Rio de Janeiro – March 15, 2018 – FINANCIAL REPORT FOURTH QUARTER OF 2017 RESULTS – Derived from consolidated interim financial information audited by independent auditors, prepared in accordance with International Financial Reporting Standards – IFRS.
Loss
R$ 446 million
Production
2.767 mil boed
Adjusted EBITDA
R$ 76.557 million
- Results
Petrobras reported a loss of R$ 446 million in 2017, determined by the following factors:
- class action Agreement in the USA, in the amount of R$ 11,198 million; and
- Adhesion to Brazilian federal settlement programs, totaling R$ 10,433 million.
Compared to 2016, there was an improvement in the operating profit due to the following factors:
- Higher net exports of oil at higher prices;
- Reduced personnel costs;
- Lower expenses with dry wells and equipment idleness;
- Gain from the sale of NTS in 2Q-2017; and
- Lower impairment and depreciation of assets.
Excluding the class action agreement, the Company would have presented net income of R$ 7,089 million.
Free Cash Flow* remained positive for the eleventh consecutive quarter, reaching R$ 44,064 million in 2017, 6% higher than the previous year. This result reflects the reduction in investments.
- Metric – Net Debt / Adjusted EBITDA
Net debt* reached R$ 280,752 million or US$ 84,871 million, representing a decrease of 11% and 12% respectively, compared to 2016. In addition, liability management made it possible to increase the average duration of 7.46 years to 8.62 years, simultaneously with the reduction of the average rate of 6.2% p.a. to 6.1% p.a..
Adjusted EBITDA* decreased by 14% in 2017 to R$ 76,557 million and the Adjusted EBITDA Margin* was 27%, due to the above mentioned factors (class action agreement and Brazilian federal settlement agreements).
In view of that, the net debt to Adjusted EBITDA** ratio reached 3.67 in 12/31/2017, after having reached 3.16 as of 09/30/2017. Leverage* decreased from 55% to 51% in the year.
Excluding the class action effect, Adjusted EBITDA would be R$ 87,755 million and the net debt/Adjusted EBITDA index would reach 3.20.
- Operating highlights
Total crude oil and natural gas production reached 2,767 thousand barrels of oil equivalent per day (boed) in 2017, being 2,655 thousand boed in Brazil, stable compared to 2016.
Output of domestic oil products in Brazil decreased by 5% while its sales dropped 6% when compared to 2016, to 1,800 thousand bpd and 1,940 thousand bpd respectively.
The Company sustained the position of net exporter, with 361 thousand bpd of balance in 2017 (vs. 167 thousand bpd in 2016), due to the increase in exports of 32% and reduction in imports of 18%.
See Press Conference Announcement PBR Press conference 2017 results
See Financial Reports PBR 4Q 2017 financial report PBR 4Q 2017 Reconcilliation tables
PBR 4Q 2017 USD financial report
Brazil Energy Insight 
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