all of these generating rocks. And this is what led to the development of oil in Ghana.

Speaker #3: We found . It . And then Jubilee and the same was detected in French Guiana with Jubilee . And in Mesa in the Guiana Basin .

Speaker #3: So . This potential also is true for Brazil . The same reservoirs that they found in Guyana and French Guiana and Guyana are dated to the same times as the reservoir that we found here .

Speaker #3: So, the fact that we are drilling for it in Amapá refers to these other basins. So we're going to test if the same generation process was effective here.

Fernando Melgarejo: Does it make sense to drill these wells beforehand, or would it make sense to reduce the number of drills? That's my question. Thank you. Thank you, Regis. Sylvia and Renata will answer your question. First, about the equatorial margin. First of all, we're very happy with the environmental license, and I'll explain the potential we see for it. We started 95 million years ago when the sea close to Brazil and Africa, well, when Brazil was closer to Africa, and you had a small sea there that created all of these generating rocks. This is what led to the development of oil in Ghana. We found it at Aejus and then Jubilee. The same was detected in French Guiana with Jubilee and in Mesa in the Guiana Basin. This potential also is true for Brazil.

Speaker #3: If the quality that we have in this reservoir is the same as we expect , if there was a migration . So this first well will allow us to understand what the basin is like .

Speaker #3: But this is not enough . We are already planning for eight wells in the region and in Rio Grande do Norte we had two findings with smaller volumes , not enough for us to place a unit , but now , after Morpho we are drilling one more well in Rio Grande do Norte , depending on how much accumulation there is , there , we might have a production hub to .

Speaker #3: And in part we're still drilling the first well , we need to find oil . But regardless of the fact of finding it or not , we will need to drill other wells .

Speaker #3: We celebrated the fact that we got this environmental license , but this is just a license and you can only find , well , excuse me , oils .

Speaker #3: After you drill the well so after we understand that , we will need to drill other wells to see these occurrences . So to set expectations , we're hoping to find oil in this well .

Fernando Melgarejo: The same reservoirs that they found in Ghana and French Guiana and Guiana are dated to the same times as the reservoir that we found here. The fact that we are drilling for it in Namapa refers to the these other basins. We're going to test if the same generation process was effective here, if the quality that we have in this reservoir is the same as we expect, if there was a migration. This first well will allow us to understand what the basin is like. This is not enough. We are already planning for eight wells in the region. In Rio Grande do Norte, we had two findings with smaller volumes, not enough for us to place a unit. Now, after Morfo, we are drilling one more well in Rio Grande do Norte.

Speaker #3: But if it's not in this one, we might find it in other ones. And again, in the basin, we only found it on the ninth.

Speaker #3: Well drilled . So the biggest success factor here is having some geological similarities . And but they can only be considered truly identical if we get the same results .

Speaker #3: So we are waiting . Thank you . Sylvia . Go ahead . Renata . Hi , Hedges . To talk a little bit about Brent balance .

Speaker #3: It is not impacted by advanced payments . What is is the project VPL ? It increases significantly if , as you have an advance of your revenue .

Speaker #3: So . This is not being impacted . What impacts are the balance ? Brent is a total cost of the project as we're trying to simplify projects that improves the Brent balance .

Fernando Melgarejo: Depending on how much accumulation there is there, we might have a production hub too. In Namapa, we're still drilling the first well. We need to find oil. Regardless of the fact of finding it or not, we will need to drill other wells. We celebrated the fact that we got this environmental license, but this is just a license. You can only find well, excuse me, oils after you drill the well. After we understand that, we will need to drill other wells to see these occurrences. To set expectations, we're hoping to find oil in this well, but if it's not in this one, we might find it in other ones. Again, in the Campos Basin, we only found it on the ninth well drilled. The biggest success factor here is having sim geological similarities.

Speaker #3: So, this affects everything. Riggs and all these subsidies concerning Wells. Why are we still drilling wells in Búzios, for example? You saw that the helmet treatment rig, each well produces 50,000 to 60,000 barrels per day.

Speaker #3: If one of them is left out , that's a major loss for Petrobras . So we need to have reserve wells . That's one thing .

Speaker #3: On the other hand , the inventory we have of wells ready due to the increase in interconnections is going down fast . So we need to keep up the same pace as we conclude drilling wells .

Fernando Melgarejo: They can only be considered truly identical if we get the same results. We are waiting. Thank you, Sylvia. Go ahead, Renata. Hi, Regis. To talk a little bit about rent balance, it is not impacted by advance payments. What is the project's VPL. It increases significantly as you have an advance of your revenue. This is not being impacted. What impacts the balance? Brent is the total cost of the project. We're trying to simplify projects, that improves the Brent balance. This affects everything, rigs, and all this, subsidies. Considering wells, why are we still drilling wells in Búzios, for example? You saw that the Almirante Tamandaré rig, each well produces 50,000 to 60,000 barrels per day. If one of them is left out, that's a major loss for Petrobras. We need to have reserve wells. That's one thing.

Speaker #3: But we always need to look at our fleet and have plans be . Some companies in Brazil that drill for oil came to us to ask if we could share probes with them .

Speaker #3: So this is one of the opportunities that we have . If we see that we're going too fast . We can slow down our pace and the pace in which we drill our wells .

Speaker #3: But for now , this is not the case . If we continue at the same pace with interconnections very soon , you wells will go into the to their critical zone where having a very healthy dispute or competition here in the engineering team , because no one wants to get into that critical zone .

Speaker #3: Okay , for the next few questions , I'd like to ask you to stick to one question per person so that everyone gets to ask their question .

Speaker #3: Let's start with Tasso . Go ahead . Tasso Vasconcellos from UBS . If you can keep it to one question , I would like , I would thank you .

Fernando Melgarejo: On the other hand, the inventory we have of wells ready due to the increase in interconnections is going down fast. We need to keep up the same pace as we conclude drilling wells. We always need to look at our fleet and have plans B. Some companies in Brazil that drill for oil came to us to ask if we could share probes with them. This is one of the opportunities that we have if we see that we're going too fast. We can slow down our pace in the pace in which we drill our wells. For now, this is not the case.

Speaker #3: Thank you . I would appreciate it . Thank you . Okay . So sticking to one question , I'd like to go back to that issue on balancing use sources .

Speaker #3: I'd like to understand how you're adjusting the companies spending . We spoken about CapEx , but I'd also like to ask about opex .

Speaker #3: I know that you're going to give more details about this plan at the end of the month, but I'd just like to know how this process is going.

Speaker #3: How are you thinking of balancing these two pillars? And where do you see the most opportunities or the highest potential to reduce expenses, whether in CapEx or OpEx, and in what areas?

Fernando Melgarejo: If we continue at the same pace with interconnections very soon, you know, wells will go into their critical zone, we're having a very healthy dispute or competition here in the engineering team, because no one wants to get into that critical zone. Okay, for the next few questions, I'd like to ask you to stick to one question per person so that everyone gets to ask their question. Let's start with Tasso. Go ahead, Tasso Vasconcellos from UBS. If you can keep it to one question, I would thank you. I would appreciate it. Thank you. Okay, sticking to one question, I'd like to go back to that issue on balancing use sources. I'd like to understand how you're adjusting the company's spending. We spoke about capex, but I'd also like to ask about OPEX.

Speaker #3: That's all . Thank you . Thank you . Tasso Fernando . Good morning . Tasso . So we're going to publish that plan .

Speaker #3: And the next two weeks . And of course , there's pressure from society and from you to provide information beforehand . But I can only speak about it on at a superficial level because we're going to go into details when the time comes .

Speaker #3: The biggest issue that we're seeing right now in our balance and our results refers to production. There are two very important verticals: cost and revenue.

Speaker #3: From the revenue perspective , we're increasing the amounts and that improves the conditions for our plants . The results that we are currently having and our future perspectives from the OpEx and CapEx perspective , we're being very cautious .

Fernando Melgarejo: I know that you're going to give more details about this plan at the end of the month, but I'd just like to know how this process is going. How you're thinking of balancing these two pillars, and where do you see the most opportunities or the highest potential to reduce expenses, whether in capex or OPEX, and in what areas? That's all. Thank you. Thank you, Tasso. Fernando. Good morning, Tasso. We're going to publish that plan in the next few weeks. Of course, there's pressure from society and from you to provide information beforehand. I can only speak about it at a superficial level because we're going to go into details when the time comes. The biggest issue that we're seeing right now in our balance and our results refers to production. There are two very important verticals: cost and revenue.

Speaker #3: As I mentioned before , there's a risk of Brent prices going up next year because we believe that the future scenario will lead us in that direction .

Speaker #3: And that , of course , needs to be related to our confidence level in strategic planning . It will continue to be high , and we will definitely have the possibilities of making adjustments .

Speaker #3: We're talking about simplifying and optimizing projects , reducing costs across all areas on the corporate and the corporate area . We had the PDV that is a part of our .

Speaker #3: Reorganization plan on the short term , we are increasing production , which should be at the top range of our guidance and we'll publish more information when we have them .

Speaker #3: We can't provide any details yet . Thank you . Fernando . Melanie Clifford from JP Morgan will ask the next question . Melanie , can you hear us ?

Speaker #3: Okay , now , I was able to turn on my microphone . Thank you everyone . Congratulations on these solid results . We've been talking about this stronger production theory surprising us positively .

Fernando Melgarejo: From the revenue perspective, we're increasing the amounts, and that improves the conditions for our plans, the results that we are currently having, and our future perspectives. From the OPEX and capex perspective, we're being very cautious, as I mentioned before. There's a risk of Brent prices going up next year because we believe that the future scenario will lead us in that direction. That, of course, needs to be related to our confidence level in strategic planning. It will continue to be high, and we will definitely have the possibilities of making adjustments. We're talking about simplifying and optimizing projects, reducing costs across all areas. On the corporate area, we had the PDV that is a part of our reorganization plan. On the short term, we are increasing production, which should be at the top range of our guidance.

Speaker #3: So we were very happy about the increase in capacity for FPSo and the results that you presented . Most of my questions have been answered , but again , looking at use sources , we heard about this pressure and brand .

Speaker #3: But in increase production , PDV and containing opex to sustain this cash flow for the future . Even with these efforts , we saw that gross debt went up to nearly 71 billion USD , which is close to your 75 limit .

Speaker #3: Although leverage is stable , so has your mind changed about this plan ? You mentioned that we will probably not see that minimum dividend policy again .

Speaker #3: So how sustainable is this, and what will be your gross debt limit for 2026 and beyond? Thank you, Melanie. Fernando will answer your question from the debt perspective. We have to remember that our cap is $75 billion, and we reached nearly $71 billion this quarter with the capture we had, which increased the size of our Treasury by $2 billion.

Fernando Melgarejo: We'll publish more information when we have them. We can't provide any details yet. Thank you, Fernando. Rodolfo Angele from JPMorgan will ask the next question. Rodolfo, can you hear us? Okay, now I was able to turn on my microphone. Thank you, everyone. Congratulations on these solid results. We've been talking about this stronger production theory surprising us positively. We were very happy about the increase in capacity for FPSO and the results that you presented. Most of my questions have been answered, but again, looking at use sources, we heard about this pressure in Brent, but in increased production, PDV, and containing OPEX to sustain this cash flow for the future. Even with these efforts, we saw that gross debt went up to nearly $71 billion, which is close to your $75 limit, although leverage is stable.

Speaker #3: If we look at net debt in the third quarter , we saw very small change versus the second quarter . It remained basically flat with much more robust cash and .

Speaker #3: When it comes to strategic planning , since we don't have the intention of changing dividends in our plan , we also believe that it is not necessary to change the cap on our debt .

Speaker #3: We'll maintain it , but we'll do internal initiatives for efficiency reviewing projects to do more with less . Before we change these two points here , I'm referring to debt and dividends .

Fernando Melgarejo: Has your mindset changed about this plan? You mentioned that we will probably not see that minimum dividend policy again. How sustainable is this, and what will be your gross debt limit for 2026 and beyond? Thank you, Melanie. Fernando will answer your question. From the debt perspective, we have to remember that our cap is $75 billion, and we reached nearly $71 billion in Q3 with the capture we had. This increased the size of our treasury by $2 billion. If we look at net debt in Q3, we saw a very small change versus Q2. It remained basically flat with much more robust cash. When it comes to strategic planning, since we don't have the intention of changing dividends in our plan, we also believe that it is not necessary to change the cap on our debt.

Speaker #3: Thank you Fernando . We will now hear a question from Chiayi . Baidu from Bank of America . Go ahead . Qiu . Good afternoon everyone .

Speaker #3: Thank you for taking my question . I'd like to talk to you about how you see this scenario of lower oil prices . And with , you know , this intention to keep gross debt at 75 below 75 billion .

Speaker #3: How does that impact your appetite in participating in a bid ? Tenders for non-contracted areas , especially PSA . Thank you . Participating in auctions for Petrobras is just a part of us replenishing our reserves whenever we have an opportunity .

Speaker #3: You know , auctions are opportunities of increasing our reserves , so we will definitely participate in all auctions , not only this one .

Speaker #3: Of course , we are limited in cash flow . We need to be cautious , but we just need to see if this is economically viable .

Fernando Melgarejo: We'll maintain it, but we'll do internal initiatives for efficiency, reviewing projects to do more with less before we change these two points. Here, I'm referring to debt and dividends. Thank you, Fernando. We will now hear a question from Caio Ribeiro from Bank of America. Go ahead, Caio. Good afternoon, everyone. Thank you for taking my question. I'd like to talk to you about how you see this scenario of lower oil prices. With, you know, this intention to keep gross debt at below $75 billion, how does that impact your appetite in participating in bid tenders for non-contracted areas, especially PPSA? Thank you. Participating in auctions for Petrobras is just a part of replenishing our reserves. Whenever we have an opportunity, you know, auctions are opportunities of increasing our reserves. We will definitely participate in all auctions, not only this one.

Speaker #3: We're still analyzing if we will do that . Recently we participated in two auctions which have been one . Sylvia might add to that answer .

Speaker #3: So auctions for Petrobras are an opportunity to replenish our reserves . So we will of course take these opportunities .

Speaker #1: I'd like to confirm this partnership with the . Finances department . The perception about the importance of renovating reserves and the importance of our blocks .

Speaker #1: As I said before, we will participate in every auction we have in Brazil, looking for the best opportunities and knowing that we need to renovate our reserves.

Speaker #1: We have one of the best results in Brazil , and we of course , cannot give give up on the possibility of having the best blocks .

Speaker #1: We went to the auctions in compass and we want both of them with high competitiveness . So our intention is to be present whenever these wherever these opportunities are , we have a it's also great to see that we have a partnership between finances and administrative administration in Petrobras .

Fernando Melgarejo: Of course, we are limited in cash flow. We need to be cautious, but we just need to see if this is economically viable. We're still analyzing if we will do that. Recently, we participated in two auctions, which have been won. Sylvia might add to that answer. Auctions for Petrobras are an opportunity to replenish our reserves. We will, of course, take these opportunities. I'd like to confirm this partnership with the finances department, the perception about the importance of renovating reserves and the importance of our blocks. As I said before, we will participate in every auction we have in Brazil, looking for the best opportunities and knowing that we need to renovate our reserves. We have one of the best results in Brazil, and we, of course, cannot give up on the possibility of having the best blocks.

Speaker #1: Acknowledging the importance of new areas and new blocks for the company's future . So it's a very encouraging to have this communion across all of these departments without new areas , it will be hard to be the Petrobras .

Speaker #1: We are today . Thank you . Now , a question from Gabriel . Gabriel from Citibank . Gabriel . Thanks for taking my question , Fernando .

Speaker #1: Of the entire Petrobras team . All limit myself to just one question . Has to do . Asked us to do . But I must insist on the CapEx .

Speaker #1: This is possibly one of the biggest issues we've been discussing with investors in the past few months. I think I'm facing a little bit of a challenge here when it comes to this year's CapEx and last year's CapEx. You see that there is something close to $3 billion to $4 billion that are not yet allocated to the projects.

Fernando Melgarejo: We went to the auctions in Campos Basin, we want both of them with high competitiveness. Our intention is to be present whenever these opportunities are. It's also great to see that we have a partnership between finances and administration in Petrobras, acknowledging the importance of new areas and new blocks for the company's future. It's very encouraging to have this communion across all these departments. Without new areas, it will be hard to be the Petrobras we are today. Thank you. Now, a question from Gabriel Barra from Citigroup. Gabriel. Thanks for taking my question. Fernando, the entire Petrobras team, I'll limit myself to just one question, as I do ask this to do, but I must insist on the capex. This is possibly one of the biggest issues I've been discussing with investors in the past few months.

Speaker #1: So this is probably your range of flexibility to make adjustments , as it were . And we just talked about non-contracted areas , ethanol , Braskem , the services market .

Speaker #1: Renato has been talking extensively about adjusting the portfolio of rigs and adjusting the subsea area . Undoubtedly , there is a lot to be done , but this market is harder to deal with .

Speaker #1: Maybe in Namibia , there are several investments that are have not been included for next year . And know to what extent . And this is an important part of my question .

Speaker #1: How counterproductive it is to stop a project of the company . Since most projects are 20 or 30 years long in Brazil , especially when it comes to offshore .

Speaker #1: So how much flexibility do you have when it comes to the CapEx for next year ? That's what I'd like to understand . Thank you .

Speaker #1: Okay . We're going to answer your question jointly . Myself and Renata . But by definition . The first years give us the lowest flexibility because there is 4 or 5 prediction systems up until 27 , all of them being built .

Fernando Melgarejo: I'm facing a little bit of a challenge here when it comes to this year's capex and last year's capex. We see that there's something close to $3 to 4 billion that are not yet allocated to the projects. This is probably your range of flexibility to make adjustments, as it were. We just talked about non-contracted areas: ethanol, Braskem, the services market. Renato has been talking extensively about adjusting the portfolio of rigs and adjusting the subsea area. Undoubtedly, there is a lot to be done, but this market is harder to deal with. Maybe in Namibia, there are several investments that have not been included for next year.

Speaker #1: We have contracts signed . So we have a commitment to the supplier . Actually , our suppliers have been great partners to Petrobras .

Speaker #1: So our flexibility increases as time goes by . For 2026 , we do not have a lot of flexibility . The projects , basically 90% of them are already contracted and .

Speaker #1: This is what we're doing in the longer term . We have the flexibility of postponing things here in there , and it's a high amount of flexibility for all the projects that are not yet approved or whose contract has not yet been signed .

Fernando Melgarejo: I don't know to what extent, and this is an important part of my question, how counterproductive it is to stop a project of the company since most projects are 20 or 30 years long in Brazil, especially when it comes to offshore. How much flexibility do you have when it comes to the CapEx for next year? That's what I'd like to understand. Thank you. Okay, we're going to answer your question jointly, myself and Renato. By definition, the first years give us the lowest flexibility because there's four or five prediction systems up until 2027, all of them being built. We have contracts signed. We have a commitment to the supplier. Actually, our suppliers have been great partners to Petrobras. Our flexibility increases as time goes by. For 2026, we do not have a lot of flexibility.

Speaker #1: We have the possibility of postponing them according to what we wish to do . Well , Gabrielle . We have no perspective or whatsoever of stopping any projects stopping contracted projects .

Speaker #1: Is a very negative thing, so that's not even being considered. If you remember about our plan, we have the projects that are under assessment and projects that are already under implementation.

Speaker #1: And if you remember , we returned to projects to the assessment phase . They were not yet contracted . We were still at the three phase , and we decided that we needed to study them further to increase their profitability .

Speaker #1: So they went back to the assessment desk . So we should consider that our plan includes these two groups of projects . We have greater flexibility , as Fernando said , with the ones that are under assessment , we should not forget , Gabriel , that 90% of our CapEx is allocated to ENP and production .

Fernando Melgarejo: The projects, basically 90% of them are already contracted. This is what we're doing. In the longer term, we have the flexibility of postponing things here and there. It's a high amount of flexibility. For all the projects that are not yet approved or whose contract has not yet been signed, we have the possibility of postponing them according to what we wish to do. Well, Gabriel. We have no perspective whatsoever of stopping any projects. Stopping contracted projects is a very negative thing. That's not even being considered. If you remember about our plan, we have, though, projects that are under assessment and projects that are already under implementation. I know if you remember, we returned two projects to the assessment phase. They were not yet contracted. We were still at the phase three phase.

Speaker #1: Production is the key word for Petrobras . They're highly structuring for us , and we will continue to invest in them because we are certain that these were very well assessed projects and a production system .

Speaker #1: Once it starts producing , it stays in production for 20 or 30 years . And the CapEx happens . Beforehand . Thank you .

Speaker #1: Renato . Last question from Rodrigo Almeida from Santander . Rodrigo , you have the floor . Thank you . We do . And good afternoon , everybody .

Speaker #1: Well , I want to mention something that maybe interesting to discuss , which is about decommissioning . We may be in a dilemma in terms of the fact that there are some platforms that could bring about some additional opex , but there is an additional decommissioning cost .

Fernando Melgarejo: We decided that we needed to study them further to increase their profitability. They went back to the assessment desk. We should consider that our plan includes these two groups of projects. We have greater flexibility, as Fernando said, with the ones that are under assessment. We should not forget, Gabriel, that 90% of our capex is allocated to E&P and production. Production is the key word for Petrobras. They're highly structuring for us, and we will continue to invest in them because we are certain that these were very well-assessed projects. A production system, once it starts producing, it stays in production for 20 or 30 years. The capex happens beforehand. Thank you, Renato. Last question from Rodrigo Almeida from Santander. Rodrigo, you have the floor. Thank you, Edu. Good afternoon, everybody.

Speaker #1: So I'd like to understand , do you think about reusing the rigs or about somehow postponing the decommissioning of the platform so as to gain more efficiency in the short term , or , I don't know , maybe make it a partnership ?

Speaker #1: Like with I don't know if there's . Anything similar to that partnership where these fields that are going to be decommissioned , if they could be transferred to a partner or not .

Speaker #1: So this is a bit of an unrelated question , but it could also be interesting to discuss . Thank you . Well , Rodrigo , I'm going to share the answer with Renato .

Speaker #1: Decommissioning is part of the history of the life of a field . You start with exploration . You develop production , and all of them will reach the decommissioning phase .

Speaker #1: We'll have more than 50 rigs that are going to be decommissioned . And this for the future ones . We are attempting to reduce the as much as we can .

Fernando Melgarejo: Well, I want to mention something that may be interesting to discuss, which is about decommissioning. We may be in a dilemma in terms of the fact that there are some platforms that could bring about some additional OPEX, there is an additional decommissioning cost. I'd like to understand, do you think about reusing the rigs or about somehow postponing the decommissioning of the platform so as to gain more efficiency in the short term? I don't know, maybe make it a partnership like with Bayateha. I don't know if there's anything similar to that partnership where these fields that are going to be decommissioned, if they could be transferred to a partner or not. This is a bit of an unrelated question, it could also be interesting to discuss. Thank you. Well, Rodrigo, I'm going to share the answer with Renato.

Speaker #1: The period between the interruption of production and decommissioning , because now we have , for instance , a huge amount of rigs that need to be decommissioned , basically at the same time .

Speaker #1: And before that , we are extending the lifetime of rigs for the ones that are in operation , the ones that have already stopped operating .

Speaker #1: Renata and her team , they're trying to consider how to separate the wells from the rig because it's not only about decommissioning a rig , because the rig has wells , it has lines and everything underneath that is not seen 70% or two .

Speaker #1: That represents two thirds of the entire cost . So before removing a platform , you have to remove the wells , the lines and all that .

Speaker #1: Renata's group has been working on that to try to, as much as possible, quickly displace the platform to be decommissioned so that we can avoid the maintenance costs and the costs with personnel.

Fernando Melgarejo: Decommissioning is part of the history of the life of a field. You start with exploration. You develop production. All of them will reach the decommissioning phase. We have more than 50 rigs that are going to be decommissioned. For the future ones, we are attempting to reduce as much as we can the period between the interruption of production and decommissioning because now we have, for instance, a huge amount of rigs that need to be decommissioned basically at the same time. Before that, we are extending the lifetime of the rigs for the ones that are in operation. The ones that have already stopped operating, Renata and her team, they're trying to consider how to separate the wells from the rig because it's not only about decommissioning a rig because a rig has wells, it has lines, and everything underneath that is not seen.

Speaker #1: On on rigs that are not producing anymore . So our efforts now are . To or being invested in trying to decommission these platforms as soon as possible .

Speaker #1: Well , Rodrigo . When was team assesses the lifetime of a rig or a field that's done as 70 years before stopping production , which is when we have to let ANP know .

Speaker #1: Now , especially with P35 and P-37 , which are about to be removed from the location because , like Sylvia said , all the wells have been decommissioned , all the lines have been cleaned up .

Speaker #1: So we'll bring the break to the coast in that process , we'll try to reutilize the rig we're setting up a bidding process to at least use the hull .

Fernando Melgarejo: 70% or 2 that represents two-thirds of the entire cost. Before removing a platform, you have to remove the wells, the lines, and all that. Renata's group has been working on that to try to, as much as possible, quickly displace the platform to be decommissioned so that we can avoid the maintenance costs and the costs for personnel on rigs that are not producing anymore. Our efforts now are being invested in trying to decommission these platforms as soon as possible. Well, Rodrigo. When Sylvia's team assesses the lifetime of a rig or a field, that's done 70 years before stopping production, which is when we have to let E&P know.

Speaker #1: We know that the topside is a bit more complicated because these are really old rigs that do not cater to the current specifications.

Speaker #1: So we'll now set up a pilot to reutilize the P35 and P-37 hulls . If we're successful , that may become our new normal .

Speaker #1: But each case will be different . I was looking we have a 54 rigs out of operation that need to be decommissioned , and all of them are going to be assessed .

Speaker #1: As for what to do with them . Thanks for nothing . Thank you . Sylvia . And now we are going to take the question from Gustavo , from BTG .

Speaker #1: Gustavo . Good afternoon . Well , my question is in line with this scenario where the company is close to the that cap .

Fernando Melgarejo: Especially with P-35 and P-37, which are about to be removed from the location because, like Sylvia said, all the wells have been decommissioned, all the lines have been cleaned up, so we'll bring the rig to the coast. In that process, we'll try to reutilize the rig. We're setting up a bidding process to at least use the hull. We know that the topsides is a bit more complicated because these are really old rigs that do not cater to the current specifications. We'll now set up a pilot to reutilize the P-35 and P-37 hulls. If we're successful, that may become our new normal, but each case will be different. I was looking. We have 54 rigs out of operation that need to be decommissioned. All of them are going to be assessed as for what to do with them.

Speaker #1: I'd like to understand the rationale of the PDV . And if we can expect additional PDV , how the company is balancing out the additional need for opex due to the new platforms and the use of the required opex due to the low price scenario .

Speaker #1: Thank you . Thank you . Gustavo . Good afternoon . Concerning the PDV , there is . We have no plans to release any other PDV , the PDV that we launched is meant for a very specific population .

Speaker #1: These are the or the voluntary separation program . The VSP therefore , employees that retired before the Social Security reform a little over 1100 workers and we worked towards , in addition to retaining knowledge , which is extremely important for us , we also worked within the guidelines and parameters established by TGR 52 , which outlines all of the financial limits for the VSP .

Fernando Melgarejo: Thanks, Renato, and thank you, Sylvia. Now we are going to take the last question from Gustavo Cunha from BTG. Gustavo, good afternoon. Well, my question is in line with this scenario where the company is close to that cap. I'd like to understand the rationale of the PDV and if we can expect additional PDV, how the company is balancing out the additional need for OPEX due to the new platforms and the use of the required OPEX due to the low-price scenario. Thank you. Thank you, Gustavo. Good afternoon. Concerning the PDV, we have no plans to release any other PDV. The PDV that we launched is meant for a very specific population. These are the voluntary separation program, the VSP. Therefore, employees that retired before the Social Security reform, a little over 1,100 workers.

Speaker #1: So also want to make it clear that we . Did a technical level hiring process . We hired more than 1700 technical level workers , and part of them are still being trained at the Petrobras University and actually most of them .

Speaker #1: One thing I didn't mention about the workers that have already retired since 2019 . There technical level workers . So the company is managing its headcount very carefully and also working on the knowledge transfer , which is fundamental .

Speaker #1: We need all of the workers that remain at the company dealing with extremely critical processes for the company and have a very high level of knowledge .

Speaker #1: It's essential that they transfer that to new workers that are now being hired . Thank you . Clarice . And with that . We will wrap up if you have any additional questions , you can send them to the team before we finish broadcast , I'll give the floor first to Director Silvia and then to Director Fernando .

Fernando Melgarejo: We worked towards, in addition to retaining knowledge, which is extremely important for us, we also worked within the guidelines and parameters established by CGPAR 52, which outlines all the financial limits for the VSPs. I also want to make it clear that we did a technical-level hiring process. We hired more than 1,700 technical-level workers, and part of them are still being trained at the Petrobras University. Actually, most of them one thing I didn't mention about the workers that have already retired since 2019, they're technical-level workers. The company is managing its headcount very carefully and also working on the knowledge transfer, which is fundamental. We need all of the workers that remain at the company dealing with extremely critical processes for the company and have a very high level of knowledge.

Speaker #1: Well , I'd like to highlight in October , we had an oil production of 2.6 . And this is very positive data . Also on to highlight the importance of adequately managing the reservoir .

Speaker #1: Maybe for the first time , we're going to have three executive managers specializing in reservoirs and presence . Magda . She's also a reservoir engineer .

Speaker #1: She's constantly working with us on managing the reservoirs . So increasing . There's an increase in production and increase in units , but also greater efficiency in terms of greater water injection , greater production , greater well allocation .

Speaker #1: So we reached 2.6 in October . And that's very encouraging news . To wrap it up , some final words , a perception actually the third quarter highlights the results that are produced by the administration of the company .

Fernando Melgarejo: It's essential that they transfer that to new workers that are now being hired. Thank you, Clarice. With that, we will wrap up. If you have any additional questions, you can send them to the GRI team. Before we finish our broadcast, I'll give the floor first to Director Sylvia and then to Director Fernando. Well, I'd like to highlight, in October, we had an oil production of 2.6. This is very positive data. I also want to highlight the importance of adequately managing the reservoir. Maybe for the first time, we're going to have 3 executive managers specializing in reservoirs. President Magda, she's also a reservoir engineer. She's constantly working with us on managing the reservoirs. There's an increase in production, increase in units, but also greater efficiency in terms of greater water injection, greater production, and greater well allocation.

Speaker #1: The administration is highly aligned with the company's governance . We're talking about the fiscal board , the statutory and non-statutory boards , the administrative board , the workers and the board of directors .

Speaker #1: We are all extremely aligned with the long and short term sustainability of the company , even in the face of a lower brand and focusing on a few subjects .

Speaker #1: First , production . We had a CapEx in the past that . Was highly scrutinized by everybody . And led to some questions .

Speaker #1: And the results are seen in production. We have even more to show you in the strategic plan that will be delivered on the 27th.

Speaker #1: Also strengthening the governance of the company . All of the projects go through a scrutiny financial assessment , three scenarios . It has to be positive there .

Speaker #1: They must have a synergy with the company and all that . Also , optimizing costs at all levels , whether it is investment costs , by finding better engineering solutions , production costs , our goal is also to try to reduce them .

Fernando Melgarejo: We reached 2.6 in October. That's very encouraging news. A perception, actually, the Q3 highlights the results that are produced by the administration of the company. The administration is highly aligned with the company's governance. We're talking about the fiscal board, the statutory and non-statutory boards, the administrative board, the workers, and the board of directors. We are all extremely aligned with the long and short-term sustainability of the company, even in face of a lower Brent, and focusing on a few subjects. First, production. We had a capex in the past that was highly scrutinized by everybody and led to some questions. The results are seen in production. We have even more to show you with a strategic plan that will be delivered on the 27th. Also, strengthening the entire governance of the company.

Speaker #1: The corporate costs that we've been implementing new projects and projects that would be approved in a normal situation because all scenarios are positive .

Speaker #1: We understand. We understand that sometimes indicators could be even better. So we take a step back and we're reviewing them to make them even better.

Speaker #1: Energy transition , which is always on our agenda and will always be on our agenda , has always been and always will be .

Speaker #1: And and also a just energy transition . I want to thank you all for watching us and being with us . And as Eduardo said , we are available to take any questions you may have in our meetings .

Fernando Melgarejo: All of the projects go through a scrutiny, financial assessments, 3 scenarios. It has to be positive. They must have synergy with the company and all that. Also, optimizing costs at all levels, whether it is investment costs by finding better engineering solutions, production costs. Our goal is also to try to reduce them, the corporate costs that we've been implementing, new projects that would be approved in a normal situation because all scenarios are positive. We understand sometimes that indicators could be even better. we take a step back, and we're reviewing them to make them even better. Energy transition, which is always on our agenda and will always be on our agenda, has always been, and always will be. also a just energy transition. I want to thank you all for watching us and being with us.

Fernando Melgarejo: As Eduardo said, we are available to take any questions you may have in our meetings, the chat, conferences, as is always the case. Thank you, and have a great weekend, everybody.

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