Q3 2025 Petroleo Brasileiro SA Petrobras Earnings Call

We have a Q&A session and you can send E or questions through email Petrie invest at Petrobras meeting is being recorded.

Speaker #1: 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 .

And here with US today, we Havent Zenica l'oreal or the executive director of energy transition and sustainability Claris spreadsheet.

Speaker #1: So we are waiting . Thank you . Sylvia . Go ahead . Renato . Hi , Hedges . To talk a little bit about Brent balance .

The executive director of corporate Affairs ferrous quota schlosser.

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Speaker #1: 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 .

Executive director of Engineering technology, and innovation Ricardo Wagner Exec.

Executive director of governance, and compliance Sylvia Ungers executive director of E&P and willing to answer.

Speaker #1: 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 branch balance .

Executive director of industrial processes and products to get started I'll give the floor to Fernando Fernanda do you have the floor.

Yeah.

Speaker #1: So this affects everything . Riggs and all this subsidies , considering Wells , why are we still drilling wells in Buzios for example , you saw that the Amir rig each well produces 50 to 60,000 barrels per day .

Good morning to our investors and stakeholders shareholders and analysts to 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 patch.

<unk> 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. This context demands continuous efforts to improve our efficiency and we've been focusing on the efforts, which is why we had a very positive third quarter.

Speaker #1: 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 #1: On the other hand , the inventory we have of other 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 .

Especially with the 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 where were disclosed yesterday.

Speaker #1: 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 .

We'll start with slide three.

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I want to highlight.

Kelly.

At new record breaking oil and gas production in the third quarter.

Speaker #1: 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 .

Two three point 14 million barrels of oil equivalent 76% above the second quarter of 2025, and almost 17% above the third quarter of 2024.

Total operated production also set a record at four point 54 million barrels of oil equivalent and once again, we set a new record for our own salt production, reaching $2 56 million barrels of oil equivalent. This is due to a 4% efficiency increase in 'twenty.

Speaker #1: But for now , this is not the case . If we continue at the same pace with interconnections very soon , 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 .

25 across operating field ends and the startup of new systems.

R E N P. Pes is intense as well as have the entire.

Speaker #1: 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 .

Company F yourself, Amit answered them on that are just part of the Boozier seven project reached a plateau with only five producing wells and three months ahead of its schedule I'll come back to this project leader. It has brought about excellence results.

Speaker #1: Let's start with Tasso . Go ahead . Tasso from UBS . If you can keep it to one question , I would like , I would thank you .

Speaker #1: 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 .

78 has arrived at its location and the booze use fields and it will start operating by the end of the year.

P 79.

Well.

Leave the Oregon, this months and come to Brazil, and also when we arrived our visibility was quite foggy in terms of this casual.

Speaker #1: I'd like to understand how you're adjusting the company's spending . We spoken about CapEx , but I'd also like to ask about opex .

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Speaker #1: 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 the this process is going .

Sweet arrived this has been this is being adjusted the physical and financial schedule is has also been adjusted we had a capex that was slightly higher.

Speaker #1: 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 ?

But we're currently.

Oh really.

I'm comfortable with the deadlines and reassure that we will meet the deadlines or even stay ahead of them.

Here, we highlight several milestones in the refining segment.

Speaker #1: That's all . Thank you . Thank you . Tasso Fernando . Good morning . Tasso . So we're going to publish that plan .

Speaker #1: Good morning and welcome to the Petrobras webcast with analysts and investors about the Q3 results for 2025. It's a huge pleasure to be with you today.

Our key projects to increase <unk>.

10 of diesel supply are advancing we signed contracts for the construction of units at the border Ventura complex, which will expand as 10 diesel and jet fuel production and also enable group to lubricants production. We also signed all nine.

Speaker #1: I'm going to share information with you before we start . This is going to be presented in Portuguese with simultaneous translation into English .

Speaker #1: 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 #1: And the links to both languages are on our investor Relations website . All participants will follow the internet transmission as listeners after the session , we'll have a Q&A session and you can send your questions through our email page at Petrobras .

Contracts for the completion of train two at aren't nest. These generated savings of a mall.

Speaker #1: 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 .

More than 1 billion he is compared to the reference budgets by 2039 of the refinery will reach a processing capacity of 260000 barrels per day.

Speaker #2: This meeting is being recorded .

These investments are aligned with that increased oil production.

Speaker #1: And here with us today we have Angelica Laureano , the executive director of energy transition and Sustainability . Clarice Capecchi , the executive director of corporate affairs affairs .

Speaker #1: 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 .

They improve the Brazilian that self sufficiency.

Contributing to energy security economic development and emission reduction in the third quarter domestic sales of oil products increased 5%, especially diesel which grew 12% compared to the second quarter of 2005, we exported around 800000 barrels of oil per day.

Speaker #1: 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 Anjos , executive director of E&P , and William Francoeur , executive director of industrial processes and Products .

Speaker #1: 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 and that , of course , needs to be related to our confidence level in strategic planning .

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Byproducts.

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Speaker #1: 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 .

Speaker #1: 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 and the corporate area .

The refinery after you'd see closed the quarter at 94% producing high value added derivatives. We also obtained a relevant environmental licenses such as the preliminary license for the bio QE V and renewable diesel plant at our P. B C.

Speaker #1: 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 and we'll publish more information when we have them .

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 .

The next slide shows our.

Record.

Speaker #1: 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 ?

Set by the <unk> kind of got the tuba in February and consumers gas processing plants, which reached 444 million cubic meters per day of gas specified our sale.

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 .

August of 2025. This is equivalent to approximately 80% of the total volume of consumed in Brazil's integrated network, we made progress in the <unk>.

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 .

Speaker #1: 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 .

Free market for natural gas, we're reaching the milestone of $6 5 million cubic meters.

<unk> per day of volume of contracted and this modality, which reaffirms the competitiveness of our portfolio. Another important milestone was the construction of.

Speaker #1: We'll start with slides three . I want to highlight especially a new record breaking oil and gas production in the third quarter , 3.14 million barrels of oil equivalent , 76% above the second quarter of 2025 .

Speaker #1: 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 .

The film demand Ccs pilot project in Mackay, a pioneering project in Brazil for the capture transportation and geological storage of up to 100000 tons.

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 2.56 million barrels of oil equivalent .

Speaker #1: 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 .

Cotr per year finally, we celebrated the hiring of 850 technical employees and approximately 570, new employees, who graduated from the training courses and we'll work to expand our operations. This was a brief summary of the various deliveries made in recent months.

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

Speaker #1: Although leverage is stable , so has your mind set changed about this plan ? You mentioned that we will probably not see that minimum dividend policy again .

Now, let's continue with the next slide.

On slide seven we see our financial highlights.

We achieved an adjusted EBITDA, excluding onetime items of 12 billion.

Speaker #1: So how sustainable is this and what will be your gross debt limit for 2026 and beyond ? Thank you , Melanie , for another answer .

Speaker #1: FPSo, which is part of the seven-project initiative, reached a plateau with only five producing wells, and it is three months ahead of schedule. I'll come back to this project later.

U S dollars net income excluding one time items reached $5 2, billion% to 28% increase over the second quarter of 2025 operating.

Speaker #1: Your question from the debt perspective , we have to remember that our cap is 75 billion and we reached nearly 71 this quarter with the capture we had .

Speaker #1: It has brought about excellent results . P78 has arrived at its location in the fields and it will start operating by the end of the year .

Operating cash flow closed the quarter at 9.9 billion U S D.

Speaker #1: And this increased the size of our treasury by 2 billion . If we look at net debt in the third quarter , we saw very small change versus the second quarter .

Speaker #1: P 79 will also leave the origin this month and come to Brazil and also when we arrived , our visibility was quite foggy in terms of this schedule .

The 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 #1: It remained basically flat with much more robust cash and . 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 #1: 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 .

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 #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 .

Next slide.

Here on slide eight we detailed a progress of operating results note that oil.

Speaker #1: 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 .

Fill in gas production increased by 8% in quarter.

Speaker #1: Here we have highlight several milestones in the refining segment . Our key projects to increase diesel supply are advancing . We signed five contracts for the construction of units at the Boaventura complex , which will expand as ten diesel .

And considering the last 12 months growth was 17%.

And the oil segment and 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.

Speaker #1: Thank you Fernando . We will now hear a question from Chiayi Biru from Bank of America . Go ahead . Caillou . Good afternoon everyone .

Speaker #1: And jet fuel production, and also enable Group Two lubricants production. We also signed all nine contracts for the completion of Train Two at Neste.

We increased efficiency reduced production downtime and reached peak production at the Almeida Cheatham on that F. P. S O exceeding its nominal capacity.

Speaker #1: 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 , how does that impact your appetite in participating in a bid ?

Speaker #1: These generated savings of more than 1 billion reais compared to the reference budgets . By 2029 , the refinery will reach a processing capacity of 260,000 barrels per day .

With this increase in production, we also managed to increase oil sales by around 14%.

Speaker #1: These investments are aligned with the increased oil production , and they improve the Brazilian self-sufficiency , contributing to energy security , economic development and emission reduction .

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 a detail on the next slide.

Speaker #1: Tenders for non-contracted areas , especially PSA . Thank you . Participating in auctions for Petrobras is just a part of replenishing our reserves .

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 .

Yeah.

In the third quarter branch rose, 2% contributing to the periods.

Speaker #1: We exported around 800,000 barrels of oil per day. When combined with byproducts, this surpasses 1 million barrels per day. This reinforces oil as Brazil's main export commodity. The refinery closed the quarter at 94%, producing high value-added derivatives.

Salt, but it's also important to analyze the last 12 months.

Speaker #1: Whenever we have an opportunity . You know , auctions are opportunities of increasing our reserves . So we will definitely participate in all auctions .

And one year, Brent fell by $11 per barrel and we were able to offset this impact with higher production and improved operational efficiency. The chart show that we were in line with the results for the third quarter of 2024 when bread.

Speaker #1: Not only this one . Of course , we are limited in cash flow . We need to be cautious , but we just need to see if this is economically viable .

Speaker #1: We also obtained a relevant environmental licenses , such as the preliminary license for the biochar and renewable diesel plant at Rpbc .

What at $80 per barrel in fact, adjusted EBITDA, excluding one off events reached 12 billion in the third quarter of 2025.

Speaker #1: 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 .

Surpassing the EBITDA recorded in the third quarter of 2024.

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

This reflects the excellent work of our teams who have transformed their efforts into more oil more gas and more derivatives.

Speaker #1: So auctions for Petrobras are an opportunity to replenish our reserves . So we will of course take these opportunities .

Next slide.

Speaker #3: This is equivalent to approximately 80% of the total volume consumed in Brazil is 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 .

Speaker #2: I'd like to confirm this partnership with the . Finances department . The perception of about the importance of renovating reserves and the importance of our blocks .

On slide 10, we will detail the distribution of Capex, which totaled $5 5 billion U S dollars in the third quarter of 2025, 85% of this investment is concentrated in exploration and production.

Speaker #2: As I said before , we will participate in auction we have in Brazil looking for the best opportunities and knowing that we need to renovate our reserves .

11%.

Were allocated to refining projects and 2% of the gas and low carbon energy segment.

Speaker #3: Another important milestone was the construction of the symptoms CCS pilot project in Macau , a pioneering project in Brazil for the capture , transportation and geological storage of up to 100,000 tonnes .

Okay.

Yeah.

Speaker #2: 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 .

The E&P, where capex constant created we observed that the investment growth occurred mainly in more subsea activities and platform construction and platforms, we had a greater concentration of contractual milestones in the third quarter.

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

Speaker #2: 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 every opportunities are , we have a it's also great to see that we have a partnership between finances and administrative administration in Petrobras , acknowledging the importance of new areas and new blocks for the company's future .

Notably the sail away of P 78.

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 .

And starting construction of the SAP yet to haul both in line with plans in subsea activities, we began to prelaunch of lines for Booz use six which increased.

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 .

These are investments in the quarter. This.

Speaker #2: 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 we are today .

This unit should start producing and generating returns later this year also in the third quarter, we drilled 20 wells completed Ted and interconnected 23.

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 .

These activities contributed to increase our production.

Speaker #2: Thank you . Now , a question from Gabriel . Gabriel from Citibank . Gabriel . Thanks for taking my question , Fernando . The entire Petrobras team .

And.

Of October a total of 65 wells were interconnected 41% more than the whole of last year.

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 .

This is why our investments are in production development, especially in the <unk> field was used is truly an exceptional assets asset there are six platforms in operation and last week the field reached a record.

Speaker #2: I'll limit myself to just one question . Has to do asked us to do . But I must insist on the CapEx . This is possibly one of the biggest issues we've been discussing with investors in the past few months .

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

Daily production of 1 million barrels per day.

I want to emphasize that we have a unique portfolio, especially in the E. M. P segment, where almost 90% of the company's investments are concentrated.

Speaker #2: 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 was , see that there is something close to 3 to 4 billion that are not yet allocated to the projects .

Speaker #3: And 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 .

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 900000 barrels per day.

Speaker #2: 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 #3: We increased efficiency , reduced production downtimes and reached peak production at the Almyra FPSo , exceeding its nominal capacity . With this increase in production , we also managed to increase oil sales by around 14% .

A of capacity.

Delivering these projects on time or even ahead of schedule as I said, while maintaining the project to cost means generating value for our share.

Speaker #2: 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 #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 .

Above and beyond for dividends.

We have a much more long term perspective now than for term.

Speaker #2: Maybe Namibia . There are several investments that have not been included for year , and know to what extent . And this is an important part of my question .

Let's move onto the next slide.

On slide 11, we will present the reconciliation between our accrual based capex and cash investment for the first nine months of the year.

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 #2: How kind of 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.

We reached 14 billion USD and 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.

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 #2: 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 #3: The charts show that we were in line with the results for the third quarter of 2020 . Four , when Brent was at $80 per barrel .

Our pace of investment execution is above the one that was projected in the current business plan.

Speaker #2: 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 .

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 .

This is not and it is important that this is clear to all of you.

Due to higher project execution costs.

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

All the projects remain the same.

I will repeat this delivery projects on time or even ahead of schedule, while maintaining the projected cost means generating value for our shareholders.

Speaker #2: We have contracts signed . So we have a commitment to the supplier . Actually , our suppliers have been great partners to Petrobras .

Speaker #3: On slide ten , we will detail the distribution of CapEx , which totaled 5.5 billion , US dollars in the third quarter of 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 .

Now, let's explain this cash investment.

Speaker #2: 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 .

To get the cash investment value.

You must exclude certain expenses that have no effect on tax investments.

As leases, which are classified as financing under Ifr 16, and geology and geophysics expenses, which are classified that expenses in corporate are catching on the other hand, we must add payments for contracts that were measured.

Speaker #2: 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 .

Speaker #3: In E&P , where CapEx is concentrated , we observed that the investment growth occurred mainly in more subsea activities and platform construction and platforms .

Other periods.

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 CP two hull .

Appreciate it.

Okay.

Speaker #2: We have the possibility of postponing them according to what we wish to do . Well , Gabriel . We have no perspective or whatsoever of stopping any projects stopping contracted projects is a very negative thing .

Between the measurement and their payment.

Speaker #3: Both in line with plans in subsea activities . We began the pre-launch of lines for US six , which increased our investments in the quarter .

Especially those related to measurements made at the end of 2024, when we readjusted the financial and physical balance of our projects Theres also the inclusion of payments for contracts.

Speaker #3: This unit should start producing and generating returns later this year . Also in the third quarter , we drilled 20 wells , completed ten and interconnected 23 .

Speaker #2: 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 .

Milestones related to the mobilization of services, especially E. P. C is for subsea activities.

Speaker #3: These activities contributed to increase our production and of October , a total of 65 wells were interconnected , 41% more than the whole of last year .

And the formation of adventure ease of materials and equipment that will only be used in the future.

Speaker #2: I know 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 .

That will lead to savings dead.

Speaker #3: This is why our investments are in production , development , especially in the Buzios field . Buzios is truly an exceptional asset . Asset .

So the cash investment for the first nine months of the year came to a total of 12 point of $9 billion, excluding carrier offer, especially from last year Capex add cash investment ratio was 80%.

Speaker #3: There are six 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 ENP segment , where almost 90% of the company's investments are concentrated .

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.

Speaker #2: 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 .

We were able to see on a record production.

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 .

Yeah.

On slide 12, we present, the company's debt history.

We issued two new bonds in September.

Maturing in 2030, and 20 of 36 to the amount of 1 billion U S dollars. Each it was a very successful operation with small spreads are related relative to sovereign bonds, demonstrating investor confidence and Petrobras gross debt reached 70.7 billion U S dollars slightly above the previous <unk>.

Speaker #2: 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 #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 .

Orders due to these fundings, which strengthened our cash position in the period note that our net debt is stable.

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 #2: Once it starts producing , it stays in production for 20 or 30 years . And the CapEx happens beforehand . Thank you . Renato .

So the funding we raised.

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 .

Taking advantage of an opportunity window like other companies remained in cash.

Speaker #2: Last question from Rodrigo Almeida from Santander . Rodrigo , you have the floor . Thank you . We do . And good afternoon , everybody .

It's important to underscore that we remain within the debt ceiling set out by the business plan.

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 the one that was projected in the current business plan .

And that more than 60% of the total debt corresponds to leases of platforms.

Speaker #2: 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 .

Boats, and the 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.

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 #2: 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 ?

On slide 13, we present the traditional slide on the company's shareholder remuneration policy. Our policy is flexible and ensures dividends compatible with different oil price scenarios without compromising the companys financial strength.

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 .

Okay.

We apply the formula as set forth in our policy and we'll distribute 45% of the quarter's free cash flow.

Speaker #2: Like with I don't know if there's . Anything similar to that partnership for these fields that are going to be decommissioned . If they could be transferred to a partner or not .

So the board of directors approved the distribution of $12 2 billion in Brazilian Reais as an advance payment on shareholder remuneration for the 2025 fiscal year to be paid in two equal installments in February and March 2026.

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 there payment , especially those related to measurements made at the end of 2024 , when we readjusted the financial and physical balance of our projects .

Speaker #2: So this is a bit of an unrelated question , but it could also be interesting to discuss . Thank you . Well , Rodrigo , I'm gonna share the answer with Renato .

Next slide.

All the companies work fronts translate into more synergy of higher revenues and concrete results for the company its shareholders and Brazilian Society.

Speaker #2: 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 #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 .

In addition to Petrobras as investments in the country.

Speaker #2: We have more than 50 rigs that are going to be decommissioned, and this applies to future ones as well. We are attempting to reduce it as much as we can.

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 from January to September 2025, our activities resulted in almost 200 billion Brazilian rise in taxes for society and the third quarter alone we paid 60.

Speaker #3: That will lead to savings den . 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 #2: 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 .

<unk> 8 billion in taxes.

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 .

This.

Speaker #2: And before that , we are extending the lifetime of the rigs for the ones that are in operation , the ones that have already stopped operating .

<unk> our presentation with to me.

<unk> recent developments on slide 15, we highlight the operating license from Ibama Ibama received on October 20.

Speaker #2: 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 70% or two .

For the drilling of the morpho exploratory well at a cost of Amapa 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 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 gross debt reached 70.7 billion USD , slightly above the previous quarters .

Speaker #2: That represents two thirds of the entire cost . So before removing a platform , you have to remove the wells , the lines and all that .

We have fully complied with the licensing process and demonstrated the robustness of the companys structure for environmental protection with.

Speaker #2: And Renata's group has been working on that to try to as much as possible quickly . A displace the platform to be decommissioned so that we can avoid the maintenance costs and the costs for personnel .

With the highest safety standards. The estimated total depth of the Moorefield, well is over 7000 meters, which places it among the deepest wells ever drilled by Petrobras there.

Speaker #3: Due to these fundings , which strengthened our cash position in the period . Note that our net debt is stable , so the funding we raised taking advantage of an opportunity window like other companies , remained in cash .

This technical complexity reinforces our technological and operational capabilities, we will operate in the equatorial margin safely and responsibly.

Speaker #2: 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 #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 .

Okay.

The next slide shows a.

A second piece of good news and the F. P. S O them on that are excuse me, albeit answered that.

Speaker #2: Well , Rodrigo . When Olivia's team assesses the lifetime of a rig or a field that's done at 70 years before stopping production , which is when we have to let ANP know now , especially with P35 and P-37 , which are about to be removed from the location because , like Sylvia said , all of the wells have been decommissioned .

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 .

Among that air which operates in the <unk> field reached a record instantaneous flow rate equivalent to 270000.

Barrels of oil per day on October 25, the units nominal capacity is 225000 barrels. So this increase is significant and was achieved without the need for new investments. This is a major achievement for Petrobras is engineering and exploration and production areas. These teams are working on a series of actions to increase pre.

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 to 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 .

Speaker #2: All the lines have been cleaned up . So we'll bring the rig to the coast in that process . We'll try to re the rig we're setting up a bidding process to at least use the hull .

Duction through efficiency gains.

Currently we already have five more production units. In addition told me that your demand that air which have received a favorable opinion from ibama for capacity expansion.

In total these expansions.

Speaker #2: We know that the topside is a bit more complicated because these are really old rigs that do not cater to the current specifications .

Without adding capex.

Add up to an increase of 115000 barrels per day strengthening our production capacity.

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 .

Around 90000 barrels per day of this capacity corresponds to Petrobras is share.

Speaker #2: So 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 .

It's worth noting that for.

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 .

Every 100000 barrels of oil per day that we produce we have an average of more than two <unk>.

Speaker #2: 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 .

Billion U S dollars and additional revenue per year all of these initiatives that we're implementing follow strict safety protocols in our 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.

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 #2: As for what to do with them . Thanks for not saying thank you , Sylvia . And now we are going to take the last question from Gustavo Acuna from BTG .

Speaker #2: Gustavo , good afternoon . All my question is in line with this scenario where the company is close to the 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 .

All of the collective effort of our teams and I'd like to think.

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

And each director, especially Mark Duff for her leadership.

We will now available we will now be available to answer.

Sure.

Questions from analysts thank you.

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 .

Thank you Fernando. Thank you for this presentation. We will now begin the question and answer session. The first question will be by IV Central Falanga from Bradesco go ahead.

Speaker #2: Thank you . Thank you . Gustavo . Good afternoon . Concerning the PDV , there is . We have no plans to release any other PDV .

Speaker #3: The estimated total depth of the Morpho well is over 7000m , which places it among the deepest wells ever drilled by Petrobras . This technical complexity reinforces our technological and operational capabilities .

Sure.

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 EP, but.

Speaker #2: The PDV that we launched is meant for a very specific population . These are the or the voluntary separation program . The VSP therefore , employees that retired before the Social Security reform a little over 100 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 Vsps .

Speaker #3: We will operate in the equatorial margin safely and responsibly . The next slide shows a second piece of good news . The FPSo on Monday .

I'd like to understand it.

From your efforts what has.

Ben the contribution of inflation in our industry.

Speaker #3: Excuse me , albeit on Monday , which operates in the field , reached a record instantaneous flow rate equivalent to 270,000 barrels of oil per day .

Two the results from Fps. So also this acceleration in Capex in 2025, what will it remove.

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 .

Any constraints for the Capex in 2026 or will it offset anything for 2000 Twenty's sex whatever the second question is one of our main clients as Braskem and they are accelerating their cash burn.

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 #2: 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 University and actually most of them , one thing I didn't mention about the workers that have already retired since 2019 .

And a very concerning way.

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

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.

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 .

Petrobras is 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 preferred a drastic situation with the biggest petrochemical company in Latin America, which had one of your main clients. Thank you.

Speaker #2: Their technical level workers . So the company is managing its headcount very carefully and also working on the knowledge transfer , which is fundamental .

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 #2: 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 .

I'll hand, it over to Fernando and then Renato can add to that answer.

Go ahead Fernando.

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 .

Good morning, so let's start by talking about.

Speaker #2: 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 jury team before we finish broadcast , I'll give the floor first to Director Silvia and then to Director Fernando .

The Brazilian petrochemical industry.

This is still a strategic area for us that is very important Petrobras sees it as.

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 for her leadership .

Very relevant for our.

Ecosystem around.

Oil so it is still very interesting.

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 .

When it comes to Braskem, specifically in this situation it's going through.

Speaker #2: Well, I'd like to highlight that in October we had an oil production of 2.6 million barrels. This is very positive data. I also want to emphasize the importance of adequately managing the reservoir.

It has its own.

Vernon's that.

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

Is definitely looking at their societal and cash issue.

Speaker #2: Maybe for the first time , we're going to have three executive managers specializing in reservoirs and presence . Magda . She's also reservoir engineer .

And we don't currently have anything on the table to discuss with them. We've gotten no proposals to discuss with them about amongst shareholders and we're waiting for this moment.

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 .

Speaker #2: She is 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 and greater well allocation .

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.

Speaker #2: So, we reached $2.6 billion 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.

And this.

We'll need to be an investment that makes sense and brings value for Petrobras as shareholders.

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 ?

Concerning capex I'll hand, it over to Renata, but I can say.

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 .

That our Capex has new.

Increase due to inflation.

Speaker #2: 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 .

Meaning that we.

Our accelerating investments as I said earlier.

Investments are being accelerated in the company and projects remain the same so if I take a project that has a certain budget.

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 , you know , a a drastic situation with the biggest petrochemical company in Latin America , which is one of your main clients ?

Speaker #2: 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 .

Allocated.

This is not going to go up but we are advancing some of these things Renato will add to that.

Have you since you. Thank you for the question as Fernando said Theres no inflation, it's quite the opposite we are looking at a stabilization and actually price reduction, especially in the subsea area. We reached high levels in 'twenty 'twenty four but we undertook several actions bringing.

Speaker #2: First , production . We had a CapEx in the past that . Was highly scrutinized by everybody and led to some questions . And the results are seen in production .

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

Speaker #2: And we have even more to show you in with a strategic plan that will be delivered on the 27th . Also , strengthening the governance of the company .

Several players to Brazil.

And.

Speaker #3: So let's start by talking about the Brazilian petrochemical industry . This is still a strategic area for us . That's very important . Petrobras sees it as very relevant for our ecosystem around oil .

Speaker #2: All of the projects go through a scrutiny financial assessments , three scenarios . It has to be positive there . They must have a synergy with the company and all that .

With that we were able to get more competitive prices. When it comes for instance to the F. P F cells see App, one and two.

Received free.

Speaker #2: 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 .

Speaker #3: So it is still very interesting when it comes to Braskem specifically . And the situation it's going through . It has its own governance that .

Poses and the only reason it did not received the fourth proposal was that one company and missed the deadline.

Find out we can't even remember the last time, we had four new proposals from companies proposing to us so competitiveness is back.

Speaker #2: 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 #3: Is definitely looking at their societal and cash issue . And we don't currently have anything on the table to discuss with them . We've got no proposals to discuss with them about among shareholders and we're waiting for this moment .

And we're really.

Speaker #2: We understand and we understand sometimes that indicators could be even better . So we take a step back and we're reviewing them to make them even better .

Speeding up investments as you can see from the results of E&P production most of it it's not only about Fps. So just a reminder, we also had new interconnections between wells into rigs were also interconnecting an additional 40% vis vis what we did last.

Speaker #2: Energy transition , which is always on our agenda and will always be on our agenda , has always been and always will be .

Speaker #3: 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 .

Speaker #2: 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 .

Cheer up until October and we still have two more months for new interconnect.

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 .

Nations and all of that is bringing more oil to the company and all of that it means investment and Capex, we have no expectations of reducing that next year will still.

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 .

Keep up the investment so that we can anticipate the projects more and more.

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 .

One very important.

Example to answer piece of 89 when we.

I took office.

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

No.

Expectations as to when a P 79, it was going to leave the shipyard and people were talking about August 2026, and it will.

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

Come out of the shipyard next Monday November 10th it will leave the Korean shipyard. So it's all about management's this is what we're doing there is no additional money, it's all about management and monitoring so that we can deliver the projects within the expected costs quality deadlines.

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're 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 .

And as safety levels.

Thanks, Renata and Fernando now I'll give the floor to him when he came on a child from Ito.

Yeah the for many key.

Hello, everybody. Good morning, Thanks for the opportunity to ask questions first wanted to congratulate you on the operational performance in the quarter. It was really solid and so congratulations to the teams involved.

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

I'll pick up on.

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 .

The Capex question, maybe changing perspective is a little bit.

And that goes to Renata.

Picking up on what you 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 28 should we see a reduction given the fact that you are able to anticipate the capex a bit and.

Speaker #1: We're also interconnecting an 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 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 .

Yeah.

Still the same question.

Does the company intend to balance out in the short term.

This capex with the need to maybe.

Speaker #1: One very important example to us is P79 . When we took office , we had no expectations as to when P79 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 .

Eitan.

Seatbelts, so to speak in a context of lower oil prices and the second question that May also good to Renata is that considering your big feet in with Amit entry to come on that are.

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 enthusiasts with similar measures from the perspective of engineering can you increase.

Speaker #1: It will leave a 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 .

East capacity by 20% in other moves us rigs, which are more complex P. 70, 883 would that also be possible and if that is possible I mean, if you're able.

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

To add additional capacity with no capex to the other rigs as well would that allow the booze use project to be re considered about its.

Speaker #1: Good morning . Thanks 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 .

Need.

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Bernardo you have a lot of work to do today.

Hi, <unk>.

I actually jokes about this unit and intervene.

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 .

At the end of the day, what you're trying to understand is what are our strategic plan. It looks like for the next five years, it's all about who is the murderer.

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 ?

Right everybody wants to know who the emitter is but we are going to publish our new strategic plan on November 27, and you won't have the possibility of.

Seeing what it looks like for the upcoming years about the possibility of us increasing the capacity of other rigs 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.

Speaker #1: And the second question that may also go to Renata is that considering your big feet in with 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 Buzios with similar measures from the perspective of engineering , can you increase capacity by 20% in other buzios rigs , which are more complex ?

Analyzing up to one point.

Can't take our protection, we have piece of anyone in piece Stephanie.

Into P.

It's producing a bit more the capacity is 150. It produces at 159, so we have.

Speaker #1: Piece 7883 would that also be possible ? 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 ?

Requested a stunning four P 78 that we'll start production next month and piece of it and nine Israel, but we don't have an answer yet.

Yeah.

Hello, <unk> good morning.

This process.

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 our strategic plan looks like for the next five years .

To increase capacity was a very.

Well find out process, we talked to the manufacturer to discuss the potential.

Are we talking about extremely proud.

Active of reservoirs, Oh man engine toman that error.

And five wells and we heard from the manufacturer and from the engineering.

Speaker #1: 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 about the possibility of us increasing the capacity of other rigs .

Department and the regulator the classify society I mean are we did a very thorough technical work to check the possibility we sites possible and that it applies to other areas and we will do.

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

Who that for every unit that can be applied.

The answer is we're not just 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.

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

With the installation of a valve that allowed us to increase the production by 10000 barrels per day. So it's a technical adjustment, but any such type of.

Adjustment is.

Made on an individual basis for each unit.

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 .

After rigorous technical assessment and the discussions with the classifying society and other stakeholders and that also.

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Reality in Booz Yosef spectacular reservoir, a huge field each well is.

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

Producing great results, there's a rocking cavity structured that often produces even more than we'd initially expected and that's why we received almost 1 million barrels that we celebrated and it's awesome.

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 .

To remind.

Everybody that we were awarded the obesity award due to the boosted production was last week. So each unit will be reviewed whenever there is an opportunity.

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 .

We will let the market know about that it's very positive piece of information for everybody. Thank.

Thank you Sylvia and Renata.

No Oh, we'll hear it from choker scanner from Morgan Stanley.

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 .

Thank you would do.

Good morning, Petrobras team.

A quick follow up to <unk> question and two 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 it.

And since that you find opportunities in other projects, how bureaucratic would that process being I mean for you get an approval would it be quick or would it take longer in my two other questions.

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.

Or I know that we will discuss that further in the business plan, but I'm going back to optimization and simplification of project. So what are the main discussions currently about <unk> 12 in what could be done there how does it fit that perspective and the second question is about.

Speaker #1: And it's also 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 .

The provisional measure from last week, what's your initial our initial take on it about the potential impacts of the provisional measure and also I'd like to understand how it could affect the decisions to invest in refit projects. Thank you.

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

Speaker #1: Patrick Brown's 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 .

Good morning Bruno.

Well capacity expansion is a very technical process, but it does not take too long.

<unk> entered some on that and we started the process in February and the entire process was initially discussed and we got an approval from Ibama. So it is not a bureaucratic or extremely long process. The entire technical team is involved associated with the quantifying that.

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 .

Body and the agencies for <unk> 12.

Booz use will be yet another project that we will review.

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

And well.

The fact that there is.

Now we are in the bidding.

Process now because we're not who 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 into 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.

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 .

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

Amounts that give us technical and economic competitiveness.

Speaker #1: Some of that we started the process in February and the entire process was initially discussed . And we got an approval from Ibama .

Before we started the bidding process for <unk> 12.

We.

Asked the market to send us a simplification suggestions.

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 12 .

For the technical specifications and we received many suggestions many of which were implemented and with that we were able to bring down the weight of the top side by 20%. So it was a.

Speaker #1: I think buses 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 we're nonato 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 .

Highly integrated.

Mrs.

In a joint effort with the market and for <unk> 12, we allow for even greater flexibility for our companies to suggest even more simplification. So our expectations for Boozers 12 are big to give you an idea in terms of pre qualified companies for the bushes Charles.

Bid and we have 12 companies for beauty and 12 EPC companies.

They have to be combined so.

Theoretically we can have even.

We can come to the point of having 12 proposals with simplification suggestions.

Speaker #1: Therefore , we started the bidding process for Buzios 12 . We . Asked the market to send us a simplification . Suggestions for the technical specifications .

Thank you Renato well about the provisional measure, it's not yet final or approved.

So let's wait for it but in any case and there are a few things you can say in terms of oil re injection well re injection is a fundamentally decided base.

Speaker #1: 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 a joint effort with the market . And for Buzios 12 , we allow for even greater flexibility for companies to suggest even more simplifications .

Based on our fluid our reservoir and our volume for.

For instance areas with an extremely high amount of C. O two now its.

Basically.

Impossible to work with if you do not re inject. So it is connected directly to the project and so we need to be careful about that and the second thing is the reference price obviously, when we're talking about a huge.

Speaker #1: So our expectations for year 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 .

Super Giants everything gets suggested 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 renovation.

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

Our renovation process and that requires I mean margins are smaller. So any addition in the values may render it unfeasible. So it's a big risk for each type of project.

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 .

In this specific case of the campus basin, which is very mature like I said the risk of.

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 .

Increasing.

A collection may render the renovation unfeasible and I think the renovation is going really well we have a very good goals for the campus basin will not forget it once again, we want to go back to producing 1 million barrels at the campus basin.

Speaker #1: It's they're basically impossible to work with if you do not reinject . So it is connected directly to the project . So we need to be careful about that .

And an increase may lead to.

Speaker #1: And the second thing is the reference price . 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 .

To the possibility of that happening.

Or ever an impossibility of that happening now a question from Georgia <unk> from Scotiabank.

Thank you for taking my questions first congratulations on the.

Operational results are two questions one about.

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

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 downtime would you consider that this level is sustainable or do you have any comments I mean, what's the.

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 .

<unk>.

Security.

A cap that we could think about and the second question is I'd like to understand.

Speaker #1: We have a very good goals for the campus . Basin . We will 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 .

What the decision making process is like between leasing and owning the F. B S. L. Whats the capital benchmarking that you use in your decision making process to define.

No.

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

Whether you are going to adopt one strategy.

Or the other thank you.

I'll give you four to William Frist, you'll talk about refining good morning, everybody. Good morning, George Thanks for the question.

Yeah.

Well the use of our refineries considers the process loans versus of the referenced load of units are referenced load is obviously authorized by the regulator the Brazilian oil agency and the capacity of our projects and equipment and guaranteeing reliability.

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 , which you consider that this level is sustainable . Do you have any comments ?

Security and sustainability of that load.

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.

Over the course of the.

Entire campaign of that unit. So the F. You tease our alliance with the reference lower there and there are required.

It's a requirement from the logistics.

Speaker #1: What the decision making process is like between a 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 ?

Sector of the company under director Cloud you.

And he.

Defines the.

Just the capacity for the period.

And I'd like to highlight that for this period in August we had E and F. <unk> of 98%, it's an average of you'd see because it considers some scheduled downtime that units have to go through to guarantee equipment integrity and to perform maintenance that occurs periodically usually every three four or five years. So that's analog.

Speaker #1: Thank you . I'll go 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 considers the processed loads versus the reference load of units . The reference load is obviously authorized by the regulator .

But in August it was at 98% so yes for closed too.

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 .

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 I'd like to say that we are working with a high reliability scenario working in integration and we expect even better.

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 .

Results for the last quarter.

<unk> debt for the last quarter, we'll have a long downtime.

For the divided Opana EBA refinery.

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% .

Installation, it's a large unit of 240000 barrels per day in terms of processing power is so is undergoing a scheduled downtime and go back to operation in the beginning of December at the our results will of course. This downtime will have to be accounted for in the S. E T.

Speaker #1: It's an average footfall 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 three, four, or five years.

Thank you.

Well George there is in no benchmarking for.

Speaker #1: So that's analyzed . But in August it was at 98% . So yes , for close to the limit reaching the cap at the units .

Contracting models at Petrobras.

The we have a standard.

Defined by Silvius departments that based on it Petrobras.

Speaker #1: And this is a number that is planned once again by the logistics and trade area . I'd like to say that we are working with a high 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 Vale do Paraiba refinery .

Petrobras internal technical capacity for instance, sometimes are in.

Engineering Department.

Is overburden so with two mature can read you not have enough head count or depend.

Depending on the supplier market of the company's financial capabilities, I mean, Theres a series of factors that are taken into account in our risk analysis based on which we consider the best.

Speaker #1: Desolation . 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 .

Alternative for the company for that specific moment in time in that specific project. So there is 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.

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

Thank you Renata.

Thanks for your questions George now, let's give the floor to Guillermo Costa from Goldman Sachs and Jeremy.

You have the floor. Thank you Eduardo.

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

Good afternoon, congratulations or not to Sylvia and the entire Petrobras team on the Great results. My first question is a follow up to my answer to the.

Previous questions. The platforms that are running with predictions above nominal capacity how sustainable is this level of production could you say that this is a new plateau for the prediction of these regs.

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 .

And my second question.

It's about capital allocation.

You've been very vocal about when it comes to being careful with Oh packs and thinking about remuneration to shareholders are there any discussions about potential changes to the company's internal policies.

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

Given the scenario for next year in M&A and last year's strategic plan, we talked extensively.

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 Jeremy Koster from Goldman Sachs .

About the ethanol market.

Do you have any updates about the discussions since then and also about the return to liquid natural gas was there any change at where our progress or approval by the board.

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

Lastly, one last question about M&A, what's the company's appetite for the.

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 .

Reserve capacity auction for next year.

Thank you.

Thank you again, everybody that's a lot of questions.

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

Well I'll give the floor to renata.

Good morning.

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 ?

About the production peak basically whenever we outline a development plan for our field. There is a ramp up in production. It reaches a plot. So and then it decreases so the production expectations are based mainly on the reservoir characteristics and availability.

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 ?

And all of that so we always try to reach a to use a rig where the.

The highest V. P. L is achieved we usually design a rig for a prediction peak and <unk>.

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 ?

Given the response of the reservoir them with higher productivity. The peak was augmented but the production peak is it restricted period.

The operations of the fields. After then it will go down in production as is usually the case. So this.

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 , basically , whenever we outline a development plan for a field , there's ramp up in production .

Increase in production is temporary in the prediction curve.

So we will always try.

To reach it but it is in <unk>.

And within the.

Field development plan basically based on the capacity of the reservoir. Thank you Silvia I'll give the floor to Fernando Angelica if she has any comments.

Speaker #1: It reaches a plateau , and then it decreases the production expectations are based mainly on the reservoirs characteristics and availability and all that .

Okay. So about all of this that we are discussing.

I think the right word here is caution.

Speaker #1: So we always try to reach a to use a rig where the highest VPL is achieved , we usually design a rig for a production peak and given the response of the reservoir higher productivity , the peak was augmented .

Considering that.

There.

Our node changes in policy, we intended to.

Continue holding it.

We believe that it's sustainable and there are other things that we can do before we changed the dividend policy.

Speaker #1: But the production peak is 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 .

And M&A 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 and the second point is that you need to have cash.

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

Or sustainable.

Cash long term that will.

And which will make sense to allocate capital to this investment.

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 .

So nothing will be done if these conditions are not met and obviously if there is a lot of pressure on brand we have the possibility of postponing.

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

Any investments.

That have been contracted.

Thank you Fernando Angelica.

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 .

Okay.

Good morning, Jeremy So about ethanol, we still strongly believe that ethanol is the strategic driver to achieve low carbon and our strategic plan. We foresee. The addition of renewables by 2050 around 8% to 11%.

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 .

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 .

Renewables in our primary energy matrix.

And so we're negotiating with partners.

But the possibility of going into this market through a minority.

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 .

Stake.

Considering our R. L cap, which is your next question we have about three.

Gigawatts of energy to sell in this auction we.

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 , we foresee the addition of a renewables by 2050 .

I think it will be difficult when it comes to the.

To allocating their transportation tariff, but.

We're speaking with the government to find some alternatives to allocate this odd transportation tariff.

Thank you Angelica Thank you Fernando.

We're going to continue with questions from hedges Cardoso from XP.

Yeah.

Speaker #3: 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 .

Thank you Eduardo.

Thank you for the space and the entire Petrobras team for these excellent results.

Referring back to Capex.

And also the equatorial margin.

Speaker #3: Considering our our cap , which is your next question we have about three . Gigawatts of energy to sell in this auction . We think it will be difficult when it comes to the to allocating the transportation tariff .

I'm wondering if you've found new evidence that reinforce the potential of the equatorial margin. 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: But we're speaking with government to find some alternatives to allocate this transportation tariff . Thank you . Angelica , thank you for now .

I do.

Don't know how if you have any evidence that will confirm or.

Not confirm your previous assumptions.

Speaker #3: We're going to continue with questions from hedge , from extreme . Thank you . Eduardo . Thank you for this . And the .

So when you accelerate capex that has the short.

Term.

Effect.

And Brent prices and this coincides with oil prices dropping so I don't know if this is something that you'd figure into your calculation, but still an acceleration. Another question I have is that when I see the number of.

Wells, especially in Booz used there seems to be more wells per platform, then we would need.

To meet this capacity given the productivity of the well itself.

So does it make sense to drill these wells beforehand or would it make sense to reduce the number of drills. So that's.

My question. Thank you.

Thank you hedges.

Sylvia and where not to hold onto your question.

So 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 CE close to Brazil and Africa.

Well when Brazil was closer to Africa, and you had a small C. There that created all of these generating rocks and this is what led to the development of oil and Ghana.

We found.

It I edges, and then do you believe.

At a theme was detected in French Guiana, which you believe and in Mesa.

And Doug we honor basin so.

This potential also is true for Brazil, the same reservoirs that they found in Ghana in French Guiana, and we aren't.

No.

Our data to the same times as the reservoir that we found here. So the fact that we are drilling.

Or it and up Bob.

Ah.

Refers to the.

These other.

Basin since 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.

So this first well will allow us to understand.

What the basin is like but this is not enough we are.

Already planning for eight wells in the region and in Rio Grande do Naughty, we had two findings with.

Smaller volumes not enough for us to place a unit, but now after morpho, we're drilling one more well in Rio Grande to Norton.

Depending on how much accumulation there is there we might have a production hub too.

And in them are PA, we're still drilling there first while we need to find.

Oil, but 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 and you can only find well.

Oh excuse me oils after you drill the well.

So.

After we understand that we will need to drill other wells to see.

These occurrences.

Fernando Melgarejo: We'll have a Q&A session, and you can send your questions through our email: petroinvest@petrobras.com.

So 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 and again, an accomplice basin, we only found at all.

Operator: This meeting is being recorded.

Fernando Melgarejo: Here with us today, we have Angelica Laureano, the Executive Director of Energy Transition and Sustainability, Clarice Popeci, the Executive Director of Corporate Affairs, Claudus Schlosser, the Executive Director of Trade and Markets, Fernando Algarejo, 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 Franco, 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.

On the ninth well drilled.

So the biggest success factor here is having Sim geological similarities.

And but they can only be considered truly identical if we get the same results. So we are waiting.

Thank you Sylvia go ahead Renata.

Hi, hedges to talk a little bit about.

Rent balance.

It is not impacted by advance payments what is the project our V. P L.

It increases significantly.

As you have in advance of your revenue so.

This is not being impacted what impacts the balance Brent is a total cost of the project.

As we're trying to simplify our projects that improves.

The branch of balance.

Yeah.

So this affects everything our rigs.

And all of us are subsidies.

Considering wells why are we still drilling wells in <unk> for example.

Fernando Melgarejo: 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 has been focusing on these efforts, which is why we had a very positive third quarter, especially with the 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 three. I want to highlight especially a new record-breaking oil and gas production in the third quarter: 3.14 million barrels of oil equivalent, 76% above the second quarter of 2025 and almost 17% above the third quarter of 2024. Total operated production also set a record at 4.54 million barrels of oil equivalent.

You saw that the albeit exit them on that area of a rig.

Each.

Well produces 50 to 60000 barrels per day, 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 on the other hand, the inventory we have of our wells.

Wells ready due to the increase in interconnections is going down fast so we need to keep up the same pace says we can include not drilling wells, but we always needs to look at our fleet.

And have plans be.

Yeah.

Some companies in Brazil.

The drill for oil came to us to ask if we could share.

Probes with them. So this is one of the opportunities that we have.

If we see that we're going too fast.

Fernando Melgarejo: 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 field and the startup of new systems. Our E&P pace is intense, as well as the entire company. FPSO Almirante de Mandaré, which is part of the Búzios 7 project, reached a plateau with only five producing wells and three months ahead of 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. Also, when we arrived, our visibility was quite foggy in terms of the schedule of the delivery of these production systems.

We can slow down.

Our pace.

And at the pace in which we drill our wells, but for now this is not the case if we continue at the same pace with interconnections very soon.

Wells will go into the.

To their critical zone, where.

Having a very healthy dispute our competition here and the engineering team because no one wants to get into that critical zone.

Okay for the next few.

Sure. So 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, Todd service for sellers from UBS.

If you can keep it to one question I would like I would think you think I would appreciate it. Thank you.

Yeah.

Okay. So sticking to one question.

I'd like to go back to that issue on balancing uses star says I'd like to understand.

Fernando Melgarejo: Ever since we arrived, this has been 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 S10 diesel supply are advancing. We signed five contracts for the construction of units at the Boaventura complex, which will expand S10 diesel and jet fuel production, and also enable Group 2 lubricants production. We also signed all nine contracts for the completion of Train 2 at Arenest. 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.

How youre adjusting that companies are.

Spending we spoken about top banks Budd.

I'd also like to ask about Opex.

I know that youre going to give more details about this plan at the end of the month, but I'd just like to know how the this processes going.

How you're thinking of balancing these two pillars and where do you see the most opportunities or are the highest potential to reduce expenses, where they are in capex or opex and in what areas.

That's all thank you.

Thank you Dr. So.

Bernardo.

Good morning to us so.

So.

We're going to publish that plan in 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 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.

Fernando Melgarejo: These investments are aligned with an increased oil production, and they improve the Brazilian self-sufficiency, contributing to energy security, economic development, and emission reduction. In the third quarter, domestic sales of oil products increased 5%, especially diesel, which grew 12% compared to the second quarter of 2025. 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. 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 Bio QAV and Renewable Diesel Plant at RPBC. The next slide shows our record set by the Cabiúnas, Caraguatatuba, Itaboraí, and Casinhas gas processing plants, which reached 44 million cubic meters per day of gas specified for sale in August of 2025.

And our results refers to production.

There are two very important further calls cost and revenue.

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 a Brent price is going up next year, because we believe that.

<unk>.

The future scenario or a lead us in that direction 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, we're talking about simplifying and optimizing project reducing costs across all areas.

The corporate and the corporate area, we had PV that as a part of our 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, we cant provide any details yet.

Fernando Melgarejo: 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 tons 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. 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.

Thank you Fernando will mainly Clifford from JP Morgan will ask the next question.

Delaney can you hear.

Chris.

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. So we were very happy about the increase in capacity for F. P. S. So in the results that you presented most of my questions have been answered but.

Ken.

Looking at use sources.

We heard about this pressure in brand, but in increased production ptv and containing opex to sustain this cash flow for the future.

Fernando Melgarejo: 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 the second quarter of 2025. Operating cash flow closed the quarter at $9.9 billion, 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 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 eight, we detail the progress of operating results. Note that oil and gas production increased by 8% in the quarter. Considering the last 12 months, growth was 17%.

Even with these efforts we saw that gross debt went up to nearly 71 billion U S dollars, which is closer to your 75 limit although leverage is stable.

So has your mindset changed about this plan.

You mentioned that we will probably not see that minimum dividend policy again, so how sustainable is this and what will be your gross debt limit for 2026 and beyond.

Thank you Bill any Fernando will answer your question.

From the debt perspective.

We have to remember that our cap of 75 billion and we reached nearly 71 this quarter with the capture we had and.

This increased the size of our treasury by 2 billion, if we look at net debt.

In the third quarter, we saw a very small change versus the second quarter.

It remained basically flat with much more.

Our robust cash and.

When it comes to strategic planning since we don't have the intention of change.

Fernando Melgarejo: 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 de Mandaré FPSO, exceeding its nominal capacity. With this increase in production, we also managed to increase oil sales by around 14%. 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. In the third quarter, Brent rose 2%, contributing to the period's results, but it's also important to analyze the last 12 months. In one year, Brent fell by $11 per barrel, and we were able to offset this impact with higher production and improved operational efficiency.

Changing dividends in our plan. We also believe that it is not necessary to change.

The cap on our debt goal maintain it but we'll do internal initiatives for efficiency.

Reviewing projects to.

And do more with less before we changed these two points.

Here, I'm, referring to debt and dividends.

Thank you Fernando we will now hear a question from Coyote Bureau from Bank of America go ahead Kyle.

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.

And with.

This intention to keep.

Gross debt at 75 below 75 billion, how does that impact your appetite and participating.

In a bid tenders for non contracted areas, especially P. P. S. A.

<unk>.

Fernando Melgarejo: The charts show that we were in line with the results for the third quarter of 2024, when Brent was at $80 per barrel. 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 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 the third quarter of 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. In E&P, where capex costs increased, we observed that the investment growth occurred mainly in more subsea activities and platform construction.

Yeah.

Participating in auctions for Petrobras is just a part of.

Replenishing our reserves whenever we have an opportunity auctions are opportunities are increasing.

Our reserves so we will definitely participate in all auctions not only this one.

Of course, we are limited and 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.

Chip in one.

Sylvie I might add to that answers so auctions for Petrobras are an opportunity to replenish our reserves. So we will of course take these opportunities.

I'd like to confirm this partnership with the.

Finances department the perception of about the importance of.

Renovating reserves and the importance of our blocks as I said before.

Fernando Melgarejo: In platforms, we had a greater concentration of contractual milestones in the third quarter, notably the sailaway of P-78 and starting construction of the Sepia 2 hull, both in line with plans. In subsea activities, we began the pre-launch of lines for Búzios 6, which increased our investments in the quarter. This unit should start producing and generating returns later this year. Also, in the third quarter, we drilled 20 wells, completed 10, and interconnected 23. These activities contributed to increase our production. At 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. There are six platforms in operation, and last week, the field reached a record daily production of 1 million barrels per day.

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 me one give up on the possibility of having the best blocks, we went to the.

Auctions in Cabozantinib want both of them with high competitiveness. So our intention is to be present whenever these wherever these opportunities are and we haven't it's also great to see that we have a partnership between finances and administrative administration and Petrobras acknowledging the importance of new areas and new <unk>.

Walks for the company's future.

So it's very encouraging to have this.

Communion across all of these departments.

Without new areas.

It will be hard to be.

B the Petrobras we are today.

Now a question from Gabriel Gabriel Barra from Citibank Gabriel.

Fernando Melgarejo: 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 two 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. 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.

Thanks for taking my question.

Fernando the entire Petrobras team.

Oh.

Limit myself to just one question has to do asked us to do but must insist on the Capex. This is possibly one of the biggest.

The issues have been discussing with investors in the past few months.

Hum.

Having I'm fishing, a little bit of a challenge here when it comes to this year's Capex and last year's Capex, you'll see that there is something close to $3 4 billion that are not yet allocated to the projects. So this is probably your range of flexibility.

To make adjustments as it were and we just talked about are non contracted areas ethanol breast camera.

The services market.

Ronaldo has been talking extensively about adjusting the portfolio of rigs and adjusting the subsea.

Fernando Melgarejo: 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. 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.

And not only there is a lot to be done, but this market is harder.

Harder.

To deal with maybe Namibia. There are several investments that are have not been included for next year and to what extent and this is an important part of my question, how kind of predict productivity is to stop a.

Project of the company since our most projects are 20 or 30 years long in Brazil, especially when it comes to offshore so how much flexibility do you have when it comes to the Capex for next year.

That's what I like to understand.

Thank you.

Okay, we're going to answer your question jointly myself and we're not have but by definition.

Okay.

The first year is give us the lowest flexibility.

Fernando Melgarejo: 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. 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 then.

Because there's four or five prediction systems up until 'twenty seven.

Them being built.

<unk> signed so we have a commitment to the supplier actually our suppliers have been great partners to Petrobras.

So our <unk>.

<unk> ability increases as time goes by for 2026 that we do not have a lot of flexibility.

The projects basically 90% of them are already contracted and.

Yeah.

This is what we're doing in the longer term.

We have the flexibility of postponing and things here and there and it's a high amount of flexibility for all of 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.

Yeah.

Well Gabriel.

We have no perspective whatsoever of stopping any projects.

Stomping contracted projects is a very negative thing so that's not even being considered.

Fernando Melgarejo: 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 each. 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.

If you remember about our plan and we have the projects that are under assessment and projects that are already.

Under implementation and now if you remember we returned two projects to the assessment phase.

Yeah.

They were not yet contracted.

We were still at the Fel three phase and we decided that we needed to study them further.

To increase there.

Their profitability. So they went back to the assessments desk. So we should consider that in our plan.

Includes these two groups of projects.

Have greater flexibility as Fernando said with the ones that are.

Assessment.

We should not forget Gabriel that 90% of our Capex.

Is allocated to E&P and production.

Fernando Melgarejo: 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. 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.

Protection 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.

Once it starts producing and staging production for 20 or 30 years.

And the Capex happens Hum.

Beforehand.

Thank you Renato.

Last question from Rodrigo Almeida from Santander, a Rodrigo you have the floor.

Thank you would do.

And good afternoon everybody.

Oh.

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, but there is an additional decommissioning costs, so I'd like to understand.

Fernando Melgarejo: 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 workfront is translated 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. From January to September 2025, our activities resulted in almost BRL 200 billion in taxes for society. In the third quarter alone, we paid BRL 68 billion in taxes. This concludes our presentation with two major recent developments.

Do you think about reusing the regs 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 I'm.

Making a partnership.

Like with bio Terror and know if there is.

Anything.

Similar to that partnership where these fields that are going to be the commission if they can be transferred to a partner.

Or not.

So this is a bit of an unrelated question, but it could also be interesting to discuss thank you.

Well rich.

Rodrigo I'm going to share the answer with Renata.

Decommissioning is part of the history over the life of the fields.

You start with exploration and production in all of them will reach the decommissioning phase.

We'll have more than 50 rigs that are going to be decommissioned and.

This.

For the future ones that we are attempting to.

Reduce the as much as we can in the period between the interruption of production and decommissioning and because now we have for instance, a huge amount of rigs that need to be decommissioned to basically at the same time and before that we are extending the lifetime of the rigs.

Fernando Melgarejo: On slide 15, we highlight the operating license from Ibama received on 20 October 2023 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 7,000m, which places it among the deepest wells ever drilled by Petrobras. 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.

For the ones that are in operation the ones that have already <unk>.

Dumped 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 of rig has wells. It has lines and everything underneath that is not seen at 70% or two that represents two thirds of the entire cost so before removing a platform you have to remove the wells the lines and all that.

And Renata his group.

He's been working on that to try to as much as possible now quickly displace the platform to be decommissioned them. So that we can avoid the maintenance costs and of course with personnel.

Fernando Melgarejo: The FPSO Almirante, which operates in the Búzios field, reached a record instantaneous flow rate equivalent to 270,000 barrels of oil per day on 25 October 2023. 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, 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. Around 90,000 barrels per day of this capacity correspond to Petrobras's share.

On on rigs that are not producing anymore. So our.

Efforts now are.

To are being invested in are trying to.

Decommission these platforms as soon as possible.

Yeah.

Well Rodrigo.

Okay.

When sylvia's team assesses.

Assesses the Oh.

Lifetime of a rig or a field. That's done is 70 years before stopping production, which is wondering how to alert.

In P&L now, especially with P 35, and P 37 or about to be removed from the location because like Sylvia said all the wells have been decommissioned all the lines have been.

Yeah.

Cleaned up so we'll bring the rig to the coast them in that process, we'll try to re utilize the rig we're setting up a.

Fernando Melgarejo: 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 Falonga from Bradesco. Go ahead, sir. Thank you, Magda, Fernando, and the entire Petrobras team. I have two questions.

Bidding process to at least a use the hull, we know that the top side is a bit more complicated because these are really old rigs that do not cater to the current specifications.

Yeah.

So.

We will now.

Set up a pilot to realize of the P 35, and <unk> 37, a house if we're successful that may become our new normal, but each case will be different.

I was looking we have at 54 rigs and operations that need to be decommissioned and all of them are going to be assessed.

As for what to do with them.

Thanks for not to and thank you Sylvia.

And now.

We are going to take the last question from Gustavo community from BTG Gustavo.

Good afternoon.

Okay.

Okay.

Well my question.

Is.

In line with this scenario, where the company is close to the.

That camp I'd like to understand the rationale of the P. G V and if we can expect additional PV how the company is balancing out the additional need for OPEC did to new platforms and the use of the required opec's due to the low price scenario. Thank you.

Fernando Melgarejo: 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 Braskem, and 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 since this is becoming an urgent matter.

Thank you Gustavo good afternoon.

Concerning.

The P. D V. There is we have no plans.

Two.

Release any other.

<unk> TV the PDP that we launched as a man for a very specific population. These are.

And 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 <unk>, 52, which outlines all of the buy.

Financial limits for the Vsp's so.

I also want to make it clear that we have.

Fernando Melgarejo: 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? 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 Braskem specifically and the situation 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. We've gotten no proposals to discuss with them among shareholders, and we're waiting for this moment.

Did it technical level hiring process.

We have hired more than 1700, a technical level of workers and part of them are as still being trained at the Petrobras University.

And actually most of them.

One thing I didn't mention about the workers that have already retired as since 2019 are there technical level workers. So the company is.

Managing its head count very carefully and also working.

On it.

The knowledge transfer, which is fundamental we need all of the workers that remained at the company.

Dealing with extremely critical processes for the company and have a very high level of knowledge. It is essential that they transfer that to new workers that are now being hired.

Thank you Clarice and with that.

Okay.

We.

Well.

Our ramp up if you have any additional questions you can send them to the J REIT team before.

We of finish our.

Broadcast I'll give the floor first to directors Sylvia and then two director Fernando.

I'd like to highlight in October.

We had an oil prediction of 2.6 and this is.

Very positive data.

I also want to highlight the importance of adequately managing the reservoir.

Fernando Melgarejo: We hope that it is soon, but they have their own governance, and we cannot say anything if we do not have any proposals on the table for discussion, for assessment, and 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, and 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. Thank you for the question. As Fernando said, there is no inflation. It is quite the opposite.

Maybe for the first time.

We're gonna have three executive managers as specializing in reservoirs and presence Magda She's also reservoir engineer.

She's constantly working with us on managing the reservoirs. So increasing there was an increase in production increase of union in units, but also greater efficiency in terms of greater water injection greater prediction greater well allocation.

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 of the results.

That are produced by the administration of the company.

The administration is highly aligned with the company's governance with talking about the physical board the statutory in Nonscheduled Tory Board said the administrative board the workers and the board of Directors said, we're all extremely aligned.

Fernando Melgarejo: 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, and with that, we were able to get more competitive prices. When it comes, for instance, to the FPSOs, CEAP 1 and 2 received three proposals, and the only reason they did not receive the fourth proposal was that one company missed the deadline. We can't even remember the last time we had four 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, it's not only about FPSO. Just a reminder, we also had new interconnections between wells and rigs.

With the long and short term sustainability of the company even in face of a lower brand and focusing on a few subjects first production well.

We had a capex in the past that.

Was highly scrutinized by everybody and let's have some questions and the results are seen in production and we have even more at the show you in with a strategic plan that will be deliberated on the 27 also strengthening the entire governance of the company all of the projects go through a <unk>.

Certainly financial assessments are three scenarios it has to be positive.

I have a synergy with the company and all of that.

So 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 at the corporate costs that we've been in.

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 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. 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 2024. It will leave the Korean shipyard. It's all about management. This is what we're doing. There is no additional money.

Implementing new projects or projects that would be approved in a normal situation because all scenarios are positive we understand and we understand sometimes that indicators could be even better. So we take a step back and we are reviewing them to make them, even better energy transition, which is always on our agenda and we'll always be on our adjourn.

<unk> has always been and always will be.

Yeah.

And.

And also 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 Chad conferences as is always the case, thank you and have a great weekend everybody.

[music].

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 have the floor, Monique. Hello, everybody. Good morning. Thanks for the opportunity to ask questions. First, I want to congratulate you on the operational performance in the quarter. It was really solid, so congratulations to the teams involved. I'll pick up on the Capex question, maybe changing perspectives a little bit, and 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?

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 seatbelts, 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 with Almirante and 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, 83? Would that also be possible? 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.

Fernando Melgarejo: Renata, you have a lot of work to do today. I know. Hi, Monique. I actually joked about this in an interview. 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 2024, 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, I'll give the floor to Sylvia. 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 out of production. We have P-71 and P-70 into P. It's producing a bit more.

Fernando Melgarejo: 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 do not have an answer yet. Sylvia? Hello, Monique. Good morning. This process 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 and Tamandaré, and five wells. We heard from the manufacturer, from the engineering department, and the regulator, the classifying society. I mean, we did a very thorough technical work to check the possibility. We saw it is possible and that it applies to other areas, and we will do that for every unit that can be applied.

Fernando Melgarejo: 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 insulation of a valve that allowed us to increase the production by 10,000 barrels per day. 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. 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, and that's why we received almost 1 million barrels that we celebrated. It's also good to remind everybody that we were awarded the OPC award due to the Búzios production. That was last week.

Fernando Melgarejo: Each unit will be reviewed whenever there is 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 Chango Cascada from Morgan Stanley. Thank you, Edu. Good morning, 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 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?

Fernando Melgarejo: My two other questions are: I know that we'll discuss that further in the business plan, but 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 and Tamandaré, we started the process in February, and the entire process was initially discussed, and we got an approval from Obama. It is not a bureaucratic or extremely long process.

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 are 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.

Fernando Melgarejo: 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%. 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 come to the point of adding 12 proposals with simplification suggestions. Thank you, Renata. Well, about the provisional measure, it's not yet final or approved, so let's wait for it. In any case, there are a few things we can say.

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, they're basically impossible to work with if you do not reinject. It is connected directly to the project, so we need to be careful about that. The second thing is the reference price. Obviously, when we're talking about huge super giants, everything gets adjusted. If you talk about the Campos Basin, that has a big number of mature fields, 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.

Fernando Melgarejo: In the 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, and an increase may lead to the possibility of that happening or an impossibility of that happening. Now, a question from Georgie Gebridge 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?

Fernando Melgarejo: I mean, what's the operational security 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.

Fernando Melgarejo: The FUTs are aligned with the reference load, and it's a requirement from the logistics sector of the company under Director Claudus, and 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 three, four, or five years. That's analyzed. In August, it was at 98%. Yes, we're 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.

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 the last quarter, highlighting that for the last quarter, we'll have a long downtime for the Valle do Paraíba refinery distillation. 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. The results will, of course, this downtime will have to be accounted for in the FUT. Thank you. Well, George, there is no benchmarking for the contracting models. At Petrobras, we have a standard defined by Sylvia's department that, based on Petrobras' 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.

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 in that specific project. There is 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, Georgie. 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 rigs?

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 liquid 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 a ramp-up in production.

Fernando Melgarejo: It reaches a plateau, and then it decreases. The production expectations are based mainly on the reservoirs, characteristics, and availability, and all that. We always try to use 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'll 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 Angelica if she has any comments. Okay.

Fernando Melgarejo: 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 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. Good morning, Guilherme.

Fernando Melgarejo: 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, Angelica. 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.

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. In 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.

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, 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 Aegeus 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.

Fernando Melgarejo: The same reservoirs that they found in Ghana, 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 Amapá refers to 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 Morpho, we are drilling one more well in Rio Grande do Norte.

Fernando Melgarejo: Depending on how much accumulation there is there, we might have a production hub too. In Amapá, 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 oil 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. 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 geological similarities.

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, is the project VPL. It increases significantly as you have an advance of your revenue. This is not being impacted. What impacts are the balance? Brent is the total cost of the project. As we're trying to simplify projects, that improves the Brent balance. This affects everything: rigs and all the subsidies. Considering wells, why are we still drilling wells in Búzios, for example? You saw that the Almirante da Mandaré 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.

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, but 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. If we continue at the same pace with interconnections, very soon, 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.

Fernando Melgarejo: 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. Tasso Cellos from UBS. If you can keep it to one question, I would thank you. 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've spoken about Capex, but I'd also like to ask about Opex.

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 two 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.

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. In the corporate area, we had the PDV that is a part of our reorganization plan. In 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.

Fernando Melgarejo: We can't provide any details yet. Thank you. Fernando Mileni Clifford from JP Morgan will ask the next question. Mileni, 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, 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 billion limit, although leverage is stable. Has your mindset changed about this plan?

Fernando Melgarejo: 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, Mileni. 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. This increased the size of our treasury by $2 billion. If we look at net debt, in the third quarter, we saw a very small change versus the second quarter. It remained basically flat, with much more robust cash. When it comes to strategic planning, since we do not have the intention of changing dividends in our plan, we also believe that it is not necessary to change the cap on our debt.

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 this intention to keep gross debt below BRL 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, auctions are opportunities of increasing our reserves. We will definitely participate in all auctions, not only this one. Of course, we are limited in cash flow.

Fernando Melgarejo: 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.

Fernando Melgarejo: We went to the auctions in Campos, and we won both of them with high competitiveness. Our intention is to be present wherever 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 Citibank. Gabriel? Thanks for taking my question. Fernando, the entire Petrobras team, I'll limit myself to just one question, as I do ask us 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.

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 was seated. There is 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 Namibia, there are several investments that have not been included for next year.

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, but by definition, the first years give us the lowest flexibility because there's four or five production 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.

Fernando Melgarejo: The projects, basically 90% of them are already contracted, and this is what we're doing. In the longer term, we have the flexibility of postponing things here and 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, 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 don't know if you remember, we returned two projects to the assessment phase. They were not yet contracted.

Fernando Melgarejo: We were still at the felt-free phase, and 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 are 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, stays in production for 20 or 30 years, and the CapEx happens beforehand. Thank you, Renato. Last question from Rodrigo Almeida from Santander. Rodrigo, you have the floor. Thank you, Edu, and good afternoon, everybody.

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, but 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 Bayatea. I don't know if there's anything similar to that partnership for 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, but it could also be interesting to discuss. Thank you. Well, Rodrigo, I'm going to share the answer with Renato.

Fernando Melgarejo: 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. 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.

Fernando Melgarejo: 70%, or that represents 2/3 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 with 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.

Fernando Melgarejo: Now, especially with P35 and P37, 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, 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 top side 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 P35 and P37 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, and all of them are going to be assessed as for what to do with them.

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 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.

Fernando Melgarejo: We worked towards, in addition to retaining knowledge, which is extremely important for us, also working within the guidelines and parameters established by TGPAR 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 did not mention about the workers that have already retired since 2019, they are 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.

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, and 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 three executive managers specializing in reservoirs, and 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, greater well allocation.

Fernando Melgarejo: 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. 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 the 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, and the results are seen in production, and we have even more to show you with a strategic plan that will be delivered on 27 November 2023. Also, strengthening the entire governance of the company.

Fernando Melgarejo: All of the projects go through a scrutiny, financial assessment, three scenarios. It has to be positive. 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, the corporate costs that we've been implementing, new projects, projects that would be approved in a normal situation because all scenarios are positive. We understand sometimes that indicators could be even better, so 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.