Petrobras : Financial Perfomance 1Q22 (R$)

Petrobras financial performance in 1Q22

Rio de Janeiro, 05 de maio de 2022 - Once again we delivered solid quarterly results. "These financial results are due to the fact that today we have a healthy Petrobras, which has reduced its debt burden, invests responsibly and operates efficiently. Therefore, it is possible to generate this compelling return to our shareholders, especially the Brazilian society, represented by the State. This generates economic development throughout the production chain, generating jobs, income and tax revenues for the country. In this quarter, we have paid out to the federal government, states and municipalities the equivalent of 1.5 times our net income. Petrobras is distributing the fruits of its value generation to the Brazilian population", underlines Petrobras' CEO, José Mauro Coelho.

According to the CFO, Rodrigo Araujo Alves, "First quarter results show that we stand firm in our trajectory of transforming Petrobras into a much more solid company that invests responsibly and is able to create and distribute wealth to our shareholders and to society. In this regard, we approved shareholder remuneration of R$ 3.72 per common and preferred share. Additionally, in the first quarter alone, we collected a total of R$ 69.9 billion in taxes and government take, an increase of 95% compared to the first quarter of last year".

Main achievements:

•  Recurring EBITDA of US$ 15.1 billion (+35% vs 4Q21) and free cash flow of US$ 7.9 billion (+6% vs 4Q21).

•  Net debt of US$ 40.1 billion (-16% vs 4Q21), resulting in a Net Debt/EBITDA ratio of 0.8x.

•  Recurring net income of US$ 8.4 billion (+96% vs 4Q21).

•  Strong cash generation, solid liquidity and the outlook for sustainable results allowed the Company to approve shareholder remuneration in the amount of R$ 3.72 per outstanding common and preferred share.

This report may contain forward-looking statements. Such forward-looking statements only reflect expectations of the Company's managers regarding future economic conditions, as well as the Company's performance, financial performance and results, among others. The terms "anticipates", "believes", "expects", "predicts", "intends", "plans", "projects", "objective", "should", and similar terms, which evidently involve risks and uncertainties that may or may not be anticipated by the Company and therefore are not guarantees of future results of the Company's operations that may differ from current expectations. The readers should not rely exclusively on any forward-looking statement contained herein. The Company does not undertake any responsibility to update the presentations and forecasts in the light of new information or its future developments, and the figures reported for 1Q22 onwards are estimates or targets. These indicators do not have standardized meanings and may not be comparable to indicators with a similar description used by others. We provide these indicators because we use them as measures of company performance; they should not be considered in isolation or as a substitute for other financial metrics that have been disclosed in accordance with BR GAAP or IFRS. See definitions of Free Cash Flow, Adjusted EBITDA and Net Indebtedness in the Glossary and their reconciliations in the Liquidity and Capital Resources sections, Reconciliation of Adjusted EBITDA and Net Indebtedness. Consolidated accounting information audited by independent auditors in accordance with international accounting standards (IFRS).

Main items

Table 1 - Main items*

Variation (%)
R$ million	1Q22	4Q21	1Q21	1Q22 X 4Q21	1Q22 X 1Q21
Sales revenues	141,641	134,190	86,174	5.6	64.4

Gross profit

Operating expenses (11,184)

(1,341) (11,148) 734.0 0.3

74,766 44,561

Consolidated net income (loss) attributable to the shareholders of Petrobras

59,047 31,504

44,033

• 26.6 69.8

  1,167

• 41.4 3718.4

  Recurring consolidated net income (loss) attributable to the shareholders of Petrobras * 43,347

  23,795 1,412 82.2 2969.9

  Net cash provided by operating activities

  Recurring adjusted EBITDA* 78,214

  62,466 47,698 25.2 64.0

  40,070 48,949 70,966

  Free cash flow 40,486

  41,986 31,089 (3.6) 30.2

  Adjusted EBITDA

  Gross debt (US$ million)

  52,824 77,710 58,554

  51,392 62,945 58,743

• 2.8 31.8

• 23.5 58.8

• (0.3) (17.5)

  Net debt (US$ million) 40,072

  47,626 58,424 (15.9) (31.4)

  0.81

  Net debt/LTM Adjusted EBITDA ratio **

  1.09

  2.03

• (25.7) (60.1)

Average commercial selling rate for U.S. dollar

5.23

5.58 5.47 (6.3) (4.4)

101.40

Brent crude (US$/bbl)

79.73 0.54

60.90 27.2 66.5

Domestic basic oil by-products price (R$/bbl) 544.25

485.84 350.07 12.0 55.5

TRI (total recordable injuries per million men-hour frequency rate)

0.51

0.62 (5.6) (17.7)

ROCE (Return on Capital Employed) 9.9%

7.8% 2.8% 2.1 p.p. 7.1 p.p.

* See reconciliation of Recurring net income and Adjusted EBITDA in the Special Items section.

* *Ratio calculated in USD

Consolidated results

Net revenues

Table 2 - Net revenues by products

R$ million

1Q22

Diesel Gasoline

38,875

• 37,688 25,161

  3.1

  54.5

  19,404

• 21,009 11,068

  (7.6)

  75.3

  Liquefied petroleum gas (LPG) Jet fuel

  6,172

• 6,495 5,018

  5,176

• 4,552 2,328

  Naphtha

  3,182

• 2,681 1,812

  18.7

  75.6

  Fuel oil (including bunker fuel) Other oil products

  1,911

• 2,824 1,829

  (32.3)

  4.5

  Subtotal Oil Products Natural gas

  6,650 81,370

• 6,589 4,815

0.9

81,838

52,031

(0.6)

38.1 56.4

9,028

Crude oil

9,147

Renewables and nitrogen products Revenues from non-exercised rights Electricity

343

• 10,035 5,678

• 3,339 290

• 31 74

  1006.5

  363.5

  539

• 242 365

  122.7

  47.7

  1,553

• 4,064 2,970

  (61.8)

  (47.7)

  Services, agency and others Total domestic market Exports

  1,239 103,219

• 1,338 876

(7.4)

100,887

62,284

2.3

41.4 65.7

35,110

• 30,093 22,800

  16.7

  54.0

  Crude oil

  25,043

• 18,442 15,462

  35.8

  62.0

  Fuel oil (including bunker fuel)

  9,865

• 10,359 6,598

  (4.8)

  49.5

  Other oil products and other products

  202

• 1,292 740

  (84.4)

  (72.7)

  Sales abroad (*)

  Total foreign market Total

  3,312 38,422 141,641

• 3,210 1,090

3.2

203.9

33,303 134,190

23,890 86,174

15.4 5.6

60.8 64.4

(*) Sales revenues from operations outside of Brazil, including trading and excluding exports

In 1Q22, net revenue grew 6% compared to 4Q21, mainly due to the 27% increase in Brent prices, higher volumes of oil sales in the domestic market due to the sale of the Mataripe refinery (RLAM), which was concluded on November 30, 2021, and the higher volume of oil exports due to the growth in oil production and the realization of ongoing exports from 4Q21. These effects were partially offset by the lower volume of oil product sales in the domestic market mainly due to seasonal aspects and the divestment of RLAM, impacting sales of diesel, gasoline and LPG in 1Q22.

There was also a drop in electricity revenues, given the lower thermoelectric generation due to the improvement in hydrological conditions in 1Q22.

In terms of the breakdown of revenues in the domestic market, diesel and gasoline continued to be the main products, together accounting for 72% of oil products domestic sales in 1Q22.

Graph 1 - Oil products sales revenues 1Q22 - domestic market

Other 8%

In 1Q22, we kept on diversifying our global customer base for our oil exports. Búzios remained the main stream in our export basket. Recently added streams, Atapu and Sepia, have increased their relevance in exports. In 4Q21, we traded the first export of the Sépia stream and in 1Q22 new cargoes of this stream were traded and new clients were added to our portfolio.

In 1Q22, we had the following distribution of export destinations:

Table 3 - Volumes of oil exports

Country	1Q22	4Q21	1Q21
China	56%	38%	38%

14%

Europe

14%

28%

Latam

9%

23%

17%

Caribbean

4%

2%

2%

9% 16%

Usa

Asia (Ex China)

Cost of goods gold

3% 14%

Table 5 - Cost of goods sold

Table 4 - Volume of oil products exports

Country Singapore USA

1Q22 4Q21 1Q21

11% 4%

Virgin Islands Others

59% 28% 5% 9%

84% 10% 4% 2%

75% 15% 0% 10%

Variation (%)

R$ million

Acquisitions

Crude oil imports Oil products imports Natural gas imports Production

Crude oil

Production taxes

Other costs

Oil products Natural gas

Production taxes

Other costs

Services, electricity, operations abroad and others Total

(2,443) (1,693) (1,753) (3,557) (8,848) (2,047)

(66,875) (75,143) (42,141)

(24,207)

(8,387)

(39,111)

(32,198)

(31,042)

(12,838)

(22.0)

88.6

(11,746)

(3,969)

(35,253)

(27,256)

(29,547)

(21,572)

(28.6)

111.3

10.9

43.5

(16,562)

(15,709)

(8,922)

(15,636)

(13,838)

(12,650)

(3,260)

(3,025)

(3,265)

7.8

(0.2)

(3,653)

(2,681)

(2,419)

36.3

51.0

(1,210)

(988)

(666)

22.5

81.7

44.3

39.4

(11.0)

(59.8)

73.8 58.7