Q2 2026 Petroleo Brasileiro SA Petrobras Earnings Call

Speaker #1: Good afternoon, and welcome to the PETROBRAS broadcast with analysts and investors about our second quarter 2026 results. It's a pleasure to have you with us today.

Eduardo De Nardi Ros: Good afternoon, welcome to Petrobras Webcast with analysts and investors about our Q2 2026 results. It is a pleasure to have you with us today. This event will be presented in Portuguese with simultaneous interpretation into English. Links for both languages are available on our investor relations website. All participants will follow the webcast online in listen-only mode. After our introduction, we will hold a Q&A session. Joining us today are Magda Chambriard, the President of Petrobras, Angélica Laureano, Chief Logistics, Commercialization, and Markets Officer, Clarice Copetti, Chief Corporate Affairs Officer, Fernando Melgarejo, Chief Financial and Investor Relations Officer, Renata Baruzzi, Chief Engineering, Technology, and Innovation Officer, Ricardo Wagner, Chief Governance and Compliance Officer, Sylvia Anjos, Chief Exploration and Production Officer, William França, Chief Industrial Processes and Products Officer, and William Nozaki, Interim Chief Energy Transition and Sustainability Officer.

Speaker #1: This event will be presented in Portuguese, with simultaneous interpretation into English. Links for both languages are available on our investor relations the webcast online and listen-only mode after our introduction will hold a Q&A session.

Speaker #1: Joining us today are Magda Chambriard, the President of Petrobras; Angelica Laureano, Executive Officer for Logistics, Commercialization, and Market; Clarice Copetti, Executive Officer for Corporate Affairs; Fernando Melgarejo, Chief Financial and Investor Relations Officer; Renata Baruzzi, Executive Officer for Engineering, Technology, and Innovation; Ricardo Wagner, Chief Governance and Compliance Officer; Sílvia Anjos, Chief Exploration and Production Officer; William França, Chief Industrial Processes and Production Products Officer; and William Nezaki, Acting Executive Officer for Energy Transition and Sustainability.

Speaker #1: To begin with, I will hand it over to our president, Magda Chambriard, for her remarks. President, please go ahead. Good morning, everyone. It's a pleasure to be with you today.

Magda Chambriard: I will hand it over to our President, Magda Chambriard, for her remarks. President, please go ahead. Good morning, everyone. It is a pleasure to be with you today to demonstrate once again Petrobras' capacity to surpass its goals and deliver impressive results to our investors, be they from the public or private sectors. We have the full board of Petrobras with us, I would like to take the opportunity to greet all investors, all of the representatives of our investors, all of the executives that are in this session with us, and our partners, and everybody that joined us remotely for the disclosure of our Q2 2026 results. I would like to greet everybody from the press joining us. We become increasingly prouder of our results.

Speaker #1: To demonstrate once again PETROBRAS's capacity to surpass its goals in delivering impressive results to our investors, be they from the public or private sectors.

Speaker #1: We have the full board of PETROBRAS with us, and I'd like to take the opportunity to greet all investors, all of the representatives of our investors, all of the executives that are in this session with us and our partners, and everybody that joined us remotely for the disclosure of our second quarter 2026 results.

Speaker #1: Also, I'd like to greet everybody from the press joining us. We become increasingly prouder of our results. It's a pleasure to be here once again, joined by you, to once again present another result that surpassed the previous ones of a result of our intensive work with our diverse teams working in a partnership to deliver an increasing amount of oil gas and byproducts with security.

Eduardo De Nardi Ros: It is a pleasure to be here once again, joined by you, to once again present another result that surpassed the previous ones of a result of our intensive work with our diverse teams, working in a partnership to deliver an increasing amount of oil, gas, and byproducts with security, quality, efficiency, and capital discipline. In Q1 2026, we reached several records, in Q2, we surpassed them with important milestones once again. We reached, I must highlight this, the highest net profit on a recurring basis for the quarter in dollars in the history of Petrobras. This recurring profit excludes exclusive events, it is also the highest gross profit in the history of Petrobras. We are proud to say that we achieved those results with no sales of assets.

Speaker #1: Quality, efficiency, and capital discipline. And the first quarter of 2026, we reached several records. And in the second quarter, we surpassed them with important milestones once again.

Speaker #1: We reached—and I must highlight this—we reached the highest net profit on a recurring basis for the quarter in dollars. And the history of PETROBRAS, this recurring profit excludes exclusive events, and it's also the highest gross profit in the history of PETROBRAS.

Speaker #1: And we're proud to say that we achieved those results with no sales of assets. Of course, brand above $100 per barrel upstream, our results, but the highest results achieved are the ones that we will go over now.

Eduardo De Nardi Ros: Of course, Brent above $100 per barrel strengthened our results, the highest results achieved are the ones that we will go over now. The recurring only events was not with history's highest Brent. We had over 10 quarters with oil prices above that one in the past, nonetheless, we achieved the highest recurring results in terms of net profits in the history of Petrobras. Our key differentiator, which we are proud of, is operational administration, which is shared with the company's several different departments. Operational records in terms of the production of oil, gas, refining, and selling of products. That has been our commitment. In the quarter, we produced 2.7 billion barrels of oil per day, in addition to gas. If we consider in equivalent barrels of oil, it was more than 3 million barrels per day.

Speaker #1: The recurring only events was not with histories of highest brand. We had over 10 quarters with oil prices above that one in the past, and nonetheless, we achieved the highest recurring results in terms of net profits in the history of PETROBRAS.

Speaker #1: Our key differentiator, which we're proud of, is operational administration, which is shared with the companies several different departments. Operational records in terms of the production of oil, gas, refining, and selling of products.

Speaker #1: That's been our commitment. In the quarter, we produced 2.7 billion barrels of oil per day in addition to gas. If we consider in equivalent barrels of oil, it was more than 3 million barrels.

Speaker #1: Per day. We can't promise that we will surpass our goal, but I guarantee that we've always worked towards that, surpassing our goals in the second quarter of 2026.

Eduardo De Nardi Ros: We can't promise that we will surpass our goal, but I guarantee that we've always worked towards that, surpassing our goals. In Q2 2026, our goal was to produce 2.5 million barrels per day. We surpassed the goal of Q2 by 200,000 barrels of oil per day. That's due, among other factors, to increased efficiency in the production of platforms and also by pushing forward the delivery of projects. You probably remember that we pushed forward the delivery and the wrap-up of P-78, as well as the delivery and the ramp-up of P-79. Other platforms will come. Some of them are already arriving this year. Once again, I'm going to repeat that we will move forward the delivery of big projects.

Speaker #1: Our goal was to produce 2.5 million barrels per day. We surpassed the goal of the second quarter by 200,000 barrels of oil per day.

Speaker #1: That's due among other factors to increase efficiency in the production of platforms and also by pushing forward the delivery of projects. You probably remember that we pushed forward the delivery and the wrap-up of P-78, as well as the delivery and the ramp-up of P-79.

Speaker #1: Other platforms will come; some of them are already arriving. This year, and once again, I'm going to repeat that. We will move forward the delivery of big projects.

Speaker #1: With greater volumes, we also increased our oil export levels. With an additional 12% in this quarter, and these sales become greater revenue and cash generation.

Eduardo De Nardi Ros: With greater volumes, we also increased our oil export levels with an additional 12% in this quarter, and these sales become greater revenue and cash generation. Here, I must make a side note to highlight, in addition to the work involved in production and the engineering work involved in these projects, the participation of refining by refining and teaching our buyers to further and further refine our oil and to further value our product, and also with the participation of logistics at Petrobras, with the intent of broadening the market for our end product, which is oil, was impressive. Once again, it was these events and the joint work of all departments of Petrobras dedicated to the same purpose and the same goal that allowed us to achieve these great results.

Speaker #1: And here, I must make a side note: the highlight, in addition to the work involved in production and the engineering work involved in these projects, was the participation in refining—by refining and teaching our buyers to further and further refine our oil and to further value our product—and also with the participation of logistics at PETROBRAS, with the intent of broadening the market for our end product, which is oil. It was impressive.

Speaker #1: And once again, it was these events and the joint work of all departments of PETROBRAS dedicated to the same purpose and the same goal that allowed us to achieve these great results.

Speaker #1: Our bigger generation of revenue and cash flow will be used to fund our investments and safely prepare us for the future of the company.

Eduardo De Nardi Ros: Our bigger generation of revenue and cash flow will be used to fund our investments and safely prepare us for the future of the company. The cash flow that's being generated today will be used to fund Petrobras' growth. I'd like to say that just like the company was successful in its first 72 years, we are preparing the company to successfully take on the following 72 years. The refining teams, in addition to production and engineering, did a great job. The utilization factor of our refineries surpassed 100% in Q2 2026. Here at the company, we got into the habit of saying that goals are for the weak of heart. Petrobras is proud to always surpass its goals.

Speaker #1: The cash flow that's being generated today will be used to fund PETROBRAS's growth. And I'd like to say that just like the company was successful in its first 72 years, we are preparing the company to successfully take on the following 72 years.

Speaker #1: The refining teams, in addition to production and engineering, did a great job. The utilization factor of our refineries surpassed 100% in the second quarter of 2026.

Speaker #1: And here at the company, we got into the habit of saying that goals are for the week of hard. PETROBRAS is proud to always surpass its goals.

Speaker #1: We've increased the processing maintaining the same diesel yield and gasoline. Which is equivalent to greater revenue for PETROBRAS and a greater value to our shareholders be they public or private.

Eduardo De Nardi Ros: We've increased the processing, maintaining the same diesel yield and gasoline, which is equivalent to greater revenue for Petrobras and a greater value to our shareholders, be they public or private, without losing sight of capital discipline. The production of byproducts grew 6% vis-à-vis the previous quarter, and with that, we were able to reduce imports by 40%, especially those of diesel. We do what we have to do. We are doing it. We've elevated operating efficiency, and we've produced way beyond the original capacity in 7 platforms. We've also increased the utilization factor of refineries as a whole, of course, with safety first. The Brent price and the exchange rate is not something we can control. We don't know where they'll go, and that's why we invest with capital discipline, prioritizing projects of high returns.

Speaker #1: Without losing sight of capital discipline. The production of byproducts grew 6% vis-à-vis the previous quarter. And with that, we were able to reduce imports by 40%, especially those of diesel.

Speaker #1: We do what we have to do. We are doing it. We've elevated operating efficiency, and we've produced well beyond the original capacity in seven platforms.

Speaker #1: We've also increased the utilization factor of refineries as a whole—of course, with safety first. The Brent price and the exchange rate are not something we can control.

Speaker #1: We don't know where they'll go, and that's why we invest with capital discipline, prioritizing projects with high returns. All of our investments involve rigorous governance for approval, to verify the attractiveness and the return for our shareholders, be they from the public or private sector.

Eduardo De Nardi Ros: All of our investments involve rigorous governance for approval to verify the attractiveness and the return for our shareholders, be they from the public or private sector, and at the same time, to deliver value to society. Once again, be they comprised by our public or private shareholders, respect the governance. We need to reiterate that every day is a pillar of our administration. We will continue focusing on our business plan, which is well-known to all of you, with the commitment to deliver to society a Petrobras that's profitable and absolutely relevant to our country. I will now give the floor to our CFO, Fernando Melgarejo, who will dive into the details of Q2 2026. I want to thank you for listening to us. Thank you all for your presence. Thank you, President. Good morning, everyone.

Speaker #1: And at the same time, to deliver value to society. Once again, be they comprised by our public or private shareholders. And respect the governance.

Speaker #1: And we need to reiterate that every day is a pillar of our administration. We will continue focusing on our business plan, which is well known to all of you, with the commitment to deliver to society a Petrobras that's profitable and absolutely relevant to our country.

Speaker #1: I will now give the floor to our CFO, Fernando Melgarejo, which will who will dive into the details of the second quarter of 2026.

Speaker #1: And I want to thank you for listening to us. Thank you all for your presence. Thank you. President, good morning, everyone. Thank you for joining us for this webcast for the results of the second quarter of 2026.

Fernando Sabbi Melgarejo: Thank you for joining us for this webcast for the results of Q2 2026. I also want to greet everybody that's here at the headquarters of the company. As we said, we had a quarter of record operating performance, which drove Petrobras to one of its best financial results in history, which are deeply anchored in the good operating performance. Once again, I have to highlight that that was a major step forward where we were able to manage, and also at the same time, we are able to evolve in the best possible manner, which is one of the highlights of this administration. The search for increased oil production efficiency, accelerated ramp-ups, that are also part of the records that we've been bringing to the company. If it were not for that, we wouldn't have achieved the financial records.

Speaker #1: I also want to greet everybody that's here at the headquarters of the company. As we said, we had a quarter of record operating performance, which drove PETROBRAS to one of its best financial results in history. These results are deeply anchored in the good operating performance, and once again, I have to highlight that this was a major step forward where we were able to manage and, at the same time, evolve in the best possible manner.

Speaker #1: One of the highlights of this administration is the search for increased oil production, production efficiency, and accelerated ramp-ups, which are also part of the records that we've been bringing to the company.

Speaker #1: If it were not for that, we wouldn't have achieved the financial records, financial records are firmly anchored in the operating records of the company.

Eduardo De Nardi Ros: Financial records are firmly anchored in the operating records of the company. Now, let's move forward to slide three. Our oil production, as the president already said, was 2.7 million barrels per day. A 15% increase over 12 months, which is equivalent to 350,000 additional barrels if we compare this period to the same previous period, approximately three platforms producing additionals in only one year. As a reminder, last year, we also had records in Q3. It was an additional 4%. That's quite relevant. We were always wondering where we would get to, now we can demonstrate with our production that we are reaching our goals, surpassing some indicators as well. Alexandre de Gusmão, for instance, at the Mero field, is producing 100,000 barrels, P-78 at Búzios, 120,000, and both have the capacity to produce 180,000 barrels per day.

Speaker #1: Now let's move forward to slide three. Our oil production, as previously mentioned, was 2.7 million barrels per day—a 15% increase over 12 months, which is equivalent to additional barrels if we compare this period to the same previous period, by approximately three platforms producing additional output in only one year.

Speaker #1: And as a reminder, last year we also had record records in the third quarter. It was an additional 4%. And that's quite relevant. Our and we were always wondering where we would get to and now we can demonstrate with our production where that we are reaching our goals.

Speaker #1: Surpassing some indicators as well. Alexandre Guzman, for instance, at the Meadowfield is producing 100,000 barrels in P78 at Busios 120,000 and both have the capacity to produce 180,000 barrels per day.

Speaker #1: That is to say that we have a greater capacity to achieve. In addition to the record-breaking capacity, we still have some room to cover.

Eduardo De Nardi Ros: That is to say that we have a greater capacity to achieve. In addition to the record-breaking capacity, we still have some room to cover. When they're at the nominal capacity, we'll add another 90,000 barrels per day. We also have the ramp up of P-79, as I said, which started operations in May this year and has a capacity of 180,000 barrels. In summary, even with the record production of 2.7 million barrels of oil per day, we still have 270,000 barrels per day of capacity to ramp up in H2. Another highlight has been the increase in production of certain platforms beyond their nameplate capacities.

Speaker #1: When they're at the nominal capacity we'll add another 90,000 barrels per day. And we also have the ramp-up of P79, as I said, which started operations in May this year and has a capacity of 180,000 barrels.

Speaker #1: In summary, even with the record production of 2.7 million barrels of oil per day, we still have 270,000 barrels per day of capacity to ramp up in the second half.

Speaker #1: Another highlight has been the increase in production of certain platforms beyond their nameplate capacities. The Almirante Tamandara FPSO in Busios has an original capacity of 225,000 barrels.

Eduardo De Nardi Ros: The Almirante Tamandaré FPSO in Búzios has an original capacity of 225,000 barrels, which makes it a large-scale platform, and the unit has reached a peak production of 270,000 barrels per day and is currently the highest producing platform in Brazil. It's a huge platform in a huge field with a very positive potential for the next years. In addition to Almirante Tamandaré, we have another six platforms adapted to operate above their original capacity. Today, this additional capacity already totals more than 100,000 barrels per day, practically a new platform, a mid-sized or a large-sized platform. We're working to continue to expand this potential.

Speaker #1: Which makes it a large-scale platform. And the unit has reached a peak production of 270,000 barrels per day. And is currently the highest producing platform in Brazil.

Speaker #1: It's a huge platform in a huge field, with a very positive potential for the next years. In addition to Almirante Tamandaré, we have another six platforms adapted to operate above their original capacity.

Speaker #1: Today, this additional capacity already totals more than 100,000 barrels per day—practically a new midsize or large-sized platform. And we're working to continue to expand this potential.

Speaker #2: The important thing is that we're increasing production safely and we're doing that without the need for additional construction work, which allows us to increase revenue and cash flow immediately without the need for any additional investment.

Fernando Sabbi Melgarejo: The important thing is that we're increasing production safely. We're doing that without the need for additional construction work, which allows us to increase revenue and cash flow immediately without the need for any additional investment. It's only revenue without any investment, which is quite positive. Now, before moving over to the next slide, I'd like to highlight important news from this week. We announced a new gas discovery of gas in Colombia, which confirms the region's gas potential. Now, this is a project that is aligned with our long-term strategy, which seeks to replenish reserves through exploration across new frontiers. This doesn't mean that the Brazilian land is not our priority. Brazil still is our focus, but we are an international company. We need to look across our borders as well. Let's finally move on to slide four, talking about CapEx.

Speaker #2: So it's only revenue without any investment, which is quite positive. Now, before moving over to the next slide, I'd like to highlight important news from this week.

Speaker #2: We announced a new guest discovery of gas in Colombia, which confirms the region's gas potential. Now, this is a project which is aligned with our long-term strategy, which seeks to replenish reserves through exploration across new frontiers.

Speaker #2: So this doesn't mean that the Brazilian land is not our priority. Brazil still is our focus, but we are an international company, so we need to look across our borders as well.

Speaker #2: So let's finally move on to slide four, talking about CAPEX. And the second quarter of this year, as we can see on the slide, we invested 5.3 billion up 4% over the first quarter, when we had invested 5.1 billion dollars.

Fernando Sabbi Melgarejo: In Q2 of this year, as we can see on the slide, we invested BRL 5.3 billion, up 4% over Q1 when we had invested BRL 5.1 billion. Overall, we have BRL 10.4 billion over two quarters here at Petrobras. More than 80% of that investment, in fact, 82%, is focused on E&P projects, focusing on increasing production with high returns for the company. We have a few examples here on the slide versus the previous quarter. We increased well drilling by 40% and 45% in well completions. Interconnections also increased by 43%, driven by the ramp up of Búzios 6 and Búzios 8, as well as complementary wells, which helped to maximize the production for each production unit. Part of the investment was also allocated to advancing the construction of new platforms in Búzios, such as P-70A, P-82, and P-83.

Speaker #2: So overall, we have 10.4 billion over two quarters here at PETROBRAS, more than 80% of that investment. In fact, 82% is focused on ENP projects, focusing on increasing production with high returns for the company.

Speaker #2: We have a few examples here on the slide versus the previous quarter. We increased wall drilling by 40% and 45% in well completions. Interconnections also increased by 43%, driven by the ramp-up of Busios 6 and Busios 8, as well as complementary wells, which helped to maximize the production for each production unit.

Speaker #2: Part of the investment was also allocated to advancing the construction of new platforms in Busios, such as P78, P82, and P83. These are all huge platforms each with nameplate capacity of 225,000 barrels.

Fernando Sabbi Melgarejo: These are all huge platforms, each with nameplate capacity of 225,000 barrels. These are projects that offer high returns and rapid cash generation. With P-80, we expect to hear positive news with regards to moving ahead of schedule, much like what happened to P-79. Now over to slide five, talking a little about our products. In refining, we hit a record refinery utilization with a 101% FUT, increasing production by 68% of the yield mix in higher value-added products. In April and May, we came to about 102% FUT, a record for the company. We'd been working with very low FUT rates. Another important point, usually when FUT increases, that's because we're focusing on lower value-added products.

Speaker #2: These are projects which offer high returns and rapid cash generation. And with P78, we also expect rather P80. We expect to hear positive news with regards to moving ahead of schedule.

Speaker #2: Much like what happened to P79. So now over to slide five, talking a little about our products. And refining we hit a record refinery utilization with a 101% FUT, increasing production by 68% of the yield mix and higher value-added products.

Speaker #2: In April and May, we came to about 102% FUT, a record for the company. We'd been working with very low FUT rates and another important point, usually when FUT increases, that's because value-added products.

Speaker #2: But in this case, we continue to see the same shares for higher value-added products with diesel jet fuel and gasoline, which makes these even more effective refineries.

Fernando Sabbi Melgarejo: In this case, we continue to see the same shares for higher value-added products with diesel, jet fuel, and gasoline, which makes these even more effective refineries. As a result, we expanded the supply of our own products and reduced the need for imports, especially diesel, which we still need to import. We are essentially self-sufficient in terms of gasoline, and that is all because we have produced more. We also increased oil product output by 6% and reduced our imports by 40% versus the previous quarter. This increases even more the company's efficiency and cash flow. Another factor with a positive impact for us were our imports. Even though we were processing more oil, production was so much higher that refining has increased, and our exports of Brazilian products also increased.

Speaker #2: As a result, we expanded the supply of our own products and reduced the need for imports, especially diesel, which we still need to import.

Speaker #2: We're essentially self-sufficient in terms of gasoline, and that's all because we have produced more. We also increased oil product output by 6% and reduced our imports by 40% versus the previous quarter.

Speaker #2: Again, this increases even more the company's efficiency and cash flow. Another factor with a positive impact for us was our imports. Even though we were processing more oil, production was so much higher that refining increased and our exports of Brazilian products also increased.

Speaker #2: We were already seeing high exports in the first or in the second quarter but increased even more in Q3. My apologies. We just heard something from our civil defense, so we had to interrupt, but just jumping in now.

Fernando Sabbi Melgarejo: We were already seeing high exports in Q1 or in Q2, but increased even more in Q3. My apologies. We just heard something from our civil defense, so we had to interrupt. Just jumping in now. We saw an increase by 12% in exports for the company, and reached very significant increase in our exports of oil, which improved our cash flow even more. Moving over to the following slide six, a little bit about our financial results. We can see our EBITDA and net profit. All of these operating records led us to one of the best results in Petrobras' history in terms of finances, in terms of recurring net income and gross profit. As our president has already said, these were record-breaking figures. Brent prices were some of the highest, excluding, obviously, all the one-off events.

Speaker #2: We saw an increase by 12% in exports for the company. And reached very significant increase in our exports of oil, which improved our cash flow even more.

Speaker #2: Moving over to the following slide, slide six, a little bit about our financial results. Here we can see our EBITDA and net profit. All of these operating records led us to one of the best results in PETROBRAS' history in terms of finances.

Speaker #2: In terms of recurring net income and gross profit, as our president has already said, these were record-breaking figures. Burn prices were some of the highest excluding obviously all the one-off events burn prices were above 104 dollars, but as the president has already said, was not the highest burn price we've ever seen, not even among the 10 highest, which also shows that our operating efficiency was very positive.

Fernando Sabbi Melgarejo: Brent prices were above $104, as the president has already said, was not the highest Brent prices we have ever seen, not even among the 10 highest, which also shows that our operating efficiency was very positive. Even so, we achieved adjusted EBITDA, excluding one-off events, of $20 billion this quarter, which was 70% higher than in the previous quarter, and nearly double the figure from 12 months ago. Gross profit is not shown on this slide, but it was $19.5 billion for the quarter, the highest in the company's history. Another record-breaking figure. All of that, as we keep repeating, anchored in our stupendous operating performance, which is what making the difference.

Speaker #2: Even so, we achieved adjusted EBIT excluding one-off events of 20 billion this quarter, which was 70% higher than in the previous quarter, and nearly doubled the figure from 12 months ago.

Speaker #2: Gross profit is not shown on this slide, but it was $19.5 billion for the quarter, the highest in the company's history. So, another record-breaking figure.

Speaker #2: All of that, as we keep repeating, is anchored in our stupendous operating performance, which is what is making the difference. The higher volume of oil and oil product production and sales, combined with higher barrel prices, has strengthened our cash generation, with operating cash flow of $12.3 billion for the quarter, growth of nearly 50% when compared with the previous quarter.

Fernando Sabbi Melgarejo: The higher volume of oil and oil product production, and sales combined with higher Brent prices, has strengthened our cash generation, with operating cash flow of $12.3 billion for the quarter, growth of nearly 50% when compared with the previous quarter. These are very strong results, and I therefore emphasize, we did not have record Brent prices, we did have record production, which drove our financial results this quarter. Moving over to slide seven, a little bit about our debt. This year, we carried out a very important initiative to renegotiate contracts for recharters and well services, constantly monitoring the market to identify opportunities such as this one. The result is expected to generate an estimated cash flow savings of over $1 billion over 2026-2030 five-year period, reducing our debt by over $400 million by 2030.

Speaker #2: So these are very strong results. And I therefore emphasize we did not have record Brent prices, but we did have record production, which drove our financial results this quarter.

Speaker #2: Now, moving over to slide seven, a little bit about our debt. This year, we carried out a very important initiative to renegotiate contracts for re-charters and well services.

Speaker #2: Constantly monitoring the market to identify opportunities such as this an estimated cash flow savings of over 1 billion over 2026 2035 year period, reducing our debt by over 400 million by 2030.

Speaker #2: This will lead to a significantly lower cash flow for the company, which will allow us to reach our goals. Now, because the amendments extending the contract terms were signed in the second quarter, we had to reorganize the value of these contracts and lease liabilities immediately.

Fernando Sabbi Melgarejo: This will lead to a significantly lower cash flow for the company, which will allow us to reach our goals. Because the amendments extending the contract terms were signed in Q2, we had to reorganize the value of these contracts and lease liabilities immediately. These increase in the short term, but we reduce our future disbursements and cash flow, creating value, and that's the key benefit. And that's how it has to work. On this slide, we can also see the increase in lease liabilities, but the reduction in financial debt offset the increase, as you can see in the third column. This was possible due to our prepayments during the quarter. We repaid loans and financing totaling BRL 2.9 billion, close to BRL 3 billion.

Speaker #2: So, these increase in the short term, but we reduce our future disbursements and cash flow, creating value. And that's the key benefit, and that's how it has to work.

Speaker #2: Now, on this slide, we can also see the increase in lease liabilities, but the reduction in financial debt offset the increase as you can see in the third column.

Speaker #2: So this was possible due to our prepayments during the quarter. We repaid loans and financing totaling 2.9 billion dollars, close to 3 billion. Notably, the prepayment of 1.4 billion in bank market transactions and the repurchase and redemption of 700 million in bonds issued in the international capital markets.

Fernando Sabbi Melgarejo: Notably, the prepayment of BRL 1.4 billion in bank market transactions, and the repurchase and redemption of BRL 700 million in bonds issued in the international capital markets. Also during this quarter, we opportunely raised about BRL 600 million. We therefore ended the quarter with gross debt of BRL 70.8 billion and a net debt of BRL 60.4 billion. Without the recognition of the lease contract amendments, our debt would have been at the same level as in 2025, which is what you see in the first column on the slide. Even so, the trend is still downward. We maintain our expectation of converging to BRL 65 billion over the horizon of this plan, a level that optimizes our capital structure. Moving over to the following slide, looking at our forecast for the year.

Speaker #2: Also during this quarter, we opportunely raised about 600 million we therefore end of the quarter with gross debt of 70.8 billion and a net debt of 60.4 billion.

Speaker #2: Without the recognition of the lease contract amendments, our debt would have been at the same level as in 2025, which is what you see in the first column on the slide.

Speaker #2: Even so, the trend is still downward. We maintain our expectation of convey of converging to 65 billion dollars over the horizon of this plan.

Speaker #2: A level that optimizes our capital structure. Moving over to the following slide, now looking at our forecasts for the year. Here we have a snapshot of how we're progressing this semester versus our projections, which were laid out in 2025 and presented in our strategic plan.

Fernando Sabbi Melgarejo: Here we have a snapshot of how we're progressing this semester versus our projections, which were laid out in 2025 and presented in our strategic plan. Production has remained above the top of the range, and we're working hard to exceed the target. We'll deliver as much as possible, but obviously there are challenges. Production is already at a very high level, but we're still committed to delivering as much as we can, especially this year when we have a very interesting price window. With regard to cash investments, we expect to end the year at the top of the range. The projection is BRL 16.9 billion with a 5% margin, give or take. If we have to bring any investment forward, that will be because it'll create more added value and bring more value ahead of schedule for the company.

Speaker #2: Reduction has remained above the top of the range, and we're working hard to exceed the target. We'll deliver as much as possible, but obviously there are challenges. Production is already at a very high level, but we're still committed to delivering as much as we can, especially this year when we have a very interesting price window.

Speaker #2: With regard to cash investments, we expect to end the year at the top of the range. The projection is $16.9 billion, with a 5% margin, give or take.

Speaker #2: And if we have to bring any investment forward, that will be because it'll create more added value and bring more value ahead of schedule for the company.

Speaker #2: Of course, we've pursued bringing projects forward, but not bringing cost forward. We pursued delivery, but we do not want higher project costs. We are making the most to accelerate delivery without increasing them.

Fernando Sabbi Melgarejo: Of course, we've pursued bringing projects forward, but not bringing cost forward. We pursue delivery, but we do not want higher project costs. We are making the most to accelerate delivery without increasing them. Operating expenses are slightly above plan for this H1, pressured by higher freight and logistics, which lead to increased production as well as exchange rate effects. We total BRL 11.7 billion in this H1 versus a full-year plan of BRL 20.2 billion. We're monitoring the situation, and expenses may exceed the projection if global market logistics costs and exchange rates remain at the same levels in the next few H2. We believe that there will be less uncertainty in the next quarter, and if need be, we will revise the figures, obviously, with full transparency to all our stakeholders. Moving over to the next slide about our collections.

Speaker #2: Operating expenses are slightly above plan for this half of the year, pressured by higher freight and logistics, which led to increased production costs as well as exchange rate effects.

Speaker #2: So, we total $11.7 billion in this half of the year versus a full-year plan of $20.2 billion. We're monitoring the situation, and expenses may exceed the projection if global market logistics costs and exchange rates remain at the same levels in the next six-month period.

Speaker #2: We believe that there will be less uncertainty in the next quarter, and if need be, we will revise the figures—obviously with full transparency to all our stakeholders.

Speaker #2: So moving over to the next slide about our collections. Here we see an example of the positive effects that our improved operating results have on society at large.

Fernando Sabbi Melgarejo: Here we see an example of the positive effects that our improved operating results have on society at large. When we produce more, we pay more taxes. We paid BRL 88.6 billion in taxes and government take in Q2 alone, BRL 500 million to municipalities, BRL 31.5 billion to state governments, BRL 34.2 billion to the federal government, and BRL 22.4 billion in government participation. Petrobras paid about BRL 22 billion more in taxes and government take versus Q2 of last year. On an annualized basis, we're talking about an increase in government take and taxes of close to additional $90 billion for the government purse a year. Now I conclude my presentation with the message that we're reaffirming our commitment to growing the company with profitability and responsibility when it comes to capital. Petrobras' success does not remain within the company.

Speaker #2: When we produce more, we pay more taxes. So we've paid R$88.6 billion in taxes and government take in the second quarter alone: R$500 million to municipalities, R$31.5 billion to state governments, and R$34.2 billion to the federal government.

Speaker #2: And 22.4 billion in government participation. PETROBRAS paid about 22 billion more in taxes and government take versus the second quarter of last year. On an annualized basis, we're talking about an increase in government take in taxes of close to 90 billion dollars additional 90 billion dollars for the government purchase a year.

Speaker #2: So now I conclude my presentation with the message that we're reaffirming our commitment to growing the company with profitability and responsibility when it comes to capital PETROBRAS's success does not remain within the company.

Speaker #2: It is shared with society as a whole. Once again, thank you all for your attention. Alongside all our other executive officers and the president, we're available to answer all of your questions. I will now hand it back to Eduardo, who will begin our question-and-answer session.

Fernando Sabbi Melgarejo: It is shared with society as a whole. Once again, thank you all for your attention. Alongside all our other executive officers and the president, we're available to answer all of your questions. I will now hand it back to Eduardo, who will begin our question and answer session.

Speaker #1: Thank you, Magda. And Fernando, we'll now start our Q&A session. I kindly ask the participants to only ask one question so that we are able to make better use of our time.

Eduardo De Nardi Ros: Thank you, Magda and Fernando. We'll now start our Q&A session. I kindly ask the participants to only ask one question so that we are able to make better use of our time. The first question comes from Bruno Montanari from Morgan Stanley. Please proceed, Bruno. Thank you, good afternoon, everybody. Congratulations on the results, especially for the execution in production growth. Focusing on production, the president, Fernando, already gave us an idea of by how much the production could grow this year. I'd like to see if it's fair to say that the plan curve in the medium and long term does not look very conservative, especially if you look at the highest peak of the curve, and it's at 2.6 or 2.7 million barrels that you surpassed already.

Speaker #1: The first question comes from Bruno Montanari from Morgan Stanley. Please proceed, Bruno. Thank you, and good afternoon, everybody. Congratulations on the results, especially for the execution and production curve.

Speaker #1: And focusing on production, the present and Fernando, already gave us an idea of by how much the production could grow this year but I'd like to see if it's fair to say that the plan curve in the medium and long term does not look very conservative and especially if you look at the highest peak of the curve and it's at 2.6 or 2.7 million barrels that you surpassed already.

Speaker #1: And in terms of capex, and in terms of bringing Búzios deliveries forward and the sequence of P80 for the quarters and if there'll be a ramp up for the P80 this year or not, I'd like to know that.

Bruno Montanari: In terms of CapEx, and in terms of bringing Búzios deliveries forward and the sequence of P-80 for the quarters and if there'll be a ramp-up for the P-80 this year or not, I'd like to know that. Thank you. Thank you for your question, Bruno. We have to remember that we work with non-renewable resources. Producing 2.7 million barrels per day is a challenge, especially because we have to face production declines. Nevertheless, these declines have been reduced. Just to give you an idea, when we took office, we were looking at a decline of 12% a year. Currently, this decline is in the range of 4% per year due to the better administration of reservoirs and the better water injection, adequate production methods, better deposit management, and so on and so forth.

Speaker #1: Thank you. Thank you for your question, Bruno. We have to remember that we work with non-renewable resources. Producing 2.7 million barrels per day is a challenge.

Speaker #1: Especially because we have to face production declines. Nevertheless, these declines have been reduced. Just to give you an idea, when we took office, we were looking at a decline of 12% a year.

Speaker #1: Currently, this decline is in the range of 4% per year due to the better administration of reservoirs and the better water injection adequate production methods, better deposit management, and so on and so forth.

Speaker #1: And of course, with the new platforms arriving, and the platforms that went into production recently, and with the ramp-up achieving its peak, we will achieve the planned results and likely surpass them.

Magda Chambriard: Of course, with the new platforms arriving, the platforms that went into production recently, and with the ramp-up achieving its peak, we will achieve the planned results and likely surpass them. However, surpassing results is something that we like delivering without promising anything previously. With that, I will give the floor to Silvia and Renata. Renata will talk about the new platforms that will go into production. They are arriving soon in Brazil. They are leaving Asia and coming to Brazil. I would like to mention an important aspect. The first huge platform, that is different from the previous ones that we had at Petrobras, was Almirante Tamandaré, with a capacity of 225,000 barrels per day. That platform, as Fernando mentioned, produced 270,000 barrels per day. Its capacity has been expanded to 270 barrels per day, and it has produced that many barrels.

Speaker #1: However, surpassing results is something that we like delivering without promising anything—previously. With that, I'll give the floor to Sylvia and Renata. Renata will talk about the new platforms that will go into production—they're arriving soon in Brazil.

Speaker #1: They're leaving Asia and coming to Brazil. But I'd like to mention an important aspect. The first huge platform that's different from the previous ones that we had at PETROBRAS was Almirante Tamandaré.

Speaker #1: With the capacity of 225,000 barrels per day. That platform, as Fernando mentioned, produced 270,000 barrels per day. Its capacity has been expanded to 270 barrels per day and it has produced that many barrels.

Speaker #1: Which is to say that, with the pre-salt production capacity, with the production capacity of PETROBRAS by interconnecting wells and doing a better job of managing the deposits and drilling high-productivity wells and connecting the platforms—with all of that, all of these efforts led us to transform a platform and move it from a capacity of 225,000 to a production capacity of 270,000 barrels per day.

Eduardo De Nardi Ros: Which is to say that with the pre-salt production capacity, with the production capacity of Petrobras by interconnecting wells and doing a better job of managing the deposits and drilling high-productivity wells and connecting the platforms, with all of that, all of these efforts led us to transform a platform, and move it from a capacity of 225,000 to a production capacity of 270,000 barrels per day. That alone is not enough. I should also say that in addition to those platforms, we have another three that will be arriving between this year and the next year. All of them of 225, and all of them seeking to achieve 270,000 barrels per day in terms of capacity.

Speaker #1: But that alone is not enough. I should also say that in addition to those platforms, we have another three that will be arriving between this year and the next year.

Speaker #1: All of them are at 225, and all of them are seeking to achieve 270,000 barrels per day in terms of capacity. So, at the end of the day, that means 45,000 barrels per day times four, or 180,000 barrels per day, that are on top of the original ones as a result of Petrobras's efforts around surpassing its goals.

Eduardo De Nardi Ros: At the end of the day, that means 45,000 barrels per day times four, or 180,000 barrels per day that are on top of the original ones as a result of Petrobras' efforts around surpassing its goals. That is what we do. We do better management of deposits. We do a better job of managing platforms with better efficiency, better platform design, leading to bottlenecks in giant platforms, and that is what we have been delivering and which combined leads to this increased production. Well, we are talking about production, but we are doing the same thing in the refineries. I mentioned this, and Fernando did it too. The utilization factor of our refineries, which in the past would achieve a 65% or 70%, currently surpasses 100%. With Petrobras' capacity or purpose to, every day, surpass its best results and deliver them to its shareholders from the public or private market.

Speaker #1: So that's what we do. We do better management of deposits. We do a better job of managing platforms. With better efficiency, better platform design.

Speaker #1: ...leading to bottlenecks in giant platforms, and that's what we've been delivering, which combined leads to this increased production. Well, we were talking about production, but we're doing the same thing in the refineries.

Speaker #1: I mentioned this, and Fernando did too. The utilization factor of our refineries, which in the past would achieve 65% or 70%, currently surpasses 100%.

Speaker #1: With PETROBRAS's capacity and purpose to surpass its best results every day and deliver them to its shareholders from the public or private market, Renata will talk about the staged delivery of the new platforms, and Sylvia will talk about the ramp-up of P78 and P79.

Renata Baruzzi: Renata will talk about the staged delivery of the new platforms, and Silvia will talk about the ramp-up of P-78 and P-79. Over to you, Renata. Hi, Bruno. Good afternoon. We will talk about P-80, P-82, and P-83. P-80 and P-82, the sail away is scheduled for Q3 2026, and production will start in Q2 2027. What we are doing now is we are working strongly towards bringing forward the production of P-80 to Q1 2027. For P-83, the sail away is scheduled to occur in the beginning of Q1 2027, with production starting on H2 2027. As the president said, we are constantly working towards bringing production forward. We have been doing pre-launches of lines and anchoring. The thing is, Q2, H2, historically speaking, has worse sea conditions than H1.

Speaker #1: Over to you, Renata.

Speaker #2: Hi, Bruno. Good afternoon.

Speaker #1: So we'll talk about P-80, P-82, and P-83. P-80 and P-82, the sail away is scheduled for the third quarter of 2026, and production will start in the second quarter of 2027.

Speaker #1: What we're doing now is we're working strongly towards bringing forward the production of P-80 to the first quarter of 2027. For P-83, the silhouette is scheduled to occur at the beginning of the first quarter of 2027, with production starting in the second half of 2027. As the president said, we're constantly working towards bringing production forward.

Speaker #1: We've been doing pre-releases, pre-launching of lines and anchoring, but the thing is the second quarter the second half historically speaking has worse C conditions than the first half.

Speaker #1: So, we cannot safely say that we will be able to bring it forward due to weather issues. We are working on bringing P-80 forward for the first quarter, and the other ones are already scheduled to start operations.

Sylvia dos Anjos: We cannot safely say that we will be able to bring it forward due to weather issues. We are working on bringing it forward, P-80 for Q1, and the other ones are already scheduled to start operations. Thank you, Bruno, for your questions. Just picking up on what the President said and also what Renata said, the forecast for production is based on a risk analysis of everything that is scheduled. We have scheduled the ramp-up for 78, for 79. All of that has been included in our risk analysis, and we always like to work with the leeway of more or less 4%, and we will certainly reach the top of guidance. Always seeking to surpass the past results, as the President likes to say.

Speaker #1: Thank you. Thank you, Bruno, for your questions. I'm sorry. Thank you, Bruno, for your questions. Just picking up on what the president said and also what Renata said: the forecast for production is based on risk analysis of everything that's scheduled.

Speaker #1: We have scheduled the ramp-up for 78 and for 79; all of that has been included in our risk analysis, and we always like to work with a leeway of more or less 4%.

Speaker #1: And we'll certainly reach the top of guidance, always seeking to surpass past results, as the President likes to say. But right now, we're considering it reasonable to maintain the maximum at 4%, reaching 2.6.

Sylvia dos Anjos: Right now, we are considering it reasonable to maintain the maximum at 4%, reaching 2.6. We know that there is the downtimes, and one thing that we always like to highlight is that we are receiving these super huge platforms, 220,000. Our concern is, how are we going to work with the downtimes of a super huge platform like this one? We have been strongly investing in three things, which is to do a better job of planning downtimes, also working on the timelines and the headcount capacity, like we do in F1. That is what we want to do with the platforms and with these scheduled downtimes. You can imagine that with the downtime of 1 month, if you reduce it by 1 week or even 3 days, that is a lot of additional oil. We have been focusing heavily on the scheduled downtimes.

Speaker #1: We know that there are downtimes, and one thing that we always like to highlight is that we're receiving these super huge platforms—220,000—and our concern is, how are we going to work with the downtimes of a super huge platform like this one?

Speaker #1: We've been strongly investing in three things: doing a better job of planning downtimes, working on the timelines, and the headcount capacity.

Speaker #1: Like we do in F1, and that's what we want to do with the platforms. And with these scheduled downtimes, you can imagine that with a downtime of one month, if you reduce it by a week or even three days, that's a lot of additional oil.

Speaker #1: So we've been focusing heavily on scheduled downtimes. Another thing is that to guarantee production, we're working on the integrity of platforms. We've reached a record number in reducing technical inspection recommendations, and we’ve done that by performing proper maintenance and by taking care of integrity. This allows us to have less downtime and make sure that, with the scheduled downtimes, we can maintain our stability.

Eduardo De Nardi Ros: Another thing is to guarantee production, we are working on the integrity of platforms. We are reaching a record number of reducing the technical inspection recommendations. We do that because by doing proper maintenance and by taking care of integrity so that we can have less downtime and make sure that with the scheduled downtimes, we can maintain our stability. Just to give you an idea of the scheduled downtimes for the year, we expect 290,000 barrels per day during the downtime. Also, about production, we will try to reach maximum production. The guidance includes all possible variations, equipment inspections, and any other occurrences. Thank you, Sylvia and Magda, Renata. Thank you, Bruno, for your question. Let us move forward. The next question comes from Monique Greco from Itaú BBA. Over to you, Monique. Hi.

Speaker #1: Just to give you an idea, of the scheduled downtimes for the year, we expect 290,000 barrels per day during the downtime. Also, about production, we'll try to reach maximum production, but the guidance includes all possible variations, equipment inspections, and any other—you, Sylvia and Magda, Renata.

Speaker #1: Thank you, Bruno, for your question. Now, let's move forward. The next question comes from Monique Greco from Ital BBA. Over to you, Monique. Hi, good afternoon, everybody, and thank you for the opportunity to ask questions.

Monique Greco: Good afternoon, everybody. Thank you for the opportunity to ask questions, or to ask a question. I'd like to broach the subject of the diesel import strategy. How is the company assessing the decision to import diesel, given the current price scenario vis-à-vis its pricing strategy and its commercial strategy, especially now that there is a huge volatility. With the recent increase, we saw again local prices below the import parity. I'd like to hear from you, how does that all fit in to the commercial strategy? Thank you. Hi, Monique. This is Angelique. Let us go over our production planning process again. It takes into account the commitments we enter into with our customers and the seasonal variations in demand. Also, our refining activities and how much of it is available, the refining margins, and the logistics structures. We consider all of that.

Speaker #1: To ask a question. I'd like to broach the subject of the diesel import strategy. How is the company assessing the decision to import diesel given the current price scenario vis-a-vis its pricing strategy and its commercial strategy, especially now that with the there is a huge volatility but with the recent increase we saw again local prices below the import parity.

Speaker #1: So, I'd like to hear from you. How does that all fit into the commercial strategy? Thank you. Hi, Monique. This is Angelica. Let's go over our production planning process again.

Speaker #1: It takes into account the commitments we enter into with our customers and the seasonal variations in demand. Also, our refining activities, how much of that is available, the refining margins, and the logistics structures.

Speaker #1: We consider all of that, given that context. Our policies are maintained. Our commercial strategy is maintained. Our importing decisions are still based on the criteria of competitiveness and profitability.

Angélica Garcia Cobas Laureano: Given that context, our policy is maintained, our commercial strategy is maintained. Our importing decisions are still based on the criteria of competitiveness and profitability. We have to say that we have a public policy in force that gives us support for the internal market, and that leads the customer-perceived prices to be lower. Thank you, Angelique and Monique. Next question comes from Jorge Gabrice from Scotiabank. Jorge, you have the floor. Good afternoon, congratulations on the results, especially in terms of the volumes. I'd like to go back to one issue that was already broached before, from the perspective of decline. The Petrobras decline is quite low, at 4%, more or less, in the pre-salt. I'd like to understand how sustainable that is moving forward.

Speaker #1: And we have to say that we have a public policy enforced that gives us support for the internal market, and that leads the customer-perceived prices to be lower.

Speaker #1: Thank you, Angelica and Monique. Next question comes from George Gabriel from Scotiabank. George, you have the floor. Good afternoon, and congratulations on the results.

Speaker #1: Especially in terms of the volumes. I'd like to go back to one issue that was already broached before. From the perspective of the client, of Petrobras, the client share is quite low at around 4%, more or less, in the pre-salt, and I'd like to understand how sustainable that is moving forward.

Speaker #1: If you think about the forecast for the next few years, how do you see this decline behaving in the next few years? Thank you.

Jorge Gabrice: If you think about the forecast for the next few years, how do you see this decline behaving in the next few years? Thank you. Well, Jorge, thank you for your question. This decline, as I said, is the result of a strategy that is followed strictly along with the monitoring of the deposits. We should not forget that we have huge deposits. Just to give you an idea, the 2P field is a field that has a contractual limit of 1,200 square kilometers. If we compare that to a giant post-salt field, which was the reality that preceded the pre-salt, you take a line of more than 200 square kilometers in area. These huge fields produce a lot with high productivity, but it's huge deposits. If we compare 2P to Marlim, you see that it's a field that's six times larger in area.

Speaker #1: Well, George, thank you for your question. This decline, as I said, is the result of a strategy that is being followed strictly, along with the monitoring of the deposits.

Speaker #1: We should not forget that we have huge deposits. Just to give you an idea, the 2P field is a field that has a contract up to a limit of 1,200 square kilometers. If we compare that to a giant, which was the reality that preceded the pre-salt, you take a line of more than 200 square kilometers in area.

Speaker #1: So these huge fields produce a lot with high productivity, but it's huge deposits. And if we compare 2P to Marlin, you see that it's a field that's six times larger in area.

Speaker #1: So that is the type of administration that we're working on. We're managing the deposits as a whole, but also relying on assets that surpass by far the so-called world-class assets.

Magda Chambriard: That is the type of administration that we're working on. We're managing the deposits as a whole, but also relying on assets that surpass, by far

Magda Chambriard: The so-called world-class assets. I'll give the floor to Sylvia.

Speaker #1: I'll give the floor to Sylvia. There is a natural decline, Georgie, and we attempt to fight against it. We work more strongly on four areas.

Sylvia dos Anjos: There's a natural decline, Jorge, and we attempt to fight against it. We work more strongly on four areas. First, 4D seismic, which better allows us to better understand the reservoirs. We also do intelligent completion. Our biggest production comes from pre-salt, and it's huge reservoirs at the height of the Sugar Loaf. The intelligent completion allows us to separate zones that produce water or gas, and we do an intelligent management of these areas. Another important thing is water injection. On my day 1 at Petrobras, the president said, "We have to inject water." Magda kept demanding that, and the biggest water injection happened. We're reaching record-breaking numbers in terms of water injection, guaranteeing a better pressurization of reservoirs. That's another factor that reduces decline. Obviously, the supplemental projects. Once we know the deposit, the seismic data allows us to better drill the wells.

Speaker #1: First, for the seismics, which better understands us which better allows us to allows us to better understand the reservoirs, reservoirs we also do intelligent completion our production our biggest production comes from pre-salt and it's huge reservoirs at the height of the sugar loaf and the.

Speaker #1: And completion allows us to separate zones that produce water or gas, and we do an intelligent management of these areas. So another important thing is water injection.

Speaker #1: On my day one at Petrobras, the president said we have to inject water, so Magda kept demanding that, and the biggest water injection happened. We're reaching record-breaking numbers in terms of water injection, guaranteeing a better pressurization of reservoirs, and that's another factor that reduces decline.

Speaker #1: And obviously, the supplemental projects, once we know the deposit, the seismic data allows us to better drill the wells. We have the supplemental wells well positioned, thus guaranteeing this replacement in 2P. We've been able to maintain a very significant production level, and not only for us, for our results, but it's been significantly contributing to the results of our partners as well. They've been considering the Petrobras results something positive for the results achieved, and Brazil is one of the most important production areas for our partners as well.

Sylvia dos Anjos: We have the supplemental wells well-positioned, thus guaranteeing this replacement. In Tupi, we've been able to maintain a very significant production level. Not only for us, for our results, but it's been significantly contributing to the results of our partners as well. They've been considering the Petrobras results something positive for the results achieved. Brazil is one of the most important production areas for our partners as well.

Speaker #2: Thank you, Sylvia and Magda, and also thank you, Jorge, for your question. Our next question comes from Yuri Pereira with Sander. Yuri, you have the conference.

Eduardo De Nardi Ros: Thank you, Silvia and Magda, and also thank you, Jorge, for your question. Our next question comes from Yuri Pereira with Santander. Yuri, you have the conference. Good afternoon, everyone. Thank you for taking my question. With the very favorable cash generation environment, both because of market circumstances of the company itself, I wanted to understand how that works versus your plan for 2026, 2030, for example, thinking about the allocation of this incremental capital that's coming over throughout this year with regards to refining or maybe another ambition Petrobras has in mind. Thank you. Good afternoon, Yuri. Well, this is an ongoing discussion for us. Wherever we go, any meeting we have, the question always comes up: What will we do with the additional cash flow that's coming up purely with production, unlike our usual strategic planning? We do have a slightly larger cash flow.

Speaker #2: Good afternoon, everyone. Thank you for taking my question. With the very favorable cash generation environment, both because of market circumstances and the company itself, I wanted to understand how that works versus your plan for 2026 and 2030, for example. Thinking about your allocation of this incremental capital that's coming over throughout this year, with regards to refining or maybe another ambition Petrobras has in mind.

Speaker #2: Thank you. Good afternoon, Yuri. Well, this is an ongoing discussion for us. Wherever we go, in any meeting we have, the question always comes up: what will we do with the additional cash flow that's coming up purely with production, unlike our usual strategic planning.

Speaker #2: So, we do have a slightly larger cash flow, but it's important to remember the dividend formula, where any additional cash that comes in will be distributed over the ordinary cash distribution, which is 14%.

Fernando Sabbi Melgarejo: It's important to remember the dividend formula, where any additional cash that comes in will be distributed over the ordinary cash distribution, which is 14%. With regards to debt, that's the priority we have been discussing. We have also the projects we're bringing forward, such as P-18 and so on and so forth. Any investment that generates returns to our stakeholders, we are bringing forward. That's our priority number 1. Priority number 2 is to converge the debt as quickly as possible to $16.5 billion. That's the ambition we had in our strategic planning, which was supposed to take place in the end of this five-year period, ending in 2030. The idea is to bring that slightly forward. We're already in August, and we're already looking into the new strategic planning for the company.

Speaker #2: And with regards to debt, that's the priority we've been discussing. So we also have the projects we're bringing forward, such as P-18, and so on and so forth.

Speaker #2: So, any investment that generates returns to our stakeholders, we are bringing forward. So that's our priority number one. Priority number two is to converge the debt as quickly as possible to $16.5 billion.

Speaker #2: That's the ambition we had in our strategic planning, which was supposed to take place at the end of this five-year period ending in 2030.

Speaker #2: So the idea is to bring that slightly forward. We're already in August, and we're already looking into the new strategic planning for the company, and we'll be discussing questions that escape the current strategic planning.

Fernando Sabbi Melgarejo: We'll be discussing questions that escape the current strategic planning. It is within that realm that those discussions will take place. With regards to extraordinary dividend sharing, we find it very unlikely to look into that possibility, even though that is something we would love to do. If we have no investment in sight and our debt is well-adjusted, we see no problem with that. The same logic remains since we arrived here, according to which any surplus should be allocated somewhere. If we have no investment to make and our debt is well-adjusted, the natural path is to share more dividends.

Speaker #2: So it is within that realm that those discussions will take place. With regards to extraordinary dividend sharing we find it very unlikely to look into that possibility even though that would is something we would love to do if we have no investment in site and our debt is well adjusted we see no problem with that.

Speaker #2: The same logic remains since we arrived here according to which any surplus should be allocated somewhere. If we have no investment to make and our debt is well adjustment well adjusted the natural path is to share more dividends.

Speaker #2: That's very unlikely now because first, Brent is expected to stay at the same level for quite a while, and that's also a challenge for next year because it is expected to move back to the levels we expected it to be when we built and designed our 2025 to 2030 strategic plan.

Eduardo De Nardi Ros: That's very unlikely now because first, Brent is expected to stay at the same level for quite a while, and that's also a challenge for next year because it is expected to move back to the levels we expected it to be when we built and designed our 2025 to 2030 strategic plan. Thank you, Fernando, and thank you, Yuri, for your question. Our next question comes from Gabriel Barra with Citi. Gabriel, please go ahead. Thank you, Eduardo, and thank you for taking my question to all the Petrobras team. I wanted to touch on something we haven't talked about yet, which is Braskem. We have been getting a lot of questions. We're seeing the company is at a very tricky time. We're seeing news about a potential legal reorganization, and Petrobras has some active input in these conversations.

Speaker #2: Thank you, Fernando, and thank you, Yuri, for your question. Our next question comes from Gabriel Barra with Citi. Gabriel, please go ahead. Thank you, Eduardo, and thank you for taking my question to all the Petrobras team.

Speaker #2: I wanted to touch on something we haven't talked about yet which is BRASCEM. We have been getting a lot of questions we're seeing the companies that a very tricky time we're seeing news about a potential legal reorganization and Petrobras has some active input in these conversations.

Speaker #2: My question is, how do you see that from Petrobras's side? I understand there are a number of rules regarding governance, and there is great concern about capital allocation.

Gabriel Barra: My question is, how do you see that from Petrobras' side? I understand there's a number of rules with governance, and there's great concern about capital allocation, so maybe more discussions about a potential capital injection into Braskem. I wanted to hear from you, what is your stance on Braskem's future? It seems the company is moving toward a court order reorganization, and what we're hearing now is that's where they're headed. What I'd like to hear from you to help our discussion is how have you been approaching that issue, what's the conversation with bondholders like, and what should be the outcome, in your opinion? Well, I'll start with my five cents, but then I'll turn over to Fernando. As you know, we had very little input in terms of Braskem's bylaws.

Speaker #2: So, maybe more discussions about a potential capital injection into BRASCEM. I wanted to hear from you: what is your stance on BRASCEM's future?

Speaker #2: It seems the company is moving toward court-ordered reorganization, and what we're hearing now is that's where they're headed. So what I'd like to hear from you to help our discussion is: how have you been approaching that issue?

Speaker #2: What's the conversation with bondholders like, and what should be the outcome in your opinion? Well, I'll start with my five cents, but then I'll turn it over to Fernando.

Speaker #2: As you know, we had very little input in terms of Braskem's bylaws. This latest change gave Petrobras more political power, so we are now—or only now—moving closer to the company to look into what's going on with Braskem, with a new set of eyes, and to understand what the future of Braskem might be.

Magda Chambriard: This latest change gave Petrobras more political power, we're only now moving closer to the company to look into what's going on with Braskem with a new set of eyes, and to understand what the future of Braskem might be. I would like to not say a lot more about Braskem right now because they will be sharing their earnings next week. I'd like to turn over to our director, Fernando, to talk about this within the realm of possibility at this point. Yeah, I think we have to take a step back when it comes to Braskem to remember that we have a new shareholders agreement, as the president mentioned, where our economic capital within the company is compared to the political power and influences in the company's decisions.

Speaker #2: I would like to not say a lot more about BRASCEM right now because they will be sharing their earnings next week but I'd like to turn over to our director Fernando to talk about this within the realm of possibility at this point.

Speaker #2: Yeah, I think we have to take a step back when it comes to BRASCEM to remember that we have a new shareholders agreement as the president mentioned where our economic capital within the company is compared to the political power and influences in the company's decisions now that's happened over two months ago and since then we are looking into all our options within the agreement we have with shareholders we are in touch with their board of directors so there is an injunction in place which is in the public domain as you mentioned it ends on October 24th and as the president mentioned as well on August 13th that company will be sharing their earnings with the market.

Fernando Sabbi Melgarejo: That's happened over 2 months ago, since then, we are looking into all our options within the agreement we have with shareholders. We are in touch with their board of directors. There is an injunction in place, which is in the public domain, as you mentioned. It ends on 24 October, as the president mentioned as well, on 13 August, that company will be sharing their earnings with the market. This is a very sensitive time. We have a lot of decisions to make. Obviously, we can't say a lot more in terms of any other information we have which may affect the negotiations. Thank you, Fernando. Thank you, Magda, and thank you, Gabriel, for your question. Let's move forward with the next question. Lilyanna Yang with HSBC. Lilyanna, please go ahead. Hello. Can you hear me? Yes, we hear you perfectly.

Speaker #2: So this is a very sensitive time we have a lot of decisions to make so obviously we can't say a lot more in terms of any other information we have which may affect negotiations.

Speaker #2: Thank you, Fernando. Thank you, Magda. And thank you, Gabriel, for your question. So, let's move forward with the next question. Liliana Yang with HSBC.

Speaker #2: Liliana, please go ahead. Hello, can you hear me? Yes, we hear you perfectly. Go ahead. Thank you so much for the opportunity. Congratulations on your results.

Lilyanna Yang: Go ahead. Thank you so much for the opportunity. Congratulations on your results. I have a more generic question in terms of energy policy. One has to do with gas. The Brazilian government would like to lower gas prices for Brazilian consumers, I'd like to hear from you about the role of Petrobras. Will Petrobras be able to be a part or to contribute with this process, where, for example, will you sell the gas coming from Sergipe? In terms of new frontiers, we have the equatorial margin, but also initiatives in Africa. Could you give us an update about your investments in Namibia, São Tomé and Príncipe, and other areas outside of Brazil? Let me start and then maybe Angélica, William, and Sylvia may add to my few words. Starting with gas, we have a few oil and gas projects.

Speaker #2: I have a more generic question in terms of energy policy. It has to do with gas. The Brazilian government would like to lower gas prices for Brazilian consumers, and I'd like to hear from you about the role of Petrobras.

Speaker #2: Will Petrobras be able to be a part of or to contribute to this process? Where, for example, will you sell the gas coming from Sergipe?

Speaker #2: And another question is, in terms of new frontiers, we have the Equatorial Margin but also initiatives in Africa. Could you give us an update about your investments in Namibia and other areas outside of Brazil?

Speaker #2: Let me start, and then maybe Angelica, William, and Sylvia may add to my few words. Starting with gas, we have a few oil and gas projects. Our projects are usually focused on oil, with an associated part touching on gas, and any regulatory changes will affect our projects.

Magda Chambriard: Our projects are usually focused on oil with an associated part touching on gas, any regulatory changes will affect our projects. Sometimes they'll be beneficial, other times they'll be negative, other times they'll be neutral. Regulatory changes everywhere in the world will have consequences when it comes to the way we structure our projects. With regards to the discussion around gas, we don't know yet how things will end up. The fact is, regardless of what happens, we'll have to look at our projects in light of any regulatory change. That's true everywhere in the world. It would not be different for Petrobras. Any project has to be lucrative for the company, as our director, Fernando, has already said. We're not an NGO. We are a company, and we have to be profitable.

Speaker #2: Sometimes they'll be beneficial, other times they'll be negative, and other times they'll be neutral. But regulatory changes everywhere in the world will have consequences when it comes to the way we structure our projects.

Speaker #2: With regards to the discussion around gas, we don't know yet how things will end up. The fact is, regardless of what happens, we'll have to look at our projects in light of any regulatory change.

Speaker #2: That's true everywhere in the world. It would not be different for Petrobras. So, any project has to be lucrative for the company, as our director Fernando has already said.

Speaker #2: We're not an NGO. We are a company, and we have to be profitable. That being the case, any change that takes place in the realm of regulations or taxes, or anything of that sort, will require a reassessment of the premises underlying those projects, whether we're talking about oil and gas, refining, or petrochemical.

Fernando Sabbi Melgarejo: That being the case, any change that takes place in the realm of regulations or taxes or anything of that sort will have to require a reassessment of the premises underlying those projects, whether we're talking about oil and gas, refining, petrochemical, the logic is the same. Regulatory changes will require us to look back at those projects and reassess them. We have to make sure that wherever we invest brings the necessary returns. That's the logic. Thank you so much. Just adding to President Magda's comments. Petrobras' assessment of these regulatory changes have been outlined over the past few weeks. This is the board's position, which is the mere transference of the gas molecules ownership is not going to ensure any increase in supply, which is what the market needs.

Speaker #2: The logic is the same. Regulatory changes will require us to look back at those projects and reassess them. We have to make sure that wherever we invest brings the necessary returns—that's the logic.

Speaker #2: Thank you so much. Just adding to President Magda's comments—Petrobras's assessment of these regulatory changes has been outlined over the past few weeks. This is the board's position: the mere transference of the gas molecules' ownership is not going to ensure any increase in supply, which is what the market needs.

Speaker #2: And the Brazilian market is already seeing a significant opening in pulverization, and the board members themselves have already spoken out in the last few weeks, pointing out that there are over 30 companies competing with Petrobras and over 100 free consumers. And if we add all five privately operated terminals, they're already bigger than Petrobras.

William Vella Nozaki: The Brazilian market is already seeing a significant opening and pulverization. The board members themselves have already spoken out in the last two weeks, pointing out that there are over 30 companies competing with Petrobras and over 100 free consumers. If we add all five terminals privately operated, they are already bigger than Petrobras. Our assessment is that regulatory stability and legal certainty are critical to maintain credibility, discipline, when it comes to capital investments. As the president said, everyone in Petrobras has robust governance within our discipline in investments in capital. Every project assessment will consider the regulatory scenario, so any change will inevitably require a reassessment. A draft has been made available today. Petrobras will speak up in the next 45 days by a public hearing, and that is our position.

Speaker #2: So, our assessment is that regulatory stability and legal certainty are critical to maintaining credibility and discipline when it comes to capital investments. As the president said, everyone in Petrobras is committed to robust governance within our discipline in investments and capital. Every project assessment will consider the regulatory scenario.

Speaker #2: So any change will inevitably require a reassessment. But a draft has been made available today. Petrobras will speak up in the next 45 days via a public hearing, and that's our position.

Speaker #2: Yeah, I just wanted to add that, as William knows and has already said, we are only 15.6% of the market. So the market is already open. There’s nothing to say about the need for gas release in a market where you already have 31 companies operating at this point.

Angélica Garcia Cobas Laureano: Yeah, I just wanted to add that as William Nozaki has already said, we are only 15.6% of the market. The market is already open. There is nothing to say about the need for gas release in a market where you already have 31 companies operating at this point. Over and above that, with the intention even of not passing through the volatility in Brent prices to the market, we have expanded the profile of our contracts and offered alternatives to prevent price increases, which is to say Petrobras is always looking to reduce the impact of gas price volatilities in the industry, especially in Brazil. As William has said, with regards to the gas release issue, we are still waiting to see what the regulatory agency's position will be. We are at a time where staff can still look into alternatives.

Speaker #2: Over and above that, with the intention even of not passing through the volatility and brand prices to the market, we have extended the profile of our contracts and offered alternatives to prevent price increases. Which is to say, Petrobras is always looking to reduce the impact of gas price volatilities on the industry, especially in Brazil.

Speaker #2: And as William has said, with regards to the gas release issue, we're still waiting to see what the agencies, the regulatory agencies' position will be, and we're at a time where SAP can still look into alternatives.

Speaker #2: And within that context, we're still looking into alternatives when it comes to supply. All right, from the E&P standpoint, what we're doing is, over the last few years, we have significantly increased gas exports, which are coming closer to 50 million cubic meters. So we are making more gas available, and we believe that it is only by offering more gas that we can reduce prices.

Sylvia dos Anjos: Within that context, we are still looking into alternatives when it comes to supply. All right. From the E&P standpoint, what we are doing is over the last few years, we have significantly increased gas exports, which were coming closer to 50 cubic meters. We are making more gas available, and we believe that it is only by offering more gas that we can reduce prices. Also increasing gas productions inland, in Urucu. On the issue of gas, we have also discovered more gas in Colombia. Combined, all those three discoveries exceed Colombia's needs. It is another opportunity to export gas and supply more gas to the country.

Speaker #2: Also increasing gas production and land in Yuriku, and on the issue of gas, we've also discovered more gas in Colombia. Combined, all those three discoveries exceed Colombia's needs, so it's another opportunity to export gas and supply more gas to the country.

Speaker #2: Going back to Africa, to your other question, we also have been investing and exploring about $7 billion: $2.5 billion in the equatorial margin, $2.4 billion in the southeast margin, and about $2.2 billion invested in other areas, including overseas, which includes Africa.

Sylvia dos Anjos: Going back to Africa, to your other question, we also have been investing and exploring about BRL 7 billion, BRL 2.5 billion in the Equatorial margin, BRL 2.4 billion in the Southeast margin, and about BRL 2.2 billion invested in other areas, including overseas, which includes Africa. We have hired areas in South Africa in partnership with Total. We have partnerships with Shell. We have partnerships in Namibia. We are looking into other opportunities as well. Internationally speaking, the Ivory Coast and Mexico are also places we are looking into, always with the purpose of replenishing and increase our reservoirs considering that our production is on the rise. Thank you, Angélica, Sylvia, William, Magda. Also, thank you, Lily, for your question. Our next question comes from Tasso Vasconcellos with UBS. Tasso, please go ahead.

Speaker #2: We have hired areas in South Africa and have a partnership with Total. We have partnerships with Shell. We have partnerships in Namibia. We're looking into other opportunities as well.

Speaker #2: So, internationally speaking, the Ivory Coast and Mexico are also places we're looking into—always with the purpose of replenishing and increasing our reservoirs, considering that our production is on the rise.

Speaker #2: Thank you Angelica Sylvia William Magda. Also thank you Lily for your question. Our next question comes from Tessa Vasconcellos with UBS. Tessa please go ahead.

Speaker #1: Thank you. Good afternoon to the entire team. Picking up on the last discussion Petrobras team's been quite emphatic about the subject the replacement of reserves new discoveries but moving away from this domestic scenario in your opinion what are the main priorities for international expansion if it really occurs so we discussed that in the previous question but I'd like to further understand where you see more of an upside and where the Petrobras team is interested in dedicating more time to the analysis.

Tasso Vasconcellos: Thank you. Good afternoon to the entire team. Picking up on the last discussion, Petrobras team's been quite emphatic about the subject, the replacement of reserves with new discoveries. Moving away from this domestic scenario, in your opinion, what are the main priorities for international expansion, if it really occurs? We discussed that in the previous question, but I'd like to further understand where you see more of an upside and where the Petrobras team is interested in dedicating more time to the analyses. We've talked about Mexico, Venezuela, Bolivia also appears to be back on the radar. I'd like to hear your take on that. If you look at a scenario outside of Brazil, where would you focus if these expansions truly occur? Thank you, Tasso, for the question.

Speaker #1: We talked about Mexico, Venezuela, and Bolivia. It also appears to be back on the radar, so I'd like to hear your take on that. If you look at a scenario outside of Brazil, where would you focus if these expansions truly occur?

Speaker #1: Thank you, Tessa, for the question. We've been saying repeatedly that there is no future for an oil company without exploration and without the replacement of reserves. And along those lines, what we do is try to reinforce our expertise, which is, well, in South America. We've been working for more than 30 years—we import and produce gas in Bolivia for more than 30 years now.

Magda Chambriard: We've been saying repeatedly that there is no future for an oil company without exploration and without the replacement of reserves. Along those lines, what we do is to try to reinforce our expertise, which is, well, in South America, we've been working for more than 30 years. We import and produce gas in Bolivia for more than 30 years now. We've been importing gas from Argentina for at least 2 years, reverting the route of the Bolivian gas, which in the past used to go to Argentina, and now we have Argentinian gas coming to Brazil through the same pipeline. We're also working in Colombia. Yes, South America has been a big action field for Petrobras for at least 3 decades, which reinforces our knowledge of the area and our search for new opportunities in these places. The same thing occurs with Mexico.

Speaker #1: We've been importing gas from Argentina for at least two years, reverting the route of the Bolivian gas, which in the past used to go to Argentina. Now we have Argentinian gas coming to Brazil through the same pipeline.

Speaker #1: We're also working in Colombia, so yes, South America has been a major area of activity for Petrobras for at least three decades, which reinforces our knowledge of the area and our search for new opportunities in these places.

Speaker #1: The same thing occurs with Mexico. If you take Mexico in the past, more or less 10 years ago, we used to focus on the exploration of deep waters in what we used to call the Golden Triangle, which was comprised of Brazil, Africa, and the Gulf of Mexico.

Eduardo De Nardi Ros: If you take Mexico, in the past, more or less 10 years ago, we used to focus on the exploration of deep waters that we used to call the Golden Triangle, which was comprised of Brazil, Africa, and the Gulf of Mexico, with similarities in terms of exploration and design approaches and all of that. In that regard, Africa, due to geological similarities and also similarities in terms of its approach to production and engineering, it's also one of our targets, especially the Atlantic margin of Africa. If you look at everything, at all of that, similar to the ones that we faced in Brazil, where, for instance, we drilled pre-salt in the south of Espírito Santo in the Campos Basin in 2002, and we didn't see it.

Speaker #1: With similarities in terms of exploration and design approaches and all of that, in that regard, Africa—due to geological similarities and also similarities in terms of its approach to production and engineering—is also one of our targets, especially the Atlantic margin of Africa.

Speaker #1: And if you look at everything, all of that was similar to the ones that we faced in Brazil, where for instance, we drilled pre-salt in the south of Espírito Santo in the Campos Basin in 2002, and we didn't see it.

Speaker #1: We overlooked it, and once again we paid attention to it only six years after that, after we discovered a deposit of one billion barrels of recoverable oil.

Eduardo De Nardi Ros: We overlooked it. Once again, we paid attention to it only 6 years after that, after we discovered a deposit of 1 billion barrels of recoverable oil. Our learnings at Petrobras in terms of geology, production, and the selling of products, all of that, from the perspective of a geopolitical partnership, that seems to be quite profitable to us. That's the direction we're headed. Now I'll give the floor to Sylvia, since she's been monitoring these aspects from up close. She's the Exploration and Production Director. As Magda put very well, we have a competency in terms of the geology and the exploration of deep and ultra-deep waters. When we go to these African opportunities, we are actually talking about very similar areas that we have a high amount of knowledge about.

Speaker #1: So, our learnings at Petrobras, in terms of geology, production, and the selling of products—all of that from the perspective of a geopolitical partnership—seems to be quite profitable to us.

Speaker #1: That's the direction we're headed. Now, I'll give the floor to Sylvia, since she's been monitoring these aspects up close. She's the exploration and production director.

Speaker #1: As Magda put very well, we have a competency in terms of the geology and the exploration of deep and ultra-deep waters. So when we go to these African opportunities, we are actually talking about very similar areas that we have a high amount of knowledge about.

Speaker #1: So in the African coast in Mexico the Equatorial margin we are looking for turbidity reservoirs that are similar to the ones that we have at campus basin.

Sylvia dos Anjos: In the African coast, in Mexico, the equatorial margin, we are looking for turbiditic reservoirs that are similar to the ones that we have at Campos Basin. The pre-salt is quite unique and exclusive to the Campos Basin. In Mexico, we have the salt diapirs and reservoirs, and the Pemex expertise is not that high in deep and ultra-deep waters. They concentrate mostly on shallow waters. We have this non-binding MOU. We are now surveying seismic data so that we are able to analyze what areas could add value and be interesting to Petrobras and Pemex. So far, we are collecting seismic data, and further ahead, we will have an opinion on what areas could be interesting to us. Thank you, Tasso, Magda, and Silvia. The next question comes from Milene Clifford from J.P. Morgan. Please, Milene, go ahead. Hi. Good afternoon.

Speaker #1: So the pre-salt is quite unique and exclusive to the southeast basin and in Mexico we have the salt diaphores and reservoirs and the Pemex expertise is not that high in deep and ultra deep waters.

Speaker #1: The concentrate mostly on shallow waters. So we have this non-binding MOU. We are now surveying seismic data so that we are able to analyze what areas could add value and be interesting to Petrobras and Pemex.

Speaker #1: So, so far we are collecting seismic data, and further ahead we will have an opinion on what areas could be interesting to us. Thank you, Tessa, Magda, and Sylvia.

Speaker #1: The next question comes from Elaine Clifford from JP Morgan. Please, Melanie, go ahead. Hi, good afternoon. Thanks for taking my question. I'd like a quick follow-up about downstream. You talked about the importance of strategy considering seasonality, but I'd like to hear from you how the company sees the scenario of crack spreads for the second half and the maintenance strategy for refineries and that scope.

Milene Clifford Carvalho: Thanks for taking my question. I'd like a quick follow-up about downstream. You talked about the important strategy considering seasonality, but I'd like to hear from you how the company sees the scenario of crack spreads for the H2 and the maintenance strategy for refineries in that scope. You've been running the refining park above 102%, and we heard about downtimes as well in the H2. Talking about the refining park, what can we expect in terms of timing and duration of these downtimes for the H2? Thank you. Thank you for the question. The Q3 is, from a seasonal perspective, a quarter of higher diesel demand. Given that context, our operating planning takes that into account.

Speaker #1: You've been running the refining farm at above 102 percent, and we heard about downtimes as well in the second half. So, talking about the refining farm, what can we expect in terms of timing and duration of these downtimes for the second half?

Speaker #1: Thank you. Thank you for the question. The third quarter is, from a seasonal perspective, a quarter of higher diesel demand. So, given that context, our operating planning takes that into account and, obviously, in this quarter we're going to have to import. The cracking of diesel has led us to attempt to produce as much diesel as we can internally.

Angélica Garcia Cobas Laureano: Obviously, in this quarter, we're going to have to import, and the cracking of diesel has led us to attempt to produce as much diesel as we can internally. Given that context, we have an operating planning that's done in close conjunction with refining so as to maximize the use of our refineries, so as to minimize imports. In any case, imports are happening naturally with no problems whatsoever. There is no shortage of diesel in the market right now. Hi, Milene. Thank you for the question. That's a very important question because it will allow me to clarify certain things. When we postponed the downtimes of REGAP and REPLAN, we have no postponed downtimes for the H2. The downtimes that are going to occur are the catalytic cracking FCC downtimes and the REPAR downtime. The Cubatão diesel downtime was already scheduled on our plans.

Speaker #1: So given that context, we have an operating plan that's done in close conjunction with refining, so as to maximize the use of our refineries and minimize imports. In any case, imports are happening naturally with no problems whatsoever—there is no shortage of diesel in the market right now.

Speaker #1: Hi Melanie, thank you for the question. That's a very important question because it will allow me to clarify certain things. When we postponed the downtimes of Higapi and replanned, we now have no postponed downtimes for the second half.

Speaker #1: The downtimes that are going to occur are the catalytic cracking FCC downtime and the REPAR downtime. And the Cubatão diesel downtime was already scheduled in our plans.

Speaker #1: There was no postponing. The only big downtime that's scheduled is the Cuba Town downtime that's scheduled for August, and the other ones are minor downtimes.

William França da Silva: There was no postponing. The only big downtime that's scheduled is the Cubatão downtime that's scheduled for August, and the other ones are minor downtimes. In the specific case of the postponement of REGAP and REPLAN downtimes, we have an ongoing expansion projects, but since they were not yet mature, we decided to postpone them to the beginning of 2027 after reliability analysis, inspections, and so on and so forth. We saw that we were able to guarantee the reliability if we did postpone the downtimes the next year and still expand it. We would reduce the loss of profit by 45 days. We have two important expansions at Revap and REPLAN and REGAP that will lead us to an additional load of almost 10,000 cubic meters per day of additional load.

Speaker #1: In the specific case of the postponement of Higapi and replan downtimes we were have an ongoing expansion projects but since they were not yet mature we decided to postpone them to the beginning of 2027 after reliability analyses inspections and so on and so forth we saw that we were able to guarantee the reliability if we did postpone the downtimes the next year and still expand it.

Speaker #1: So we would reduce the loss of profit by 45 days. We have two important expansions that revamp and replan and regap that will lead us to an additional load of 10,000 almost 10,000 cubic meters per day of additional load.

Speaker #1: So we have almost 300,000 of diesel, of which 100,000 come from the expansions and optimizations of refineries with a very low capex, and the remaining 200,000 come from the new diesel plant.

Eduardo De Nardi Ros: We have almost 300,000 of diesel, of which 100,000 come from the expansions and optimizations of refineries with a very low CapEx, and the remaining 200,000 come from the new diesel plant, the Ventura HCC, and RNEST. Renata, with engineering, will be delivering that at the end of the year. We are going to up the load that is at 140 at RNEST, and that is a result of a very important work done by our presidents, we are going to increase it to 180 or 200,000. Back to your point, we are going to have just the regular downtimes. There were no postponements from H1 to H2. We simply postponed the REGAP and REPLAN downtimes for next year to guarantee the new investments.

Speaker #1: The Boventura HCC and Renas Renata, with engineering, will be delivering that at the end of the year. We're going to up the load that's at 140 at Renas, and that's a result of very important work done by our presidents.

Speaker #1: We're going to increase it to 180,000 or 200,000. So back to your point, we are going to have just the regular downtimes; there were no postponements from the first half to the second half.

Speaker #1: We simply postponed the Regap and Replan downtimes for next year to guarantee the new investments, but even with the postponement of these downtimes for Regap and Replan, they were scheduled for March, and in April and May, June, and July, we had very important results in terms of foot.

William França da Silva: Even with the postponement of these downtimes for REGAP and REPLAN, they were scheduled for March, April, May, June, and July, we had very important results in terms of FUT. In July, we were able to reach a record-breaking production level for diesel. We reached 101.2 versus 101.1 in Q3 2014. That was a historical record with 70% of average yields, 5% above the yield of that previous record. It gives us more revenue with aviation kerosene, and it is a greater result than that previous record with a greater FUT. Not to mention that. I talked about the FUT, and in July, we reached a historical diesel production record, reaching 3,904,000 cubic meters of total diesel production in July.

Speaker #1: In July, we were able to reach a record-breaking production level for diesel. We reached 101.2, versus 101.1 in the third quarter of 2014.

Speaker #1: So that was a historical record with 70 percent of average yields, 5 percent above the yield of that previous record. So it gives us more revenue with aviation kerosene, and it's a greater result than that of the previous record, with a greater FUT.

Speaker #1: Not just, not to mention that, so I talked about the FUT, and in July we reached the historical diesel production record, reaching 3,904,000 cubic meters of total diesel production in July.

Speaker #1: So that shows us that our decision was a very positive decision in terms of the scheduled downtimes, and Angelica has always been asking us, "Is it close to 100? Is it close to 100?"

William França da Silva: That shows us that our decision was a very positive decision in terms of the scheduled downtimes, and Angélica has always been asking us, Is it close to 100? Is it close to 100? We shouldn't go any lower than that. We intend to keep on doing above 95, 98, and those levels of 65, 67, up to 90, they are all in the past, always with reliability and with guaranteed safety and security. We have 0 of 3 in terms of the rate of recordable incidents, which is a very good result, way below the best average of our global benchmarks, showing that it is all about the load, the FUT, and the reliability of the units. Thank you for your question.

Speaker #1: So we shouldn't go any lower than that. So, we intend to keep on doing above 95, 98, and those levels of 65, 67 up to 90.

Speaker #1: They're all in the past, always with reliability and with guaranteed safety and security. So, we have 0.3 in terms of the rate of recordable incidents, which is a very good result—well below the best average of our global benchmarks.

Speaker #1: This shows that it is all about the load on the FUT and the reliability of the units. Thank you for your question.

Magda Chambriard: I just wanted to reinforce or to stress what William said. Remembering two things that we are doing. First, we are exceeding our targets. Number 2, we are replacing Petrobras' refining capacity so that we are able to produce increasingly more value-added products and less regular products. Diesel has been our flagship, and the results that you are seeing with regards to diesel are a result of that effort. Thank you, Magda. Thank you, Angélica, and thank you, William. Thank you, Bruno, for your question as well. Our next question comes from Rodrigo Almeida with BTG. Rodrigo, please go ahead. Thank you, Eduardo. Good afternoon, everyone. Well, we talked a little bit about opportunities outside of Brazil.

Speaker #2: Yeah, I just wanted to reinforce or to stress what William said, reminding us of two things that we're doing. First, we are exceeding our targets, and number two, we are replacing Petrobras's refining capacity so that we are able to produce increasingly more value-added products and fewer regular products.

Speaker #2: Diesel has been our flagship, and the results that you're seeing with regard to diesel are a result of that effort. Thank you, Magda. Thank you, Angelica. And thank you, William.

Speaker #2: And thank you, Bruno, for your question as well. Our next question comes from Rodrigo Almeida with BTG. Rodrigo, please go ahead. Thank you, Eduardo.

Speaker #2: Good afternoon, everyone. Well, we talked a little bit about opportunities outside of Brazil. So I wanted to go back a little bit to that, and maybe talk a little bit about opportunities in Brazil.

Rodrigo Almeida: I wanted to go back a little bit to that and maybe talk a little bit about opportunities in Brazil, and mention maybe three projects that I think would be interesting for us to discuss a little bit further. First of all, I wanted to hear from you an update on your thoughts about Tupi. There's the issue of the extension of your concession or maybe a change, I wonder if you have any updates on that sense and what you see moving forward. Another project that saw a lot of success in exploration, it ends next year. I wanted to hear from you about the project and whether you see the need for any adjustments, how do you see the economics of that asset. I also wanted to hear about the equatorial margin.

Speaker #2: And mention maybe three projects that I think would be interesting for us to discuss a little bit further. First of all, I wanted to hear from you an update on your thoughts about Tupira.

Speaker #2: There's the issue of the extension of your concession, or maybe a change, so I wonder if you have any updates on that since, and what you see moving forward.

Speaker #2: And also, another project that saw a lot of success and exploration is ending next year. So I wanted to hear from you about the project, whether you see the need for any adjustments, and how you see the economics of that asset.

Speaker #2: And then I also wanted to hear about the Equatorial Margin. I'd like to hear an update—maybe should we expect any news from you over the next few weeks? And I just wanted to hear a little bit about the Tupi, Alto de Cabo Fria Central, and the Equatorial Margins if you could please touch on them.

Rodrigo Almeida: I'd like to hear an update, maybe should we expect any news from you over the next few weeks? I just wanted to hear a little bit about that, 2P Alto de Cabo Frio Central, and the equatorial margins, if you could please touch on them. Well, let me tell you that 2P is now under negotiation. Any result that we would tell you from that side would be getting ahead of ourselves, we have been talking to government institutions in terms of moving forward there. As for equatorial margin, we have said that before, we continue to drill the block FZA-M-59. In addition to that well, we are also waiting for the permit for other three wells in that block. If you remember, the license we received last year was for one firm well plus three contingent wells.

Speaker #2: Well, let me tell you that Tupi is now under negotiation. Any result that we would tell you from that side would be getting ahead of ourselves, but we have been talking to government institutions in terms of moving forward there.

Speaker #2: As for Equatorial Margin, we have said that before, but we continue to drill the block MFCA-49. In addition to that well, we are also waiting for the permit for the other three wells in that block. If you remember, the license we received last year was for one firm well plus three contingent wells.

Magda Chambriard: Nobody looks into an area of that size to drill only one well. Whether we find oil or not, our conclusion is the same. We need to continue to explore this area, which is enormous. In this block alone, FZA-M-59 alone, just to give you an example, our ask for the kickoff is for one firm well plus three contingent wells. We are now waiting since that time when we made the request for the permit and authorization to drill, in addition to this initial well, three more contingent wells. I will now turn over to Sylvia, who will talk more about the equatorial margin and the Alto de Cabo Frio. As Magda said, we're moving forward with negotiations with 2P, we have to wait for the assessment of all the stakeholders. As for equatorial margin, we are anxiously waiting for the drilling of this well.

Speaker #1: We look into an area of that size to drill only one well. So whether we find oil or not, our conclusion is the same.

Speaker #1: We need to continue to explore . This area , which is enormous . And in this block alone BMC BMFCA49 alone . Just to give you an example , our ask for the kick off is for one firm well plus three contingent wells .

Speaker #1: So, we are now waiting. Since that time when we made the request for the permit and authorization to drill, in addition to this initial well, three more contingent wells.

Speaker #1: I will now turn over to Sylvia who will talk more about the margin and the alter . The Cabo Frio . Yeah . As Magda said , we're moving forward with negotiations with two piece .

Speaker #1: So, we have to wait for the assessment of all the stakeholders. As for the equatorial margin, we are anxiously waiting for the drilling this fall.

Speaker #1: All our challenges have been surpassed with technology in time. We are moving fast through the learning curve, so that we can come to the next wells with a lot more speed and results.

Sylvia dos Anjos: All our challenges have been surpassed with technology and time. We are moving fast through the learning curve that we can come to the next wells with a lot more speed and results. There are still 500 meters to go to reach the reservoir, this is one that we expect will provide a lot of oil, if not, we will have to look into the contingent well that we can understand what the area looks like. As I said earlier, we have 32 blocks in the equatorial margin huge potential to explore this new frontier. That's what happened with the Campos Basin, the equatorial margin definitely needs wells to be drilled that we can accurately assess its potential. The existing potential that we've assessed, thinking about the Suriname and Guyana Ghana wells, have been very positive.

Speaker #1: But there are still 500 meters to go to reach the reservoir, and this is one that we expect will provide a lot of, well, a lot of oil.

Speaker #1: But if not, we will have to look into the contingent wells so that we can understand what the area looks like. As I said earlier, we have 32 blocks in the Equatorial Margin and huge potential to explore this new frontier.

Speaker #1: That's what happened with the Campos Basin and the Equatorial Margin. We definitely need wells to be drilled so that we can accurately assess its potential.

Speaker #1: The existing potential that we've assessed , thinking about the Suriname and Guyana and Guyana wells have been very positive . So we're now anxiously awaiting for the end of the more the end of the month when we expect to have that .

Sylvia dos Anjos: We're now anxiously waiting for the end of the month when we expect to have that well. As I said, this is the eighth and last phase of the well drilling to ensure safety. Alto de Cabo Frio Central, this is an area that we're still assessing alongside our partners. This is an area where we have a few challenges because of the high content of oil that we have to return to the federal government. We need a very deep assessment, which is what we're doing right now with Alto de Cabo Frio Central. Thank you, Sylvia. Thank you, Magda, and thank you, Rodrigo, for your question. Our next question comes from Vicente Falanga with Bradesco BBI. Vicente, please go ahead. Thank you, Magda and Petrobras team. The company has been very vocal on the media with regards to investments that obviously have been discussed already.

Speaker #1: Well , as I said , this is the eighth and last phase of the . Well . The well drilling to ensure safety and also the Cabo Frio Central .

Speaker #1: This is an area that we're still assessing alongside our partners. This is an area where we have a few challenges because of the high content of oil that we have to return to the federal government.

Speaker #1: So we need a very , very deep assessment , which is what we're doing right now . With central . Thank you . Sylvia .

Speaker #1: Thank you . Magda , and thank you , Rodrigo , for your question . Our next question comes from Vicente Falanga with Bradesco BB .

Speaker #1: Vicente, please go ahead. Thank you. Magda and Petrobras team, the company has been very vocal in the media with regards to investments that, obviously, have already been discussed.

Speaker #1: But in addition to Africa, the Mexican Gulf, and Latin America, recently we've also read about new metals and the assessment of the Jupiter Basin, with the potential for offshore exploration.

Vicente Falanga: In addition to Africa, the Mexican Gulf, and Latin America, recently, we've also read about rare metals and assessment of the Júpiter Basin with the potential offshore exploration. How much do you plan to invest in that segment? I understand that rare metals sort of escape the company's main focus. I just wanted to understand a little bit about that side. I think I can start. Indeed, the company has been growing and improving production. We've been focusing on the company's operational side. We've also looked at new opportunities at the same time, and every potential opportunity the company may seize to generate value to its shareholders. Everything that comes up in that sense, we have been looking into. We currently have no commitment in terms of investing in what you mentioned. We have made no commitment in that sense.

Speaker #1: How much do you plan to invest in that segment? I understand that rare metals sort of escape the company's main focus, so I just wanted to understand a little bit about that side. I think I can start, indeed. The company has been growing and improving production.

Speaker #1: We've been focusing on the company's operational side, but we've also looked at new opportunities at the same time. And every potential opportunity, the company may cease to generate value to its shareholders.

Speaker #1: And everything that comes out and comes up in that sense, we have been looking into. We currently have no commitment in terms of investing in what you mentioned.

Speaker #1: We have made no commitment in that sense. These are only opportunities that we've been discussing, looking into, and assessing, both domestically and internationally.

Fernando Sabbi Melgarejo: These are only opportunities that we've been discussing and looking into and assessing both domestically and internationally. You mentioned Mexico. There's a very positive institutional aspect that may produce benefits for us in the future. It's important to remember that any investment we make will have to be approved by the company's governance, which will assess every remaining assessment. We use BRL 50,000 flat throughout the process. We need to assess its economic feasibility. It has to fit our ambitions, which has to have a good fit. Thank you, Fernando, and thank you, Vicente, for your question. Our next and last question will come from Caio Ribeiro with Bank of America. Caio, please go ahead. Good afternoon, everyone, and thank you for the opportunity. I have a question about capital allocation, more specifically with regards to M&A.

Speaker #1: You mentioned Mexico. There's a very positive institutional aspect that may produce benefits for us in the future, but it's important to remember that any investment we make will have to be approved by the company's governance, which will assess every remaining assessment. We use $50,000 flat throughout the process.

Speaker #1: We need to assess its economic feasibility , and it has to fit our ambitions , which has to be very it has to have a good fit .

Speaker #1: So thank you , Fernando . Thank you , Vicente , for your question . Our next and last question will come from Caio Ribeiro with Bank of America .

Speaker #1: Caio , please go ahead Good afternoon , everyone , and thank you for the opportunity . I have a question about capital allocation .

Speaker #1: More specifically with regards to M&A . I wonder if you could add some color to what your priorities will look like with regards to going back to licensing and fuel or moving into ethanol , or even purchasing the mature EP refinery , if you could also talk a little bit about the timing of these decisions , when should we expect them to be made ?

Caio Ribeiro: I wonder if you could add some color to what your priorities will look like with regards to going back to licensing and fuel, or moving into ethanol or even purchasing the Mataripe Refinery. If you could also talk a little bit about the timing of these decisions, when should we expect them to be made? Also, the timing for assessments and where it stands today. All of that would be very helpful. Thank you. I can start. If anyone finds it necessary, you can add to my answer. Well, we remain on track with what's in our strategic planning. That's the driver of our decision-making process. Obviously, we are building. Other things may add to what we're doing if we understand that could be positive for bondholders.

Speaker #1: Also , the timing for assessments and where it stands today . All of that would be very helpful . Thank you . I can start , and if anyone finds it necessary , you can add to my answer .

Speaker #1: Well , we remain on track with what's in our strategic planning . That's our the driver of our decision making process . Obviously , we are building and other things may add to what we're doing if we understand that could be positive for bondholders in terms of position .

Fernando Sabbi Melgarejo: In terms of position, we have the non-compete with Vibra, and this will be honored in full, maybe we can discuss that later and evolve if need be. We have an ambition when it comes to distribution, which is not on the retail side, but rather on the B2B side. We have a few projects in that sense, and they have been progressing well. What we're seeing, we find very positive. As for Mataripe, as we said, there's due diligence in place. We have no news in that sense, negotiations have not moved forward so far. As usual, if anything comes up, we will communicate to the market in due time. Well, I can talk specifically about ethanol. The topic is moving forward. As Magarejo said, it's still a priority within our business plan.

Speaker #1: We have the non-compete with Fibra, and this would be honored in full. Maybe we can discuss that later and evolve if need be.

Speaker #1: We have an ambition when it comes to distribution, which is not on the retail side, but rather on the B2B side.

Speaker #1: We have a few projects in that sense , and they have been progressing well . And what we're seeing , we find very positive .

Speaker #1: As for , as we said , there's due diligence in place . We have no news in that sense . And negotiations have not moved forward .

Speaker #1: So far . But as usual , if anything comes up , we will communicate to the market in due time . Well , I can talk specifically about ethanol .

Speaker #1: The topic is moving forward as Muguruza said , it's still a priority within our business plan . We understand this is a priority segment and Brazil has maturity in terms of technology and public policy , but negotiations are still ongoing and in due time we will be communicating any development , respecting the confidentiality and the sensitive aspect involved in negotiations .

Angélica Garcia Cobas Laureano: We understand this is a priority segment. Brazil has maturity in terms of technology and public policy. Negotiations are still ongoing, and in due time, we will be communicating any development, respecting the confidentiality and the sensitive aspect involved in negotiations. In terms of the transfer of energy, this is something we have been looking very closely into. Yeah, it's also interesting to talk about that the distribution of fuel and LPG will always be our goal, and will reinforce the strategy to move closer to the market. Whenever possible, obviously, all impediments being removed, we will come back to the market with opportune news. Thank you so much, Caio, for your question, Fernando, Angélica, Magda, for your answer. We would like to thank everyone for joining us.

Speaker #1: But in terms of the transfer of energy, this is something we have been looking very closely into. Yeah, it's also interesting to talk about that.

Speaker #1: The distribution of fuel and LG P will always be our goal and will reinforce a strategy to move closer to the market . So whenever possible , obviously all impediments being removed , we will come back to the market with opportune news .

Speaker #1: Thank you so much for your question, Fernando and Angelica, and Magda for your answer. We would like to thank everyone for joining us.

Speaker #1: This concludes our question and answer session. Any additional questions may be sent to our Investor Relations team. I will now hand it over to Petrobras President Magda Chambriard for closing remarks.

Eduardo De Nardi Ros: This concludes our question and answer session. Any additional question may be sent to our investor relations team. I will now hand it over to Petrobras' President, Magda Chambriard, for her closing remarks. President, please go ahead. Well, reiterating what we said before, Petrobras' performance has been very professional, and guided by capital discipline, attention to our projects and our deposits, as well as our assets, so as to always maximize value with operational efficiency, respect to health and safety regulations. That's what's guided the technical board of Petrobras and its advisory board as well, with the purpose of delivering to our bondholders, whether in the private or the public side, also guided by capital discipline. Rest assured, that will remain our policy. Thank you, and I hope to see you by delivering equally satisfying results next quarter. Thank you. Thank you, Magda.

Speaker #1: President , please go ahead Well , read a reiterating what we said before . Petrobras is performance has been very professional And guided by capital discipline , attention to our projects and our deposits as well as our assets .

Speaker #1: So as to always maximize value with operational efficiency, with respect to health and safety regulations. And that's what's guided the Technical Board of Petrobras.

Speaker #1: And its Advisory Board as well, with the purpose of delivering to our bondholders, whether in the private or the public side, also guided by capital discipline. Rest assured, that will remain our policy.

Speaker #1: Thank you . And I hope to see you by delivering equally satisfying results next quarter . Thank you . Thank you . Magda , a recording of this conference will be available for replay online .

Eduardo De Nardi Ros: A recording of this conference will be available for replay online. Good afternoon, and thank you. Have a great day.

Speaker #1: So good afternoon and .