Rio de Janeiro – August 10, 2017 – SECOND QUARTER OF 2017 RESULTS – Derived from consolidated interim financial information reviewed by independent auditors, prepared in accordance with International Financial Reporting Standards – IFRS.

Net income
R$ 4,765 billion

2.791 Mbbl/d

Adjusted EBITDA
R$ 44,348 million

Main financial highlights

  • Net Income of R$ 4,765 million in 1H-2017, compared to a loss of R$ 876 million in 1H-2016, as a result of:
    • Increase of R$ 9,554 million in export revenues due to higher volume and oil prices;
    • Gain of R$ 6,977 million due to the sale of participation in Nova Transportadora do Sudeste (NTS);
    • Reduction of 68% in exploratory costs and 16% in sales, general and administrative expenses;
    • Reduction of 7% in oil products sales in the domestic market and lower import expenses;
    • Expenses with adherence to Tax Settlement Programs (R$ 6,234 million);
    • Higher production taxes due to a higher oil price
    • Provision for losses with receivables related to Vitória 10.000 drillship (R$ 818 million).
  • Net income of 2Q-2017 remained in the same level in relation to 2Q-2016, reflecting the lower oil products margins, the reduction in the sales volume and the lower operating expenses.
  • Rise of 6% of the Adjusted EBITDA* to R$ 44,348 million in 1H-2017, reflecting lower operational expenses and import costs. Adjusted EBITDA Margin* was 33% in 1H-2017
  • In 1H-2017, Free Cash Flow* reached R$ 22,722 million, 70% higher than 1H-2016. This result reflects the combination of improvement in generation and reduction in investments. Free Cash Flow* in 2Q-2017 was positive for the ninth quarter in a row.
  • Gross debt decreased 2%, from R$ 385,784 million as of December 31, 2016 to R$ 376,587 million and Net Debt* decreased 6%, from R$ 314,120 million as of December 31, 2016 to R$ 295,300 million as of June 30, 2017.
  • In dollars, the decrease was of 7% (US$ 7,118 million) in Net Debt*, from US$ 96,381 million as of December 31, 2016 to US$ 89.263 million as of June 30, 2017. In addition, the liquidity management led to a weighted average maturity of outstanding debt to increase from 7.46 years as of December 31, 2016 to 7.88 years as of June 30, 2017.
  • Reduction of the ratio between Net Debt* and LTM Adjusted EBITDA*, from 3.54 as of December 31, 2016 to 3.23 as of June 30, 2017. During the same period, Leverage* decreased from 55% to 53%.
  • Petrobras employees as of June 30, 2017 were 63,152, a decrease of 18% compared to June 30, 2016, due to the voluntary separation incentive plan.


Main operating highlights

  • Total crude oil and natural gas production reached 2,791 thousand boed in 1S-2017, being 2,671 thousand boed in Brazil, 6% higher than 1H-2016.
  • In 2Q-2017, the FPSO P-66 started its operations in the Lula-South area, in the pre-salt of Santos basin and, in June, a record of operated production of crude oil and natural gas in the pre-salt area, of 1,686 thousand boed, was achieved. Furthermore, there were fewer expenses related to rig idleness.
  • In 1H-2017, output of domestic oil products decreased by 7% when compared to 1H-2016, to 1,805 thousand bpd. Domestic oil product sales decreased 7% to 1,943 thousand bpd.
  • The Company sustained its position of net exporter, with a balance of 401 thousand bpd in 1H-2017 (vs. 62 thousand bpd in 1H-2016) due to the increase in exports of 48% and reduction in imports of 25%, when compared to 1H-2016.
  • Contributed to the decrease in the import volumes in 1H-2017, the higher share of domestic crude in the processed feedstock and of domestic natural gas in the sales mix.

See Attachements


PBR 2Q financial report

PBR 2Q2017 Interim Financial statements

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