Petrobras Financial Results 1Q15 in USD

Petrobras Financial Results 1Q15 in USD 

1Q15 Financial Report (USD)

PBR 1Q15 results

1Q15 Financial Statements (USD)

PBR 1Q15 US$ Income

Rio de Janeiro – May 15, 2015 – (A free translation of the original in Portuguese). Petrobras announces today its consolidated results for the 1Q-2015 reviewed by independent auditors, stated in millions of Reais, prepared in accordance with International Financial Reporting Standards – IFRS issued by the International Accounting Standards Board – IASB.
Consolidated net income attributable to the shareholders of Petrobras and Adjusted EBITDA in the 1Q-2015 were R$ 5,330 million and R$ 21,518 million, respectively.

 Key events

R$ million
Jan-Mar
2015	2014	2015 x 2014 (%)		4Q-2014	1Q15 X 4Q14 (%)
5,330	5,393	(1)	Consolidated net income (loss)  attributable to the shareholders of Petrobras	(26,600)	120
2,803	2,531	11	Total domestic and international crude oil and natural gas production (Mbbl/d)	2,799	–
21,518	14,349	50	Adjusted EBITDA	20,057	7

The Company reported net income of R$ 5,330 million in the 1Q-2015, mainly due to the following events compared to the 4Q-2014:

•    Diesel (5%) and gasoline (3%) price increases on November 7, 2014;
•    Lower cost of sales due to decreased crude oil and oil product import costs and volumes;
•    Lower export revenues, affected by a decrease in international crude oil prices (average Brent prices decreased by 29% in the 1Q-2015 compared to the 4Q-2014);
•    Decreased domestic oil product sales (10%) due to the seasonal consumption and lower economic activity;
•    R$ 5,621 million net finance expense in the 1Q-2015;
•    The Company reached a monthly average crude oil production record level of 672 thousand barrels per day in the pre-salt layer in the first quarter of 2015 (on April 11, 2015 the Company reached a crude oil production record level of 800 thousand barrels per day at the pre-salt layer); and
•    Production start-up of P-61 platform in Papa-Terra field in the Campos Basin and of the early production system in Búzios field (Santos Basin), as well as the production start-up of Hadrian South field in ultra-deep waters of the Gulf of Mexico.

In the 1Q-2015, a 20.8% depreciation of the Real against the U.S. dollar affected our consolidated statement of income, shareholders’ equity and indicators. However, this effect did not materially impact our net cash flows, as set forth below: 

Consolidated statement of income, shareholders’ equity and indicators items	R$ million
Consolidated statement of income (revenues, costs, operating expenses and finance expense)	1,426 decrease
Cash and cash equivalents held abroad	9,788 increase
Debt denominated in foreign currency	55,110 increase
Cash flow hedge accounting (shareholders’ equity)	18,137 decrease
Net debt/Adjusted EBITDA ratio	0.64X increase
Leverage	4.5pp increase